Quid Pro No: ‘Something for Nothing’ Customers
Alms for the non-needy?
This has been a tough couple years for salespeople in all industries–no doubt about it! But here’s another trend that’s gaining momentum: Customers who want something for nothing. It’s not just reality–it’s ACTUALITY!! In a world where you have unprecedented access to goods and services from around the globe, who can really blame them?
One of my clients, who pretty much has all his sales eggs tied up in one Fortune 100 basket, told me the purchasing department (who writes his checks) goes on retreats to learn how to squeeze its vendors! (I wonder if they fail the course if they don’t haggle over the cost of the training!)
This tactic is so preposterous. You can get all hot and bothered about it, especially because it’s usually pulled out of a hat in the “ninth inning” before the final signature is inked on the contract (sooo close you can taste victory). You gotta give the customer credit for trying. I’m sure it works some of the time.
How do you handle scenarios like this where customers want something for nothing?
My favorite response: Laugh, and then say, “Wow! That was a good one!”
What happens when someone wants something for nothing? Do you give it to them? Or do you politely decline? Here’s a suggestion.
Offer a discount.
Offering a discount is one way to entice people into buying from you. It’s a bargain between the freebie and the full sale. However, it's important to note that discounts aren't always effective. A study published in the Journal of Consumer Research found that people tend to buy products at full price because they feel they're getting a good value. So, if you decide to offer a discount, make sure you communicate why the product is worth paying full price for. Here’s another option…
Lean into it.
Do you know that Facebook has never charged its users for services, yet they’re a bajillion dollar company? Proof positive that some businesses not only survive the “era of freebies,” but actually thrive. And there’s no magic to it for these business models. Companies offering free services have been able to build valuable consumer databases that other companies will pay good money to access.
Another approach some companies take to combat the freebie epidemic is tiered pricing. Take Spotify, for example. You can listen to as many songs as you want as long as you’re willing to sit through an ad here and there. But, pay a little more, and you can say goodbye to ads.
Birchbox takes it a step further by mailing samples of their beauty products straight to their subscribers’ doors. They charge a low monthly fee to get a box of personalized samples at a fraction of the price. Then, the customer can use the online store to buy the full Monty.
Yea or nay to freebies?
It depends on your type of business and on your personality. For me? I usually just laugh, removing the need to even politely decline. But for some companies, freebies may be the right move. Or you can split the difference with a small discount so that the customer feels like they’ve won something from you. After all, sometimes people feel like they haven’t gotten a deal if they haven’t ripped off the merchant.
In the end, don’t “give away the bar,” as they say on Bar Rescue. But don’t let a juicy prospect slip through your fingers because you can’t cut a few bucks off the price.
