Why Do Companies Give Away Free Samples?
We have all heard the expression that there is no such thing as a free lunch. Yet, many large and small companies give away millions of dollars worth of freebies every year. This begs the question, why do they do it? There are a few reasons why companies choose to give away free samples or trials of their products but they all turn out to uphold the old saying: there really is no such thing as a (totally) free lunch. The very simple answer is that companies give away free samples to increase their sales and (hopefully) in turn profits. Now you may wonder how giving away something for free can increase sales, let alone profits. Obviously, in the short run these types of promotions negatively affect the bottom line of most companies that employ them. However, the hope is that in the long run the free sample or free trial offer will get people to pay to use the product. These promotions are most commonly used to promote a brand new product or service that people have never tried before. T
