People discuss charts and laptops at an office meeting. Photo: Antoni Shkraba / Pexels.

Turning a free business service into a paid one is harder than changing the price

Written by Joseph Nordqvist

Published: 18:00, November 11, 2026

Industrial buyers were more receptive to a proposed charge for a previously free digital service when the supplier explained the change or provided certain comparison information, a 2026 experiment found.

The Industrial Marketing Management study examines a difficult decision for companies that sell to other businesses: how to begin charging for a service customers already expect to receive at no extra cost.

Its results come from hypothetical scenarios, not actual contract renewals. They suggest communication deserves attention, while leaving open whether a real buyer would accept a particular fee.

Why a free service may become paid

Manufacturers and other suppliers sometimes provide software, monitoring or support alongside a product. A service that starts as a way to encourage adoption can become expensive to maintain as more customers use it.

Charging for that service may help cover development, support and security costs. Customers, however, may view a new fee as a loss of something included in their original purchase.

A supplier must also distinguish between optional additions and commitments already made in a contract. The legal and commercial terms of each relationship matter.

What the experiment tested

Researchers Joona Keränen, Anna Salonen, Harri Terho and Juha Munnukka presented industrial purchasing professionals with a proposed move from free to paid service. They compared different ways of explaining the change, including a reason for the fee, information about others and how the outcome was framed.

The main analysis used 386 responses after the researchers excluded respondents whose answers indicated inattention or carelessness. The initial eligible group was much larger. In an analysis using the full dataset, effects were weaker and not all remained statistically significant.

The authors report small-to-medium effects on willingness to accept the change among attentive respondents. A person’s answer to a scenario is not the same as a signed contract, and the research does not establish that any particular message is effective with every customer.

Explain the service as well as the fee

A business considering a new charge can explain what customers receive, when the change starts and how existing agreements are affected. An honest account of costs or added service features may help buyers evaluate the offer, but a persuasive explanation does not make an unsupported claim true.

Customers may also need time to compare the proposed service with alternatives, assess their own usage and seek internal approval. An abrupt announcement can create practical problems even when the price is reasonable.

For a supplier, retention is only one part of the calculation. Revenue from a new fee needs to be weighed against support costs, customers who decline and any effect on sales of the main product.

Test before applying a broad change

Companies can speak with customers, examine actual service use and test whether the proposed charge covers the costs it is intended to fund. They should also measure renewals and complaints over time rather than relying only on an initial response.

Our coverage of cost explanations examined a separate consumer experiment. Its findings concern purchase intentions in controlled settings and should not be applied directly to industrial contracts.

The supplier study highlights a useful distinction: a pricing decision sets the amount, while the transition determines whether customers understand the offer and can decide if it is worth paying for.

Joseph Nordqvist Avatar

Other News

Small businesses that sought customer feedback reported higher revenue in Rwanda experiment

Nov 11, 2026

Checkbox coupons were less effective than direct discounts in an online shopping experiment

Nov 11, 2026

The way online reviews are organized can make them more useful to shoppers

Nov 11, 2026

AI feedback helped some customer service agents in a workplace study

Nov 11, 2026

In-store screens can increase purchases of advertised products, retail study finds

Nov 11, 2026

A loyalty campaign can lose sales when stores struggle to carry it out

Nov 10, 2026

Offering a choice of discounts can sometimes reduce purchases, study finds

Nov 10, 2026

A fee to place a bid can lift a seller’s profit, but the effect may fade

Nov 10, 2026

Experiences can make loyalty rewards more engaging, retail research finds

Nov 10, 2026

Most emerging-market firms in an IFC survey use AI, but few have embedded it across core operations

Nov 10, 2026

Startups given examples of AI workflows found more uses for the technology

Nov 9, 2026

Showing product costs can change how shoppers judge a brand’s motives

Nov 9, 2026

Hiding most Facebook ads increased users’ time on the platform in a study

Nov 9, 2026

Online sales remain a small share of revenue for many Balkan businesses

Nov 9, 2026

Toast faces FTC lawsuit over restaurant software fees and cancellations

Nov 9, 2026

Fashion ads featuring models with disabilities performed better in a set of tests

Nov 8, 2026

Ad comment moderation showed mixed results in Harvard research

Nov 8, 2026

Board connections are linked to marketing’s influence inside companies

Nov 8, 2026

Customer confidence can fall before it rises with experience, study finds

Nov 8, 2026

Drug buyers often cut promotion while raising prices, research finds

Nov 8, 2026