There’s a common misconception out there that if you give away something for free, you’re losing money. After all, you’re giving away a product that may have otherwise been sold. You could have registered a sale and reaped the profits that would have resulted from that sale. However, you have to think long term about your business strategy. If a company is giving away something for free, there’s a reason.

Think about the many pharmacies and drug stores, for instance, that give away the free blood meters for people with diabetes. This sounds like a great deal, since the people with diabetes need to test their blood sugar regularly. However, the reader is actually the cheapest part of the equation. When they give away the blood sugar meter, what they’re really doing is setting you up to buy the testing strips. That’s where they really make the money.

The exact same concept can apply to inkjet printers, especially at the consumer level. More and more, you’re finding all sorts of multifunction printers for remarkably low prices. Why? Because the printer companies can make a lot more profit from selling you the ink cartridges. This is even better, because the cartridges are specific to each make and model. They’re setting you up to buy more of their products.

More recently, you’re seeing a reduction in price (so while not free, they’re certainly discounted) in the coffee brewing systems from Tassimo, Keurig, and so on. Each of these systems use specific “discs” or “cups,” and it is here that the companies are able to make the biggest profit. With these examples in mind, you may be able to devise a marketing strategy for your own company. Give a little and get a lot in return.