Alpha Consumer

The Power of Free Stuff

By Kimberly Palmer

Posted: September 17, 2009

Last night, I went to a free yoga class at Lululemon, the popular yoga clothes company. The store near my office offers classes—at no charge—every week. When I got home, my husband asked me if I bought any of the stylish clothes hanging on the racks near the yoga practice room. Of course not, I told him. But I was tempted. And I might purchase some soon. "That is how they get you!" he said.

He was referring, of course, to the traditional belief that nothing, not even free yoga classes, are really free. Lululemon might be offering these classes, led by skilled teachers, but isn't the company really hoping that at least some of the visitors will turn into shoppers? That question brings up Chris Anderson's argument in his book Free, where he suggests that giving away products and services for free can be good for business. (That's one reason why Amazon offers free shipping on orders over $25—the deal entices people to buy a second book.)

In Lululemon's case, the company benefits from offering free classes in at least two ways: First, it gets potential customers (like me) into the store. And second, it reinforces its reputation as a company that really cares about the community and about yoga. By hiring experienced teachers to lead a class for an hour, it's able to broadcast that message for about the price of one of its jackets.

I contacted Lululemon to ask why they offered the free classes and if the company expected visitors to make any purchases. I haven't yet received a response to my questions, but I'm guessing the answer would be "no." Because part of the appeal of giving away something for "free" is that you don't expect anything in return, even if you do.

Have you been the recipient of free products or services from companies? Did the offerings entice you to make purchases you wouldn't have made otherwise?

(Free trial periods, on the other hand, the topic of yesterday's blog post, are usually best avoided. See: "The Dangers of Free Trial Periods.")

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It is remarkable, it is very valuable answer

donagorr of AL @ Dec 26, 2009 11:03:58 AM

Excellent

Thank you for a very instructive article - more often I will go

templerel of AL @ Nov 13, 2009 03:00:09 AM

Farmers' markets

The vendors at farmers' markets are good at this. Just last week, when I was eyeing a table with a bunch of kinds of apples, the guy who was selling them handed me samples of each of them, while keeping up a patter of how their flavors compared ("this one is our tartest apple, this one is a little bit sweeter, and this one is the closest we have to a Winesap...") Now, I'll often take a sample (or two or three) from a table at a grocery store and then decline to buy the product without shame, but in the case of a personalized face-to-face schpiel, it takes more determination than I've got to turn around and say "No thanks, I don't think I'll buy any apples today." So I bought more apples than I otherwise would have, and probably more than I needed. Fortunately, apples stay fresh for a long time, so buying more last week means I can buy fewer this week. And thanks to the free samples, I know I bought the variety that I liked the best.

Johanna of MD @ Sep 18, 2009 12:21:07 PM

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Alpha Consumer

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.


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