The POSITweet question for this week was - should you provide goods/services for free as a loss leader or should you charge for everything?
The answer is - it depends on what industry you're in.
For service providers, it is extremely difficult to create value by providing free services. Clients tend to value services that they pay for. Period. Providing a service for free tends to communicate to others that you do not value your own work. Why should they, when you do not?
Also for services, clients who want freebies tend to be the worst clients. Because they have nothing invested in actually implementing your services/advice, they tend to question it or outright not take it. Then, they turn around and blame you for providing bad service.
Freebie service seekers also tend not to understand what they're getting for nothing. The charge comes from getting someone to give them something for free, not from actually receiving something of value.
For products (and this can include web applications), it is easier to build value by providing freebies. It may be the only way to get someone to try your great new thing.
Providing products for free does require a thoughtful strategy. Who are you targeting? How many loyal customers do you hope to generate? What are the budgetary limits for free items? How can your product gain advertising plugs for free products provided? With the right assistance, these questions can be answered quickly and easily.
Many people have become hooked on a new product they tried for free. Ever heard of Twitter?
Congratulations to Cheryl Smithem for tweeting in the answer that most resembles how we think. (We won't say the "right" answer.)
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