Set a price even if you give your product away as a gift


It is an interesting facet of the human psyche that we don't value things that we get for nothing. There was the well-known instance of the man trying to give away £5 notes on the street - and no one accepted them, suspecting a catch.

Many organizations have totally free newsletters or house magazines that they send out to staff and other stakeholders, knowing that (probably) most of them end up in the bin. On the other hand, who would pay for a newsletter or a brochure from a business?

The Marketer is the Chartered Institute of Marketing's magazine. It's sent out free to all members, and even though there is a mechanism for non-members to subscribe, virtually all of the readers get the magazine for totally free.

This is pretty obvious, since the circulation of the magazine is about 37,000 copies per month, and CIM has a worldwide membership of 47,000.

However, it does have a cover price on it of £10 (which is in itself sufficient to deter any would-be non-member subscribers). The purpose of putting a cost on the cover of a totally free magazine is twofold: first, it gives an impression of high quality that is absent from a free magazine. Second, it gives the recipients the impression that they've been given something of real value, not simply something that is inexpensive and disposable.

For Institute members, the cost of the magazines (at £10 a time) is just over half the annual membership fee, so The Marketer offers a clear, tangible, and indeed monthly benefit of membership.

People are far more likely to read something that has a price tag attached, even if they did not actually pay the cost - the value is clearly there.

Don't go more than the top on the cover price - it should be realistic, considering the high quality and content of the magazine. Make certain the price looks "natural," as if it's about correct for the magazine, and is no more obtrusive than it would be on a paidfor publication.

If possible, include a subscription service telephone quantity. You by no means know - someone might actually wish to subscribe, but in any situation it increases the credibility of the cover cost. This principle applies to other give-aways - free gifts with a buy ought to carry a price tag.

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Note: This article was sent to us by: Craig Morris at 01202011

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