Using coupon codes can have a lot of advantages and disadvantages. If you are thinking of starting to use coupons you might ask yourself whether they are worth it. Even before you start shopping with coupons, it’s seen that its tiring and also you use a lot of time while trying to find the coupons. Below are some of the disadvantages of using coupon codes for both the retailer and consumer.
The quality of your company’s product is questioned
Despite your business having a high reputation discounts can also have a negative effect on the way consumers view the quality of your products. Most people expect high-quality products to be expensive. Reducing the price of the items to give your customers discounts will have an adverse effect on most of your consumers. Price reductions also devalue the image of your company, and instead of creating confidence it will make your customers question the offers.
Creation of a price war
Reducing the prices of your products can result in a price war. Using coupon codes will make your customers compare the prices of your products with prices from other websites. As a business owner offering discounts on your products will make you compete with other businesses that are offering discounts. This means that you should be aware that if you set prices for your products, there will be a company that will be offering low rates on the same products. By doing research, the customers will go for the products whose prices suit the budget which they have. This is a cycle in which a lot of business owners can’t avoid, and it creates a price war which makes it hard for a business to remain at the top.
There’s no brand loyalty
If you want to save money when buying groceries or other products, then you will have to give up on brand loyalty as you will have to buy products from other brands which are cheaper. This means that you will be forced to do away with your favorite brand of toiletries and take the one that is cheaper and one that you have a coupon for. It is okay to purchase some items, but it might be risking changing food brands for pet foods as it might cause problems such as stomach issues.
As much as we love using coupons, several disadvantages come with them such as not having brand loyalty, the creation of price war and question of the brands quality.
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— Minority Report (@MReport_TV) 12 de agosto de 2018