Why do people not take up offers for FREE NEWSLETTERS? or FREE SEMINARS? or even FREE INITIAL CONSULTATION?
It's because "free" refers to price, and price is not the same as cost. Price only refers to money. Cost covers money, time, attention (mental effort) and work (physical effort). The characteristic that they all have is they cause a "bad feeling".
An IKEA flatpack is low-price but may end up costing you more than you expected in terms of time, attention and work.
The opposite of cost is value. It's a vague word with many different meanings in many contexts. In this context it really means "good feeling".
When you are deciding whether or not to undertake any action, you always - consciously or unconsciously - do a quick weigh-up of perceived cost versus perceived value. If the cost outweighs the value, you don't do it. If the value outweighs the cost, you do it.
When I see "free newsletter" I think of the time and attention it will take me to read it and the (unlikely) benefit to me of reading it.
So how would you rate these few lines in terms of cost/value?
Tuesday, 14 September 2010
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2 comments:
Cost/Value?
Being a relatively short post, I read it as I preceived it would not 'cost' me much.
In terms of value, it is making a point I make regularly - that people seek value and want a good return on their investment, whatever form that takes - so reinforcement of my thoughts is 'valauble'.
Even if the price tag says FREE, there has got to be some WIIFM - What's in it for me? - as an incentive to 'buy' any free item.
David Winch, Cambridge
David, I like the way you talk about "buying" a free item. It's counterintuitive but expresses the dynamic perfectly.
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