Senin, 09 Juni 2014

Freebie Hand Outs By Companies

By Armando Rodriguez


Freebies are products given by companies for free. A freebie is a free sample of a product that is given out by a company in a bid to attract potential customers. Several websites exist for those who wish to apply for fee samples, and many of them are updated from time to time. The application process normally involves filling out survey questionnaires provided by in the web pages.

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.

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.

The Standard Oil, a company owned by the famous John D. Rockefeller, at some time enjoyed a monopoly over the American market. When they decided to expand and look for overseas markets, the company sent out representatives to China to make a deal. About eight million kerosene lamps were given out in an attempt to lure over the Chinese.

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.

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 of free samples sometimes misfires, like when a company gives out free personal computers that are coupled with expensive relational internet services. The consumer may decide to use the computer in a different way other than subscribe for an internet service. The revenue flow for the company therefore declines and it experiences heavy losses.

A kind of practice called tying has recently been criticized as an anti competitive act. This happens for example when a company requires a book store to retain an unpopular book before allowing them access to the best seller. The end result is that consumers are harmed by being forced to buy a good that they do not need. This kind of tie could harm the other companies in the market if the company doing this has a large market share, or if the other companies only deal with single commodities.




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