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Why do Companies Give Away Samples for Free?

Companies give away free samples to increase their customer base. The idea being, that if you try out the product, you will like it and go on to buy it repeatedly for many years.

The free samples the companies give away, only cost them a small fraction of what it would cost you to buy the equivalent in the shops. If you include the postage, packaging and administration of giving away sample products, it will frequently be less than the profit they will make on one sale to a retailer.

The giving away of free sample products will also build brand awareness and brand loyalty. Brand awareness will increase with the promotion of the sample giveaway, this will probably work out to be a cheap way of advertising the product. Brand loyalty will be built because people that received the free sample will be grateful and more inclined to stick with the product.

Another advantage for the company of giving away sample products, is the fact that you will have to give them your details in order for them to sent you the item. Your name, address and email will be added to their database and from time to time send you promotion material.

Putting you on their mailing list gives them more opportunities to sell to you and makes it slightly easier for them to launch new products. Fortunately in the UK, there are data protection rules which they have to abide by. If you want to stop receiving mail from them, contact them and ask them to remove you from their mailing list and they will have to do so.