When Striving to grow your profits local business owners will often resort to anything they believe may work.
Take coupons or vouchers.
These companies will approach local businesses with the offer that they can drive people to their door therefore making the business more successful
What they fail to emphasize is how much of your bottom line they expect you to sacrifice for their voucher system to work. So perhaps there are better alternatives?
Here’s an interesting opinion of coupon suppliers …
In 2012 there has definitely been an explosion of vouchers systems in the UK with the major players being company’s such as Groupon and Living Social.
Both of these major players have been around for some time and have established bases in the majority of cities around the UK.
But now there is also a growing trend towards niche sites such as Doorstep Deals in Swansea.
Do these voucher systems work and is it a good way to market your business?
They all have their good and bad points.
For example Groupon will usually deliver a high response rate with many people taking up the appropriate offer. But is it truly adding to your bottom line?
If you were a hairdresser in Swansea charging £100 per haircut and took Groupon up and their offer to promote your business you are usually encouraged to make highly targeted offers of say 65% discount.
Then you have to pay Groupon out of your remaining sale and are left with a very, very small return.
However, this may have been worth it if you are building awareness and brand, or was it?
At a time when margins are tight and business owners need the best returns on their investment, coupons from Groupon and the other big discount systems are actually delivering a poor return on investment unless your goods or services were grossly overpriced in the first place!
