Pros And Cons Of Offering Coupons As A Business

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Pros And Cons Of Offering Coupons As A Business

Coupons have nowadays become a necessity and a favorite marketing tool for many businesses; if it was not, then they would not be issuing so many or accepting them either. However, the move to offer money-off coupons has been tight to small business. Discount deals are a win-win situation for both the companies and their customers, and therefore, it is no longer a question of whether or not to produce coupons. Studies show that online businesses offering coupons have a competitive advantage over their competitors since they influence most customers to shop at specific places.

There is also research that shows that 87% of shoppers worldwide use coupons. Let us examine the advantages and disadvantages of businesses offering coupons.


  1. Announce a new product

As a company launches a new product, they need to entice customers to buy it especially price-sensitive customers who like shopping with coupons. Instead of offering free samples, a company could save a lot of money through this strategy and that is why it’s a win-win strategy.

  1. Expand the markets area

Many customers are likely to shop as far and wide just because there is some money off through the coupons. If the coupons strategy is used properly, a online business has a chance of expanding and increasing its market area.

  1. Maintain customers

When a business makes coupons that require a customer to return in order to use them, such coupons draw customers to them again, and in the process, they buy something else to get a coupon for next time.

  1. Promote sale of related products

A business can sell two items with one coupon when they tie two things to attract the customer into getting the price cut on through the coupon. The transactions of the customers can generate significant revenue for the business. This is why millions of businesses register to affiliate networks, offer their promo codes through affiliate websites, with the hope of getting the word out and generate more sales.

  1. Competitive edge

If a business is offering what another company online else is selling, it is only reasonable to make sure that it maintains a competitive advantage over the other. Coupons are a great way to do this as many customers choice of purchase depends on who offers them a better deal.

  1. Quick way to unload inventory

If a business has an extensive inventory made to sustain an predicted demand, but it beats the deadline, coupons can be a great way to unload all of it because consumers may seize the opportunity to buy when there is a price cut.


  1. They are costly

As a business, it is essential to understand the amount of money the company can afford to give away to customers. This is because though coupons are a favorite promotion tool, a business could suffer significant losses if all does not go to plan, its better to include the coupons service share in the budget calculations.

  1. Negative brand image

Some people may perceive the products with coupon offers as low quality when they buy cheaper than they expect the products to be and they may stop buying them, this is more so in products that people value according to their price.

  1. Delay in sales

Customers may acquire a tendency of buying the products only when there is coupon offer rather than buying at full price.

  1. Method is not a sustainable promotion strategy

Even if a business offers coupons to customers, it not a guarantee that they will come back. Others may only come to buy the products with offers and avoid the rest.

Coupons are an excellent way for an online business to promote its products and it is a strategy can lead to enormous profits when the budget and calculations are done right. With so many advantages, it is a recommended move for any business looking to make sales and stay ahead of its competitors after a thorough assessment of the market.


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Hassan is a Blogger, Author, Entrepreneur and the Administrator of He heads Burgeoning Technologies, a Web and IT Company and manages several other blogs and websites. He can be followed on , Twitter and Facebook.

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