Customers, especially the first timers, who are unfamiliar with the product or service on the line have many questions mot especially on the quality, utility and satisfaction they can get out of purchasing the product. They have greater tendencies of doubting the capacity of the product to cater to the needs of the buyer. An early marketing tool that helps boost the sales of the merchant plus answering the problem of the buyers-that is by offering them a sort of relief if the product doesn’t give them want they want.
The 18th century entrepreneur by the name Josiah Wedgewood invented his marketing tool where customers can get refund if they find the products not suitable for them. He used to sell pottery products and took advantage of the marketing tool to send offers to rich clients in European Countries.
The strategy was later on adapted by sales pioneers in US to benefit the customers of owning the products.
Importance of Money back guarantee today
According to Peter Gehr, Money back guarantee gives the buyer a sense of security. Purchasing the product with money back guarantee is actually doing a trial for free, if you enjoy the product, that’s when you have to pay for it. People are subjective. What is good for someone may not be for others. It raises sales on the part of the merchandiser but at the same time incurs liabilities out of practicing it.
For Michel Fortin, it is risk reversal method where a greater risk is placed upon the seller then on the buyer. It shortens buying decision and addresses the fears a customer have. Sometime, offer that are too good to be true tend to raise questions so to ease the questions, might as well let them try the goods. Basically, more than removing the fear form the customer, it is to lift the confidence of the customers that the product will satisfy the customer.
Fatcow’s money back guarantee
Anticipating the concerns of the clients is Fatcow’s reason in putting up the money back guarantee policy. They claim to be a good web host but just in case, you see yourself unsatisfied with their services, you may cancel the plan at your discretion and be guaranteed money back on all your hosting fees within 30 days. When you cancel a plan, you have to inform the support team of fatcow to handle your refunds.
- Web Hosting fees for the first 30 days of your consumption, less:
- $35 early cancellation fee which is reasonable enough as the opening of your online presence cost Fatcow time and expenses too.
- If your plan includes a free domain name, you will be charged additional $15 if you choose to keep the domain. You can still use the domain and transfer to other web hosts. But if you do not want the domain name, fatcow will take possession of it without any fees.
- Other applicable taxes directly attributable to the plan for compliance purposes.
You are entitled to a full refund but not including the:
- Registration fees
- Set-up fees
- Additional services purchased during the hosting period.
- And other add ons.
Money back guarantee of Fatcow is only open for credit card payers as they anticipate the costs of processing refunds for other payments methods. Also, the term is good for only 30 days, which means cancellation beyond the 30-day period is not subject to money back anymore. Hence, you will be charged with all fees and accrued fees up to the effectiveness of the plan.