Guaranteeing your products is a powerful way to add value and credibility to your brand. When you guarantee your products, you send a message that your company stands behind them and that you will provide customer satisfaction at any cost. It also sends a message that you believe the quality of your product is going to stand the test of time, or at least the warranty period. In our increasingly transparent marketplace, these are compelling brand messages.
But is the cost of brand guarantee worth it?
Consider the cost of product repair versus savings in other areas. Would you save on advertising with a reputation that your products were guaranteed? How much would you save on customer retention programs? And conversely, what would it cost you in sales lost to a competing brand that did guarantee their products?
Case in Point: A Quality Traveling Bag
We do a lot of traveling, and we both suffer from APD (acute packing disorder) – ‘seems like we always bring too many clothes. Having to limit the number of bags as well as their weight challenges us. Our bags, like everyone else’s, take a real beating once we entrust them to the airlines. When they disappear behind the black flaps, they are on their own. Who knows what happens to those poor bags? At the other end of the trip, when they finally do come back through those black flaps, they are often scuffed, dented, or have missing parts. The clips, snaps, and fasteners seem to disappear. The zippers seem to get jammed after a while and the bolts seem to loosen and fall off.
Losing Loyal Customers Due to Compromised Quality
We’ve tried many luggage brands over the years. Some were made well the first time we bought them. But when we returned as loyal return customers, they had been cheapened and quickly fell apart. There are heavy-duty bags out there, but with APD, we have to take into consideration the actual weight of the bag itself. We need to use every pound and kilo to count toward our zealous over packing.
Guarantee Removes a Lot of Anxiety
So imagine our delight when our local luggage retailer introduced us to the new line of Eagle Creek upright, wheeled travel bags. We had known about the brand for years. We had their daypacks and used several of their cubical packing modules to keep similar items separate, organized and easily accessible. But now, a light-weight, well-thought-out travel bag from a brand we already respected – and a “No-Matter-What” warranty! We bought two!
When the cost of repairs gets to be more than the cost of a new bag, a guarantee removes a lot of anxiety. What the guarantee said to us was, “Don’t worry about that with this brand! We’ll fix it for free if it needs it.” It also said, “We bet this won’t need repair,” which was even more compelling.
We waited for a few trips before we wrote this piece. We wanted to see how the new bags worked out after several months of going through the black flaps. They have survived and appear to be very well made.
The brand’s investment in quality, travel design, and “No Matter What” warranty got our attention. It also improves their reputation with everyone we share our experience with (not just fellow APDs). Was all that worth the cost of the guarantee? You bet!
Who We Are
Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.
Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.
They offer their Guiding Principles for Success (GPS) & Shelf Smarts courses to help consumer product brand builders achieve success. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.
Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular business site at www.thebarefootspirit.com.
To make inquiries for keynote speaking, trainings or consulting, please contact firstname.lastname@example.org.