Why Do Businesses Give Away Free Stuff?

Often, people are curious about why a company would give away items for free, and how they actually benefit from it. There are a variety of reasons that businesses may hand out free items, but some firms use it as a part of their marketing as they try to obtain new clients.

Knowing this, let's examine several of the biggest reasons that companies may choose to give out free items, often labeled with their logo or marketing information.

Free Items Can Grow their Client Base

Many businesses have realized that the act of passing out free sample items may have the end result of growing their client base. When customers try a product for free and enjoy it, they're far more likely to buy a full sized item moving forward.

Build Brand Awareness with Free Items

This type of promotional item is often created specifically to promote a new service that the company will be offering or a new product that they are launching. The free sample period is designed to boost awareness of their new product or service, much the way that running a sale will, but provides potential consumers the chance to sample the offering at no cost. This winds up being a very economical way for the business to advertise their products and services to potential customers and the public at large. Free products also tend to increase customer loyalty from current customers, as people appreciate being treated well and receiving items for free as a gift for their patronage.

Freebies Help with Overabundance of Choice

If it's difficult to see what a new brand on the market has to offer specifically, it can be difficult for a potential buyer to make a choice and opt for a new product. Providing free samples of a product makes a big difference, as it helps customers want to try the product and gives them a chance to test out a brand, product, or company without needing to spend any money in order to do so.

Free items Let Businesses Collect Information from Potential Consumers

Providing free samples lets the company that does so collect facts and figures about possible future customers about the products and services that they may be interested in. This is why it is important to understand that you are trading information about yourself when you register to receive a free item.

These are only a few of the reasons that businesses give away free items from time to time.

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