Boosting Business with Daily Deal Coupons

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Daily deal coupons continue to grow with fanfare and interest. Often seen as a boom for drawing business, they can also be debatable for businesses that enter into agreements with daily deal sites without thorough research and planning.
Daily deal sites work by having one business enter into an agreement with another business. Business #1 agrees to offer a significant discount for its products or services. The daily deal site sends the offer to its users and takes an amount of the proceeds when customers take benefits of the offer.
These promotions can bring in new customers – but at a cost. A key point is to be keenly aware of the details of the contract and structure the offer correctly.
Before signing on the dotted line, think about the following:
Set the right price - If the offer is $20 of goods or services for $10, and the daily deal site takes a $5 fee, the business clears $5 on every redeemed coupon. Owners must understand the profit margin on each transaction and make sure the bottom line profit is worth the effort and potential of future and/or additional up selling of products and services. The overall profit will depend on how much the average customer spends above the purchased amount. If the offer encourages customers to spend over the coupon amount, the offer can turn both new customers and loyal customers into revenue generators rather than cost centers with little or no profit margin. When creating a coupon deal, income beyond the offer is a major consideration.
Offer the right products at the right time - Since a business owner has control over the offers, a coupon does not have to be available for all products or services every day of the week. Selection is a key to coupon success. It just has to motivation potential. Coupons should be organized that drive traffic to a business when there is excess capability or to locations needing extra revenue rather than being limited by competing with normal customers during peak times.
Target the right customers - Consider offers that will attract new customers rather than only focusing on already founded customers. Starting offers with deep discounts are great ideas for attracting new business.................read more at>>>>>>>>Boosting Business with Daily Deal Coupons