Deal or No Deal: Are Coupons Good for Business?

Everyone loves saving money, and couponing is one way for customers to do so. The couponing trend has given rise to online coupon aggregators, and some people have made a hobby out of traditional coupon clipping to maximize their savings. There are even coupon influencers and celebrities who share tips on social media.

For more information, please visit HEGONG SPRING.

But are coupons a good deal for the small businesses that offer these discounts? This guide will explain how to offer coupons in a way that benefits your business&#;s bottom line.

Coupons offer businesses opportunities to reward and engage existing customers and drum up new leads. Offering strategic discounts can ultimately boost sales and revenue.

One advantage of coupons is that they&#;re easy to distribute. Businesses can share coupons with social media shoppers or via marketing software , as well as on legacy marketing channels such as billboards and radio ads. You can even provide coupons via QR codes , allowing consumers to simply scan and download the discount and provide your business with key information on the lead. In this way, coupons can help you reach both new and existing customers.

Whether they&#;re distributed through websites such as Groupon or LivingSocial or mailed via Valpak, discounts and promotions need to be highly tailored to your business for them to turn a profit. Whether you use coupons to reward your best customers, find new ones or introduce a new product, these discounts should be used strategically. Some businesses deploy coupons as a way to introduce new features and upsells, and in those cases, they want to engage as many consumers as possible.

To avoid harming customer satisfaction , make sure you can support discounts offered by coupons without straining your cash flow, and ensure you can fulfill any promises made to coupon holders.

Another risk is that if a coupon proves too popular, your business may not be capable of delivering the promised deal to every coupon holder. This can put off customers who expected to benefit from the deal.

The biggest risk with coupons is that they can deprive a business of necessary cash flow for survival . This can happen when discounts shrink margins below acceptable levels or reduce the revenue taken in from purchases that would have happened even without coupons.

Coupon do&#;s and don&#;ts

Here are a few tips to keep in mind when you&#;re considering coupons as a business tool:

Do be careful when you&#;re structuring the offer.

The type of discount &#; such as buy one, get one (BOGO) or a price cut &#; also depends on the business and the clientele. A retailer might want to offer a BOGO deal, but a pizza shop might do better with $2 off a pie, as fewer people need two pizzas.&#;

You really have to be careful about how you structure these deals if they are going to boost your bottom line,&#; said Mary Song, CEO of marketing technology company Propel Media. &#;As a small business owner, there are a number of things you have to consider if these deals are going to make sense for your small business.&#;

For example, businesses may &#;want to limit the deal to a certain number of customers, [or] a particular season or time period,&#; she said. &#;You don&#;t need to offer a deal on a Friday or Saturday night when your restaurant is already full, or a discount on a hotel room at a time when all of your rooms are normally booked.&#;

Did You Know?

Do consider alternatives to discounts.

Not every coupon needs to offer a discount. Song said small business owners should consider alternatives to dollar-off and percentage discounts, such as adding free services. For example, a review of the latest Shein deals shows a mix of flash sales, discount codes, dollar-off and free services like shipping and returns.

&#;A small hotel that is concerned about keeping its rate intact could offer free parking or Wi-Fi at very little cost, or a spa could add a service to a package,&#; Song said.

Adding freebies that don&#;t cost the business much could incentivize full-price purchases that a customer might otherwise pass up. Be smart about which freebies you offer, though; they shouldn&#;t be labor- or resource-intensive giveaways.

Don&#;t overpromise and underdeliver.

If you&#;re going to offer discounts or giveaways, you need to deliver when customers attempt to redeem these offers. Julie Anne Mossler, chief marketing officer at NFT platform Metaplex, said small business owners have to take a hard look at their businesses and their customers when deciding the best way to promote themselves through coupons.

&#;Sometimes, business owners&#; eyes are bigger than their stomachs,&#; she said. &#;They want 500 new customers, but they can only really handle 50. [Some coupon services] can work with them to put a cap on the number of offers that can be redeemed, for example.&#;

Mossler cautioned that small businesses can be victims of their own success if they make these offers too aggressive.

&#;If you&#;re a bakery and offering a free cupcake with the purchase of a cake, for example, be sure you can handle the increased volume, as you don&#;t want new or existing customers to show up and not be able to get the items that they are expecting,&#; she said.

Did You Know?

A reported 71% of consumers have downloaded a mobile application in order to receive coupons and discounts.

In today&#;s world of social media and instant online reviews, customers are eager to share their opinions, good and bad, Mossler said. You don&#;t want to scramble to respond to online reviews from disappointed customers just because you promised them something for free or at a discounted rate and then failed to meet their expectations, she said.

To avoid this problem, Groupon worked with small business owners to construct the best offers based on a number of criteria, such as average sales and the busiest times, Mossler noted. [Check out our top choices for POS systems to help you track coupons and promotions.]

&#;But the business owners have to provide accurate data, so it all goes back to knowing your business,&#; Mossler said. &#;The profitability of the deal is dependent on accurate information from the business owner.&#;

Don&#;t wing it.

Coupons shouldn&#;t be offered on a whim; for this strategy to work, it requires foresight and planning. Vince Vigorito, sales director at direct mail coupon firm Valpak, said small merchants need to scrutinize every deal because they have a smaller margin for error than larger organizations do.

If a small business makes a bad deal, &#;it can break their business,&#; he said. &#;We go through a very extensive needs analysis with our clients. They need to determine the return on the investment that they want, and then figure in expenses, the cost of the discount and profit margins.&#;

Don&#;t forget to advertise consistently.

Another mistake small business owners make is not advertising consistently, especially when there is an active deal available to customers.

&#;Small business owners have to manage their expectations,&#; Vigorito said. &#;One problem I see is that they make commitments and then get out too early. They need to consider the frequency and the volume of the offer.

&#;If a roofing company sends out a coupon once to 10,000 homes, that is probably not going to work,&#; he added. &#;If they are going to do something like that, I encourage them to wait another month or two and make more of a commitment.&#;

Nearly 90% of consumers in the U.S. report that they have used coupons. That&#;s a lot of ketchup, laundry detergent, hotel rooms, and other stuff grabbed at a discount.

Most of us love getting something for nothing (or for less), and couponing can deliver just that. Using coupons can help you stick to your budget. If you get a favorite brand of cereal or pet food at a discount, it can help stretch your weekly supermarket budget &#; provided you were going to buy those things anyway.

But if coupons entice you to buy things you don&#;t want or need, they can do damage to your budget. For instance, is a $1 Chips Ahoy! coupon a smart move if you must buy three packages to use it and you already have cookies at home? In this case, it might be wise to take a step back.

Here, you&#;ll learn the ropes of smart couponing, including:

&#;   Different types of coupons

&#;   Why people coupon

&#;   The benefits of couponing and the drawbacks

&#;   Whether coupons are worth it and will ultimately save you money.

What Is Couponing?

Couponing means redeeming discounts on goods and services, which can seem like an easy way to save money. Coupons are created by businesses and retailers as a customer acquisition tool (that is, they encourage people to try a product for the first time) or they could be a customer loyalty device (a way of rewarding steady consumers with a discount).

Coupons take several forms, including:

&#;   The old-fashioned way; paper coupons clipped from newspapers, store ads, and mailers

&#;   The instant way, via apps for discount codes on everything from dinner out to Target finds (20% off dresses, anyone?).

Coupons tug at a person&#;s budget-wise motivation to save money. But read on to learn if coupons are worth your time and energy.

For more information, please visit advantages of springs.

How Does Couponing Work?

Merchants want you to shop for their brands, so they dangle discounts. When these arrive in the mail or , on a cash-register receipt, or in a print publication, you will likely need to clip them out and bring them with you to a retail location or enter the pertinent information when purchasing online.

In terms of digital coupons, you will often have to create an account with your address and a password to get coupons or discount codes. This is an important trade &#; you get, say, a 10% off welcome code and in exchange, the merchant gets your contact information to potentially reel you in with more deals.

Both paper and virtual coupons typically have expiration dates. More and more often, online merchants do &#;flash sales&#; and short-term offers with a tight time window to get you to click spend your money without much pause. This can lead to impulse purchases.

Keep in mind, the business goal behind coupons is to get you to spend money, not keep it.

Recommended: How to Coupon for Beginners

Are Coupons Used Today?

Coupons are still quite popular today. According to the Retail TrendWatch Report, 38% of consumers use coupons, discounts, or deals to plan their shopping lists. Downloading coupons on your is quicker than using scissors to cut along the dotted lines.

But however you coupon, merchants are motivated to keep these offers coming. A full 81% of retailers say consumers want more deals and discounts.

How Many People Use Coupons?

To give you an idea of just how popular coupons are, consider this: An estimated 145.3 million U.S. consumers reported using digital coupons in . The research forecast for : Total digital coupon redemption will top $91 billion, up from $47 billion in .

But using coupons isn&#;t always super simple or convenient. One-fourth of grocery shoppers say they avoid shopping online because they can&#;t use the coupons they can present to an in-store cashier.

Types of Coupons

Merchants are getting more inventive with the kinds of coupons and discounts they offer shoppers. Here are some of the popular ways you can likely access deals.

&#;   Set up a user account with and password on favorite shopping sites. By joining the rewards club, if there is one, they can also unlock digital codes and get merch rebates.

&#;   Download your grocery chain&#;s app and link weekly digital coupons to your account.

&#;   Follow brands on Instagram and Facebook to watch for discount and free shipping codes on social media.

&#;   Download coupon apps (SnipSnap, for instance) that allow you to photograph a printed coupon and find or create a mobile coupon to redeem in-store. The app scans the text, images, logos, and barcodes in the photo and offers features such as expiration-date reminders.

&#;   Use couponing and discount sites that add an extension to your browser and then let you know about coupon codes available when you shop online. Check reviews and ratings of these before downloading, however. Many have mixed reviews.

&#;   Look for the physical coupon with purchase. Yes, some companies still do coupons the old-fashioned way. Boxes of powdered laundry detergent may come with coupons inside, or frozen pizzas may have stickers on the pack that you peel off to get a discount.

Why Do People Coupon?

Consumers coupon to save money or get things free. A discount or freebie can inspire a person to try a new product or a brand other than the one they usually buy. In this way, the company issuing the coupon may build their customer base and their sales.

A bit of history: The first coupon reportedly came out in , when Coca-Cola offered them, good for a free sample.

Benefits of Couponing

Couponing has its pros, for sure. These include:

&#;   Trimming your expenses, and using the money saved to reach other financial goals.

&#;   Having fun. Couponing has some aspects of a game, which can make it feel like a fun way to save money.

&#;   Sharing the wealth with your family and finding better deals, thanks to coupons, on such expenses as school supplies and uniforms, sneakers, electronics, and home furnishings.

&#;   Scoring discounts on lodging, car rental, and other travel expenses.

Recommended: Why Saving Money Is Important

Drawbacks of Couponing

The chase for discounts can, however, have downsides, such as:

&#;   If you scoop up items you would not have otherwise bought just so you use a coupon, you could wind up buying things you don&#;t need or even really want. Do you need tropical fabric softener, or are you just eager to use the coupon?

&#;   Coupons can encourage over-buying. For example, if you need to purchase four boxes of cereal to reap a discount, you may have food sitting unused. (That said, buying in bulk to save money can be an effective tactic if done properly.)

&#;   Consumers may feel under pressure to use coupons before they expire in order to be a &#;good shopper.&#; It&#;s a misconception that not using a coupon is losing &#;free&#; money. It&#;s not free; you&#;re still spending your dough to get the discount.

&#;   Coupons can be inconvenient. Remembering to carry and use paper coupons requires financial discipline. Plus, it&#;s too easy to forget to redeem coupons attached to products in-store. Customers and cashiers often don&#;t detach the manufacturer coupon and scan it.

&#;   Ironically, you might be tempted to overspend on other things after saving with a coupon. For instance, a 50% discount code on a clothing site may prompt you to buy other items you didn&#;t plan to purchase or really need.

Recommended: How Much Money Should I Save a Month?

Do Stores Lose Money by Couponing?

In general, stores do not lose money from offering or accepting coupons. In fact, they are more likely to profit.
Coupons encourage people to shop by offering an incentive: free merchandise or lower-cost goods. These offers entice people to try new products (and hopefully become loyal customers) and buy items that they might not have otherwise considered.

In addition, for bricks-and-mortar stores, coupons encourage foot traffic. They tempt shoppers to come inside, where they might find more than just the coupon item that catches their eye. In these ways, coupons actually build sales.

Does Couponing Ultimately Save You Money?

Couponing can save you money if you are offered a discount on an item you were already planning to buy. Or perhaps offers you free shipping from an online retailer you love.

However, you could end up losing money in the long run if you&#;re not careful. If you spend two hours a week combing through coupon fliers just to save a dollar, it&#;s probably not worth it. Your time is valuable. Also, gas prices are high, and if you need a car to get to a store to use a coupon, it may not be a great deal.

Lastly, coupons can lead to price creep. For instance, did you really save money if you budgeted, say, $50 for a skirt and got waylaid by a coupon for $25 off a purchase of $100? You went in planning to spend $50, not $75 (that is, $100 minus the $25 discount).

Recommended: Guide to Practicing Financial Self-Care

Banking With SoFi

Couponing and discount codes can be a smart, frugal move if you stick to buying products and services you would have purchased anyway and don&#;t get sucked into getting unnecessary items just to save a buck (or a few). But the coupon game takes time, patience, and organization.

If you want to track your spending and save money with minimal effort, see how SoFi can help. When you open a bank account online with direct deposit, you&#;ll earn a competitive APY and pay no fees. Plus, with SoFi Checking and Savings, you&#;ll have a single convenient place to save and spend, along with tools to help you organize your money, which can help you meet your financial goals.

FAQ

Can you go to jail for couponing?

The typical act of redeeming a coupon is not illegal. However, Illegally creating, copying, or using coupons can land you in jail. A Virginia couple went to prison in for a combined 19 years after the FBI uncovered one of the largest coupon fraud schemes in U.S. history. Retailers and manufacturers lost more than $31 million when the couple used social media sites such as Facebook to sell counterfeit coupons to groups of couponers.

Is extreme couponing possible?

Yes, extreme couponing, in which people save a huge percentage off their costs, is real. Everyday people have saved hundreds of dollars in grocery stores. When the final numbers are crunched at the cash register, the top extreme couponers have shaved more than 90% off their bills, bringing them close to zero. But this is a serious endeavor demanding much time, energy, and planning, plus you might end up stuck with items you don&#;t want, need, or will ever use.

Is extreme couponing stealing?

No, extreme couponing is not stealing, but it&#;s not uncommon for stores to resent it if a shopper brings in a stack of coupons and spends very little money in the end.

Photo credit: iStock/monkeybusinessimages

SoFi® Checking and Savings is offered through SoFi Bank, N.A. © SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder&#;s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder&#;s employer, payroll or benefits provider or government agency (&#;Direct Deposit&#;) via the Automated Clearing House (&#;ACH&#;) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder&#;s SoFi Checking and Savings account (&#;Qualifying Deposits&#;) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder&#;s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (&#;SoFi Bank&#;) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder&#;s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the &#;Start Date&#; and &#;End Date&#; set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the &#;30-Day Evaluation Period&#;). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBK

If you are looking for more details, kindly visit belleville springs in parallel.