Due to the recent trend of Group Coupon discount voucher companies you may be tempted to try it out for your business .
After all if it gets customers through the door & gets your business advertised, then it’s a winner, winner situation right?
Before you do decide to commit to such a scheme it may help to consider one or two points first:
- If you are already a well-established business, the discounted price could cheapen your product or service – why would someone pay full price when they had the same thing cheaper before?
- The voucher buying community are bargain hunters, they are searching for the cheapest price, once they have used your voucher they may just move on to the next one & never come back.
- It could be difficult to monitor the success of the promotion, as you would need to quantify who came back for more & unless you take a poll of all your customers , it could be left very much up in the air.
- Don’t forget the Vodka! – Of the price for the voucher, a large percentage (could be half) goes to the voucher company, there is also VAT charged on the sale (If you’re VAT registered) leaving a reduced amount for you to cover the cost of sales.
In conclusion Group Coupon discount voucher companies do have their place, they could be good for your business especially if you are a new business & would like customers feedback or want your product or service better known. However it could also be an expensive error if you ignore the above points.
You might like to read our January newsletter.