Apr 11

Give assurance @ guarantee

Provide warranty or guarantee is one way to increase the profitability of your business. Assurance is a method of enhancing the public’s trust for a purchaser.

Suppose, one day, you manage to sell your product 5 (no warranty).

But, if you guarantee (probably money back guarantee, or exchange defective products), sales of your product up to 7 products per day.

Month, your product sales increased to 60 additional products with guarantees (7-5) x30.

Typically, if the guarantee, there are customers who return your product (usually small if what you promised in your products fulfilled). Maybe a month 15 return goods received. So, roughly seen, sales increased by guarantee are 45 products a month.

If a product you receive a profit of RM50, this means that in this scenario, the monthly increase your profit is RM2, 250. Year, you will be able to increase your business profit to RM27, 000!

With the guarantee, you managed to increase your business profits as the number of buyers increases. By having quality products, the returns are less than the increase in sales. The difference here that there are opportunities to increase the profitability of your business.