Archive for August 10, 2008

Week 4 – Free! Why $0.00 Is the Future of Business

While the article proves there is more commodities in our world today that hold the ‘free’ label, it is mainly the imperative extra that it comes with that will leave you out of pocket. The extra’s which are usually marked in fine print are in many cases marked up to account for the free items a consumer receives. A recent advertising campaign for Harvey Norman indicated that if you bought a brand new LCD T.V Flat Panel you will receive a free Nintendo Wii Mini valued at $199.00, but of course it is no use to you unless you buy the Nintendo Wii games valued at around $80.00 each in store. So while you did get something for free the retailer was hoping you would spend an additional couple of hundred dollars on games so you can play your new Nintendo Wii mini. Usually these specials are not negotiable on the additional purchase price of the television, which if you had not got something for free the consumer may have been able to negotiate a better price. Young people are especially susceptible to buying in on these sorts of marketing gimmicks given how easy it is today for people aged less than 25 years old to get credit from a credit agency or bank. The business marketing plan of getting something for free is proving to be a successful sales technique for the time being. For everyday grocery and clothes shopping, the ‘buy one get one free’ is cost effective for the consumer and usually does influence what products they buy. But for larger expenses such as technology, there are always better deals, it’s just a matter of doing your research and figuring out what you (the consumer) wants in a product, and having a set budget so you don’t get persuaded into buying something that maybe $200.00 dearer than anticipated just to receive the additional ‘freebie’.