Giving away products for free is far from sustainable, but then again there’s a time and a place for everything.
Customers love getting things for free. Who doesn’t? The word free carries incredible power for any retailer, but it comes with an obvious cost.
A wise man once said “with great power comes great responsibility” and it’s safe to say this includes the power of offering free products or services.
Offering free items and services has to be done in a tasteful manner. You can’t just sell anything for free, and the customer has to deserve it. Eroding margins is never a good idea, and empirical evidence has shown that constant discounts do not fare well for retailers.
So when is it appropriate to give something away for free and potentially take a loss?