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November 19, 2004


I have to have my staff turn these people away simply because there isn't enough profit in a $69 product to justify our time attempting to "close" them. I could understand if someone had questions about a $500 product or seminar - in that case there would be enough profit involved to dedicate time to selling them - but not for something costing only $69.

In addition, early on when we did provide references and answer lots of questions, we found that the refund rate with these people was excessive and each refund costs us about $30 after all is said and done. With that in mind it's a good business decision to simply ask them not to buy. Right now my refund rate is well below 1% and I'd like to keep it there.

"Not in my house. My company gets calls all day long from people who want extra guarantees, names and numbers of references, previews of my book, etc etc before they buy. Instead of catering to these people, my customer service reps are instructed to say, "I'm sorry, but we cannot provide that. If you feel that way then don't buy it." Why? Because I would lose money having my staff spend time on these people."

I understand the point you are making however, something to remain mindful of is often these types of requests (extra guarantees, names and numbers of references, previews of my book, etc.) are made from a customer looking for reasons to believe in your offer. Often these requests aren't made from a "cheap" prospect, rather they are made from a prospect needing more reasons to beleive you can deliver on the promised benftit(s) you offer.

That withstanding, your point is accurate...there are some prospects that are not not in your longterm benefit of being a customer.

Great comments Frank.

This reminds me of a former executive search trainer I had. He said that when a prospect asked for a reduced fee, longer guarantee period, etc. his response would be "I can certainly do that. Now choose which part of my service you would like me to eliminate."

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