THU AUG 25 05

		Gonzo Guarantees. Matthew Smith is so sure his $50 work shoes will prevent on-the-job injuries that he'll pay up to $5,000 in "medical expenses and workers' comp costs" if anyone gets hurt, reports Dee Gill in Inc. (Sep 05). That may sound a little crazy, but Matthew's guarantee actually has been the key to his company's success over the past ten years. What Matthew figured out was that even though employers didn't care much where their employees bought their work shoes, they cared deeply "about preventing injuries and workers' compensation claims." Believing that his shoe really did prevent slip injuries, Matthew "began promising managers that if a worker slipped while wearing his shoes," he'd "help pay the claim" -- up to $5,000, provided the shoes were purchased via a payroll deduction plan. It's a concept some call "'risk-reversal marketing,' and it's a lot different from simply refunding the purchase price. The idea is to think about what a potential customer's biggest fear is about doing business with you, and assume some of that risk yourself." Ten years later, Matthew's company, Shoes For Crews, shoesforcrews.com, counts "nine of the 10 largest restaurant chains in the country" as its customers, and is a $100 million company with 160 employees. Yes, Shoes For Crews has "honored hundreds of claims," over the years, but as Matthew points out: "Paying $15,000 a year on a $2 million account is nothing." Kurt Leisure of Cheesecake Factory is one of Matthew's happy customers -- not only because of guarantee but because "the shoes ... have helped the chain cut slip accidents 87 percent over five years." For Matthew Smith, meanwhile, paying any claims "is almost worth it to hear the shocked gratitude in his clients' voices when he honors the promise. Tim Manners, editor