4 ms·

The difference is uncertainty. With pizza, you know pretty well what you are going to get. With an app, 90% are crap, 9% are ok but not what you personally pref

The difference is uncertainty. With pizza, you know pretty well what you are going to get. With an app, 90% are crap, 9% are ok but not what you personally prefer, 1% are great. So, gambling $2 with a seemingly 1% chance of greatness feels like an app costs $200. The reality is not that bad. But, it's all about how it feels. On top of that, it's not even really about the money. You don't want to feel bad about getting tricked into paying for a crap app. You'd feel like a sucker. It would be frustrating. People do all kinds of mental gymnastics to avoid feeling embarrassment and frustration --to the point that it's dangerous to call out a scammer because they are likely to get geniunely indignant and angry to avoid feeling the embarrassment of their obvious lie. Procrastination to avoid possible frustration is very, very common.

hkmurakami 11y ago
I guess it's also training. We have many positive experiences of the "risk" of ordering pizza has turned out well. The number of experiences we have had to psotively reinforce app purchase positive experience is likely two orders of magnitude smaller.
- majewsky 11y ago
  Also, the benefit is more immediate. "I will enjoy this food within the next 30 minutes" is closer temporally than "I will enjoy this app over the course of the next few months or maybe even years".
coldtea 11y ago
>The difference is uncertainty. With pizza, you know pretty well what you are going to get. Two counter-arguments: People buy enticing stuff off of supermarket shelves all the time though -- things that they are not certain if they'll like them. Lots of people who have bought and generally like an app (or so they say), still complain for its price on boards, even if it's comparable to a beer. E.g. they ask why a $2.99 app isn't $0.99 etc. So it's not just "uncertainty".
50CNT 11y ago
And that's exactly why guarantees are so effective for sellers. It takes that risk off the customers shoulder, and due to the "Oh, it'd be embarrassing to refund this app, since that means I made a mistake", very few people actually go through with the guarantee. One pitch I found pretty neat goes roughly as follows. Buy <product> now, and if within (30|90|365) days you at any point feel unsatisfied with it, feel free to ask for full refund, no questions asked, and you get to keep our <marginal cost 0 infoproduct>, valued X$, as a gift from us for trying it out. Short breakdown of it. "Buy <product> now" - bog standard call to action "(30|90|365) days" - if the product is any good, longer guarantees usually reduce returns, since they give more time to grow on the product and forget the guarantee date. "feel unsatisfied" - eg. you don't even need a reason to return it "full refund" - that's pretty d'uh now, try a 110% refund for extra excitement "no questions asked" - eg. we're not going to hassle you for trying to use this. you will not feel stupid. "get to keep <infoproduct>" - even if you opt out, you get something "valued X$" - with a home made infoproduct, that value is pulled straight from the posterior, but gives a value anchor And suddenly that 3000$ product seems less risky than a 2$ app.
- username223 11y ago
  > And that's exactly why guarantees are so effective for sellers... very few people actually go through with the guarantee. Not always -- many people are shameless jerks. REI used to have a lifetime no-questions-asked return policy, but people were returning worn-out shoes and such, so they had to discontinue it.
- SyneRyder 11y ago
  Another reason to offer this money back guarantee when selling products online: you're already doing this whether you want to or not. Your customer's credit card company will usually offer a chargeback within 90 days, and then you'll cop the penalty fee for the chargeback. You may as well offer the same guarantee as the cards do, but encourage the customer to come to you instead. You'll avoid the fee and potentially get intel on what problems customers are having with your product.
- exolymph 11y ago

hkmurakami 11y ago

I guess it's also training. We have many positive experiences of the "risk" of ordering pizza has turned out well. The number of experiences we have had to psotively reinforce app purchase positive experience is likely two orders of magnitude smaller.

majewsky 11y ago
Also, the benefit is more immediate. "I will enjoy this food within the next 30 minutes" is closer temporally than "I will enjoy this app over the course of the next few months or maybe even years".

coldtea 11y ago

>The difference is uncertainty. With pizza, you know pretty well what you are going to get. Two counter-arguments: People buy enticing stuff off of supermarket shelves all the time though -- things that they are not certain if they'll like them. Lots of people who have bought and generally like an app (or so they say), still complain for its price on boards, even if it's comparable to a beer. E.g. they ask why a $2.99 app isn't $0.99 etc. So it's not just "uncertainty".

50CNT 11y ago

And that's exactly why guarantees are so effective for sellers. It takes that risk off the customers shoulder, and due to the "Oh, it'd be embarrassing to refund this app, since that means I made a mistake", very few people actually go through with the guarantee. One pitch I found pretty neat goes roughly as follows. Buy <product> now, and if within (30|90|365) days you at any point feel unsatisfied with it, feel free to ask for full refund, no questions asked, and you get to keep our <marginal cost 0 infoproduct>, valued X$, as a gift from us for trying it out. Short breakdown of it. "Buy <product> now" - bog standard call to action "(30|90|365) days" - if the product is any good, longer guarantees usually reduce returns, since they give more time to grow on the product and forget the guarantee date. "feel unsatisfied" - eg. you don't even need a reason to return it "full refund" - that's pretty d'uh now, try a 110% refund for extra excitement "no questions asked" - eg. we're not going to hassle you for trying to use this. you will not feel stupid. "get to keep <infoproduct>" - even if you opt out, you get something "valued X$" - with a home made infoproduct, that value is pulled straight from the posterior, but gives a value anchor And suddenly that 3000$ product seems less risky than a 2$ app.

username223 11y ago
> And that's exactly why guarantees are so effective for sellers... very few people actually go through with the guarantee. Not always -- many people are shameless jerks. REI used to have a lifetime no-questions-asked return policy, but people were returning worn-out shoes and such, so they had to discontinue it.
SyneRyder 11y ago
Another reason to offer this money back guarantee when selling products online: you're already doing this whether you want to or not. Your customer's credit card company will usually offer a chargeback within 90 days, and then you'll cop the penalty fee for the chargeback. You may as well offer the same guarantee as the cards do, but encourage the customer to come to you instead. You'll avoid the fee and potentially get intel on what problems customers are having with your product.
exolymph 11y ago