English Vocabulary: warranty, guarantee, rebate, exchange, credit...

Adam: Hi. Welcome back to www.engvid.com. I'm Adam. Today, we're

going to look at some business words — especially used when shopping, but not

necessarily — that sometimes people are not sure the differences between or how

to use, etcetera. So, the words we're going to look at today are: "warranty",

"guarantee", "refund", "rebate", "exchange", and "credit". Okay? All of

these look okay to you? Okay, before we continue, this was a little trick; for

all you IELTS students who have to worry about spelling — any problems here? If

you noticed it, that's good. "Guarantee". Don't forget that "u"; very

important. You can lose a point on the IELTS test just for that little "u".

Okay? So, be careful. "Guarantee". Okay, so we're going to look at these words,

and we're going to learn what they mean, how they're used, etcetera. We'll start

with these two. "Warranty" and "guarantee" are sometimes confused

because people think that they're exactly the same thing, which, to a

certain degree — yeah, they are; but, to a certain degree, very different. A

"warranty" is like a "guarantee" in that it is a promise. It is usually in

writing. Okay? But this is only about products. Oops, sorry. Okay? This is

only about products. A "warranty" promises that when you buy something...

that when you buy something, everything is guaranteed; everything will be

replaced or fixed if it breaks. So, for example, the most common warranty that

people worry about is cars or electronics. Okay. So, you go into a

store, and you say... you buy a TV; we'll start with electronics. You buy a

big TV. It comes with a one-year warranty. That means that the company

that made the TV or the store will fix your TV, or give you a new TV if the TV

that you bought doesn't work or stops working. A "guarantee" is like that — is

a promise, but it could be about service, it could be about a product, it

could be about your satisfaction. Sometimes you've heard the expression:

"Satisfaction guaranteed". Many companies will say that: "Come buy in

our store; you will be satisfied. Your satisfaction is guaranteed, or your

money back." Well, what does that mean? It means that they promise you: You will

be satisfied; you will be happy with what they are doing for you. Okay? A

"warranty" — another thing to keep in mind — a "warranty" is usually within a

time frame; let's say, a one-year warranty, and you can buy an extension.

"Guarantees" can also come in a one... in a one-year, or like a some sort of

time period, but usually they are given for a much longer time. It's understood

that your product, or your service, or something is good. Okay? A lot of

companies also use the guarantee to make sure that you're happy. So, for example,

they will say: "Lowest price guaranteed." Means if you buy something

at our store, and then you see it cheaper somewhere else, they will then

refund the difference. So, you buy something here for $1,000; next week,

you see it in the advertisement for another store for $900 — the first store

will give you back $100. Usually they'll put in a little gimmick: They'll add

10%. They'll give you $110 back, just so your satisfaction is guaranteed. Okay?

I'll write that word for you, here. "Gimmick". "Gimmick" is like a trick.

It's something they do to try to make you think, like, you're special.

Sometimes it's good; sometimes it's not so good. So, let's go on.

A "refund". What is a "refund"? A "refund" is your money back. But usually

a "refund" means you give the product back; they give you your money back. Or

if you, for example, in... let's say you got a service. Somebody did a service

for you. They came, they cleaned your house. But you come home and you,

like... you see stains, and you see spots, and you see dust — you're not

very happy. You already paid, so they will give you back your money; they will

give you a "refund". Okay? It's also part of the satisfaction guaranteed

thing. A "rebate" is like a refund, except that you don't give anything

back. Really, a "rebate" is more of a discount. So, for example, when you go

buy a car — many companies offer a rebate. What that means is that the

manufacturer — like Honda, Ford, Toyota, Hyundai, etcetera — they will send you

back $1,000 if you buy their car. Usually the dealer will just take that

1,000 off your car purchase price, and the Hyundai or Ford will just send them

the money. So, it's like a refund, but it's more like a discount. And usually

you have to mail something to the company, and then they send you the

money. The reason people don't really trust rebates is because most people

forget to mail in the request, so they never get their money back. Okay? So,

it's also... it's a little bit of a gimmick as well. Be careful about that.

A lot of stores... when you go shopping at a store, like let's say you go to The

Gap, or you go to Best Buy, or any of the big box stores — you buy... a big

box store, by the way, a big store looks the same any city you go to. Okay? They

have a policy. They say: "No refunds". That means if you buy something and then

a week later you decide you don't like it anymore; you want to give it back —

they say: "Yeah, no problem; we'll take it back, but we won't give you your

money. We will let you exchange it" means you can take something else that

has the same value or less. And if it costs more, then you pay the difference.

But you can only trade. Right? That's basically what "exchange" means, is

trade. "Credit" is the other common policy. If they say: "No refund" means

you bring back your... you bought a shirt at The Gap, you came home, you

tried it on in the mirror, because clothes look different in the store than

they do at home. Right? So, you go home, you realize: "I don't like this shirt; I

want to take it back." You take it back, and The Gap says: "Well, you know...

we're not going to give you a refund. What we will do is give you store

credit" means if you bought a shirt for $100 — "Here's $100, but you have to use

it in our store." That's like credit. So, if you understand credit card — it's

the same idea. It's money that you can use for something else in their store.

Okay? These are everyday words; get to know them. IELTS students — don't forget

the "u" in the "guarantee". And if you're not sure exactly the differences,

check out the quiz on www.engvid.com; hopefully, it'll be explained there. And

I'll see you again soon. Thank you.