200% Guaranteed Lowest Price Pledge

As I walked through Furniture Row tonight, I noticed an interesting guarantee, which they coin the "200% Guaranteed Lowest Price Pledge."

Kinda wordy, but it got my attention.

Basically, if you buy furniture, then discover you could have gotten it for less elsewhere, they'll pay you 200% of the difference in price.

Then I got to thinking about why these outrageous guarantees actually work.

You see, they're banking on a subtle psychological quirk that works kind of like this:

1. They make an outrageous guarantee.
2. You automatically trust the guarantee because it's so bold. ("Surely they wouldn't make such a claim if it weren't true!")
3. You think, "Wow, if they're so confident, I guess I don't need to worry about personally making sure their prices are the lowest."
4. You go ahead and purchase without price shopping at all!

Interesting how an outrageous guarantee can build trust like that, isn't it? How can you make an outrageous guarantee in your business?

Comments

[Joseph Ratliff]

Ryan,

Also...

Outrageous guarantees add credibility.

A person would think...

"Man, if they are willing to guarantee their product like that, it must be good."

And then they buy it.

Joseph Ratliff
http://www.profitpartnersconsulting.com

[Barry W. Morris]

More importantly, a guarantee reduces risk. Price is never the most significant barrier, it's risk. When a guarantee, FAQ list, objection-responses, terms of offer, etc., can reduce the risk, we make it easier for the customer to way "yes. I think Furniture Row realizes this. :)