You might notice that a lot of stores focus on providing good customer service – basically to enhance sales. However, customer service does not end when a purchase has been made. A money-back guarantee is also called a satisfaction guarantee. It just means that if a product or service does not satisfy a buyer, a refund of the payment is in order. This concept was first coined by Charles Darwin’s grandfather and a marketing expert, Josiah Wedgwood. Wedgwood used this concept as a way to send his products from his pottery line across Europe without solicitation.
The thing is, some people want results, while others want gratification from their purchases. At the end of the day, each consumer just wants to avoid regrets. Saying no is the best way to avoid regrets, so companies that provide guarantees are simply proving that their consumers will not regret their purchases. The ‘money-back guarantee’ concept is probably the most popular one in the world. It actually isn’t viewed as a benefit but more of a right.
Kathleen Kusak, a consumer goods writer of Forbes, said that retailers provide refunds to create trust with the consumers. It’s simply a way of saying that the consumers are not being tricked – buyers and sellers have a mutual relationship. It’s saying that customers have the opportunity to change their minds. There is, however, a risk with providing refunds due to fraudulent returns. Instead of it being a positive thing, it becomes a cost of doing business. The problem is guarantees become overused unless your products are extremely valuable or easy to return.
Based on a 2014 report, the cost is estimated to be as high as 284 billion dollars for the whole retail industry in the U.S.- with 10.8 billion coming solely from fraudulent returns. There is only so much retailers can do to stop people from intentionally abusing return policies.
Here at Palm Casual, we provide a 30-day back guarantee for every purchase our valued customers make. We do this so our consumers can test our outdoor furniture and to see if they like the feel of our products, or if their choices fit well with their outdoor living spaces. We are confident that our products are durable and comfortable enough. Get to view our wide variety of collections of outdoor furniture and don’t miss out on getting what your outdoor living space needs!