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, etc.

So, the words we're going to look at today are warranty

guarantee

refund, rebate, exchange and credit. All of these look okay to you?

Okay, before we continue

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"

so be careful - guarantee, okay. So, we're going to look at these words, we're going to learn what they mean, how they're used, etc.

Well 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, 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 buy a TV, we'll start with the 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 by 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, one-year warranty and you can buy an extension.

Guarantees can also come in a one-year or like 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 cheaper somewhere else. They will then

refund the difference

So you buy something here for a thousand dollars

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 dollars back to saw 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 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

What that means is? That the manufacturer like Honda, Ford, Toyota etc.

They will send you back a thousand dollars if you buy their car.

Usually the dealer will just take that thousand 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 are because most people forget to mail and the request, so they never get their money back.

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 in 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. 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 than, you pay the difference.

But you can only trade, right? That's basically what exchange means, it's trade.

Credit is the other common policy. If they say: no refund, means, you bring back. You bought a shirt at the gap

You came home and you tried it in the mirror because it clothes look different in the store than they do at home.

So you go home, you realized, I don't like this shirt I want to take it back.

You take it back and the gaps as well

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.

These are everyday words. Get to know them. IELTS students, don't forget "u" and the guarantee. And if you're not sure exactly

the differences, check out the quiz on engVid.com.

Hopefully it'll be explained there and I'll see you again soon. Thank you