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.
Some saloon owners in the past used to give out free lunch to their customers with the purchase of at least one drink. The free lunch was often far more expensive than the drink, but the owner usually relied on the hope that the customers would buy more than one drink. They varied from simple foods to quite refined ones.
When starting the razor producing company, Gillette realized that he needed to economically dispose of the previous version of razor blades so that he could make way for the newer ones. He sold them for a cool low price to create market for the new blades. Gillette razors were quite expensive and only went down after the first stock expired.
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.
Comcast, the largest mass Media Company and internet service provider in the United States, gives away DVRs as free samples to its subscribing customers. The cost however is recovered by an installation fee of about $19.95 and an additional fee of $13.95, which is a monthly subscription for the machine. If the cost of one DVR box costs around $250, the loss would be recovered in about 18 months, after which it now starts to generate interest.
Big computer printer manufacturers often sell their products with partially filled cartridges as freebies at below costs to create sales for their external cartridges. In most cases, the cost of the printer with the partially filled cartridges almost equals the cost of buying one cartridge. The producers sometimes make the machines in such a way that if a non-proprietary ink cartridge is put into the machine, it completely disables it.
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.
Some companies may decide to use the tying method instead. This happens when the consumer is forced to buy a product that they do not really want when purchasing the goods they actually need. A good example is when a company requires a book seller to hold on to an unpopular book before allowing them to purchase the best seller.
Some saloon owners in the past used to give out free lunch to their customers with the purchase of at least one drink. The free lunch was often far more expensive than the drink, but the owner usually relied on the hope that the customers would buy more than one drink. They varied from simple foods to quite refined ones.
When starting the razor producing company, Gillette realized that he needed to economically dispose of the previous version of razor blades so that he could make way for the newer ones. He sold them for a cool low price to create market for the new blades. Gillette razors were quite expensive and only went down after the first stock expired.
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.
Comcast, the largest mass Media Company and internet service provider in the United States, gives away DVRs as free samples to its subscribing customers. The cost however is recovered by an installation fee of about $19.95 and an additional fee of $13.95, which is a monthly subscription for the machine. If the cost of one DVR box costs around $250, the loss would be recovered in about 18 months, after which it now starts to generate interest.
Big computer printer manufacturers often sell their products with partially filled cartridges as freebies at below costs to create sales for their external cartridges. In most cases, the cost of the printer with the partially filled cartridges almost equals the cost of buying one cartridge. The producers sometimes make the machines in such a way that if a non-proprietary ink cartridge is put into the machine, it completely disables it.
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.
Some companies may decide to use the tying method instead. This happens when the consumer is forced to buy a product that they do not really want when purchasing the goods they actually need. A good example is when a company requires a book seller to hold on to an unpopular book before allowing them to purchase the best seller.
About the Author:
Want to find out more about Freebie, then visit Armando Rodriguez's site on how to choose the best Freebies for your needs.
No comments:
Post a Comment