Nothing is Really Free

Which offer generates more attention and interest: an offer for a free oil change or an offer for a $4.95 oil change? The answer may surprise you. Research shows that people tend to respond more positively to a large discount than to an offer for a free product or service.

The reason for this is simple. People don’t believe anything is truly free. They assume there is some catch, possibly something they must purchase or sign up for in exchange for the free service. They would rather not deal with the fine print, and, as a result, that offer likely goes straight in the garbage. In the event a customer believes something is truly free, then they perceive the product or service as having no value anyway since you are willing to just give it away. 

Even for a nominal price, customers perceive some value, making your offer more valid. So next time you are running a special and want to get customers in your store, consider drastically reducing prices rather than offering free services. You’ll find your customers respond in a much more positive way. After all, nothing is really free.

Advice for car dealers about special offers