If you have been to a Harbor Freight outlet lately you will most likely experience long lines at the cash registers just about any time of the day. Why, even in economic downfalls, when retail sale are down, are customers breaking down the doors at Harbor Freight? The answer is “FREE”. Every print advertisement. Harbor Freight runs features Free products. Some are “FREE with any purchase” and some are “FREE no purchase necessary”. How can a company make a profit giving products away free? Well, it’s a calculated marketing strategy that can generate huge profits.
There are several factors that capitalize on the Free concept is sales promotion. First, FREE motivates people to come into a specific store or shop. Harbor Freight is gambling that if you come to their store you will find something that you will buy. Apparently, it is working because they keep doing it. The second factor is you will be attracted to visit retailer that you might never have considered going to before. And, by getting you in the door you are exposed to an array of products that you were really not shopping for, but may be attracted to and purchase.
The promotional term “Free” is also used in many TV and Radio commercials as a motivating factor. “Buy one get one free” gives the perception that the customer is receiving twice the value for their purchase price. The reality is, that many of these products are overpriced so the customer is actually paying for two and the marketing company is not losing any money. Watch out for those “shipping and handling” charges which often also cover the cost of the free product. https://en.wikipedia.org/wiki/Buy_one,_get_one_free
To get you to try their products, some companies offer Free Samples. This is a good gimmick as it gets you to try, and hopefully like and buy something that you would have never considered before. Check out this site for free samples:
There are Free items on-line Free applications for computer and iPhones are a great way to sell the hardware (product) . Much for the free applications are funded by advertisers. Ads are everywhere.
Product manufacturers have given out Free gifts to promote their brand awareness. You can choose from thousands of advertising specialties
As an added perk, some marketers will offer Free items like a hat or T-Shirt, Mug, Pen, etc., if you order their product, subscribe to their publications or in some cases just inquire. The word Free is a powerful motivator if used properly. Want to know how it can work for your business? www.smisek.com Tom Smisek is a Marketing Consultant Orange County.