Risk. It’s one of the most monumental sales roadblocks you can possibly encounter. Consumers are especially budget-conscious these days, and there’s no way they will consider a product or service that places the burden of risk on their shoulders.

Risk Reversal is simply transferring the weight of purchase or investment risk from the potential buyer back to the seller. While this may sound problematic for the seller, in practice it is a sound principle when backed up by a superior product or service. Offering a solid guarantee for your product or service can alleviate consumer fears and provide an incredible boost in sales.

A well thought out guarantee tailored to the needs and concerns of your specific customer base provides more incentives for purchase than you might imagine.

Consider a would-be computer owner who discovers both Computer Store A and Technology Store B have the device he would like to purchase, and the price for his desired computer is similar at both stores.

How does he decide which store to purchase from?

He, like other consumers, fears purchasing an item that doesn’t perform as he expected, is a bad fit for his needs, or is simply an inferior product. He is concerned about committing to a product that could result in the loss of a great deal of his money.

Fortunately, Computer Store A offers a guarantee that includes repairs and even money back if the consumer is ultimately dissatisfied with the product. This makes the purchase an easy choice for our would-be computer owner. Without the risk of losing money or being stuck with a product he can’t use or doesn’t like, the would-be computer owner develops confidence in his purchase. In fact, he chooses to purchase extras and peripheral items from the same store!

Of course, you may be concerned that offering guarantees will ultimately harm your business because you are responsible for the risk. Nothing could be further from the truth!

Studies have shown that while consumers are enticed by guarantees, very very few ever take a business up on their guarantee offer. Business with strong products only stand to benefit from well-crafted guarantees.

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