Economic Marketing of The Money Back Guarantee

The Money Back Guarantee promotes customer satisfaction.

It promotes 100% customer satisfaction or your money back in 30,60, or 90 days. If your product is solid, with only one defect per million this could be a good strategy; and it could provide you with a competitive advantage.

If a recall is issued by the National Highway Safety board it will bankrupt you in this strategic operation. However; automobiles do not follow this strategy, because vehicles are such a costly purchase.

As an example Mike Lindell follows this strategy at my pillow. He has little to worry about because his products are pretty solid. He uses a 30 day money back guarantee. We will talk about warranties in the next blog.