Tyre Kharido, Car Free :)

“Tyre Kharido, Car Free” (Buy one Tyre, Car is Free)!

Sounds funny? Might be, but believe me, it is true !!.

Couple of months back I came across with this advertisement in a national daily. Was curious to know the deal, on a close look found an * mark with conditions apply. And you can imagine the “condition”... the usual ones… “On purchase of so many tyres, your chance to win a car doubles up and blah blah…”. Quite usual advertisements in print media or in electronic media. Not unusual these days !

The interesting part is the “conditions apply”  – in almost zero font size :); quite similar to the statutory warnings on Cigarette Packs. Not only that, the price of the selling items are hiked considerably in general, which go un-noticed by the customers as the attention gets diverted to the free tag. One should be very careful while going for these kind of deals and should understand the Conditions carefully. Else…. But unfortunately the conditions are never explained properly in the advertisements.

On a similar note, I came across with another advertisement “Cooler Kharido, Refrigerator Free” (buy a cooler and get a free refrigerator); during the hot summer days of Delhi. Was fascinated by the advertisement at that time. Next morning I went to that shop (spend some 4 hours to locate the shop and Rs 200/- by auto) to get the air cooler and a refrigerator. But, to my surprise the Air Cooler which normally costs Rs 3000/- in the market, was labelled with Rs 6500/- and the free refrigerator was of no use for me as it was very small. Came back home on a sad note 😦 . I should have understood the conditions applied well before spending my time and money.

On a slightly different note, every one of us have experienced the famous “Buy one and Get one Free” deals in malls, in cinema halls or in eating joints like Pizza-Huts, Dominos or McDonalds etc. These tag lines are to lure the customers to and to sell more. Customers buy more and spend more — it does not matter whether the need of the free item as well as the first item is there or not!

The tag line “Buy one and Get one Free” is just another marking concept and a sales promotion method for shops, companies and dealers. Companies/dealers usually adopt this method to clear the stock or to quickly reach the market. One should not get lured by the word FREE, instead should realize Nothing is Free, some thing or other has to be paid to get that which appears to be Free.

Selling something and giving something free is becoming a regular marketing concept; either buy one get one free (of the same or different item) or “buy two get one free” or “buy this get that free”, are free flowing tag lines now a days. Be it “buy one and get one free” or “buy this get that free”, these lines are usually profitable to the company and can be profitable to the customers if they buy the items judiciously. It is profitable for the shop/company in the sense that, shops usually hike the price of the first item to a certain extent (off course not by 100% !!), such that the price of the free item is covered to some extent. They earn profit from the huge amount of sales due to the promotional offer.

The customers too can make the deal profitable, only if there is a need to buy the items both first and the free item. Else, the customer will end up paying more not only for the first item, will waste the second item (happens mostly in food items). Being aware of the cost of the individual items definitely help the customers to decide, whether to go for the deal or not.

Saying that, let me narrate some of my experiences on the free purchases….

Recently, I went for a magazine deal and ended up paying Rs 1500/- for 3 years subscription, which was almost 50% of the regular price. Yes, it was profitable to me in one sense that I saved 50% on the price, not only that I also got a pair of shoes FREE 🙂 . But, when critically analysed, I realized that, it was not at all profitable to me. Because, neither I’m a fan of that magazine and nor I need a pair of shoes at this point of time. Not only that, the same magazine is also available for reading in my Hostel/Office for free.

So, what do you say? Profit or loss for me? But, it is definitely a profitable deal for the publisher. Not only the publisher got some money as investment (by bulk number of 3 years of subscriptions), but also, it got some sure-shot number of readers or customers, which can be priced to the advertising agencies in their future issues as the magazine reaches out for wide circulation.

Same thing applies to free credit cards, where the joining fee is mostly waved (or  pay the fee and get free vouchers), with a substantial 2nd year renewal fee (with or without free shopping vouchers). But, the question is why should we pay and then get a shopping voucher in return? Forcing the customer to buy some thing? and most important is to forcing the customer to visit a shopping mall for that? Interesting 🙂

In another case, one of my friends bought a washing machine for Rs 14000/- using his credit card (as he was short of money at that time). The reason being, he got a free item of Rs 700/- (got a Coffee maker by the scratch card) and a discount of 2%! Yes, by doing that the shop cleared the stock and sold many washing machines in a month’s time; naturally increased its total profit.

But, my poor friend, has a habit of forgetting paying the credit card dues in time — paid a fine of Rs 1500/- (including the interest and late fee) to the bank. Not only that, he never uses his coffee machine (as he does not drink tea/coffee). So for him, the deal was a total loss (which might be a profit for some one else!). He hardly realizes and repeats his mistakes again and again !!

Those are just some of the experiences; which every one of us have experienced in some or other context. So next time when you see “Buy one Get one Free” or “Tyre kharido, Car Free”… do not get fascinated, keep cool, think twice whether you really want to buy this and do you really need that free item or not… Else, you will end up with same stories…

Aamjunta … what do you think?

PS: A shortened version of this article was published in July 2008.

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