"Guaranteed for life!" should such marketing claims fill you with dread? |
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3rd March 2002: Discussing an expensive branded item, this *life
guarantee* was mentioned in hushed tones implying some magical value imbuing a
significant extra to an already high price. Immediate questions spring to mind
for anyone making or taking these claims, especially if they expect or are
expected to pay more ..read "guaranteed for life" below:
The first obvious question is "Whose Life?"
Imagine if your call to the warranty department to say the catch on your
product has broken after a year of normal use was met with, "sorry sir, the
product must have reached the end of its life!" But "whose life was the
guarantee for? The product, mine, my
grandmothers?"
The small print is where real meaning on guarantees or warranties are
listed.
In some sectors a regulator may take an interest in claims made about a
product or offered as a warranty or a guarantee. In many sectors the basic
requirement that the goods be "of merchantable quality" may offer an adequate
check against quality.
Simple rules always apply for buyers .
1. If it sounds to good to be
true it probably is
2. Buyer beware (Caveat Emptor)
However some simple rules should be understood for sellers as well to stop
them tying their companies into obligations they will not be willing or able to
support, or which are so unclear as to cause potential legal issues for the
company.
Consider the case of the company mentioned on a discussion on BBC Radio 5
live which, when selling kitchens, apparently made the claim:
"buy your kitchen from us and after 10 years we give you back what you paid
for it - you get to keep the kitchen."
Most people know the money will accumulate 10 years of interest. Most buyers
will have forgotten the promise so the company may not have to pay, plus the
company may have folded by then.
According to the discussion in that programme the company were relatively
responsible and had bought an insurance policy to cover their future liability.
The problem came when it appeared the policy would not cover the liability.
Apparently the parties in question now are arguing who is responsible for this
unmet future liability.
Well the marketing people that started this stupid promotion would be a good
place to start in my opinion, what a stupid claim to make.
If you want to give the impression of giving your goods away for nothing
then perhaps you had better be prepared to do just that.
What it tells people about the quality of your offering I leave up to you to
decide.
Neither BMW nor Mercedes offer such a scheme as far as I can
tell.
Simple rules apply to marketers as well:
1. Don't mislead or fall foul
of legislation.
2. Don't imply reduction in consumer rights.
3. Don't
create an unlimited liability.
4. Don't misreport profits where a future
un-met liability exists.
5. Kiss - (see
glossary)
Author: Mark Abraham mark@sticky-marketing.net
3rd March 2002.
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