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If you studied business, you will know that there is no such free lunch in this world. There are always compensations for every action we take. Adam Smith said that humans are homo economicus, they are motivated by the profits in doing certain actions.

So if you are offered a free products or service, you need to be aware about the consequences. Free items of services for promotional purposes could make sense, but some firms have strategy to make profit out from a free service. Such as free cell phone offered by cellular service providers, it is actually not free. When you receive the phone, you actually have signed a contract that you will use the phone along with the service provided by the cellular service provider. If you don’t use the service or you lost the phone, you will be indebted to pay a break fee to the provider. So the phone is compensated by the profit the firm gets from you using the service of the break fee.

In Thoughts.com, you can see articles about services provided by phone manufacturers to make you aware of business strategies applied by cellular service providers. After you read the articles, you will know the promotion means of cellular service providers so you won’t be tricked.