How risk reversal can grow your business?

There are two guys who sell horses.

Guy 1 – Met with a family who were interested in buying a horse. He told them, “give me R30 000, take the horse home, and at the end of the month let me know what you thought about it. If you don’t like it, bring it back and I’ll either give you another horse or else I’ll give you your money back”.

Guy 2 – He told the family, “the horse is valued at R30 000, but here’s what I recommend. I don’t want you to pay me; I want you to take this horse home. I’m going to transport it to you, I’ll bring you some hay and feed, and I’m going to bring you a brush so that your kids can brush the horse, I’m also going to show your kids how to care for this wonderful animal. I want you to keep the horse and ride it for a month, enjoy it, understand it, feed it carrots and apples and at the end of the month, if you don’t love this horse, I will collect it and you don’t owe me a cent. If you do like the horse then pay me the R30 000”.

Which guy do you think sells more horses?

These two different sales approaches describe risk reversal perfectly. If you can reduce or even totally eliminate the risk of doing business with you, then converting your prospect into a buyer becomes exponentially easier!

You make it easy for them to do business with you. If your business can remove the risk of doing business with your prospects and customers, then you will come close to winning every deal.

Right now you are thinking “this idea won’t work for my business”. Don’t be sceptical, risk reversal can work in any industry and for any business, all it takes is creative thinking. Risk reversal is creatively demonstrating that you can eliminate the risk in the mind of the customer.

Reversing risk is a brilliant differentiator and it can set you apart from your competitors. It positions you in the minds of prospects and customers as the obvious person to do business with. They simply feel that they cannot lose.

John Lloyd is a business growth strategist, award-winning marketer, speaker, trainer, columnist and author of the book Smart Thinking for Crazy Times.     

Visit John at www.brandstorm.co.za and subscribe to his free newsletter.

Do you need a speaker who will educate and inspire at your next industry conference or a trusted advisor who will increase profits, multiply sales and magnify marketplace positioning?                                                      

Contact John today – john@brandstorm.co.za

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