Freebie Hand Outs By Companies

June 15, 2014

Freebies are samples of products from companies that they give away to potential customers to lure them to buy their products. It is generally something that you get for free. Most freebies are given when you apply online through the various freebie websites available online by filing out survey questionnaires.

In the past, in the U.S literature, some saloons would offer free lunch to customers with the purchase of more than one drink. The lunch varied from simple to elaborate foods and were sometimes worth a lot more than the price of a single drink. The saloonkeeper mostly depended on the customers to buy more than one drink.

The razor blades produced by the company of the renowned entrepreneur, Gillette, had become quite expensive and he had to reduce the price after the first patent expired. He sold them at a lower price to make market for the newer ones. This was coupled by the fact that there was a lot of competition in the market at that time.

John D. Rockefeller and his company, Standard Oil, after enjoying a long time of American monopoly in the domestic market, he wanted to expand the business outside of America. He sent representatives to China. In an effort to increase the demand for kerosene, they gave away about 8 million kerosene lamps almost for free.

The largest mass media company internet service provider in the United States, Comcast often gives out free DVRs samples to subscribing customers, bearing the burden of the initial product cost. This cost however is regained when the customers want installation, which costs about $19.95, as well as a monthly fee of $13.95 that is charged to every subscriber. The initial cost of one DVR box which is about $250, takes only around 18 months to recover, and then the company starts generating profit.

Printer manufactures usually sell partially filled cartridges with their printers, usually as freebies in order to create market for their cartridges. It is common practice to find that the cost of one cartridge almost totals the cost of buying the whole printer. To prevent the consumer from buying a non-proprietary ink cartridge, they make it in such a way that the machine is completely disabled when you put the ink cartridge, instead of just giving out an alarm response that a non genuine cartridge has been installed.

Giving out freebies can also be dangerous, as some consumers find side uses for the products they are given, other than the initial intended purpose. This tends to affect the revenue flow for the company. When for example some companies offered free personal computers which were accompanied with expensive relational internet services, the consumers used them for other home purposes.

A type of marketing strategies related to freebies called tying is used by large companies to market their products and to ensure that unpopular products sell. A company can decide not to sell a bestselling book to a book store until a certain unpopular one sells out before releasing the best seller to the market. This tends to force the consumer to buy something that they do not need in an attempt to buy a product that they actually like.

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