Type of premiums
Free-in-the-mail premiums
Types of premiums
-free-in-the-mail
-in-or on-package
-store or manufacturer
-self-liquidating
Free-in-the-mail premiums are gifts individuals receive for purchasing products. To receive the gift, the customer mails in a proof purchase to the manufacturer that then sends the gift to the buyer.
in-or on-package premiums are usually small gifts,such as toys in cereal boxes. The gift may be disguised or packaged so the consumer must buy the product to see the premium.
Store or manufacturer premiums are gifts given by either the retail store or the manufacturer when the customer purchases a product.
The fourth type, a self-liquidating premium, requires the consumer to pay a small amount of money for the gift or item.