Why I Gave Away 8,000 Skis (And Only Got 8 Back)
"Ski the ski three times. Don't like it? Bring it back for a brand-new pair."
My employees thought I'd lost my mind.
They envisioned thousands of skis coming back. Massive losses. Business disaster.
First year results:
- 8,000 skis sold (25% increase)
- 8 skis returned
- 0.1% return rate
The Problem I Solved:
Customers didn't know if the ski some "hot shot" salesperson recommended was right for them until they actually tried it.
The risk was all on the customer's shoulders.
My guarantee shifted that risk to me.
Why Risk Reversal Works:
Customers want great experiences, not to "put one over" on business owners. When you remove their risk, decision-making becomes easier.
My competition wouldn't offer guarantees "in a million years." This differentiation drove massive revenue growth.
The Strategic Framework:
- Identify your customer's biggest fear about buying from you
- Design a guarantee that eliminates that specific fear
- Make the guarantee specific and believable
- Communicate it prominently in all marketing
Business Efficiency Through Trust:
When customers trust your guarantee, they:
- Buy faster with less deliberation
- Pay premium prices for reduced risk
- Refer others based on confidence
- Return as repeat customers
Risk Reversal Examples:
Service businesses: "If you don't see measurable improvement in 90 days, we'll refund your investment and work an additional 30 days free."
Restaurants: "If your meal isn't perfect, we'll remake it immediately and comp your entire table."
Consultants: "If our strategy doesn't increase your qualified leads by 50% in 90 days, we'll refund everything and refer you to someone who can help."
The Counter-Intuitive Truth:
The stronger your guarantee, the fewer people use it.
Confident guarantees attract quality customers who appreciate the risk removal and rarely abuse the policy.
Financial Performance Impact:
Strong risk reversal strategies improve:
- Conversion rates (easier decisions)
- Profit margins (premium pricing)
- Customer satisfaction (exceeded expectations)
- Cash flow management (faster sales cycles)
When you take the risk off customer shoulders, you make it easier for them to say yes.
What guarantee could transform your business optimization?