| Spend a dollar to make $500? We ordered a course on marketing from Melvin Powers. The course cost me $500 plus shipping. After I ordered it, I had second thoughts about the purchase. It came just a few days later. We all have customers. Knowing how they react and think can help our business tremendously. So I’m telling you this as a customer. I wanted the shipment to be late. Why? Because then I would have an excuse to send it back. But no!, they had to ruin my plan by giving me fast shipping. When the box came, I opened it, hoping to find something missing, so I would then have an excuse to send it back for a refund. So I went through the box, looked at everything on the packing list, and.... I got a gift. The gift was just a free book. I’m sure that the book was one that was self-published. The cost couldn’t have been more than a dollar. But there it was. A personalized note stuck to the book said "Claude, as I was filling your order, I thought you might enjoy reading this book. Enjoy, Melvin". It was hand written. So I did what many other customers would do; I put the book on my bookshelf, put the marketing course on a shelf, and promised myself that I might still send it back "eventually". This is now years later. We recently moved and I found that gift book. Now I know a lot more about marketing, and see the wisdom of including the book. Here are the marketing lessons involved: Many sales you make are just barely made, subject to quick decision reversals. Fast service, quick delivery, or an immediate thank you note will soften the pain of them parting with money. A gift delivered immediately after purchase dampens the desire to cancel, and separates you from your competitors. Your cost of the gift bears almost no relation to the value in the customer’s eyes. The personalized note makes this a gift from a friend. Very difficult to now send it back. Plus, if you did get a refund, would you also send back the free gift? And a refund averted is the same as a new sale, at almost no marketing cost.
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