Understanding Freebies
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Understanding Freebies By Jeffrey Strain
It seems that everyone is after "freebies" these days to save a
little money. While this may appear to be a good way to save,
understanding why freebies are offered and the different types
of freebies that are available is essential to make sure you
aren't spending more that you thought. "Spending more than I
thought? It's a freebie, how can I be spending money?" you may
be asking yourself. That's what this article is going to show
you so you can determine if that freebie is truly free.
Take the example of 0% financing that is widely being promoted
for new vehicle sales. While it seems that this is a good deal
on the face of it, people fail to realize that the 0% financing
isn't really "free." According to Power Information Network,
during a five month period, the average buyer who financed with
a 0% loan paid over $1,800 more for a Ford Explorer than those
who paid in cash or used another type of loan. The 0% "free"
interest loan isn't so free when viewed from this perspective.
Most people assume that a freebie means that you can get the
item for no cost. It makes logical sense, but in reality it
isn't quite that easy. First and foremost, it is important to
realize that "Free" is a relative term. Companies give away
freebies not out of the kindness of their heart, but to drive
traffic to their site or store, to build good customer
relations, to attempt to get you to purchase other products at a
future date or any number of similar reasons. It is always
important to remember that there is an alternative motive behind
the freebie being given away.
That being said, it doesn't mean that all freebies are a
worthless waste of time. Freebies can be an excellent way to
save money, but you need to understand the different types of
freebies that are out there and then make sure that the freebie
is not costing you money in hidden ways. Here are some of the
typical types of freebies offered and what to look out for:
Free Sample: This is when a product is given away (usually in a
smaller "trial" size, but full size samples can also be found
from time to time) with the intention of letting you try it to
see if you like it. The manufacturer is willing to give away a
sample of the product in hopes that when you try it, you will
like it enough to begin using it or switch to their product from
a competitor you were previously using. These rarely carry
hidden costs and probably are the image most people have when
mentioning the word "freebie."
Free With Purchase: This is where you receive something at no
extra cost as an add on when you purchase a certain product.
While these can be good deals if you were planning to buy or
need the main product being sold, you need to be careful not to
purchase something you don't really need just because it comes
with something free attached.
Free After Rebate: With this method, you pay for the product up
front and then send in some type of proof of purchase (usually a
bar code accompanied by the receipt) to get a rebate on the
money you paid. While these look great while purchasing the
product, it's important to read the fine print and terms before
proceeding to purchase. Chances are there will be some
restrictions which may make getting the rebate difficult. You
want to take the time to know that you will qualify for the
rebate and can receive it with relatively little work before you
buy. If you don't, you may find that the freebie is not so free
after all.
Free Trial: This freebie gives you a product or service at no
cost for a certain period of time. Two classic examples are one
month free memberships or three free issues of a magazine. As
with a free sample, the companies hope that once you begin using
their product or service, you will continue to do so.
The point to be careful about in regards to these free offers is
that you are usually required to cancel the membership or
subscription once the free trial period is over. If you don't,
then you will automatically begin being billed for the product
or service. It is easy to forget these dates and your free trial
can become quite expensive if you don't religiously keep track
of the dates.
Free Reward: This is where you receive something for free after
doing something or completing a task. A classic example is
receiving something after filling out a survey or applying for a
credit card. The issues to take into consideration and weigh are
whether the time spent doing the activity is worth the reward
or, in case of filling out an application, will completing the
activity cost you in some other way down the road.
Free Shipping: This has become the mantra to selling on the
Internet. You buy the product and receive free shipping. The
problem here is that we all know that the shipping has to be
paid for somewhere, so you can make an educated guess that the
shipping fee is being passed onto you in some other form.
Classic examples of these are "processing fees" or "handling
fees" which are added to the cost of the product. Even when
these don't appear outright, you can be sure that the free
shipping has been factored into the cost of the product.
As you can see from the above information, free can actually end
up costing you in hidden ways if you are not careful. In the
end, taking the time to understand all the information and terms
associated with the free offer is essential to make sure that
the free offer doesn't end up costing you more than if you had
never pursued it in the first place.