How to End Up With a Free Television
Talking to the shopkeeper, I learned that this kind of promotional gifts spurred on more people to purchase more expensive items. I wanted to know how they could afford a free Television as a lure. The answer was quite shocking. A vast network of deals between many stakeholders end up in pricing structures that see everybody, including the customer, getting a fair advantage into the deal.
It starts with the Television manufacturers. They need to sell older units to create space for new designs coming onto the market. The trick is to turn the older sets into promotional gifts before new designs are let onto the market. Retail buyers then bid on a certain amount of newly designed television sets and the manufacturer then adds a number of older sets as free promotional items.
The actual costs of the free sets are worked into the cost price of the new designs. This way the new product pays for the older ones. Customers expect to pay more for better designs and thus the price difference is not that noticeable.
Television networks also get in on the deal as they use retailers to hook up new clients. Referring a client that bought a new television to a certain network, earns the retailer a large rebate. Cable companies do the same. This helps the retailer to cover costs of more expensive designs and you end up with a free Television.
Keep in mind that a free Television has the same manufacturers guarantee as a purchased product. It is thus important to keep all documentation for the duration of the guarantee period.
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