[drharris]

I really like this. I found myself with a gradually widening smile as I realized the ramifications of the whole concept. The brilliance from the commerce standpoint is that the freebie is by definition minimized by the number of shirts sold, and a typical loser product will see more activity than usual. From a customer standpoint, you have effectively 20% chance of getting a freebie, making the perceived purchase price 80% of $25, or $20, a very reasonable price for a graphic t-shirt. However, since it's the least purchased number getting freebies, I'd expect your actual revenue to be more like $21 per shirt, thus creating profit out of thin air. Customer pays a decent marginal price (for a hopefully quality product), you get a built-in profit from the mechanics, and the game mechanics nearly guarantee a larger volume of purchases than normal. Overall, a great strategy!