Ken,
In my opinion you are focusing on the wrong thing. Look at Tony Robbins...you can buy any of his products and you get a 30 day MB guarantee. If you forget the serial refunders and focus on creating more sales I believe it will make you even more money.

The best thing to do is test it, and I bet that your increased sales from offering a guarantee would far outweigh any refunds from serial refunders.

Ken, I've been through this, I know how you feel.

We started our business with a no refund policy because we thought it would be abused. In the end, if someone wanted a refund, they will find a way to make your life hell until they get it... so I think you should test it.

As for us, sales went up and we've never looked back since giving a 100% money back guarantee. Plus, giving a refund on something like DVDs, lets them know how confident you are. Expecially when your very open about it.

Also, we switched our wording a little since 100% Money Back Guarantee is so played out. We made it more human. Here it is:


Here Is My Promise To You

Backed by my 60-Day Money-Back Guarantee, you risk absolutely nothing. Give it a try and if you're not totally thrilled and braiding and weaving hair in a very short amount of time - simply send the DVDs back for a quick and courteous refund.

But chances are, you'll never have to use my guarantee... just take a look at what people are saying. I've listed some of their comments to the left for you to read.



So... we not only HAVE the guarantee, but we use our genuine guarantee as a reenforcement of how confident we are and how happy they will be once they order.

Another thing is, we really don't want them keeping the DVDs if they aren't happy. This may sound wierd, but I would rather them just send it back if they don't like it. Our refund rate varies from 3-4%. But, I know we're doing a lot more sales because of it due to the risk reversal and the comfort level we provide the customer.

Hope this helps, and if you decide to try it, let us know how it works out.

Ken,

I completely understand your position from an emotional point of view.

However, let's look at it logically.

1)Someone who buys and pays for the DVD can still copy it and give the copy to a friend rather than asking for a refund. By not giving a moneyback guarantee, have you prevented this? No.

2)Someone who buys and pays for the DVD and then does not ask for a refund because of your policy but wants one because they think it stinks - are you really better off keeping that person's money?

I think a good question to ask would be to try to find out what is the refund rate from someone who sells similar DVDs at a similar price to a similar audience. If that's an acceptable rate to you, you may be much better off from a customer relations point of view by offering a refund to someone who is not satisfied.

Not having a moneyback guarantee can in some cases communicate arrogance that is off-putting to some customers.

And not having a moneyback guarantee can keep you from finding out about some legitimate and fixable complaints of some customers.

Just some things to take into consideration.

Marcia Yudkin

Ken,
I don't know if you've tried this, but here's something you might want to do:

For those who decide to keep the DVD past the return policy date, offer them something extra. How about future updates on the DVD?

On your order page offer to give them any and all future updates on your product (all they pay is a small shipping/handling charge).

If you ever decide to offer them a product update, this might be a great opportunity for you to upsell them on another product.

What would you have to lose if they are paying you for the shipping/handling?

Think retainage - think upsell.

If they decide they don't like your DVD and decide to send it back (within a predetermined time period), then they don't get this little "bonus".

My guess is that if they really do like it, they will keep it to it to insure of future updates of the product.

I haven't tested this, so take my comments with a grain of sugar...

... Just something to consider.

I say give it a try and see if it helps with refunds.

Ken,

If your refund rate is under 1%, I wouldn't lose sleep over any potential returns. I'd probably switch my policy to a one-year or "lifetime" guarantee and drop my refund rate even lower.

Let's face it, the buyer can decide to be a jerk no matter what your policies are. They could decide to contact their credit card company for a charge-back. Then you have to waste your time proving that they did indeed order your product.

I'd tie some ongoing contuity program to ownership of the DVD program. I.E. Access to web-based updates, or members-only site. They ask for a refund and ship the DVD back, they lose access to the perks.

Every so often, I take my return products and do a "scratch and dent" sale to that specific list. I've managed to sell out the inventory everytime.

My 2 cents,

Mike

Ken,

I gotta agree with Mike here.

1% refund rate. Geez, I'd Kill For That!

Heck, I'm fine with a 10% refund rate on a $97 product,
and a 7% refund rate with an $798 product.

I never lose sleep over the scammers, or serial refunders.

I make my guarantee so liberal it's basically asking people
to rip me off. However, I know it creates way more sales
which is the only thing I really focus on.

Bro, if your refund rate is 1% you got nothing to lose.

You obviously have a great product and I'd be giving it
the best guarantee possible to convince more people to
fork out some change.

I'm sure you would make more money even if your
refund rate shot up to 5%. You'd probably convert
twice as many long term customers vs refunders.

Ken,

Maintaining a less than 1% return rate has probably cost you more money than you could count.

If you aren't up around 5% then you really aren't pushing your product hard enough.

I have the same issue with a software cd. It states in the ad "no refunds once package is open. What I have done with some customers is given them a credit towards another of my products.

I haven't solved this one myself. I see a lot of people "ripping off" the software and sending it back.

The internet seems to be a haven for the "freebiers" and rippoff mavens"

Just my opinion

Frank

Like Jason said, I wouldn't worry about the "serial refunders". So what. They come from a scarcity mindset, and I won't let them affect me one way or the other.

And Michael is making a killer point. Chances are, your refund policy is likely costing you sales. And, given your market, I'm sure it's a LOT of sales.

I remember Gary Halbert doing the math on a liberal refund policy. Sure, refunds went up, but when you factor in the additional sales... it's a no-brainer and far offsets the additional refunds. In fact, he feels that if you don't get 10% refunds, you aren't selling hard enough!

Good luck on your decision. I always feel that I make decisions best if I think of MY RESULTS more than somebody scamming a refund. They'll get thiers in the end!



Cheers,

Mike