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4. By giving away a free valuable product, you create an imbalance in the relationship between the business and customer. The customer now feels indebted to you
by shawnee_ 16y ago
4. By giving away a free valuable product, you create an imbalance in the relationship between the business and customer. The customer now feels indebted to you.
Works sometimes. But other times it creates an expectation of "free" that doesn't always extend to the larger sphere.
First impressions count for a lot, so it's not always easy to decide whether to give away a mediocre product for free, or to wait until you have something you think people will pay for.
We're running into this right now at the start-up I work for. It's a bit of a challenge to convince people that we are justified in the decision to charge money for this product we previously gave away for "free".
- marquis 16y agoYes, you can't sell something people won't buy anyway. We raised our prices a year back with a little warning, and almost no complaints, on a product that we felt was worth more to the customer than they were initially paying. It was a really good decision as it's not only increased our bottom line but led to less customers paying little and expecting a lot (and much less support to deal with).