By: Julia Aidan
Submitted: 2008-12-05 14:10:55 | Word Count: 565
Discounts have been used in the sales business for as long as mankind has traded animal skins for food. Discount coupons as we know them have been encountered in the early 1900's, when the first Coca Cola franchises were offering hand written pieces of paper entitling their customers to a free cup. Many people shop online these days and many merchants offer coupon codes to help generate business.
Sometimes referred to as "promotional codes", "discount codes" or "vouchers", coupon codes typically provide customers with free shipping, a specific dollar or percentage rebate or some other offer meant to encourage them to make a purchase and to become a repeat customer.
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Since it has turned out to be an excellent marketing tool, more and more online ventures have approached this method of keeping customers satisfied. Coupon codes focus on a customer’s buying psychology and are intended to build loyalty. Many buyers who have utilized a coupon code at a certain store will return to the same store in the future.
You can also find online shopping deals in the form of rebates. Why are companies offering these rebates, you might ask? Well, it's a win-win situation: the buyer gets a lower price and the shop makes another sale. And who makes most, a shop who sells one product for $99.95 with a $19.95 margin or one who sells 8 products for $89.95 each and earns only $9.95 a piece? You do the math. It's all about how fast the inventory moves.
With the current state of economic crisis, people have shown to be far more likely to use coupons for both their day to day life and internet shopping. Niches like beauty aids, pharmaceutical products and electronics have proven to have an increasing success with the coupon code fever.
In today’s economy, coupon sites continue to build huge databases of carefully selected “online shopping deals” and “coupon codes”. With a wide range of offers, ranging from apparel, electronics and computers to credit cards and insurance packages, such sites can provide you with hot deals and rebates for all your needs. Why pay $408.00 for a 22 inch wide screen LCD when you can have it for $245.00? Alternatively, why spend $99.99 for a piece of jewelry when you can use a 30% discount coupon?
Depending on the products being sold, the impact on the market for a coupon issuer depends on several factors: geographical target, time of the year and age groups. Digital cameras have a huge demand for coupons in the summer and around holidays, when people are likely to leave on vacation. With America's overweight problem, diet and fitness products are likely to be sold on the continent on a large scale, thus the demand for coupons will be higher than in, let's say, Europe. Satellite TV and radio products are likely to be sold to 35+ year olds, who have already owned a house for a while and decided that cable TV isn't for them anymore.
Testimonials have shown even beginning "couponners" can save up to $400 a month. There is no reason why you can’t meet or exceed that number. Or, if you are an online retailer, you can make more money by building customer loyalty when providing such online shopping deals. So what are you waiting for?
