Business Lyceum

e-Letter
Practical Instruction in the Arts and Sciences of Making Money


Editor/Publisher:  J.F. (Jim) Straw

JANUARY 2004


 Greetings & Salutations:

This month, we are going to take a closer look at  ...

Using Guarantees to sell your products!

If you have read any of the writings of the marketing gurus, you have often been told, "To inspire faith in your product, you MUST offer a Guarantee."

Unfortunately, all too many of the marketing gurus teach you to use the guarantee as a MAJOR selling-point ... leading unwary customers into thinking that the product will overcome the customer's own personal ineptness, shortcomings, lack of ability or talent.

They usually recommend a "satisfaction" guarantee, like ...

"If you aren't completely satisfied with our product, return it within 10-days for a full, no questions asked, refund of purchase price."


That's fine if you have a product that actually requires a "review" period before the customer can be sure they actually need the product.   But, using that kind of guarantee on some products is counter-productive.

Its like using a "guarantee" as a MAJOR selling-point to sell a bicycle.

If you "guarantee" that riding your bicycle a person WILL win bicycle races, you can bet your bippy some people who don't have any legs will buy your bicycles simply because you "guarantee" they WILL win bicycle races riding it.

You'll make money from the sale - but - at what cost to your own "integrity" and the on-going "integrity" of your products or services?

In my own case, I used to offer a "satisfaction" guarantee on all of my products and services. -- Then, about 15 years ago, I had the computer spit-out all of the names and addresses of all of the people who had requested refunds under my guarantees.

Guess what?

Fully 97% of the people on the refund list had requested refunds on at least 2 of my products or services ... 50% had requested refunds on 3 or more of my products or services ... and ... 20% of them had ordered and requested refunds on "everything" I had ever offered.

Reviewing those facts, I came to the realization that those "refunders" really didn't want to learn "how" to do business, they wanted someone to give them an opportunity to rake in money without ever having to do anything. -- They didn't have any legs but they kept buying "guaranteed" bicycles ... looking for a bicycle that would ride itself and grow legs for them. -- BUT ...

If the bicycle wasn't "guaranteed," they wouldn't buy it.

That's when I quit using a "satisfaction" guarantee on my products and services. -- I don't want to lead people "without legs" to believe my bicycles will grow legs for them.

My decision to quit using a "satisfaction" guarantee also had an unexpected, wonderful result ...

There was no noticeable decline in responses - BUT - because I didn't offer a guarantee, the quality of the people who bought my products and services improved. -- They were people who were honestly and sincerely seeking the products and services I offered. -- They were the kind of people who had faith enough in themselves that they didn't need anyone to "guarantee" their success ... and they were willing to pay for the products and services they needed to achieve their goals.

Those people weren't buying a "guarantee," or trying to steal my experience by borrowing my products and services.  (That, by the way, also made my "testimonial" files grow bigger and bigger with real, dollar value earnings reports from people who have used my information to achieve successes beyond their wildest dreams.)

Then again, there are many instances where a "guarantee" is either appropriate or necessary ...

Using our example of a bicycle again. -- Rather than "guaranteeing" that your bicycles WILL win races, a "guarantee" as to the quality of the workmanship and materials would be appropriate.

That way, the buyer is "guaranteed" that they will get a bicycle that will not fall apart and, if it does, you will replace or repair it. -- If a potential customer has no legs, the guarantee will be meaningless to them because they know they can't ride the bicycle anyway.

In other instances, a "guarantee" may be necessary ... such as a size-12 dress, sold to a size-12 woman, that just doesn't look right on her because of the cut, color or style.

As always ...

ALL of the marketing gurus are right ... ALL of them are wrong.

"Guarantees" can be an important element in your sales and marketing when the "guarantee" is either appropriate or necessary to the "integrity" of your product or service - but ...

"Guarantees" intended to play upon the hopes and fears of the gullible and less-than-informed, just to "make a sale," are unconscionable. -- Those "guarantees" detract from the "integrity" of the product and mislead the unwary.

Being a marketer of quality products and services, to a "qualified" customer base, requires that you determine, from the nature of your product and the nature of your potential customers, when to use a guarantee ... what to guarantee ... how to guarantee it.

Then again, if your ad copy is "better" than your product, what are the odds the customer will ever buy anything else from you again ... even if you "guarantee" it?

Beyond that, over the past 30 years, I have found that "guarantees" used as a MAJOR selling-point doesn't really produce the kind of customers you can keep.

Think about it! -- If an ad promises ...

Get $100,000 Overnight - GUARANTEED!

... what kind of people will respond? -- You got it. -- Only the kind of people who still believe in the tooth-fairy.  They would be an easy target for another "guaranteed" hot-air sandwich, but would be less-than-worthless for a legitimate business opportunity.

Just blindly following the admonitions of any of the known marketing gurus who loudly proclaim that "every offer MUST have a Guarantee" could be more damaging than helpful to your your marketing success ... unless a "Guarantee" is either appropriate or necessary to the "integrity" of your product or service.


Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff!

Chuck Huckaby sent me this ...

"If your customers are seeking a way to distribute a press release on a free basis, this service may be of some help to "bootstrap" their business.  I'm using it for one of my articles as a test."

The Web site address is: http://www.prweb.com

Thank You, Chuck.


 Samuel Opoku needed to know ...

"I am an owner of your "How to Make a Fortune Trading Penny Stock".  I have read the entire package and feel the theory is sound, however when attempting to put it into practice as outlined I am unable to find the sort of brokers described.  All the NASDAQ brokers I have found charge a commission and some fees.  Is there a  directory of the type of brokers you describe and/or a list I can  put my name on to  receive calls from penny stock brokers?  I already have a full a few service  brokers ready to accept NASDAQ transfers.  You assistance and the strength of your  experience will be very appreciated."

Sam:

They are the same brokers you have already contacted.

When you call them to buy a specific stock ... something you found to invest in ... they charge the same commissions and fees as any other broker -- BUT ...

If you wait for them to call you about stocks they are promoting, they don't charge the commissions and fees.

When you call a broker, just ASK if they have any Penny Stocks they are currently recommending  ... give them your name, address and telephone number.  They will probably try to sell you something while they have you on the phone but don't buy any since those will be stocks you have to pay commissions and fees to buy. -- Wait for them to telephone you with the "hot" stuff ... then, follow the  method in my report.


Kendall F Smith asked ...

"What do you think of the current rage - selling info that's in the public domain?  I like the idea, but I haven't tried it (yet).  What do you suppose would be a good topic to work on?  I've been collecting cookbooks with the idea of selling recipes."

Kendall:

Selling information that is in the public domain CAN be highly profitable, but ... like  any other business ...  it  takes work to find the publications and have them reset for printing, then do the necessary marketing and advertising.

As far as what would be a good topic ... that  is  entirely dependent upon YOU.  What kind of  information do you want to sell?

NOTE:  After answering Kendall, I found out how you can uncover absolutely everything you need to know - and - learn how to find, re-package and sell public domain content as your own money making information product

Get the full story here:

PublicDomain

By the way, I know one very well known publisher who has made literally millions upon millions of dollars over the past 25 years selling nothing more than reprints of all kinds of Government publications ... publications anyone can get for free directly from the government. -- He can do it because most government publications are in the public domain simply because your tax dollars paid for them to begin with.


Matthew Muth was attacked by a naysayer ...

"I have a question. -- I am getting ready to contact manufacturers so I can begin exporting.  Of course a friend commented on how he tried exporting but that it was NOT a great thing to get into because its too expensive to ship in the U.S. and that products are made cheaper in other places.  It was discouraging to say the least.  Is it really that expensive to ship from the U.S.?"

Matt:

People who have never been able to do anything always have an excuse.

Granted, some things are made more cheaply outside the U.S. - but - there are thousands upon thousands of U.S. made products that are not made anywhere else. -- Beyond that, the "Made in U.S.A." on products still make them highly valued in other countries.

You need not worry about the  freight.  The buyer will  pay that as part of his costs. -- They are well aware of those costs and will factor them into their resale price.

Have sympathy for your friend ... a poor workman always blames his tools.


James Wilson was attached by the gurus ...

"I don't get it!  Why is it that I keep reading most of the marketing guru's say you can't make money selling anything under $100 through direct mail, but I keep seeing all kinds of mailing lists available (SRDS) for products being sold for under $100? I'm also confused when it comes to renting lists.  The guru's say if you're selling something for $50, you should never rent a list of buyers for something selling for $29.95, even though you give different advice in your mail order book. What's the real deal Jim? "

Jim:

I will give you odds that none of the "gurus" you have been reading have every made any real money in Mailorder ... as I have.  The only thing most of them have ever  sold is information about how to make money in mailorder.

If your product is good and is in demand, it can  sell for any amount and make you money - but - even a $500 product that no one wants won't make any money. -- Throughout the 1980s, my biggest  seller was a $10 club membership  ... every mailing was profitable and would be again today, if I decided to re-establish the club.

It's not how much it sells for, it is how many people want  it.

When it comes to renting mailing lists, the dollar amount  of their purchase means nothing.  The  only thing that matters is that they bought  something similar to whatever you are selling. -- People  who have  purchased one of my $10 reports are the biggest buyers of my  $100 reports.  The same goes with any other  type of product.

Now you know why I  wrote the book. "Own Your Own Mailorder Business - A More Scientific Approach!"

There is just way too much b.s. about mailorder on the market, written by people who  have never done anything but sell information  about making money in mailorder. -- A sad state of affairs.


Douglas Sangster said ...

Life is too short, not to have "Fun For Life"

It's not my cuppa tea - but - it may be yours.

Check it out at:  https://www.funforlifeclub.com/?livelifenow


Are you in the Jewelry business? -- Do you wanna be?

Here's a source of Wholesale Jewelry that will knock your socks off ... you can even make a profit selling the Jewelry on eBay.

Check it out at:

http://www.AllJewelryResellers.com


Dr. Brad Krueger wanted to know ...

"Very much enjoy your newsletter and your mail order book. -- I've just created a liquid nutritional supplement as I feel this is the next wave of nutrition.  People don't realize the majority of the tablets they are taking are just wasted money as their body never absorbs it. -- Does my website ...  http://www.flexeasy.com ... sell this fact or am I lacking information?  Also, with setting this up as a mail order business as well, where can I find all the little offline health niche newsletters to send press releases too?  Not the big magazines but the "senior health support newsletter of Timbuktu," as a fictional example."


Brad:

For the past 30+ years, the leading  directory of newsletters has been published by "Newsletter on Newsletters" -- http://www.newsletterbiz.com

I didn't get time enough to search their site but I'm sure you'll find the directory there somewhere.

Your site appears to sell your product ... that is one big plus, since most don't really do any selling.  But, the only way you'll know  if it works is if people buy from it.  If they don't, just change one thing at a time until you find something that works.

Maybe some of my gang will have some more comments about your site ... or be interested in your products.

I might even have to order some for myself ... can't hardly walk after 4 hours on a Delta flight to get to our daughter's wedding in Las Vegas and crawling (literally) in and out of those low-slung limousines; then another 4 hours on a plane coming back. -- I think I ruptured my knee.


Joe Driscoll was wondering ...

"I'm a big fan of yours, bought your mailorder course, and it works! -- What do you do when someone requests a free copy of a book or report of yours so they can do a review on it?  Do you keep the policy the same for everyone, or is it case by case?  It doesn't happen much, but it does happen."

Joe:

I am usually pretty lenient when it comes to review copies - but - I usually do it on a case by case basis ... based upon whether  or not the person  requesting the review copy supplies any kind of credentials to validate their request.


Well ... that's it for this month. -- In order to make every issue responsive to YOUR needs, please send me your questions; or tell me what sources or resources you need to build your business; or give me any thoughts you want to share with your fellow members.

Believe it or don't ... I ainít a mind-reader. -- Ifín you doesn't tell me what you need, I may never touch upon the information, sources or resources you need.

This is your publication for you to use to your benefit ... I am just your moderator.

 Until next month, keep well ...

J.F. (Jim) STRAW
Grande Panjandrum


Thoughts For The Month!

"I sit here all day trying to persuade people to do the things they ought to have sense enough to do without my persuading them." -- Harry Truman  (me, too!)


Can you stump the old master? -- Betcha can't!

Over the past 40 years (man and boy), I have made bundles of money in direct selling, service contracting, wholesale merchandising, entertainment (I was a professional Trumpet player, vocalist & Radio Announcer), freight forwarding, import/export, retail merchandising, warehousing, real estate, electronics manufacturing, finder's fees, closeout merchandising, financial brokerage, business consulting, steel fabrication, gold and coal mining, offshore banking, mailorder, writing, and publishing. -- That being the case ...

No matter what business you're in ... whether you're just starting, well on your way, or at the top of the heap ... I've probably been where you are, done what you are doing. -- So ...

Anytime you have a question about 'how' to do something in your business - or - if you have any comments about anything I've said in issues of this e-Letter; or if you want to add your 2 cents worth ... just "ask" me or "tell" me.

Send your Questions, Comments or 2 Cents Worth to ...

with "Question" - "Comment" - or, "2 Cents Worth" in the SUBJECT.

If I, personally, don't have an answer to any question you may ask, I will contact some of the professionals in your field of endeavor (I will probably know one or more personally) to get the real 'skinny' for you.

Note: If you want to ask a question anonymously just tell me so when you send in the question. -- Nobody but you and I will know who asked the question.


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