Publishing Guidelines: This article may be freely distributed so long as copyright, author's information and an active link (where possible) are included - there is no need to include these guidelines. A complimentary copy of any newsletter or a link to website where article is posted would be greatly appreciated.
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 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 example of 0% financing that is widely being promoted for new vehicle sales. While it seems that this is a good deal on face of it, people fail to realize that 0% financing isn't really "free." According to Power Information Network, during a five month period, 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 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 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 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 different types of freebies that are out there and then make sure that freebie is not costing you money in hidden ways. Here are some of 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 intention of letting you try it to see if you like it. The manufacturer is willing to give away a sample of 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 image most people have when mentioning 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 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.