What's the concept of 'free' products. How could one give a product free with other ?

We know nothing comes for free. I think the the cost of original product may be decreasing, hence, to compensate, other product is given with it and tagged free.

2 Answers

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  • 7 years ago
    Favourite answer

    Once the fixed cost is recovered ( sales beyond Break Even Point ), the product earns good profit in additional sales. So the company can afford to give free items and try to improve the sales.

  • Hugo90
    Lv 7
    7 years ago

    No, it's advertising. It is to get you to try the product. On a temporary basis it can be sold at a loss in order to attract new users.

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