Increase Your Sales With Refunds

Is that even possible? If refunds are what you allow

, then you are losing sales. Perhaps would be the short-term answer. Increasing the profits for the long-term is considered as the objective of every business.

If a no refund policy is what you have, then the customers will either buy less merchandise or they will not make a purchase. These customers are reluctant to spend their money, in case the product isn't right. Yes, they could exchange it for other merchandise. But if you don't have what they currently want, then they have nothing and you have their money.

Any ideas why owners are afraid to give their money back? Three main reasons are what you can consider and the result of short-term thinking are fears.

Cash going out of the register is something owners can't stand seeing. The results will then be fewer sales for the day.

Bogus refunds are what the owner worries about. If you have proper controls, this will seldom happen. When it comes to people who take advantage of bogus refunds, they concentrate on large stores.

Too much merchandise being returned is what owners are concerned about. You could have a few customers taking advantage of this. If resalable product is what they are bringing back, then it should not be a concern.

A return policy that is favorable to the customers is what most large companies have. Spending more money are what customers are encouraged to do because of this. Unwanted merchandise can be returned and the customer is well aware of this. Outweighing the risk of bogus returns with proper controls are the increase in sales and profits.

Having a specific refund policy in place is a good idea. For example, it could be a cash refund with the original receipt and within 30 days of the purchase. The less likely you will get a return the longer the return period is. Because the customers will put the merchandise aside, they will then lose the receipt.

Considered as a huge advantage against your small competitors is your refund policy. Too many owners don't take advantage of separating themselves from the other businesses. Around the store, it would be a good idea to have several professional signs at least 8.5 x 11 with your refund policy. Using bright color paper will make this stand out even more.

Here is an example of what to put on the sign,"Refunds Gladly Made With Receipt."

The sign behind the register area could have the full details.

You must explain and make sure all of your employees understand and follow the customer friendly refund policy. With the employees on commission, there could be some resistance that needs changing. But they should be informed about how long-term the refund policy will result in increase sales and commissions. If they still don't want to follow the policy, you are better-off if they worked somewhere else.

If you want to take the first step in improving your sales and profits, then improve customer service with a friendly refund policy. Carry out polices and strategies that will increase your sales and profits long-term and take off that short-term hat.

by: Samuel Lasater

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