Essentials Magazine Essentials Fall 2017 | Page 6

I’m sure you’ve noticed that over the past ten years, the K-12 market has experienced dramatic changes, unlike anything most of us have lived through before. One of those shifts is the emer- gence of free products and services, which may now or sometime soon be a threat to your business When we think about free prod- ucts and shifts in the education market, the company that comes to mind is Google. Educators are increasingly using Google’s free cloud-based offerings, Google apps, instead of purchasing similar pro- grams from suppliers like Microsoft. They’ve shaken up our notions about what educators value and the brands they engage with. Google’s success has fueled the idea that everything should be free. One Piece of a Puzzle of Change But it is not just free products that are shaking up the K-12 education market. Multiple factors are driving the need for suppliers to consider reinventing their business model. In- creasing acceptance by K-12 decision makers for free apps has triggered budget cutting for traditional prod- ucts, adding to the sense that we are on shaky ground. So how have you (or should you), an established provider with a traditional business model, respond to this shift in the market? Should you develop a free offering? Should you drop the price of your product and try to compete with free? 6 essentials | fall 2017 What to Do When FREE PRODUCTS and SERVICES Threaten Your Business BY GLEN MCCANDLESS Should you cut your staff and expens- es and try to survive? Tough questions. As is the case when a new competitor threatens, sometimes our response is denial. We hope our customers won’t be tempted or that the company offering the free product or service will fail. Now may be a good time to consider why we react that way and to look to other industries beyond our own domain for advice. But where to begin? Start by Freeing Up Your Mind A starting point for you could be to really free up your mind to the possi- bilities. One of my early experiences in the ed tech industry, when I was at Apple, was a presentation I attended by futurist and business advisor Joel Barker. I encourage you to read one of his books or watch any of his YouTube videos because it is powerful stuff. Joel’s focus is studying paradigms, which are patterns of behavior that blind us to impactful trends. When I use the word “blind” I mean it literally. Our brains are programmed not to recognize change. Could Anything Be Offered for Free? How far could the free trend go? Might it die off? I have come to con- clusion that almost anything could be offered for free to schools, even tech- nology devices that cost thousands of dollars in the past. The idea of offering free stuff to educators isn’t new. Over the course of nearly 30 years that I’ve been in the trenches of the education space, I’ve seen dramatic price drops in products, and I’ve done my share of giving away products and services to secure customer relationships. I’m sure you’ve seen educators loading up shop- ping carts with free teaching materials at conferences, and asking you for free product samples and free product trials.