Old 03-05-2014, 08:32 PM
  #76  
bearisgray
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Join Date: May 2008
Location: MN
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Originally Posted by RST View Post
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So let's assume that the fabric in question costs $10 / yard, and over the course of 12 customers purchasing yardage, the store essentially gives away 12 inches of fabric. That's about $3.30. That $3.30 spread between 12 satisfied customers is just about the cheapest publicity/advertizing a store could ever hope for. Actually, the cost to the store would be well under $3, since the store is paying wholesale, but anyhow, let's leave it at $3. So for 40 cents per person (cheaper than mailing out postcards once you figure printing costs and postage) the store generates good will and repeat customers. I think they should go for it. Can't get a more effective or lower cost way to build a loyal customer base.
And by using a reverse example - say they short each customer 1/8 inch - saving themselves ? - and the customer chooses to never come back.
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