During the recession period people are trying methods like anything and most hit sector is the service based sector – because the pricing of services are going down and people are offering more competitive rates. Few people that I know have now quit from this service based industry during this period and they have shifted themselves to product-based industry – good for them as they also need some profit to get a living out of it.
What’s Actually Needed
When its recession and deep recession there is no clue that what will work and what’s not and even every marketing plan thrashes – the only clue people have in their mind is to cut the rates and offer cheaper rates.
But is the cheaper rates only solution to bring your service sales back on track – I don’t think so – even I have written few days back that you don’t have to decrease your rates – you only need to offer value service.
Now, after surfing the Webmaster forums – I found that people are trying to offer their service not only for less but also sometimes without any charge – yes you read it right they offer their services for free.
This is totally insane – in order to get more from your service product you are offering few service-products for free. This is when market manipulators enter your offering and try to promise you that they have lots and lots of work and they need a free review copy. Truth is they don’t have anything to offer they only need to enjoy services for free.
In return you are depressed because if you are offering about 10sales for free than out of 10sales 5-7sales are from the same set of users that needs to enjoy service for free.
My Idea or Suggestion
I would not say that offering your service for free or less does not work at all – it works but most of the time it fails – so I would rather favor taking a less very less actual amount before offering your services for free.
Lets say; if you are offering a $20 service product and offering 5-free reviews then you should charge at least a minimum of $2-3 for reviews.
Why? Because by just charging this much amount you will come to know that you are getting confirmed user and this user will return to you if he likes your services – generally users who are here to enjoy free sales they don’t spend this much amount also – therefore it’s a best method to differentiate between users.
Moreover, the real confirmed users would definitely understand the value that you are offering to them of taking just $2-3 for a $20 fee service based product. This will protect your business – you and your growth.