Risk reversal the key to increasing your sales - George Wells
risk reversal

Risk reversal the key to increasing your sales

risk reversal

Risk reversal increases your sales magically. 

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1) What is risk in a purchase

In any transaction, one party assumes all of the risk. It generally has always been the purchaser who assumes this risk as they are the party who is paying for your food and drinks. In doing so in good faith, they expect that what you have said about your food has been honest, factual and that the can trust the you to have their best interests at heart.

Unfortunately due to many unscrupulous restaurateurs, the general populous has learned by bitter experience that sometimes the restaurateur does not has the clients best interest at heart and as such their experience of the restaurant is less than favourable.

Because of this, the general public is wary of being ripped off and as such are risk-averse. 

Summary:

  • In a transaction one party assumes risk
  • Clients have been mis-sold by restaurants far and wide
  • Clients are wary of purchase because of this 

2) Why is risk reversal important

You have a great restaurant, you have strived to add more value and to enrich the delivery of your service, and you want to break down any barrier to sale.

To do that you must assume all of the risk of the transaction. As a producer of great great food and experience, you have nothing to lose and everything to gain from risk reversal. The reason for this is that when you assume all of the risk of the purchase you remove one of the most significant hurdles any prospective client has incoming to your restaurant and buying from you for the first time.

You are worried that assuming the risk of the purchase will lead you to the bankruptcy courts I fully understand the emotion of this. However, in my experience and that of anyone I have ever come into contact with through business when you assume the risk as the seller, sales go up. The best part of it is that sales increase always outstrips refunds if your food and service are of the highest standard. Clients are good people in the main and just want what you promised them in terms of food and experience.

You will get dissatisfied clients, you may even get some unscrupulous clients but provided you have honestly described your food offering and delivered fabulous service the amount of dissatisfied and unscrupulous clients will be minimal.

Summary:

  • You've created a great restaurant so their is no risk to you
  • Reversing the risk will increase your sales
  • Risk Reversal can be tailored to suit you budget 

3) Here's some examples of risk reversal

Risk reversal in a restaurant:-

If you are not fully satisfied that our food and experience is as we have described then let the owner / manager know and they will either sort it for you or give you a full refund no questions asked.

Your satisfaction is important to us, if you are not fully happy with the food or service then let us know and we will not only discount your meal but offer that you come back as our guest.

Summary:

  • Risk reverse your restaurant
  • Never risk the business by overcooking your risk reversal 
  • Crunch your numbers and get a strategy that works for you
  • It is crazy not to remove the risk from your client

Conclusions:

  • In any transaction one party assumes all the risk
  • Your clients have probably been mis-sold and are rightly wary of promises
  • You must create great food and service
  • Risk reversal increases sales
  • Risk reversal can be tailored to your budget

About the Author George Wells

George Wells IEng FIHE is an author, consultant and coach. Author of 107 Marketing and Lead Generation Tips to Turbocharge Your Business in 60 Days or Less. Nomad currently travelling slowly in Mexico. George is the founder of George Wells Marketing and is on a mission to simplify marketing for 10,000 business owners over the next 5 years.

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