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JJ Ramberg

JJ Ramberg is the anchor of “Your Business,” MSNBC’s weekly show on small business. In addition to her extensive television reporting experience, Ramberg has a background as an entrepreneur and co-founded GoodSearch.com. She has an MBA from Stanford Business School.



What happened to giving out freebies?

Posted: Friday, May 30, 2008 4:16 AM by Eve Tahmincioglu
Filed Under: , , ,

My mom recently went to a Mediterranean grocer in Queens, N.Y., to buy some Kalamata olives and some feta cheese when she noticed a tired and sweaty mailwoman delivering some letters to the owner of the store.

Obviously exhausted and thirsty, the postal worker took a bottle of water out of a refrigerator and asked the storeowner how much it was. The owner said, $2.

While she was putting her hand in her pocket to get the money, my mom said, “Can I buy the water for you?”

The postal worker said, “I have the money.” My mom insisted, and the mailwoman thanked her profusely, clearly touched by my mother’s gesture.

When the mailwoman left, the storeowner turned to my mother and berated her, saying, “why are you paying for her water? Those postal workers make a lot of money.”

Was this a business faux pas?

Toby Bloomberg, the author of the Diva Marketing Blog, gives the storeowner’s behavior a “minus 10” on the customer-service scale.

“That's just plain rude,” she stresses. “And if I were the patron I'd never darken the door of that establishment again.”

The whole scenario got me thinking about when it’s a right and wrong time to give out free goods. I come from a family of serial entrepreneurs, and there definitely were situations when you gave out free items to individuals that came to your store, especially civil servants.

My mom and dad owned a restaurant and they also owned several boutiques and stationary stores over the years. When my mom ran a boutique she would often give the mailwoman a free shirt or scarf; and patrons who were short on cash when they got to the cash register of my family’s stationary store often got a pass.

Is this just a thing of the past?

“I would think that free donuts to the cop on the beat, or holiday gifts to mail men, or women would be given to maintain and build relationships as much as for a ‘thank you’ for services not so much as for customer loyalty,” says Bloomberg.

The Internet is filled with small business advice about giving out freebies and discounts to customers as a way to garner customer loyalty. This is from small business resource MoreBusiness.com:

“Even if you have a small business and are on a limited budget, you can always give out freebies like pens, calculators, leather-bound diaries and coffee mugs. Your company name, telephone number and e-mail address should be prominently displayed on anything you give away.

Give out items that people are likely to keep in a prominent place such as on a table, on their refrigerators, or in their pockets.”

But what about just being plain old nice?

My mom was dumbfounded by the storeowner’s response to her kind gesture.

She told him: “What’s your problem? I’m paying for it. You don’t have to worry.”

What do all of you think he was worried about?

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Comments

Kindness is contagious.  Maybe he was afraid of being infected.

On a serious note, I don't think those little bits of kindness that businesses used to offer are lost.  It's the bad apples in business that make it appear that way.
Eve, well written point about something we often take for granted: kindness.  The store owner's jealousy of other people's income will not help him increase his own. Too bad. Everyone, regardless of how much they make, likes to be appreciated now and then. The full article you referenced on morebusiness.com is at http://www.morebusiness.com/business-promotions-strategy
Eve - I agree with Raj and Angel. It is the little kindness in life (and in business) that we recall. Perhaps the store owner was having a bad day. What did your mom do? Will she shop at this store again? Thanks for *your* kindness in including my thoughts in your story (smile).
Eve,  You are so right!  And giving something for nothing allows people to test a product and service with no fear of loss.

I call it "random acts of giving" and in my own florist shop often give a new customer something for free like a rose, a balloon, a bag of rose petals (whatever fits with the purchas they are making). Brides get one of my wedding etiquette books even before they "book the date," which by the way, almost always leads to the sale.

So it isn't just about the giving (although it should be) its also good business sense.

Thanks too for mentioning Toby Bloomberg (I am a huge fan of hers) because I got to read the post about her being named one of the top 30 social media experts online - along with Seth Goden, Robert Scoble and Sally Falkow to name a few.

All the best,

Heidi Richards Mooney, Founder
Women's eCommerce Association and Publisher
WE Magazine for Women
I think he was just jealous because he wants a nice gesture done to him too. :)
I think he was worried about the fact that he felt guilty for not giving her the water when one of his customers did. Shame on him for trying to pass his guilt on to the customer that was doing a kind deed.
People are jealous of government workers sometimes, I notice a misperception that they are all overpaid and don't have to work very hard, get too much time off and benefits, etc.  
Long before there were people offering advise to small business people, my second wife and I knew the value of giving your customers (existing and potential) small gifts.  Those that did not buy our wares (homemade candy and sandwiches)recommended them to others.
Performing a random act of kindness is gracious. However, many business actually have a policy to give all police free or discounted products & services.
Disguising this as charity to civil servants when actually it is a bribe is wrong anyway you dice it.
EMT workers, crossing guards,and sanitation workers are also civil servants who also wear uniforms. But business owners do not have a policy to give these folks freebies because they do not have power (i.e. to arrest, write a ticket, shot).



I own a restaurant and find that even the smallest act of generosity comes to repay me many times over. I give law enforcement officers 10% off and now I get them from the entire county. plus they watch the place extra carefully AND twice i got pulled over (speeding, taillight) and both times they let me go after they asked me where i was coming from (which is always the restaurant, if you own one) I have many more examples like this.
I'll always be a repeat customer to a business that shows community involvement or kindness to individuals.  To me, caring about the community and showing individual kindnesses translates to caring about customers, and that's what I want out of a business I deal with.
New to your sight and I like it. As a member of the Military, many places have given me coffe or water gratis, and many additional other stores I patron give Military discounts. I have grown up in an entrepeneurial family, before I joined the Army 23 years ago. I plan to continue that tradition. I have always found myself returning to those establishments. Not for the free stuff, but because the serve in a way by helping to serve us. Keep your patronage up and keep those busnisses running. I do!
Just a really thoughtless storeowner. Many fed government workers don't make jack. It's a case of having benefits and job security they would not have elsewhere especially when one is growing older. I know the feeling. I've given gifts to military personnel and to postmen. I don't offer police offers anymore. They almost always turn me down. I can think of reasons why .....
We own a very nice family business since 1953.  Our refrigerator and rest room are always open to our mailman.  We always give police and firepersons discounts.  We also try to help artists whenever we can.  Ethics, good values, kindness, etc... might be some of the reasons that I am so lucky to have a wonderful wife and two great children.  
Many people work just as hard, and sometimes much harder, but their benefits pale in comparison to postal workers. Check out the Thrift Saving Plan available to Postal employees.
It does seem that being nice, kind and giving out freebees are a thing of the past. Some excuse this by saying there is a recession and money is tight. Right, but time past also saw were similar yet kindness prevailed and gifts/freebees were the idea of the day if you could. We were helped a lot by my grand parents and it saved us from starvation

John Harper  Sunday, 07/06/08
No, it's not lost.  As a franchise owner of multiple LIBERTY TAX SERVICES we often give out free drinks, snacks like donuts and even free tax preparation coupons to our mailman and others.  

Also, we offer everyone that walks into our store water, coffee or tea.  If someone came into your home you would do the same, and it really is a little price to pay.  Even if people do not accept they remember us.  The big companies in our industry treat people as numbers, and can not understand why we are growing so fast.
As a federal worker myself, I can tell you that we do not have great salaries. If I were to change over to private sector, I would definitely make more money for the work that I do and the responsibilities that I have. However, I like what I do, where I work and the people that I work with. That combined with the fact that I am doing a job that helps protect my immmediate community as well as our country is what keeps me coming back to work every day.

I applaud the actions of your mother. Whenever I have workmen at my home - I offer them drinks, use of the bathroom, etc. I do this because if I were in their shoes, I would hope that someone would do the same for me. I also try to remember the newspaper delivery person, the mailman, etc. around the holidays. I think if we all tried to be a little more courteous to each other, the USA would be a much better place to live. Manners and courtesy seem to have all but disappeared in many places. Thankfully, I live in the south where you can still find it without even having to look for it.
Bless your gracious Mother! I am a meter reader for a utility and I know how much that water was appreciated.  It is unfortunate, but I have trouble most days even finding someone to let me use the bathroom.  There are a few folks though that go out of their way to make sure we have what we need.  bless them too.
I can remember when I was younger my mom and I were waiting in line to check out at the grocery store. There was a woman in line in front of us with two kids; One was around 2-3 the other about 10.

The woman's credit cards got turned down a couple times. She tried another card but it too was declined. As the woman went to walk away I remember my mom pulling out her card without a moments hesitation and paying for the woman's groceries for her.

You rarely see people exhibit this kind of kindness these days. Even though it put my mom in a bit of a financial bind she wouldn't accept repayment from the woman in front of us. If more people in our society were willing to bend over backwards to help out others this world would be so much better.
This is potentially a tough one.

I don't see how anyone can possibly fault your Mom for her nice act of kind generosity to the postwoman.

Nor of anyone else doing something similar.

However, I worked a short while in law enforcement and a much longer while in private security, but as a patrol officer in the latter was often *perceived* to be, essentially, a police officer, which I of course was not.

It took keen judgment to try to determine when, say, a restaurant manager or owner was trying to acticely solicit special service from you or he or she was merely showing gratitude.  As a police officer, I never accepted it, something of a problem in the small community in which I worked -- and which I had grown up (so knew everyone).  Probably didn't have to go that far, but it made it easy for me.

In short, the giver's intent is, it seems to me, the key.  Your Mother couldn't possibly expect to receive any sort of "special service" from someone not her own postal delivery person.  Besides, just what else can a mail carrier do besides deliver the mail???  Clearly, her intent was generous in nature.

When I worked in security, I would accept a free cup of coffee and the like -- in establishments with which my company had a contract already, but not in others, except in exceptional circumstances.  For instance, by law we could not refuse an emergency call from a non-customer if in our patrol area.  So, if I caught, say, a would-be trouble-maker and handed him over to the police, sure, I'd take a cup of coffee.  But I never once felt the giver was doing anything beyond thanking me.

Sure do wish there were a lot more people like your Mom around.  Luckily, I know quite a few such people myself, which makes it easier for me to try to imitate them, at least ONCE in awhile!


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