It is the most powerful four-letter word in advertising, and perhaps the least widely used in our field: FREE!  The expression “don’t give the store away” has frightened a lot of retailers, and kept them from giving anything away for free — but as a promotional tool, free can be very cost effective.

A classic approach is the “buy one, get one free” sale tactic. Instead of getting rid of a single item by marking it half price, you get rid of two!  This is a great way to clear out a large quantity of an item that hasn’t sold well. You could also use the “buy one, get a second one for a penny” version of this tactic.

Another classic use of free merchandise is “gift with purchase.”  Adding any item on as a freebie when an item is purchased at regular price makes the customer feel like a winner.  Look around your shop for related product that will work well as a GWP, or ask your suppliers if they have samples or discontinued products available for you to use.

We are always looking for inexpensive items that we can give away for free — for example as the gift that we wrap and present to the members of our preferred customer program during their birthday month.  We work with our vendors to find quality items such as calculators, flashlights, smiley-face spoons and other kitchen tools that customers will enjoy using. Each item either has the name Orange Tree Imports on it, or is orange in color.  You’d be surprised how many customers come in with their birthday postcard to claim their free gift!

I recently came across Mardi Gras beads at a very low price from AmScan, and ordered several tubs of red ones so that we can give a strand to every customer stopping in on their way to a University of Wisconsin football game next fall.  Our shop is a few blocks from the stadium, and this is certain to help divert a portion of the tide of red-clad fans walking to the game into the store.

If you are in a tourist area, consider a coupon that offers a free gift to any visitor. The cost of the coupon and the cost of the item  are both part of your advertising expense in bringing new shoppers to your business — and it will be easy to track how effective this approach is for you.

Vendors can also use free merchandise to influence our buying decisions, I should add.  I recently received a packet of information from an Iowa company called Running Horse Bell Company.  It would have been easy for their sell sheets and price list to quickly get dumped in the recycling, but it was hard to ignore the cute jingling door hanger that accompanied their literature. The “free” item they sent was valued at $6.95 wholesale, but it did net them a customer.  And isn’t that the goal of all advertising?

Happy Retailing,

Carol “Orange” Schroeder