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Free-Maybe But That Does Not Mean No Cost

By
Real Estate Agent with Coldwell Banker D'Ann Harper REALTORS® TX License #0566780

Free Maybe, But That Does Not Mean No Cost

We all like something that's free; at least free to us, the buyer or consumer. The buyer loves to get a good deal. It could be for a house, a refrigerator, a pick up truck, or a stock tip, a good deal, especially if it's free, or below Free Maybe-But Somebody Has to Paywhat we perceive is a good price, is reason to celebrate.

The idea about free has been on my mind recently because I hear that four letter word, free, so often. On the radio-free offers for newsletters and business development tips, on websites-webinars and classes, on TV an extra do-hickey and all you pay is shipping and handling, and in new home communities-free sod or appliance packages.

Of course none of the above items is without cost. Although the end user does not pay for the product or service, someone will pay. Perhaps it's a sunk cost that the business owner decides to eat. But the business owner cannot eat this sort of expense forever, or they will become a former business owner. Another way the business owner can handle the free product or service is to embed the cost  into another product or service.

This is not to criticize the business practice of offering a freebie. As I show clients homes in new home developments, sales counselors will highlight how their product line differs from a competitor's. In some cases, the builder who bundles more features in the base price looks better than the builder who has a lower base price, but allows the buyer to add on upgrades on a one by each basis. The buyer should take a close look at the options because the bundle may look better on first glance, but it's not always the best option.

I've been listening to some of the debate on health care issues, and commercials about Medicare, health insurance, etc. Since I'm on the way to qualifying for Medicare, if it's still available, I listen to the wording on some of the commercials. The word free is usually somewhere in the spiel. I know the medical service will be free or lower cost to the senior citizen, but somebody will have to eventually pay the cost. Not to get all political, or anti-government, but we should all understand that whether it is regarding real estate, or health insurance, free to the consumer, does not mean no cost. Somebody, eventually, will have to pay the price.


My Networks: http://rlty.me/SanAntonioRealtor

Wayne Johnson
18756 Stone Oak Parkway
San Antonio Texas 78258

Coldwell Banker D'Ann Harper Realtors®
Texas Real Estate License # 0566780

wjohnson@cbharper.com

Wayne-Johnson.com

210.483.6329 (Tel)
210.483.4729 (Fax)

Texas Law requires all real estate licensees to give the following information about brokerage services: http://www.trec.state.tx.us/pdf/contracts/OP-K.pdf

©All rights reserved, July 2012, Free-Maybe But That Does Not Mean No Cost

Comments (6)

Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

a notable post Wayne, I had recently seen a blog here on Active Rain, offering a lot of 'STUFF' for free, but when you get down to the details, it was $2,000 and $150 a month!

Jul 13, 2012 01:36 AM
Cara Marcelle Mancuso
Golden Girls with SW Desert Homes - Tucson, AZ
Call a Marana neighbor, I'm THERE!

Well thought out post, Wayne and nicely put.  There really is no such thing as "free" - and it's applies to everything, whether it be free time, free will, or free product.  Thanks for sharing your thoughts on this.

Jul 13, 2012 06:38 AM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

Exactly Wayne.  Free is never free...there is a cost to someone.  An occassional freebie is nice, but it usually done in order to gain more somewhere else.  When you are looking for "free" you need to understand that there is a cost somewhere for sure.  Great post!

Jul 13, 2012 09:13 AM
Carl Winters
Canyon Lake, TX

FREE? So true, it's never without cost to someone.

Your blog certainly is a "thought provoker" and deserves and Suggest.

Have a nice weekend.

Jul 13, 2012 12:18 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Hi Bruce-Wow, $2,000 plus $150 per month, that's some kind of free.

Cara-Thanks for commenting.

Jul 15, 2012 10:14 AM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Brenda-You are wise beyond your years. Thanks.

Carl and Ceil-Someone always has to pay, thanks for commenting.

Jul 15, 2012 10:26 AM