While coupons can bring a significant amount of profit to businesses, there is always one fact that is widely overlooked by a lot of those businesses. It would cost them money to rake in more but what makes it seem like a huge disadvantage?
Saves Them Money
The most significant disadvantage of employing the use of coupons is that they cost your company money. You will have less money in your pocket if you provide a discount. The point is to draw customers to your business, but you would do so at what cost?
What It Really Does
Coupons may lead to a lower profit margin on the item or items featured in the coupon promotion, but the cost of manufacturing the product remains same. As a result, it would be wise to think about the value of a coupon promotion to the company and whether the discount will generate enough additional sales income in the long run to cover the campaign’s costs.
When you go ahead and start a coupon campaign, be sure you have just enough to back it all up. All would be good to get a couple of new faces in the store, but don’t go sacrificing that well earned money in your pocket.