What is a self liquidating promotion
Denoting a sales-promotion offer that pays for itself.
For example, if a seller of tea bags offers a free tea mug in exchange for a specified number of vouchers, each taken from a box of tea bags, the seller expects the extra number of tea-bag boxes sold during the promotion to pay for the costs of buying and despatching the mugs.
Days Inn of America, Parsippany, NJ, is in the midst of a self-liquidating offer the company hopes will boost occupancy levels this spring.
Through June 1, travelers checking into Days Inn properties can order one of 12 family-targeted audiobook tapes (available titles include The Mummy, Joan of Arc, and Moby Dick).
In many cases, self-liquidating assets can go on to generate profits after creating enough return to cover that initial expense.There are a number of examples of this type of investment activity, ranging from municipal projects to real estate.One example of a self-liquidating asset would be the construction of a building or toll bridge for use in a city or town.Because the building could be leased out to tenants and generate a regular income, it has the inherent ability to eventually pay off the total cost of the original building project.In like manner, the toll bridge would eventually generate enough revenue to offset the initial investment.
From that point forward, both projects would be able to remain self-sustaining and even earn additional profits that could be used to fund other municipal projects.