The Mother Of All Risk Reversal Strategies!

Holy Taxpayer Batman!

Did you see what Barack Camaro, the new President of GM did the other day?

He came up with a powerful risk reversal strategy, at your expense I might add, but what the hell, it’s only your money, right? By the way, did you read today that the average government worker makes 30% more than the average private worker?

Is it time for a revolution yet?

But I digress…

…back to the risk reversal thingy.

Risk reversals are one of the most powerful strategies you can use.

Many business owners confuse “guarantee” with “risk reversal”.  While they are certainly related, they are different.

I think of guarantees applying to the product or service itself. Like a 30 day guarantee against failure typically associated with any product. There is a 30 day guarantee on pretty much everything and there is nothing special about it that will induce a sale, it’s an expected benefit, at the very least. Now a 90 day, or 1 Year guarantee is special, and of course a lifetime guarantee is the ideal.

Many business owners are afraid of giving longer guarantees because they are afraid of more returns. That’s really not how it works though. If you are confident in your product or service then offer the longer guarantee.

Here’s a little secret for you. Most returns that will take place will take place within the 30 days anyway. With the longer guarantee, you will entice more people to buy your product which will more than make up for the few additional returns you may have. You attract more customers in the process which you can sell to over and over again. Tricky, eh?

Now risk reversal is – hmmmmm – let me put it this way.

You do whatever it takes to get the customer to say to himself, “I would be dumber than a tree stump if I didn’t buy this today”! You want to turn the light bulb on in his head.

Now, what did President Barack Camaro just do?

He authorized his new company, which you bought for him and are paying for, to issue a risk reversal that promises to make people’s car payments for them if they lose their job. Isn’t that just great?

Well…let me re-phrase that.

Isn’t that a terrific strategy? Try to separate yourself from the fact you’re paying for it and look at it strictly as a business strategy.

It is great… we all know people haven’t bought a new car since Moses parted the red sea. Why? Because everyone is AFRAID. They feel they have no Job Security.

Presto, Chango, sign an executive order, wave the magic wand, and suddenly, they don’t have to worry about it any more. Does this mean GM will sell more cars? Who knows, but it is a hell of strategy to remove the primary objection people are having.

Now granted, it does nothing to remove the “Crappy American Car” objection – but that’s another problem they have attempted to risk reverse also.

The “Guaranteed Trade-In Value” risk reversal…yep, that’s in there too!

Lucky us!

But, it is one damn fine selling strategy.

What can you learn from it? How can you risk reverse your product? Is the government in its almighty stupidity doing other things you as a business can take advantage of?

If you are a heating company, a seller of efficient furnaces and heating systems, you are in luck. This new cap and trade proposal adding $3,000 a year to the average cost of heating a home has the potential to make you look like a hero.

I’m sure you can figure out how a new efficient furnace will pay for itself over 3-5 years making it seem to the customer he is getting it for free!

How about an Insurance Company? Any bright insurance executives in the reading room today? How about coming up with a warranty policy you can sell to businesses that will cover their customers payments on major purchases if they lose their jobs? Seems to me, you could come up with a 1 year policy for $50-$100 per purchase based on a sliding cost scale and sell it to merchants of every type and make a killing.

We are in the job trough right now – things can’t possibly get worse, President Camaro said so.

Have no fear!

Tags: Advertising Strategies, Internet Marketing Training, Offline Marketing, Online Marketing

Tagged as: Advertising Strategies, Internet Marketing Training, Offline Marketing, Online Marketing