Using Discount Coupons For Your Business – Merits and Demerits

Using Discount Coupons For Your Business – Merits and Demerits
Using Discount Coupons

Coupons have been a part of our lives now, it is almost impossible to go shopping without coupons. It is necessary to get a variety of options while shopping but it is more important to have coupons while making a payment. Customers usually look for brands that provide the best discount offers or coupons. This might seem like an own goal for the business companies that offer such discounts to the customers. If you own a business and wondering whether it is good or not to give a discount to the customers? We are here to help you. Keep reading to know all the pros and cons of coupons for your business.

Before we begin

Before beginning the debate of the pros and cons of coupons we would like to bring your attention to the mode of shopping. It has been quite some that online shopping was introduced to the world. This saw a drastic change in the shopping behavior of the customers. This entire concept has changed the dynamics of shopping and also the expectations of customers. Considering all the current scenarios we have come up with the pros and cons.


Attract customers – this is the biggest benefit of giving coupons, it will attract more customers. All the new customers will come looking for the products at your store. It a great idea to attract new customers as according to some surveys half of your first-time buyers return for another purchase. This is a good rate to gain new customers every month. People usually go to the store with the best rates and great discounts, if you offer such discounts you have a great chance of attracting new customers.

Loyal customers – customers are loyal to brands and stores. If you provide them with the right rate and quality you can have loyal customers. These customers would buy everything from your store for a long time. Building a customer base is very important for any business. A loyal customer base tends to promote your business to their friends and family.

Competitive edge – this is a great move for the growth of your business. A coupon code can help you get a competitive edge over your rival. Customers would like to shop from stores that save their money. Providing a discount to them would help you attract customers of your rival as well. You can also keep low prices to better the rival’s offer and draw the attention of their customers. Make sure your profit margin remains intact without incurring any loss.


Cutting down profit – since offering a discount will cost you some money you will have to cut short your profit. This is the most basic thing one must go through to attract more customers. The most surprising thing is that you would be offering a discount to people who would buy the products even without them. It is a business tactic to cut down on profits to maintain a customer base, once you have a permanent customer base you can reduce your discount offers and sell products at a high price. It is suggested to identify the margin of profit, going too low or too high can be damaging for your business.


This might have been proven wrong but in several cases discount coupons do not work throughout. Customers might end up coming to your store once the offer is over. Coupons and discount codes cannot hold back the customers permanently. Some businesses do not last long after their discount offer is over. Although this is not for all businesses, some of them do wonders. All you need is the right location, the right customers, and the right offer.

Negative effect

This is another way to look at your business. Offering discounts could have a negative effect on your product on customers. They do not prefer to buy products that are always on sale. Such factors spoil the image of a business. It is very important to identify the value of your business at the right time. It is not good to offer discounts all the time as it can harm the image of your business. Some products or brands must remain out of the discount offer to maintain the image and your sales. You can offer cashback for such products rather than giving discounts. This will keep the brand image intact and improve your business.

The bottom line

As we mentioned above, online shopping has changed the dynamics of businesses. We suggest this method may not apply to online shopping stores. Although some business tactics work in every form of the market, some have their limits. Now that you have come across the pros and cons of discount coupons we suggest before applying it in your business you must think about it.

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