Small Firms Resort to Freebies and Special Deals

By SIMONA COVEL

Faced with a deepening recession and evaporating sales, an increasing number of small businesses are resorting to a high-risk strategy: costly giveaways and promotions to lure the reluctant consumer.

If the strategies work, these companies could have a powerful weapon in their struggle to weather the economic storm. But if they don't work, the more vulnerable businesses could find themselves in a bigger financial hole.

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