Estimated reading time: 13 minutes
Get to know the ins and outs of money-back guarantees. Find out how businesses use them as a powerful marketing tool.
Whenever I see that a company offers me my money back for a product, they have my attention.
Can you recall a time when you made a purchase that didn’t meet your expectations?
I have, and the first thing that comes to mind is that I want my money back.
Although many companies will refund a customer, there are money-back guarantee policies consumers should be aware of.
Many consumers pay no attention to the fine print or read the product information and miss out.
It’s far easier to give something away, trash it or sell it than to take advantage of getting money back.
Today I want to talk about what exactly is a money-back guarantee marketing tool for businesses.
I also want to touch on what you’ll need to get money back and the importance of reading the fine print.
Money-Back Guarantee
What is a money-back guarantee?
A money-back guarantee is a motivation for customers to buy an item feeling safe to return it.
I consider a money-back guarantee the gold standard of marketing to consumers.
However, if you don’t follow the guidelines, you will miss out on getting your money back.
For example, a money-back guarantee may read on the back of a ketchup bottle.
An example of a typical money-back guarantee may read like the following two promises below.
“We love our product so much that we know you will too. If you are unsatisfied with your purchase, return it to the store within 14 days for a full refund.”
“Money-back guarantee: no questions will be asked if you are 100% unsatisfied with our product.”
You may also encounter a money-back guarantee for online shopping, such as on Amazon Canada.
We’ve returned loads of products purchased from Amazon Canada using their return policy.
Remember that there almost always is a window of opportunity to claim a money-back guarantee.
How To Claim Money Back From A Retailer
There are pros and cons to claiming a money-back guarantee, so it’s essential to consider if it’s worth it.
For example, if you purchase a pack of batteries for $2.99 and on the back, the company offers a money-back guarantee.
However, you need to return the batteries to the post for your refund.
- Is it worth the hassle to get a money-back guarantee?
- How much time and gas will go into getting your money back?
- Do you still have the product receipt?
- What are the rules listed for a money-back guarantee?
- Are you still in the window of opportunity to return a product?
Years ago, I wrote a blog post about whether customers would return food to a grocery store.
Amazingly, not that many people would take the time to do that, and others didn’t even question it.
The good news is that if you call a grocery store to tell them that a product is not good, they will accept it back.
I’ve asked if I could bring the product for a refund during our next grocery shop the following week.
This was at Zehrs, and customer service told me not to worry about returning the food to get the receipt.
That was for bananas, so it may be different if you purchase large items or those you can freeze, come in a can, box, carton, or jar.
However, if customer service told me that I had to bring the bananas back in 7 days or even 14, I’d decline to get the money-back guarantee.
If there’s no other reason to go to the grocery store, I won’t, especially for $2 of bananas.
It would cost me more time and gas to return those bananas, and I’d be out more than the $2.
By the way, the bananas were yellow but challenging, which is why I wanted to return them.
Customer Satisfaction
I can’t speak for everyone, but when I save money to buy something our family needs or want to try a new product, a money-back guarantee makes me feel satisfied with making the purchase.
As a consumer, I feel comfortable making a purchase, knowing I can get my money back if need be.
I believe this is the way it should be. However, some companies offer no guarantee.
If you have the receipt, you should be able to return it to the store where you purchased the item.
Return Policy vs. Money-Back Guarantee
A return policy and a money-back guarantee are two types of customer satisfaction marketing.
For example;
Customer satisfaction with a money-back guarantee by the manufacturer and often paid by them directly.
A return policy at a grocery store or any retail store means that they will give you your money back at the store level.
That means that you don’t have to send away the item you don’t want as you may with a money-back guarantee system.
An advantage of the money-back guarantee for the manufacturer is that more people tend to buy their products.
Money Back vs. In-Store Credit
We shop at second-hand stores because we are a thrifty couple and like to save money.
Whether we shop at The Goodwill or Value Village, any returns with the receipt must be completed in 14 days.
However, you won’t get your money back, but you will get an in-store credit that needs to be used that day.
That’s how it has always been for us upon returning items to thrift stores in our area.
We are okay with that type of return policy since we know that we will find something else to purchase.
For example, a customer buys a shirt from Value Village for their child, and when they get home and try it on them, it doesn’t fit.
Return the shirt with the receipt for your in-store credit. No questions asked.
Always know what the return policy is at every store you plan to shop to understand your options.
Warranty vs. Money-Back Guarantee
A warranty is for a product that may need repairs, such as a computer, laptop, or vacuum.
You might have a computer that won’t turn on, and the warranty may cover a repair.
A money-back guarantee is free, revolving around customer satisfaction, products, and service.
Yesterday, we purchased an upright freezer from Rona, and there was an option for an extended warranty.
The downside was that we had to pay for the extended warranty, which is peace of mind for customers.
You can read the full Rona returns and refund policy, but at the very bottom, in small print, read what it says.
Rona Hassle-Free Returns: Save Your Receipt
If you are not 100% satisfied with your product for any reason, return it in the 90 days following your purchase, in its original condition and packaging, with your original receipt for a refund, exchange, or store credit.
Some exceptions and conditions apply
However, the original freezer purchase does come with a standard 2-year warranty.
Some credit cards also offer an additional year of warranty to entice customers to make purchases on their credit cards.
Our PC Financial MasterCard offers an extended warranty when you use it to make a purchase.
For purchases made on or after August 1st, 2017, Certificate of Insurance for Purchase Assurance & Extended Warranty.
With a warranty, you must read all the paperwork with your purchase.
The cards and instruction manual comes at the bottom of a box.
Read those because you must register your product first to be eligible for the standard warranty.
At the store level, they should offer a money-back guarantee for, let’s say, a washing machine if it doesn’t work.
They may also send a repair person to your home to troubleshoot and fix the issue.
They will take it away if they can’t rectify the problem following the store return policy with a receipt.
If you don’t have a truck, you may or may not have to pay for them hauling it back to a store.
They may also offer you another washer or in-store credit.
Reading the fine print booklets and cards that come with a product is critical.
Most often, companies will have a statement on the product box or attached to it so you can read it before you buy it.
Get Your Money Back From Amazon Canada
Another example was when Mrs. CBB purchased a package of two fast chargers from Amazon Canada.
After one month, one of the charging chords stopped working, so she messaged the seller on Amazon.
The company wanted her to describe the problem and shipped her a new package.
Often, a product is defective, but you like the quality, so go straight to the seller first.
Although a buyer wants to take advantage of a money-back guarantee on Amazon, every purchase has a time frame.
We had to return two inflatable swimming pools this summer because they leaked.
Amazon paid the postage for the return; however, we had to package the product and go to the post office.
It takes time, but Amazon automatically refunds the money once Canada Post scans the return.
Look at the photo below for the Ketone Meter, and you’ll notice the buyer has until August 15, 2021, to return it.
The downfall is that you have to pay to ship it back unless the product arrived damaged, defective, wrong product or missing parts.
Purchase With Confidence
Lastly, when making a purchase, no matter what it is, do it with confidence but understand the risks.
Not every company offers a money-back policy, so you risk paying for something you can’t use.
The plus side is that you can sell the product but likely take a loss.
You might read an ad that states, “My loss is your gain
- Check stores for their refund policies
- Read the box or item you want to buy to see if there is a money-back guarantee.
- Know the timeline for returning a product, and don’t miss it.
- Always keep the boxes or packaging of items that could need to be returned.
Overall, consumers want a level of satisfaction that must be met or given their money back.
Discussion: Have you ever used a money-back guarantee service?
Please, I’d love it if you could share your experiences below.
Mr. CBB
Recent CBB Posts That You May Have Missed
Below is a recap of the blog posts published in the past week.
- How I Made My First $100 Blogging At Canadian Budget Binder
- 8 Blogging Mistakes That Cost Me Lost Income
- How To Use A Detailed Budget Spreadsheet
- Keto Zucchini Cake with Sugar-Free Buttercream Icing
- How Our Money Mindset Has Changed (June Networth Update)
If you’re on Pinterest, follow my Pinterest Social Media Account. Let’s PIN together.
Mr.CBB’s Thoughts and Quotes
After watching a documentary last night, I was thinking about being humble and happy.
It was titled Poverty Through a Child’s Eyes in the UK, and not only was it hard to watch its reality, but so many children suffer in poverty situations.
What stood out the most was either the parents or the children always stayed humble and happy.
We often take too much for granted, and they’d take what we have in a heartbeat.
Frugal Recipe Idea
Lyuba, who shares her recipe creations on her blog “Will Cook For Smiles,” had me smiling at her Cheddar Ranch Chicken Burgers.
The list of ingredients to make her burger is fresh, and that’s the way it should be.
You can find ranch seasoning mix on Amazon Canada by Club House for $1.67.
Chicken Burger Patties
- 2 lbs ground chicken
- 1 egg
- 1/2 cup plain bread crumbs
- 1 oz ranch seasoning mix
- 3 garlic cloves smashed and minced
- 1/2 cup finely diced onion
- 1/2 cup finely shredded cheddar cheese
I’ve made extra juicy avocado chicken burgers before, which was a massive hit for Mrs. CBB and I.
I like to switch things up with my recipes, and I think we’ll try this Cheddar Ranch Chicken Burger recipe.
Plus, our new freezer is coming in a week, and we need to eat down the freezer and fast.
Landscape And Garden Tip Of The Week
I am so excited to have found a way to DIY a Verticle Trellis to share with you.
My father-in-law used an old deck shade frame to grow beans and hang bags of flowers on.
This step-by-step tutorial at The Contractors Castle shows how they grow green beans on the verticle trellis.
Have you ever created a verticle trellis? What did you grow on it?
Saturday Search Term Giggles
These are keywords that readers typed into their search engine and landed on this blog.
I get quite a few of these daily and pick some of the best to feature here.
- Can salt go bad? – I don’t think so, but it can get complex.
- How to build a budget with Lego – That’s an exciting start to budgeting, perhaps with the kids.
- Cheap wheels – I’m not sure if the person was looking for a cheap car or tires.
- Mr. CBB is Sexy – Hahahaha, Hahaha, if you say so.
- Retirement gifts for disliked employees – Haha, come on now, don’t be mean.
That’s all for this Saturday, CBB Friends.
Mr. CBB