Free Services?

Treading Water

In a typical month I get asked to perform one or more free services. Sometimes it is from a guest/tenant who wants me to do something additional and not included in the rent or a homeowner who wants extras included as part my commission. I don’t mind bundling a variety of services into my commissions such as administration, billing, check-ins, walk-throughs, Form K’s and such but the list is precise with anything outside that an extra charge.

Recently a new owner had not adequately cleaned the bathrooms in advance of a move-in as was promised. This resulted in the new tenants quite unhappy and wanting it taken care of. The owner felt that this was a job I should do – for free as part of my commission structure with which I heartily disagreed.

Another owner wanted a refund of the listing fee once the place was rented. My policy is “if I already have a pre-qualified renter for a property” I may forgo the listing fee if it is a long-term rental. This is rare as most properties need time to be marketed. It is my option.

The fee covers the cost and time of having a dedicated web page built (marketing) and there is no need to refund that, except in exceptional circumstances as that means the webmaster works for free and I forgo a profit center.

In the original days of the internet lots of things were free and even today new business and services offer “freebies” in hope of turning free customers into paying customers but in my experience it often backfires.

I have learned over the years that if you don’t value your services neither does anyone else. Sad but true.

Here are several reasons why giving away your profit centers and your precious time is not a great business strategy.

1. TIME: Busy people, especially those who operate a business, and in my case without a staff, need to make the best use of their time. Time is scarce after all there is only so much of it. Time has a money value attached to it. When people ask me to “quickly do this or that” they often have no idea of how much time it actually will take. While others remain blissfully unaware of the value of my time and what it might take to give them what they asked for.  I have more things I want to do and have to get done than there are hours to get it all done in.
2. Free Services to Others Insults My Paying Customers: Yes it’s true. If I provide a free web page for one homeowner isn’t that like a slap in the face to the others who valued my time and expertise enough to pay for a web page? The same for errands and other duties that take care of loose ends – the loose ends of others. I don’t mean you can’t bundle several services together but when you do there should be a concise and particular list of things provided under one price.
3. DEMEANING: The home owner who wanted a refund of the listing fee (which includes the web page) really made me feel demeaned. More so, because the particular property was a luxury home that would require the maximum marketing available. People don’t realize how well my site downtownfurnishedrentals.com ranks and the time it takes to make that happen as well as what it costs to rank well.
4. It Never Stops at just One Request: No, once people know they can get you to acquiesce on just about anything they keep asking for more and more. You are better off not getting started. Nip it in the “bud” as my mother used to say.

In the end we only have so much time in a day and so much energy. The constant shifting of gears to accommodate our customers needs to be evaluated as to what should be charged for and what can be done under an existing arrangement.

I’d rather be fishing.

Call Me Later