If you had to buy a box of staple pins, you would walk into the nearest stationary store, ask the salesperson for staple pins and buy what he gives you without too much thought.
This is typical of any small purchase. Sometimes, we may go the extent of asking for a couple of brands and weighing the features and prices before we make our purchase. But we wouldn’t be very picky about whom we bought it from.
The whole scenario changes drastically when you are going to buy something more expensive, say a PC or a Washing Machine or a car.
Unfortunately for us, we have all, at some time or the other in our lives, bought things that didn’t quite live up to their promises. We felt cheated after using them and the bad feeling resurfaced every time we had to use the product. Naturally, we want to avoid a repeat of that!
When a prospect comes to you for the first time, he is very suspicious. He needs your product, but isn’t sure if you’re going to cheat him. It is up to you to convince him to overcome his suspicions and do business with you.
How can you do that?
Reduce or remove his risk in doing business with you. Make him an offer that makes it seem as if he has almost no risk in buying your product.
You may think that’s easier said than done. But here are some ideas that will actually reduce or remove your prospect’s risk.
- Installment Payments: When you give them the option of paying in easy installments, your prospects feel they have the option to stop payment at any time if they are dissatisfied with the product. That way, they lose only a small amount of the money and their risk is reduced.
- Longer Guarantees: If you offer a guarantee that is longer than your competitor’s it shows your confidence in your product and helps your prospect perceive that their risk is reduced.
- Free Samples: If you can offer a free sample of your product, your prospect has already tried it out. Then he will be able to make an informed decision about whether the product is right for him or no. There is no risk.
- Initially Free: You can offer a part of your product free. When they prospect is convinced that it offers him the best value, he can buy the rest of it. For Eg. Let’s say you have a package of 15 software programs. Offer the first two free and then have the prospect buy the rest.
- Post Dated Cheques: Tell your prospect that they can take your product home. They give you a post dated cheque. They try the product and like it and then you get paid. If they feel the product didn’t live up to their expectations, al they have to do is stop the payment.
- Money Back Guarantee: This is the simplest to understand. You tell your prospect that if they are dissatisfied with your product, they return it and get their money back. No risk at all.
When the risk is reversed in this way, its easier for the prospect to overcome his initial inhibitions and do business with you.
Most prospect want to buy. That’s why they’re in the market in the first place. But they also have a fear of being conned. Make your risk reversal offer so exciting that it is easy for them to do business with you.