12/06/2017
The concept of Free (not freedom)
As I sit on yet another flight, moderately bored, slightly frustrated and eagerly anticipating my arrival, my thoughts and observations turn to what is around me. I have always been rather amused by passengers on planes. Trying to appear like old hats, experts at the art, whilst not giving up the age old traveller trait of being completely reliant on the people moving them from place to place. I have witnessed capable people, indeed sometimes captains of industry, appear childlike in requests for food, extra blankets and assorted favours normally reserved for the less abled and powerful. I agree that some of the power is ceded to flight attendants, taxi drivers and hotel clerks but we are speaking of humans who are normally able to earn salaries and feed themselves successfully, reduced doe eyed and asking “could I have some more”
This is not though, what has caught my attention today. Today I am musing on the concept of “free”. Yes stuff you get, or appear to get, for nothing and how that messes with our minds. The fact that nothing may be really without cost, either financial or the opportunity version of cost, I would like to ignore for now. I’m speaking of really free, someone offering you a product or service, without asking or implying that you have to pay a financial penalty for that good or service at the time. What has focussed my attention to this today is my flight. By all accounts a great flight, Dubai to Johannesburg leaving at 10am is the most civilised if flights. Being a workday it’s a great excuse to think, catch up, watch a movie and generally goof off with no associated bad feelings. It is really one of my guilty pleasures and today it’s exacerbated by an unexpected bump up to business class.
It’s 11:30am and the attendant smartly addresses me by name and asks me if I prefer red or white wine with my three course meal… Wine, a meal!! I was asleep four hours before, and breakfasting barely three hours earlier. So after indicating that I am to be the cheap date today I cast my eyes around me at fellow normal thinking passengers doing the most insane thing I have seen, eating a meal, reserved normally for 8pm in the evening and quaffing champagne and wine by the glass with supercilious grins on their collective faces. Now I’ve seen this madness at all times, being a frequent flyer to and from Johannesburg I am used to the late night trips back from Europe. They normally leave around midnight meaning, you know I’m going to say it, dinner is served at 2am, and again I sit in awe of people who under normal circumstances would never stay up until that ungodly hour to eat a meal, never mind an aircraft one.
And this I can only conclude must be related to “free”. Look at, for example, at another airline scenario. Hop on a full cost airline flying shorthall and you will probably be presented with a small sandwich, prepacked days earlier, as a snack. If you were served this morsel in a restaurant you would not hesitate to send it back. Watch what people do, they accept it and eat it with relish and the same supercilious look I mentioned earlier. Now, fly a low cost airliner where the same prepacked monstrosity is being sold for a couple of dollars. This will not break any bank in any way and what happens. Well with a quick anecdotal survey, you will notice around 80% of passengers are now far more discerning. The acceptance rate of the product drops from 80% on a full service airline to 20% on the paid version… Same sandwich, same passengers and a 160% swing in acceptance, again this can only be related to the concept of free. It’s not affordability, if you can pay hundreds of dollars for the flight you can pay for the snack. It’s not taste, the acceptance rate of the cost bearing airliner is substantially higher, no, it’s how we relate to free and perhaps to a lesser extent to the fact that something is offered or given by someone, and our predisposed response to that.
This becomes an interesting thought when presenting products to market. We all know that we are paying for the “free” airline meal when we pay more for the ticket. We are also prepared to do unusual things to benefit from the free aspect of the offer like staying awake until 2am to benefit from it. And this is for a benefit that we don’t really need or want (think of the grim prepacked $2 sandwich) and refuse when presented a price for it. It’s also not the saving offered by the two different packages, we know we can make saving by going low cost, so if we summarise:
• We will pay more for certain goods with free or extra services bundled.
• We will go out of our way to benefit from a free offer. i.e it does not need to be a good offer so long as it is presented as free.
• We will delude ourselves that we want unnecessary extras with an offering, which we would exclude if we had to pay for separately.
So think about this when you present your product to the market. Add some extra value, not too much though which I will discuss at a later time. Present the offer in a personal way. Don’t make your “free” stuff to easy to exercise or even good, as customers don’t really think that’s that important and try to show the value of your free stuff now and again.