Risks of Free Trial Products

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I'm wondering what are the pros, cons, and risks of offering a free trial for a product. example. I'm selling home made digital cameras. Of course consumers will look the other way because it is not a name brand or any brand at all. Its coming from an unknown company and will probably think that I sell junk.

If I can create an incentive to try my product first and then buy, would'nt I make more sales? (Of course only if my consumer is satisfied with my home made product).

Say some offer like;
"try my product for free* and only pay shipping. If you like it, you can buy it. blah blah
*free trial last only 30 days, then required to pay full amount of product"

i've always wondered how companys make a profit just by, offering their product for a free trial and make the customer pay shipping. how do they make a profit if the consumer wants to return the product and not get charged the full amount?

so somethings i was pondering about
how would I make the consumer pay the full amount if he/she keeps my product for more than 30 days? or if he or she returns my product, but its damaged? and most importantly, is this even a good idea to do? give me some feed back please.

[marc77]

"try my product for free* and only pay shipping. If you like it, you can buy it. blah blah
*free trial last only 30 days, then required to pay full amount of product"

Hasn't Apple done this in the late 80s or early 90s with one of their Mac computers and failed with a big loss ?

In my mind you should consider the following points:

1. How can you prevent thefts ? Consider that not just few people may keep the product without sending it back or paying after the testing period ended ("haven't got it overall", "haven't ordered it", "try to get it back, if you feel lucky").

2. What to do with returned cameras ? If you act fair, you can't sell them being brand-new, so you need to give a rebate, maybe a high rebate.

3. Also consider that some returned products may be broken. People handle goods differently they do not own... what to do in such cases. Do you persist upon paying the delivered item or silently accepting a 100% loss ?

All in all you may calculate with a loss of 50 %, regardless the quality of your cameras.

In my mind, you should go a different way:

1. Provide free cameras to special interest magazines (dedicated to digital camers, consumer electronics) and websites for testing your products and writing articles about.

2. The fact that you manufacture cameras home-made makes some outstanding. So I would build upon this for marketing: Hand-made, highest quality, does not leave us unless we are convinced, guarantee card signed with the personal signature of the technician that build it, ... such things.

3. Contact specialized wholesale distributors and ask them to include your products into their catalogs. Same to local dealers, ask them to sell your cameras, made by a local business (fast repair services, a big plus).


By the way, I never heard that it is possible to manufacture home-made cameras... can you point me to your website, I would be eager to get more information ?

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lol sorry but, i just used the home made cameras as an example. Maybe i should of said children's books or something lol.

1) I was thinking; to battle the non-payers, I could make them charge a credit card and I will keep it on file. They pay $10 shipping when it will only cost me say $6. If they decide to keep the camera, I'll charge the full price. If they don't return it within 15 days, I'll charge it automatically. of course put those terms and agreements and they must accept it before trying my product.

OR should I make them pay the full price (which includes shipping) and if they don't like my product they send it back within 15 days and they will be credited the full price but I keep the $10 from that.

Also if there is a tracking number on every shipped item, how can they say, "I didn't receive the item"?

2) Your right. I don't want to be a crook. It wont be brand new, but it will be "like new" (depending how the previous consumer treated it). It will be at a discounted price. But should I allow a free trial for "like new" cameras?

3) If I receive the product damaged, non working, or signs or wear and tear. Then I suppose I should charge them the full price and send it back? Not sure I could handle this. Need some expertise. These rules and procedures will be in the terms and agreements before they purchase my product.

Anyone else have ideas to get my product? I dont need to give it to magazines to review or anything like that. Because its not my product I'm selling.

[marc77]

It would be good to know which products you want to give away for free testing; not anything is suited for this way of marketing...

Regarding 1): Guess that not many people will allow you to charge their credit card upfront; this cannot be considered as free testing.

And earning money by charging higher shipping fees is, at least in my mind, not a good method. Today's customers compare prices and will find out quickly that you compensate lower product prices by taking higher s&h fees.

Regarding 3): Hard to give an advise here. Some customers may persist that the damage occurred during transport.

Basically you should carefully calculate that around 30 % of the items you give out for testing can be considered as loss. If your profit margin is high enough to compensate this, give the free testing offer a try. Otherwise I would say hands off from this type of marketing. I consider it as being quite dangerous.

[marc77]

I think the easiest way would be not to offer this as "free testing", but as "risk-free testing" - in this way, you can charge people's credit card upfront without running into the problem of being misunderstood (free != charged credit card).

So after a period of 30 days the test period ends and people must decide either to keep it or to return the item.

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Are you referring to a money back guarantee? I suppose I can do that. I thought about this process but the thing is that they will have to fork up the money first. This might make buyers a little hesitant with a brand they have never heard of.

That's why I tried to think of a way to provide a free trial, just make them pay shipping. But I don't want to get screwed in the end.

[marc77]

Yes, finally I would say that a "money back guarantee" makes more sense (only people really willing to buy take your offers).

Well, I see the risk that a "free trial" attracts also many people never really wanting your item. While charging for shipping costs only may prevent abuse a bit, but also causes much paperwork on your side as well, not sure if this is it worth.

Now I'm really eager... what kind of products are you selling ? Homemade atomic power plants ?