hello all!

the air canada tango ad on the boards of the montreal-calgary hockey game got me thinking about FF promos.

when a business (like valuemags) runs a lucrative promo, they often break even. sometimes they may run it as a loss leader in an attempt to gain customers and occasionally they may still make a profit. however, with my limited knowledge of business practices, i figured i'd throw this question out to the group: what kind of profit margin would i have to be normally making on my products for me to offer the type of promo valuemags ran?

certainly, if i were a struggling businessman and i had read FT, i would try to sign up with goldpoints and run a 600 points/dollar promo. that would probably generate a huge volume of business. so, howcome this isn't happening more often?