Weak economy means it’s a freebie nation

You know the saying, “there’s no such thing as a free lunch?” well, in this economy, getting a free lunch, a free book or even a free dress shirt may be easier than you think.

Earlier this month Shaun Clancy, owner of Foley’s NY Pub & Restaurant in Manhattan, offered free sandwiches to any customers with the name “Danny,” or some derivative of the name such as “Danielle” or “Dan.”

“Obviously, people are not spending as much, and I’m trying to reward people that come in here,” Clancy said. He said the giveaway also is an effort to boost sales. “I don’t think anyone just came in and had the sandwich and ran. many had a soda, had a beer and spent money while here.”

Whether it’s to boost sagging business or attract customers to a new product, there seems to be a freebie fad going on. That’s a boon for shoppers on a budget. and it can be good for companies too, given the right circumstances.

Starbucks has been giving away free music downloads at its stores in the U.S. and Canada; Auntie Anne’s has offered free pretzels at its franchise stores; book publishers are giving away free eBooks on Amazon; and a host of restaurants across the country, including Denny’s, have ongoing kids-eat-free programs.

Stacy Fisher, guide for the Freebies channel on About.com, said she has seen a threefold increase in the number of company giveaways over the past six months or so.

“There’s a lot more competition, and consumers who are tight on money are more selective,” she said. “Companies want to give you something for free to entice you. For example, you may not try the new crackers that come out, but if you try them for free you may buy them down the road.”

Restaurant chains are upping the freebie ante, said Leah Ingram, author of “Suddenly Frugal” and the SuddenlyFrugal.com blog, which includes a weekly feature on freebies.

“Last year I saw a lot of one-off ‘kids-eat-free’ nights. now, many restaurants are having regular ‘kids-eat-free’ nights,” she say. “It seems like they are doing whatever they can to get people to dine out again.”

You can blame (or thank) the recession, say experts.

“We do see freebies popping up in tough economic times,” said Mike Schultz, president of management consulting firm Wellesley Hills Group and publisher of RainToday.com, a marketing Web site.

“Free works well when it introduces someone to a company and the introduction leads to profitable new sales,” he said.

One study by the Promotional Products Association found that consumers made a purchase after receiving a free item substantially more often than after viewing a print ad, TV commercial or online ad.

Free Kindle downloads romance novel “Giving Chase,” by Lauren Dane on Amazon.com last year led to real sales, said Christina Brashear, publisher at Samhain Publishing. “We gave away one book in the series and that raised sales for the other three books,” she said.

The company now offers two free eBooks monthly on Amazon.com and plans to do the same on Barnes & Noble’s Web site soon.

Technology appears to be fostering some of the increase in freebies by lowering the cost for marketers.

Dane’s book was downloaded 26,897 times during the free promotion, and that shot the book onto Amazon.com’s best-seller list, a coveted distinction to help propel book sales.

Weak economy means it’s a freebie nation