But Wait, There's More

The benefits of "gift with purchase"
This story first appeared in the November 2003 issue of Entrepreneur. To receive the magazine, click here to subscribe.

Join us at Entrepreneur magazine's Growth Conference, Dec. 15 in Long Beach, Calif. for a day of fresh ideas, business mentoring and networking. Register here for exclusive pricing, available only for a limited time.

When Paul Bischoff started giving away teddy bears during the holidays as a gift with purchase, he never dreamed it would spark a collection craze with customers. Twelve years later, people return to his Earth Treasures jewelry store in Eatontown, New Jersey, each year to get a bear, moose, snowman or other plush toy-sometimes shelling out hundreds more on purchases to get the next larger size. "[The promotion] brings customers into the store. It makes them smile, and they even spend more to get a bigger free gift," says Bischoff, 54. The plush promos start with a $100 purchase and grow bigger at the $300, $700, $1,000 and $1,500 spending levels.

Claire Rosenzweig, president of the Promotion Marketing Association of America, says gift-with-purchase offerings can drive sales, build your brand and make customers feel good about shopping in your store. She offers these tips for great gifting:

  • If you have an upscale image, choose a gift that reflects that image.
  • Be sure you can satisfy demand for the product; otherwise the offer could backfire.
  • Make sure the gift makes sense for your business.
View Comments (0)