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Are Gifts with purchase really free?

edited April 2014 in Ask the Beauty Brains
When department store cosmetic companies offer a "free gift with purchase," isn't the cost of those free items built into the pricing of all of their products? Like, if there was never a free gift deal, the regular prices would be a little lower? 


  • The cost of promotions is built into the profit margins of any given brand. So yes, the company could sell the product for less, stop advertising/promoting, and still make the same amount of money. (Assuming of course that sales didn't drop off when the promotions stopped.)
  • I'm sure the gifts with purchase increase their sales or they wouldn't be doing it. Thanksk for answering.
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