August 30, 2022

Why Bother Offering Guarantees?

Offering some sort of guarantee to your potential clients is a great way to immediately differentiate yourself from your competitors and justify premium pricing.

But what should you guarantee?

When thinking about offering a guarantee, you need to ask yourself three questions.

1) What do they fear?—Different clients are going to perceive different sorts of risk from your offer. You could make any one of these fears the focus of your guarantee.

2) What is the remedy?—What do you promise to do to “make it right” if the thing that your buyer is afraid of does come to pass and they decide to invoke your guarantee?

3) How simple is it?—How easy is it for a client to understand and invoke your guarantee?

If your guarantee rates highly on all three of these dimensions with a given buyer, then it will be very persuasive, and you will be able to justify much higher fees than your competitors who do not offer a similar guarantee.



P.S. The Pricing Seminar returns for its tenth session in September.

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I hope to see you there!