I proposed to the president of a New England ski resort that a Money Back Guarantee be field tested on non-holiday, non-weekend days in January and February.
The guarantee would be limited to equipment failure. If the resort’s equipment failed while the mountain was open, customers impacted by the failure would be eligible to request a refund if they were dissatisfied.
Equipment failure is a customer experienced defect, a relational discourager.
I proposed that the resort’s maintenance team implement a proactive preventative maintenance program to sharply reduce equipment failures, reducing the number of defects the customer’s encountered.
I proposed that the resort would be able to self-fund this guarantee by adding $1.00 to the price of every ticket sold.
In researching money back guarantees, companies (not ski resorts) that offer them can charge significantly more than competitors for the same product or service, in some cases 300% more.
Equipment failures rarely impact all of the skiers visiting a resort. Only a small portion of all the skiers on any given day would be impacted, unless equipment failures were wide spread.
I proposed that the idea be tested on non-holiday, non-weekend days to see how many customers would request their money back. Data collected would establish to the cost of the program and whether the $1.00 ticket price boost would cover the refund costs.
I proposed that the money back guarantee would give the ski resort a competitive advantage over other New England Ski Resorts.
What’s wrong with this idea?
Your thoughts will be appreciated.
#NewHampshire #NewEngland
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