Should Your Business Offer Coupons?

Last Updat: Aug 3, 016
Coupons are oft us to attract new s and tice old s to come back. At first glance, offering coupons seem like a great idea. Before begin discounting, consider these pros and cons.

So now have r product or service out and available to the public. ’ve set r prices, calculat r budget, and know all too well r business’s overall bottom line. But despite r best efforts and r tireless planning, cannot seem to attract ough s. Maybe it’s time to consider offering a promotion or coupon.

r first reaction may be to see this as quite obvious. r business offers a discount and pottial clits will see this as a low- opportunity to try something new. But there are some concerns that ought to be ress wh considering as to whether or not r business should offer a discount or coupon in the first place. Here is a list of the pros and cons involv in this decision.

Let’s look at some key pros first…

Meeting Expectations. According to a rect survey conduct by RetailMot in conjunction with The Omnibus Company, 96% of shoppers reporting having us coupons within the last three months. This report shows that the majority of shoppers are expecting a discount or coupon. Offering coupons and promotions has now become a normative aspect of running a business.

Competition. With the exception of a relative monopoly, chances are r business is facing some stiff competition. In this market, businesses must fight for a ’s atttion. Most consumers are shopping around for the best deal, and having r business offer a discount may just bring the competitive ge against r competition that ’ve be missing.

Inctive. It is logical to assume that a is more likely to try or experimt with r product or service wh a discount is offer. It can offer a pottial a low- opportunity to test out a new product or service for the first time.

RELATHow to Use Coupons to Promote Your Business

Ease of Distribution. In our modern era, producing and distributing coupons is now easier and faster than ever. A coupon can easily be shar via social mia, email, or through one of the many coupon websites. This can also serve as a form of free advertising for r business.

And now a few cons:

Cutting Profit. One common concern is that introducing a discount or coupon will just subsidize a purchase the consumer would have made either way. Depding on r particular industry, this is a real concern that nes to be ress wh considering this decision for r company. However, the pitfall behind this assumption is the failure to recognize the new s that such an offer could attract. Coupons and promotions can oft attract new s, and instill a sse of loyalty in r existing base.

RELATAre Discounts Hurting Your Business’s Profitability?

Margins. Wh setting prices for products or services, one factor that must be consider is the cost. Wh introducing a coupon or discount, cost is an important factor to consider. A coupon will effectively lower the price, but cannot lower the cost. It may be beficial to offer a discount to attract s, but it is important to always consider r bottom line.

Sustainability. Some s may only reem the coupon, receive the product or service, and may never return again. Perpetuating a series of coupons and discounts in this manor may only lower r monthly revue, and it may not result in return s.

Crowding. One common concern is that r coupon strategy may work too well, and may crowd out those existing s who pay full price. This is especially relevant for businesses whose products or services are in relatively limit supply.

RELATAdd Value to Your Products Instead of Discounting


Ultimately, every business must carefully consider the pros and cons involv wh considering implemting a new strategy or policy. Only those who know their existing clit base and financial situation can judge whether this would be a move in the right direction. The key to offering discounts is to make sure it is ultimately in r best interest to do so. Therefore, must thoroughly under r profit margin, r industry, r pottial base, and r loyal base. Th decide.

© 015 Attard Communications, Inc. All Rights Reserv. May not be reproduc, reprint or ristribut without writt permission from Attard Communications, Inc.

Brad Egeland is a Business Solution Designer and IT/PM consultant and author of A Real World Project Manager’s Guide to the Successful Project. He has over 5 years of softe developmt, managemt, and experice leading initiatives in Manufacturing, Governmt Contracting, Creative Design, Gaming and Hospitality, Retail Operations, Aviation and Airline, Pharmaceutical, Start-ups, Healthcare, Higher ucation, Non-profit, High-Tech, gineering and geral IT. Brad is marri, a father of 11, and living in sunny Las Vegas, NV. Visit Brad’s site at