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Now countless things—cigars, typewriters, washing machines, books, etc.—are sent out in this way on approval. And we find that people are honest. The losses are very small.
An advertiser offered a set of books to business men. The advertising was unprofitable, so he consulted another expert. The ads were impressive. The offer seemed attractive. "But," said the second man, "let us add one little touch which I have found effective. Let us offer to put the buyer's name in gilt lettering on each book." That was done, and with scarcely another change in the ads they sold some hundreds of thousands of books. Through some peculiar kink in human psychology that name in gilt gave much added value to the books.
Many send out small gifts, like memorandum books, to customers and prospects. They get very small results. One man sent out a letter to the effect that he had a leather-covered book with the man's name on it. It was waiting for him and would be sent on request. The form of request was enclosed, and it also asked for certain information. That information indicated lines on which the man might be sold.
Nearly all men, it was found, filled out that request and supplied the information. When a man knows that something belongs to him—something with his name on—he will make the effort to get it, even though the thing is a trifle.
In the same way it is found that an offer limited to a certain class of people is far more effective than a general offer. For instance, an offer limited to veterans of the war. Or to members of a lodge or sect. Or to executives. Those who are entitled to any seeming advantage will go a long way not to lose that advantage.
An advertiser suffered much from substitution. He said, "Look out for substitutes," "Be sure you get this brand," etc., with no effect. Those were selfish appeals.
Then he said, "Try our rivals' too"—said it in his headlines. He invited comparisons and showed that he did not fear them. That corrected the situation. Buyers were careful to get the brand so conspicuously superior that its maker could court a trial of the rest.
Two advertisers offered food products nearly identical. Both offered a full-size package as an introduction. But one gave his package free. The other bought the package. A coupon was good at any store for a package, for which the maker paid retail price.
The first advertiser failed and the second succeeded. The first even lost a large part of the trade he had. He cheapened his product by giving a 15-cent package away. It is hard to pay for an article which has once been free. It is like paying railroad fare after traveling on a pass.
The other gained added respect for his article by paying retail price to let the user try it. An article good enough for the maker to buy is good enough for the user to buy. It is vastly different to pay 15 cents to let you try an article than to simply say "It's free."
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