Something for Free? There Should Be No Such Thing!
We all love a bargain. It’s human nature to be drawn to discounts, sales and, best of all, freebies. I’m the first to join a queue when there’s a discount on my favourite products! But when you’re a small business owner, you’ll no doubt encounter those individuals who believe they’re entitled to something for nothing—or at least at a drastically reduced rate. When making a living depends on fair pricing, explaining why your work isn’t up for grabs can be a delicate balancing act.
Why Free Work Shouldn’t Be the Norm
Watch this highly entertaining video from Zulu Alpha Kilo where they ask professionals if they’d provide services “on spec.” before you read on—it’s a perfect example of why giving away work doesn’t make sense.
Businesses Rarely Give Things Away for Free
Imagine a world where businesses routinely gave away their products or services for free. It would be unsustainable. Discounts are used for specific purposes: to attract new customers, encourage store visits where higher-priced items are sold or drive spending. But to work effectively, they need to be strategic.
Think of freelance professionals—writers, designers, programmers and artists—who are frequently asked to provide free samples or test projects to prove their capabilities. Would you ask a supermarket to let you try a basket of goods before deciding whether to pay for them? Would you expect a hotel to let you stay a night before deciding to pay? Unlikely.
Ian Hislop, long-time Have I Got News for You panellist and editor of Private Eye, once responded to a question on why he didn’t put the magazine’s content online for free: he wanted his talented writers and production staff to be paid fairly. Providing content without charge would make this impossible. While some newspapers offer free online content, their vast readership generates ad revenue that pays the bills. For small businesses, this model doesn’t work.
The Hidden Costs of Running a Business
People who don’t run a business often overlook the many hidden costs involved. Of course, there are the obvious expenses like staff wages and inventory. But there are also costs for premises rental, business rates, insurance premiums, bank fees, VAT and wages that include sick and holiday pay. Then there are expenses for equipment, utilities, waste removal, professional memberships, marketing, office supplies, utilities and subscriptions (the price of printer toner alone can make your eyes water—it’s equivalent to a week’s wages!).
Even small businesses with tight budgets need to cover these overheads. The reality is that, while most businesses strive to keep prices competitive, they must also make a profit to survive.
A Case in Point
Take the story of a woman who was outraged when she was charged £2.00 for a cup of hot water with a slice of lemon at a café and took to TripAdvisor to complain. The café owner’s reply hit the nail on the head: “Perhaps, the rudeness that you perceived in me was triggered by the disrespect that I perceived in you by your presumption that you could use our facilities and be waited on for free.”
This highlights a key problem: we’re so accustomed to getting things for free that we now expect it. People may love what you offer and want your product, but they’ll still push for a discount or request free samples before committing—even if they’re already engaging with you. Try turning the tables and ask those same customers if they’d accept a pay cut so their company could offer a better deal to its customers. I think you can guess their response.
Protecting the Value of Your Business
So, to all our fellow small business owners: don’t undervalue your work by giving it away for free. Remember, your mortgage provider won’t be offering their services at no cost! It’s important to recognise your worth, value your expertise and ensure you’re compensated fairly for your hard work. You deserve it.
