“Free” is Better Than Percentage% Discounts

An economic psychology and marketing idea: better to offer your customers free things, rather than discounts.

For example, let’s say that you are a restaurant, or a small business owner: better to offer a free iced coffee, rather than offering a 10 to 20% off discount on things.

Or let us say that you are a gym trying to get gym memberships: better to offer free limited memberships, or free services, instead of percentage discounts on your plans.

Tesla was genius in offering free Tesla supercharging for life for early Tesla model S purchasers. Even though the economics doesn’t make sense, people will always like the notion of free.