I guess that news about the bailout plan for US automotive companies is all around right now with a lot of mixed reactions. I personally don’t think it is a good idea if something similar was proposed here. Just today though, I noticed this article at http://www.canada.com/topics/news/national/story.html?id=1053898 that talks about how one auto dealer is offering a 2009 Dodge Caliber for free with a purchase of a 2008 Dodge Ram, Dodge Durango, Chrysler Aspen or Jeep Commander until today.

The main reason apparently is due to the slowing economy and how sales have not been good as a result for the company. That makes me wonder if this will be a common thing with other dealers as well if things continue the way it is. While I guess it is a good deal, would someone really want to purchase a car if the whole goal is to save money?

It is enticing as I guess if you really wanted a vehicle you could essentially split the sales cost with someone else between the two vehicles. This also shows you the power of consumer spending in terms of driving prices up or down. Imagine if most people used say a bike or public transit……that would definitely create a price drop.

While looking at some flyers recently I noticed that one place was have a buy one get one free sale on a lot of merchandises. The prices for one of the items are inline with other business, so in many ways it does seem like a good deal.

For myself as a consumer, I usually prefer if it is half price off as in most cases I don’t have any need for more than one. The alternative to just giving it away is to usually sell it and it’s almost like you are doing the work for the business in that sense. Of course, are the possibilities that you could sell your extra item for the same price and hence you would have got it for free.

On the flip side from a business point of view using a buy one get one free model can be a better way to move your inventory. While you should be making the same amount of revenue until you sell out of your inventory when you think about it, more than likely with the buy one get one free that means you will need to purchase the items in a bigger bulk as each person would have to walk away with two items. As well, you should be able to get a better wholesale rate to earn more profits.

There was actually one item I did want to buy. Err…now I just have to think whether I want to sell the other piece or try to find someone who would have use for it.