Nothing is free

[fvkasm2x]

Alright, so I am arguing with this guy on another site.

Basically, he saying nothing is ever free... because it costs somebody something somewhere.

I am saying while that may be true, it can still be free.

Just because a company writes it off, pays someone else to give it you for free, etc... doesn't make it NOT free.

His argument is this:

Nothing is free. NOTHING. Even when you go to the store and get something that is buy one, get one free, that second item isn't free. It's price is 0.00, and that's the price that's entered into the system. The Games with Gold is the same way, you have to have a payment option to get the games, even though they are free. No, you won't see a charge for 0.00, but they need to have some form of payment on your end to allow you to have it. Again, nothing is free.

I explained that the charge of 0.00 is just a way for the company to keep track of inventory and ensure legitimate record keeping of sales/shrink and other business needs, but the "charge" of 0.00 isn't actually currency for the customer... thus free for them.

He still says nope.

Is there a way I can explain this to him that I can't figure out, or his he a lost cost?

[GenesisGT]

I sort of agree with your nemesis. When I see buy one for a dollar get another one free, I always look at it as each one cost me 50 cents, nothing free. Or that the one I am paying a dollar for is so overpriced that they can give me two.

[GordonH]

Anytime companies put out item like buy 1 get second for free. There is not 1 of those companies loosing money over this. What it tells me is how much of a markup is there on that item.

Free = air you breath

[Bsuds]

Free = air you breath

There is even a cost for that. (taxes to live here)

[jamapple]

Alright, so I am arguing with this guy on another site.

Basically, he saying is ever free... because it costs somebody something somewhere.

I am saying while that may be true, it can still be free.

Just because a company writes it off, pays someone else to give it you for free, etc... doesn't make it NOT free.

His argument is this:

Nothing is free. NOTHING. Even when you go to the store and get something that is buy one, get one free, that second item isn't free. It's price is 0.00, and that's the price that's entered into the system. The Games with Gold is the same way, you have to have a payment option to get the games, even though they are free. No, you won't see a charge for 0.00, but they need to have some form of payment on your end to allow you to have it. Again, nothing is free.

I explained that the charge of 0.00 is just a way for the company to keep track of inventory and ensure legitimate record keeping of sales/shrink and other business needs, but the "charge" of 0.00 isn't actually currency for the customer... thus free for them.

He still says nope.

Is there a way I can explain this to him that I can't figure out, or his he a lost cost?

Taken from your post. HIS words:

"Basically, he saying is ever free... because it costs somebody something somewhere."

Take that buy one get one free. 2 items. Each cost the retailer. Let's say $1.00 each. These 2 items if sold for $2.00 each will net him $2.00. If he sells these products BOGO, he makes his $1.00 profit on the first item, and no profit on the second item. Net profit loss of $1.00 to him.
Now, usually, (because you don't have to be a rocket scientist), they inflate the cost of the items to offset, thus lessoning, and possibly even ELIMINATING any net loss by making that offer.
If a retailer offers 2 for 1, he is taking a loss because he will lose profit, so, no, it does cost someone something somewhere along that chain.

[fvkasm2x]

Alright, so how about these examples:

1) Loyalty perks for food businesses.

Buy 10 subs and get 1 free.

The sub costs the same, regardless of if I get a "stamp" on my card or not.

But after 10 stamps, I get a free sub.

There was no extra markup. Everyone paid the same price for their subs... but I got an 11th at no cost, while others did not.

It was free.

2) Microsoft has a promotion where subscription members get 2 free games a month.

For the past 10 years, I've paid for Xbox Live, which enables me to play video games online with other people. There were no "benefits", it was an online subscription service.

1.5 years ago, they started giving away 2 free downloadable games to everyone who was a subscriber. The price didn't increase for the subsscription, it was just an extra perk.

These games range from $9.99 to $29.99 in cost usually, for others who want to buy the games (if they're not subscribers).

I get them free

[w84u2]

Free = air you breath

There is even a cost for that. (taxes to live here)

Or unless you need it in "compressed" form to fill your tires.

[Smurf]

I think you will find that the cost of loyalty programs are figured into costs ahead of time. Nothing is for free. I guess in a way it is a loss for the people who don't take advantage of them. I think they also calculate in the extra number of products you will buy that might normally be bought elsewhere, but they would not be doing it if it did not benefit them.

[Jonrox]

2) Microsoft has a promotion where subscription members get 2 free games a month.

For the past 10 years, I've paid for Xbox Live, which enables me to play video games online with other people. There were no "benefits", it was an online subscription service.

1.5 years ago, they started giving away 2 free downloadable games to everyone who was a subscriber. The price didn't increase for the subsscription, it was just an extra perk.

These games range from $9.99 to $29.99 in cost usually, for others who want to buy the games (if they're not subscribers).

I get them free

If you don't pay your $60 annual fee for Xbox Live, how many "free" Games with Gold do you get? I know you see it as an added perk that you didn't get previously, but if you don't pay your $60, you don't get the free games. So really, you're paying $60 to get free games.

A better example from gaming might have been that Nintendo is giving away access to their new online service when the Switch launches... free for a few months until they start charging later this year. If you choose not to continue the subscription, then you got the service free for a few months.

I'm still not sure if that's really free or if the free months could have their cost attributed to the console price.

[LTD]

advice is free my advice to you is to quit arguing with idiots on the interweb

[spooker]

Promoting "get free downloadable games with subscription" is a way for the company to get more customers who will cover the costs of previous members getting those downloads also, and when we talk about software (i.e. games) there is so much profit to be made off of them that it's being able to print your own money ...

No, nothing is free, it's just accounting on a larger scale ... that 11th sub was just a cost to the overall revenue from all subs bought, the advertising of that promotion was expected to bring in more than the 10% write-off of free subs that would be handed out ...

My favourite coffeeshop has a loyaty program, buy 10 get 1 free ... managing my own loyalty card was a pain in the butt at times so now I just choose a random card from the files and give them credit for my coffee ... someone gets a free coffee sooner, the coffeeshop doesn't get shorted, I still get my coffee ... the universe is in balance

[Piecemaker]

Sounds like you are arguing about two different things.
Nothing is ever truly free in that it costs someone somewhere something. However something can be free to you.
Having said that...it costs you energy to pick up the "free" piece of furniture sitting at the end of my driveway or energy on your phone to download a "free" game, that you pay for when you have to re-charge your phone!
Hmmm, so maybe he is right and nothing is free...

[Bsuds]

I get free verbal abuse from the spouse!

[W105]

happiness is free

kindness is free

love of a child is free (sometimes love can cost a person big time though)

a smile is free

making someone laugh is free

hugging someone is free

listening is free

[dirtybiker]

I get free verbal abuse from the spouse!

That is still not free, she has paid dearly for it and you....
have earned it !

Not free !