Why Rent To Reward?

Great Companies Give Guarantees

Guarantees - Good or Bad?

Bert Miller

Tuesday, June 9, 2015

Returning from a trip I was reading several investment companies blogs. These blogs can be very informative with good tips and information. One blog that perplexed me stated that “guarantees” where a sign of inexperienced companies not knowing there worth or trying to hide or disguise bad homes where repairs had not been performed. We are in agreement there are many companies where this statement applies. However, there are a few companies that go beyond the expected.

Comparing companies who supposedly know their value and worth to their client’s vs companies who know their value and worth to their clients and guarantee their product we can find the true answer.

Do your due diligence. What level of rehab was performed on the property? What level of service do you really need? Am I unnecessarily overpaying for marketing and overhead I do not need. Many companies will overload you with statistics and pie charts that hide the fact you are paying thousands more than the same quality house on the same street. So if we strip away the fancy marketing and unnecessary overhead, compare the level of rehab (have a home inspection done) is getting a guarantee or warranty bad? Great companies like Chevrolet and Ford give warranties. Why? They have confidence in their product and put their money behind their product. They also realize no matter what the quality of workmanship or the number of inspections someone will have a problem.  Great companies know their product and know their value to their clients and put their money behind their product. Stating all guaranties are bad sounds like a way to hid from your responsibilities if something goes wrong.

A fable I heard several years ago may apply to this situation.

In the early days or the west there was a well respected owner of a general store. Every time a customer came in he quoted a bible verse. A cowboy came in looking for a blanket for his horse.  The store owner strolled over to a pile of blankets and dusted off the top of the first blanket. He told the cowboy here is a fine blanket for $5. The cowboy stated. Sir I have a fine horse and want a really good blanket. The store owner dug deeper into the pile of horse blankets and pull another from the pile stating this blanket is $10. The cowboy says you don’t understand I want a really top of the line blanket for my horse. The store owner went to the bottom of the pile rubbed his hand of the horse blanket and gently folded it over his arm softly caressing the blanket. This one is the top horse blanket I have in the store and it is $20. The cowboy stated now that is what I’m talking about I’ll take it. After the cowboy left one person asked? Are all the blankets in that pile the same? The store owner answered all the blankets are the same. Everyone was wondering what the verse the store owner would say. Then the store owner quoted. He came unto me a stranger and I took him in.

The moral behind the fable. No matter how well respected the company do your own investigation and don’t let slick marketing and presentation have you paying more for the same product. Also, everything else being equal get a guarantee or warranty because there is nothing better than a good beginning.

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Guarantees - Good or Bad?
Property Renovation
Memphis Growth