As a small business owner, you know that offering discounts or coupons is a great way to get customers in the door. For special holidays or anniversaries, discounts can be a great way to thank your customers for their loyalty to your business. However, there are many aspects of using discounts that you need to consider.
1. Can you afford to lower your perceived value? As a growing small business, you may be considering lowering your prices in order to be more competitive with neighboring businesses. However, the perceived value of your goods or services is extremely important for your success. There is a reason consumers will spend $4 on a cup of coffee at a specialty coffee shop when they can get it for 99 cents at a fast-food chain.
2. Can you meet the demand? If you begin a discount or coupon campaign and your sales skyrocket, do you have enough inventory to meet the higher demand? Are your employees ready to handle the rush? Before any coupon or discount campaign, it’s important that you train your staff and prepare your business for a major jump in traffic.
3. Is your business prepped for coupons? The type of goods or services you offer will help you determine if coupons or discounts make sense for your business. “Coupons work best for location-based, product-oriented businesses where local customers can realize quick and easy savings,” said Caron Beesley, Community Moderator for the Small Business Administration. “Good matches are restaurants, hair salons, hotels, spas, pet grooming services, yoga studios and so on.”
Caron Beesley is the author of How to Avoid Losing Money on Your Next Coupon Campaign. For the complete article, click here.
Telhio Credit Union is here to help with all of your small business needs. Contact our business lender representative today at 614-221-3233, option 6 to learn more about our business services.
Telhio Credit Union is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield and Delaware counties and the surrounding communities including Dublin, Johnstown, London, Orient, Pataskala and Reynoldsburg. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.