Why Free Services are not good for customers after all ????

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Why Free Services are not good for customers after all ????

Postby Softex » 24 Aug 2014, 22:04

Offering Free Services to Customers can prove to be a good thing for the customer right ??? No , this is totally wrong and below are the exact reasons why Free Services are not good for both customers and suppliers as well.

1. Suppliers are expected to provide after sale service and warranty for their offered products because they are getting paid for such products/services, if it is free the customer has no obliging right for warranty or service and thus he will not be happy about the product / service anyway.

2. In General People don't respect things that are free, this is true. If you offers products/services for customers for free you must expect that your product/service will always be cheap for the customer, meaning it can be replaced easily as it has no value to the customer.

3. From the supplier prospect if you keep providing free services/products this will weaken the supplier finances and the ability to survive in the market because he spends a lot on free products/services without revenue. The Risk of going out of business means that all existing customer for such supplier will find themselves out of support and out of after sale service of their purchased products because of the Supplier going out of business, bankruptcy situations.

4. Modern Business Performance Theories state that organization resources must be distributed on organization customers based on their contribution to the organization revenue. If you provide free services/products to customer, this means you are automatically putting the customer requirements and needs in the lowest priority possible within the organization.

Before offering any free services/products, Make sure you are not hurting your customer in the process.
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