Risk Reversal

Posted by | August 15, 2010 | Graham Lock's Articles | No Comments

More Sales & Better Results

The greatest fear your potential clients have is getting ripped off or purchasing something that may not do what they want it do.

So How Do You Overcome This Fear?

Several years ago I owned a consumer electrical home appliance store in Melbourne called “Lock’s Sony Centre” This store specialized in high priced Sony large screen televisions and other Sony products. High priced low margin products, which we had to turn over in large numbers to be profitable. Also products that could be purchased from many other stores, so what could we do that would help us achieve more sales.

  • Firstly, our staff were trained to really qualify what our clients needs and wants were, we asked questions like, will this be the main screen for the whole family, how big is the area you are installing it in. These questions may not be relevant to your product or service, but the more questions you ask, the more chance you have of showing your client that you really do care about their needs, the more chance you have of creating a new client. Ask yourself this, have you ever done business with someone you didn’t like, so by spending a little time in establishing a relationship with your client, can only make them feel more at ease.
  • So now we have established exactly what their needs are, and have shown them our product or service and explained to them the advantages of this, and how it will fill all of their needs. This is a very important step, because once you know exactly what their needs are, you are past the halfway stage of generating the sale.
  • Now ask your client, Have we found the product or service  that will do everything you have asked for, let them respond, in 90% of cases they will say Yes, the more Yes’s we can achieve, the closer you are to achieving the sale. If they so no you haven’t, great, so let us ask what we have missed out on, as our greatest goal is to have them 110% happy with their decision.
  • Once we have achieved all of the above, you will have a client that will be feeling a lot more at ease in dealing with you.
    Very Important That All of the Above Steps are Followed. 
  • It is at this stage we will Ask For The Order, and this request can be as simple as saying something like, “Ok Mr & Mrs Smith what day and time would suit you for delivery?”. If your client still is reluctant to go ahead, try the following. 
  • It is here where many sales fall over, and it is here that Risk Reversal comes in as one of the most powerful tools in your selling kit. 
  • RISK REVERSAL OK Mr & Mrs Smith, firstly are you happy with your decision re this product or service, does it do this (ask each question individually and wait for their answer), if you have qualified correctly in the early stages of your meeting, most of their answers will be Yes, if not find out why it doesn’t suit and modify accordingly. Once we have satisfied our new friends that this product does indeed do everything they need, we then say the following. 
  • Now that you are sure of this product or service, we would like to arrange to have it to delivered and setup in your home for 7 days FREE, as this is the ideal way to really satisfy yourself that you have indeed made the correct decision.  To enable us to do this we ask that you allow us to imprint your credit card for the amount owing, this will not be charged to you at this stage. Your new product or service will then be delivered, setup etc on a day that best suits you. 
  • Right now you are probably thinking Graham has gone mad, the truth is most of my staff did think this at the time. They are firmly believed that clients would rip us off, use the product or service for a few days and then return it. The reality is, that providing you have qualified your clients correctly, the moment they have the new product or service in their home, showing it to their friends and family, the sale is completed, and you have a new client that will become a raving fan of your honesty and integrity. We make sure that there is a minimum of 2-3 calls made to the client during the 7 day period, this is done to make sure that we have made the right recommendation, and that they are happy with their decision. 
  • Seven days from delivery, and yes we do deliver it, as this also enables us to make sure that it is a correct address, we call and congratulate the client on their wise decision. At the same time, we ask if they wouldn’t mind writing a testimonial for us, as Testimonials are another way of overcoming fears.

The end result for our business was a 70% increase in sales, more contented clients than we have ever had, and all of these clients recommending their friends and families to our store.  Throughout these campaigns, we only received 2 products back, and each of these were repacked and sold at a slightly reduced margin.

So How Can You Introduce Risk Reversal Into Your Market?

Please contact me personally if you would like to see how this could be introduced into your business www.grahamlock.com.au

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