“We Will Redeem Any Competitors’ Coupons”
There is a lot of power in Coupons. Notice how Groupon has become a huge phenomenon within the last year. Currently, it is planning an IPO at a valuation of $15 to $25 billion. This is a coupon issuer folks; not a high tech innovator.
It has merely taken a thing of value (coupons) and combined it with the Internet to better reach potential customers and bring them to offline (though not exclusively) retailers and businesses.
The power of coupons cannot be ignored.
Retailers and service business owners should understand the power of coupons. Consumers clip ‘em and use ‘em. Coupon usage in America is huge, so you might as well participate and create such a system if it fits your enterprise.
Incidentally, when you offer a coupon, it is usually best to put a big, thick coupon border around the coupon, or for that matter around the entire ad, so that there is no confusion.
I have found that a thick border beats out a thin one and the dotted coupon border beats out other borders. I’ve had my consulting clients test this over and over and it works all the time.
For one of my clients, I created a promotion, to expand their customers’ usage—to get regular, retail customers who were buying and using only a few items, to try additional ones and to redeem “store-brand” coupons for like products. It always created lots of sales and lasting usage expansion.
Here’s the concept and idea. If you are a retailer or operate a service business, accept your competitors’ coupons. This puts all their advertising to work for you.
If it is possible and you can afford it, DOUBLE, the value of the competitors’ coupons that you redeem. They will be redeeming your competitors’ coupons that they paid a lot of money to advertise, with your company.
You have to create that system and educate your customers/clients that it is available.
Let me know what you think about this. And if you are having difficulty, let me know and I will try to guide you in this process.
http://www.1-toolbelt-10.com is another website and http://www.theparentsgroup.us for families with special needs.
We sell insurance, some commercial products I can offer some credit but auto, home, life, etc., there is no legal way I can give them money off… with the Rebating laws.
Any suggestions?
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Ken Varga Reply:
May 31st, 2011 at 10:04 pm
@Ted,
Ted, unfortunately you are right. These laws restrict you from using this strategy.
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All my years in the restaurant business I always adopted this philosophy. The competition spent all that money on advertising and sent out coupons. A customer comes to you with their coupons, you take them and make sure they get the best service. Competiton loses, you WIN! Costs you the cost of the goods only……no advertising!
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Ken Varga Reply:
May 31st, 2011 at 2:27 pm
@Sam,
Sam, very smart of you! How did you get the word out that they could bring in your competitors’ coupons?
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Ken,
I’ve used coupons since I was old enough to tell a penny from a dime and in spite of that education AND living through the ‘double coupon’ craze of the 80′s, I never thought of it for my own business.
You’re brilliant!
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Ken Varga Reply:
May 31st, 2011 at 10:06 pm
@Marla Hughes,
Thanks Maria. Let me know how the strategy works out for you.
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Hi Ken,
I agree with your insight on using coupons, especially the way Groupon has really brought awareness to the public.
Local retailers will be able to re-capture some of the business from the Mall’s
To your success!
Chas
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Ken Varga Reply:
June 1st, 2011 at 5:58 pm
@Chas,
Good insight Chas. Yes, this will help local retailers re-capture business from the big malls.
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Groupon definitely took the idea of coupons to a whole different level. That really boosted a lot of small company’s sales and visibility. But it is not likely to be able to take in a competitor’s Groupon discount!
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Ken Varga Reply:
August 1st, 2011 at 5:49 pm
@May,
May, Groupon doesn’t need to take on competitors’ coupons because Groupon doesn’t really sell the actual product/service. It’s the business that’s offering the coupons that can take on competitors’ coupons. In other words, the restaurant that’s selling the coupons through Groupon can also take on coupons issued by other restaurants.
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May Reply:
August 2nd, 2011 at 9:17 pm
@Ken Varga, I did not mean to confuse you. Groupon elicits businesses to provide a service (or product) prepurchased at approx 50% discount, then Groupon splits the revenue with the merchant. My reference above is that a business probably could not afford to take a Groupon issued to a competitor.
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Ken Varga Reply:
August 2nd, 2011 at 10:50 pm
@May,
Ok May. I understand what you are saying now. You are right. This will not work for every business, especially since they are already reducing their prices by 1/2. But as with any marketing campaign, the business owner should assess what competitors are doing and see if what s/he’s contemplating will make sense. If it appears to make sense, then test it on a small scale. If that works, then go bigger. But always test first.
Your site has definitely inspired me to really completely re-think my way of writing. I have to tell you I appreciate your great work.
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He Ken,
This is a pure trick your recommendation! No ethic, no too much brain is needed! Thank you! but it is for trick-ers.
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Groupon, LivingSocial etc are the WORST idea for restaurants, maybe ever. 50% off to begin with, then Groupon et al, take 25% of the balance PLUS the 3% credit card fee. That leaves you 22% which doesn’t even cover your 35% food cost let alone labor, utilities, rent etc.
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If you have NO cost of goods, like an indoor shooting range for example, customer buys the ammo and rents a bay that would otherwise be empty. The cost to the range owner is the same whether or not the bay is being used.
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Those deep discounts also serve to “train” your customers to only come when they get that type of discount. Research is proving that the typical “deep discount” customer doesn’t tip on the total, isn’t loyal (go anywhere they can get that discount) and doesn’t build your “base of business”.
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Coupons CAN work well, but the business must control all aspects of the offers.
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@Dave, I have to agree with you. I feel that coupons, etc. are leaving a negative profile of a company/business. Unfortunately, they are a thing of the present and cannot be ignored. I was trying to suggest that this idea be used initially to create a customer, and thereafter, give them other reasons to frequent your business. Let me know your thoughts on other things that can be done. Ken
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