It’s Free!

See, I bet I got you – you are reading this sentence now. From what I have heard, and maybe you have heard this too, the word free in printed material is like a magnet. Advertisers know you throw an exclamation point on it and you are almost assured of grabbing a reader’s attention.

And yes, some things in life are free. I have heard that said too. Love, a smile, happiness – you could argue in favor of these things. These things, one could say, are FREE. In other words, you have a right to indulge in them AND they come with no cost attached.

Stop though; this article is not intended to be a discussion on semantics and/or promotional strategy. I do not want to explore existentialism or other advanced thoughts on this matter. I simply want to state simple truths about common business practice.

. . . Or is it?

Free is good. I like free, and I think you are on board with me on this one. Unfortunately, however, what I find is that most things are not free. The cost (and in this discussion it can take a couple forms) to negotiate, manufacture, manipulate, and otherwise process a commodity is budgeted and accounted for at some point down the line.

This is true of every piece of swag ever handed to you. Whether it’s a set of crab knockers you receive for being one of the first ten thousand in attendance, a pen bearing your bank’s brand, or wifi access at a local coffee house, these things have been bought and paid for by (or should I say for) you.

The thing is — the cost of these perks is hidden. It’s hidden, in these cases, in the ticket price, in the monthly service fee, or under the whipped cream on your mocha latte. These things are free of charge because you do not trade money for them specifically, but they are far from having no strings attached. Included – maybe; Free – no.

You have to spend money to make money

So . . . is using the word free in promotional material false advertising? Is this business practice deceptive? By no means; it’s just smart business. And smart businesses are in business to recoup every dollar spent and more.

It costs money to be in business. This is a truism. And part of being in business is reaching a market, or audience, that is willing to pay for your services. Almost every business, large and small, has some sort of advertising or promotional budget. This is money that must be spent on the business to stay in business.

While the use of the word free could remain open for debate; this strategy, in principle, is an efficient, effective and proven means of executing promotions. And — it should be said — efficient promotions, i.e. maximizing output with minimal input, in theory, helps keep cost down – for both the seller and, well, the buyer.

I think you knew where I was going with all of this:
The Free Estimate!

A quick search using Google‘s Timeline feature shows the words free estimates in classifieds and other advertisements as early as the beginning part of last century. And while I am tempted to explore this, the history of it and how it evolved, I will not. I will leave it simply at – the free estimate, by now, has been offered, by many, for a looooong time.

And let’s put ourselves in the contractor’s shoes. Say you are in business in the home improvement field, do you charge for your estimates? Of course not, and this is one case where you fold to peer pressure. I mean, everyone is doing it; so guess what, you have to too. You offer Free Estimates and you promote that.

But you are not in the business to give things away; you are a professional. And professionals make money. So what do you do?

Time is money

They say, the collection of all humanity, time is money. This statement is no truer than when used to characterize an individual working and living as a small business home improvement contractor. Time and/or labor are integral parts of what he/she charges for. And just because – they may not be hammering a nail, installing a light fixture, or designing a kitchen – doesn’t necessarily mean that he/she doesn’t or should not bill for it.

The time it takes to examine, price and otherwise estimate a job is, if you find that contractor’s proposal agreeable, ultimately passed on to you. Free – Think again. And there is absolutely nothing wrong with that. It is smart business. And smart businesses stay in business.

He or she has accounted for the time it takes to estimate and sell jobs. It is factored into his/her overhead cost, and is later calculated as part of his/her hourly billable rate.

If it’s free, it’s on me

As a home improvement consultant, I say use them – get three or four. They are a great way to meet people, and further a great way to get various takes on a given project. There is, from my experience, sometimes a wide price range generated across a collection of estimates. This price variation is itself usually traced to the businessperson’s methods and means. And it may even tell you something of their work.

Not only does the proposal period on a project yield a menu of services to choose from, but, think of it this way, it also gives you the opportunity to get free consultations from qualified experts. While every estimate received may not nail exactly what you are looking for, it does usually help in defining what you are looking for. It gets the creative juices flowing and you begin to hone your communication surrounding what you envision for a project.

It’s a slippery slope though

As someone that has given estimates a handful of times, I know, as well as most of my contacts in the construction field, when a homeowner is just working it – the system. Using an appointment to collect ideas, or to establish a baseline without any real intention of considering the services being offered. And this, to be quite frank, is not cool.

As I said above, time is money. Not only is the time it takes to estimate on a contract that is won factored into a contractor’s billing, so too is the time taken on contracts not won. Blatant disregard for this – in the end – has, and I am a believer in the butterfly effect, potentially distasteful ramifications.

It does nothing but drive up prices. For a small business contractor, especially in the current economy, this can be potentially dangerous. We are talking — loss of work, loss of jobs, loss of tax revenue, and so on. And in the end, the homeowner, the one flapping the wings, will most likely find that it will only eventually come back around on them.

Is free a good value? (aka I really don’t care if it’s free – I just want value.)

You know Blogger is amazingly free. It’s the Web 2.0 mentality – If you want to fish, you need fish – so, just build an ocean. Sure, I have to fight back the urge to add Google Ads to this site, but I do because it is simply not the way I roll. And in the end: Am I the one working the system? Maybe.

Surfing the internet, you see, is really not that different from viewing broadcast television. You don’t have to pay to watch this show, but you are going to have to sit through these commercials. Is that a little bit like the free estimate? AND Is that freedom? Ok, I will save that for another day.

The point here instead is – it is not a bad idea to understand the contractor’s process. And further to have a general understanding of common business practices. It can lend peace of mind, and give you a picture of where that service company is coming from.

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