For the last 20 years, I have had only one carry on suitcase. This is not exactly true; I have actually had three of them but only purchased one as a result of the lifetime warranty provide by Victorinox.
They have a flexible lifetime warranty policy that has made me a fan forever. If through normal wear and tear, there is damage to the suitcase, they will fix it or replace it. I have now done this twice. Each time I sent back the suitcase and they sent me a new one! As a result, when it has come time to buy new suitcases, I only buy Victorinox (and tell this story often).
Can your company offer a lifetime warranty? Your first knee jerk reaction is probably “that’s too expensive for my business”. I believe you can’t afford not to have one.
For example, I sell my product for $300 and my cost of goods sold is $100. I can replace that product for the customer 3 times and still come out fairly even. But in the process of replacing that product, I have created a fan, not just a customer. As a result, I am almost guaranteed their business on any similar products they purchase in the future. More importantly, they will tell everyone (and most post favorable reviews) about their experience so when anyone they know needs to purchase that product, there is a high probability they will get it from my company.
Too many small businesses look at the profit on a single transaction. It is critical to look at the customer’s lifetime value (LTV). While your company may only make $100 or less off this first purchase, what is the total long term value of the customer? If you have a fan, the customer will buy from you again and bring other potential buyers with them. They will tell everyone they know how much they love your product and that is the best way to ensure future buyers. Appropriately enough, this is not the first time I have written about my carry on bag by Victorinox.
