Posts Tagged trade
Getting it Free
Yesterday, I wrote about how entrepreneurs have a problem when they try to get something for free. The problem stems from the fact that the buyer never really thinks about what the seller may want. Typically, the buyer says that the seller is getting the opportunity or the experience, without stating anything specific. The problem is that without some specific reward it is difficult to follow up and enforce the seller completing their task or delivering their goods.
Therefore, the challenge is for the buyer to find something specific other than cash to pay the seller. The obvious solution is trade, but often the buyer really does not have any goods or services that the seller wants or that will have the effect that the seller needs. For example, a sign store might need people to hand out flyers on the street offering them free signs. What is the sellers (the people handing out signs) do not need any signs? How would the buyer get the seller to perform the task? If the buyer was a restaurant they could offer free food.
What if the buyer had a friend who ran a restaurant they could offer free food there? It does become more complex with a third party, but the buyer is now thinking along the lines of what seller may need and get out of the relationship.
What if the seller needs to show on their resume they have a done a good job in their industry? Furthermore, what if they need introductions and recommendations to others in their chosen field? This is a great way to get entry level personnel to work for short periods of time for free. I did this several years ago with a small team of workers. One of them was able to use it to get their start in their profession where they have since moved on to bigger and better things. In the end, the client remarked they were amazed how many people I got to work for free and how well they worked.
Just saying it is an “opportunity”, is giving them a lot of nothing. In return, you will get nothing. It is not a simple solution. It takes work and some creativity, but if you can imagine what the seller would get out of your opportunity and help them get that tangible, then you have a chance of getting them for free.
Free Can Cost Too much
Entrepreneurs often look at doing it themselves, trade, or even getting it for free to save them cash. The only benefit is to preserve cash while the disadvantages can be large:
- Quality is often lower.
- Lower in priority for service (late delivery, missed deadlines, longer timelines, etc.)
- Harder to find someone to do it.
- More time spent on starting task and managing task where that time can be spent elsewhere.
The end result is less value, less productivity, and less sales. Whether you decide whether to do it yourself, get it for free, trade, or hire someone depends on the urgency, complexity, your ability, and availability of others.
Two solutions are either to master these issues or to hire someone. As Seth Godin puts in his blog yesterday, “Pay for Stuff“, sometimes it is best to avoid getting it for free and to pay for it. The value of more productivity, faster, better quality, leads to more sales and more profitability.
How appropriate to say this on Labor Day (the ironic day of doing no work celebrating those that do work): The objective is to develop the ability to determine to pay or not to pay. If you do not want to pay for things, the next challenge is to manage getting it for free, trade, or doing it yourself so you do not suffer the drawbacks.
Otherwise, it can only cost you quality, service, and your time. Ultimately, this leads to lower sales and profits. Sometimes its best to spend some money to make some money.