Is it always for the best to concentrate on nothing but your bottom line? This is a question that is surprisingly tricky to answer. You may have heard that business owners all over the world are making a fortune by offering free promo products to their customers; But how is this possible? Isn’t the very idea of giving something away for free a total non-starter when it comes to turning a profit? It seems odd to expect to eventually become a dominant player in your industry by extending the promise of free items to customers who should be paying for your goods. But there may be more to this idea that you may realize at first.
Why Should Any Business Lead To a “Loss Leader?”
You may be wondering why any business would choose to start off a major promotional campaign with a “loss leader.” Isn’t the idea of giving away free stuff a loser by definition? But as it turns out, this idea isn’t as crazy as it sounds. The fact is that your customers love the idea of getting something for nothing. Of course, it isn’t as though your loss is complete.
You can very easily manufacture a promo item in order to give away with orders over a certain amount of money. This is how you cushion the blow. To begin with, you don’t have to pay an arm and a leg to have these promo items made. Beyond that, the fact that you offer them with an order means that you are already seeing a considerable profit on the item even though it is being given away in tandem with another.
Making Up a Few Free Promo Items is a Cost-Effective Measure
Promo items, such as caps, bottle openers, or USB sticks, are easier to order for your business than you may think. The truth is that there is no reason to assume that you will have to dip deep into your operating budget. In fact, these items can now be manufactured for a fraction of what they used to cost.
After you have made up enough of them to hand out to your customers, you will be amazed at the response you get. For a few extra pounds’ initial expenses, your business will be rewarded with increased customer loyalty. This loyalty will likely show itself in the form of repeat orders on a very regular basis.
You’ll Soon Get a Quick Return on a Freebie Promo Item
You’re all but guaranteed to get a quick return on a freebie promo item. This is because handing out such items to your customers is a source of great satisfaction. Not only do they feel that they have gotten “something for nothing,” they are also bound to recognize the fact that they have received excellent customer service from your business.
This sense of profound customer satisfaction is a factor that will weigh heavily in their decision to continue patronizing your business. An increased sense of customer loyalty, coupled with the fact that they will gladly recommend you to their family and friends, is a serious return on your timely decision to hand out a few free promo items. For this reason alone, it’s a sound customer investment strategy.