The normal price-quantity relationship for supply is not a one-dimensional upward sloping curve starting at the zero point. In the real world, it should be a band.
There are people who are willing to perform at zero price, for example:
- the lawyer representing a client at no charge,
- the artist showing up at a charity event for free,
- the student doing internship without salary.
Therefore, being without compensation is NOT being without value.
Consumers need to understand the intrinsic value of what they are getting for FREE: free delivery, free installation, free anything.
For the businessperson, the implication is to tweak the supply curve and replace quantity with value instead. This means that you should sell (and price) based on value (to the customer), not based on quantity or feature. "You get to enjoy an evening of favourite movies with your family" vs "this TV model has the best resolution in the market".
Caution: Operating in the red zone is challenging. The only legitimate scenario is to command a premium by providing a strong differentiation or high value-added.