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The benefits of "gift with purchase"

This story appears in the November 2003 issue of Entrepreneur. Subscribe »

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

Claire Rosenzweig, president of the Promotion MarketingAssociation of America, says gift-with-purchase offerings candrive sales, build your brand and make customers feel good aboutshopping in your store. She offers these tips for greatgifting:

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