Is this ethical?

[Isntbard]

I recived an e-mail from within my company asking for inovative ways to get work that included the following:

"For example, offering to attend city council meetings free, lump sum contracts, offering a limited amount of hours free and if the client likes our work he would then hire us, instead of going out for RFP offer the client the equivalent amount of time free and so on."

The ASCE code of ethics has a connon that states "Engineers shall build their professional reputation on the merit of their services and shall not compete unfairly with others."

Is giving the client free work building our reputation on the merits of our services?

 

[IRstuff]

my $0.02 worth...

It's a way to demonstrate the merits of your work. Many clients are reluctant to try new sources without getting some sort of warm and fuzzy that the new source is capable of and qualified to do the work. Your free work is a way to demonstrate the quality and competency of your work.

Bear in mind that, ultimately, nothing is really free. The "free" hours are simply amortized over your paid hours, e.g., it's an overhead burden on your hourly rates. This may affect your overall ability to compete against others.

TTFN

 

[profengmen]

I would think it depends on how much "free" service is given.

Everyone gets free samples, but selling things under you cost is sometimes illegal.

 

[JAE]

Offering free services is not unethical. Quality based selection is preferred by engineers and offering free services up front - to allow the client to get to know you, trust you, and possibly select you for legitimate work later - through QBS is ethical, in my opinion.

The problem, though, is that:

1. You are doing this at risk
2. Some unethical clients may keep baiting you to perform more free services without any intention of giving you true work later, and
3. In many cases you diminish your reputation by "grovelling" for work by offering your highly valuable services at no charge.

 

[BJC]

People tend to value things by what it cost them. Somethings that is "free" is not highly valued.
Your potential clients may go to a "good" firm when they need serious work. They may think those guys that work for free are not that good.
There are lots of ways to build your image in the community besides doing free work.

 

[aspearin1]

Is it "free"? Or is it a "gift." I come from a state where my governor is currently under investigation for accepting theses "free gifts." I just read "Artful Persuasion" by Harry Mills (great book), and offering one of these "gifts" is quite common. On the one hand, no, it's not unethical to prove the merits of the company. However, generally this tactic is used to make the client feel indebted to your company. This is the very reason why college professors aren't allowed to buy an NCAA basketball player a soda. The feeling of debt, a potential coersion tactic. Is it ethical? At face value, I suppose it is... but why are they really doing it? If every company did it, prior to the bidding process, a whole lot of free stuff would get done....

aspearin1

 

[sc]

Doesn't a company prove its merits through past projects, performance and client references?

I refuse to devalue my service by giving it away to prospective clients. I prefer to show them my past projects and the standard of my work and to take them to clients (mainly related to the good projects, but sometimes I include jobs that have gone wrong). This demonstrates that I am not perfect or rigging the references and that I am responsible for my errors. I actually got one of my better clients this way, he saw both sides and decided to go with honesty rather than perfection.

regards

sc

 

[IRstuff]

I would assume that a company offering this is one that is very new and doesn't have a track record to crow about. Additionally, if your company is up to its eyeballs in business, there is no need nor desire to give away hours.

TTFN

 

[plasgears]

In the practice of my consultation business I convey some free generalized information as I sell my services. This involves describing past jobs. I try not to convey specifics relating to the job at hand because that should be conpensated service.