Comp programs allow guests or employees to receive products or special discounts. Comp programs are used in a variety of ways, here are some of the most common:
Guest Goodwill - Comps can be used to reward special guests, or to compensate in the moment for a less than ideal experience.
Charity Programs - Comps make ideal donations for charitable events like raffles, drawings, or auctions.
Employee Meal Benefits - Discounted or budgeted meal purchases can be offered to all employees, or a sub-set of employees. You can have multiple programs for different levels of employees.
Marketing + Promotion - Comps can be an effective tool to use during store openings.
Trade Compensation - You can use comps to pay for electrical or plumbing work if your contractor(s) will accept them as payment.
Comp programs also have different accounting and fraud concerns. As they can make up 3-5% of your total sales, it's important to understand how they work, and how they can work against you if you don't administer them correctly. The attached document takes a deep dive into comp programs; it's a must-read for any organization making use of one.