Should your dojo offer a guarantee?

If you were to ask me that question, I'd say, "It depends."

If you answered "yes" to all of the above questions, then yes - you should absolutely offer a guarantee.

Why School Owners Balk At Guarantees - And Why They Shouldn't

Yet, typically when I tell school owners they should offer a guarantee and they balk, it's due to that last question. They fear that people will take advantage of their guarantee and rip them off.

Honestly, I can only think of two occasions in twenty years of running schools when that occurred. And as I recall, on both occasions I was more than happy to refund a few hundred bucks so I could be rid of those customers.

The fact is, most people aren't going to take advantage of you and use your guarantee to receive services and then request a refund. Sure, it can happen - but if it does, isn't it better to not have that sort of person in your studio in the first place?

But Let's Turn This On Its Head...

Still, I think we're looking at this the wrong way, because we're thinking about what could go wrong if we OFFER a guarantee. But to really consider the impact of offering a guarantee in your dojo, we should consider what will happen if you DON'T offer a guarantee.

See, it's quite a commitment for most people to sign a contract that says they are committed to paying for something for the next year or so, even if they decide they want to stop.

Also, even if they don't have to sign an agreement, they're still paying for a month of classes up front, plus a registration fee, without really knowing if it's something they'll want to pursue.

So, this puts ALL the risk on the consumer. And, knowing how skeptical consumers are these days, don't you think that it puts them even more on guard when they have to risk their money (and time) with no guarantee of a positive outcome?

Sure it does. So, not having a guarantee might mean that you lose a percentage of the students that potentially would have enrolled in your dojo. Maybe 5%, maybe 10%, maybe 20%... but still, it adds up over time.

Not having a guarantee in place might mean that you lose tens of thousands of potential business each and every year. All for the sake of possibly being "ripped off" for a few hundred bucks.

So should you offer a guarantee, from a financial standpoint? Of course. But there's another very good reason to offer a guarantee.

Guarantees, Standing Behind Your Service, And Building Tribes

Very few service-oriented businesses actually stand behind their service these days. From restaurants to service contractors, from physicians to chiropractors, you'll be hard-pressed to find someone who actually stands behind whatever promises they make in their advertising that convinced you to seek out their services.

In fact, I am often shocked when a service-oriented business stands behind their advertising claims. And I'm just as shocked when they do something wrong and simply make it right at their expense. 

I think most consumers feel the same way. They know that these days, if they purchase a service and are unhappy with the results, chances are good that they'll be out the money they spent on that service.

Yet, if you read positive online reviews of companies and brands who have strong tribes, you'll find that they say three things time and time again: