“Free” is one of those words that makes customers light up and pull out their wallets faster. Honestly, it can be the same for employees when it comes to freebies, too, such as free business perks, daily meals and refreshments, free gym memberships, and free public transportation, the list goes on and on.
For customers, it might be things like free delivery, free samples, free loyalty points… it all sounds harmless, even generous. Honestly, those can also give you a competitive advantage.
But at the same time, you need to keep in mind that you can’t hand out freebies like they’re confetti or anything like that. They’re not free. Not for your business, anyway.
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Free Perks
As unfortunate as it may be to say, those free perks could be eroding your profit margins. If you think about it for a moment, it’s like the business version of buying a round of drinks, fun in the moment, but you only realize the damage when you check your statement later.
Yeah, it’s harsh, and yes, props to you for not being greedy like other businesses are, but sometimes, you need to cut back and save.
Those “Freebies” will Cost You Money
So, it’s best to start with this; free delivery sounds like a crowd-pleaser, but fuel isn’t getting any cheaper, and neither is packaging. Plus, loyalty points keep customers coming back, but every discount you honor is money you’re not pocketing.
Even little things like complimentary snacks at meetings or branded tote bags at events all add up. Yes, every tiny thing is going to add up.
However, this part can also be tricky, as most owners don’t track these costs separately. They get swallowed up in ‘operating expenses’ and quietly grow over time.
You Need to Know How to Spot the Problem of Business Perks
But the real question here is “how?”, and yeah, it’s pretty fair. So, the first step is figuring out what those perks are costing.
If you’ve been handling your accounting on your own (and honestly, you shouldn’t be), then it’s time to end this approach today. Instead, you seriously need to consider hiring an accounting firm.
They’re going to be the ones who are going to save you from having a financial facepalm (to put it nicely). They can break down exactly how much those “freebies” are eating into your margins, so you can decide if they’re working hard for you or just draining your budget.
Some Free Business Perks Pay Off
Not all free business perks are detrimental to business. Thankfully, some are absolute gold for customer loyalty, well, as long as you’re strategic, of course.
For example, something like a small bonus item with a high-profit purchase can make someone feel spoiled without costing you much at all. People love this and tend to fall for it as well.
Another example is a free trial for a subscription service, since this is a temporary cost that almost always leads to long-term paying customers. Now, of course, these might feel standard, but if other companies are doing it, then it can’t be that bad.
Conclusion: Why Free Business Perks May Cost You
Free business perks may seem like an easy win, but they often come with hidden trade-offs. When you accept these offers, you may relinquish control over your data or expose your business to unwanted upsells and marketing promotions.
Some “free” perks come with limits that slow your growth or lock key features behind paid plans. In the long run, chasing these perks can cost you more time or money than you save. Before you sign up, review the fine print and weigh whether these offers support your real needs or create new headaches.
Don’t let the lure of a free business perk distract you from making choices that truly benefit your business goals.
