4 ms·
It's entirely plausible they still profit from your couponed purchases, just not as much as if you had paid full price. Price discrimination is generally the m
by YokoZar 13y ago
It's entirely plausible they still profit from your couponed purchases, just not as much as if you had paid full price. Price discrimination is generally the motive behind issuing coupons (which still have marginal profits), as a "loss leader" strategy can be more effectively done through means other than coupons
Which, incidentally, is one reason why you shouldn't be offering things at a loss on groupon.
- VLM 13y ago"It's entirely plausible they still profit from your couponed purchases" A lot of this depends on the social conditioning that "coupons are a below market price". This is, of course, not universally true. Last time I checked groupon the local market was dominated by ridiculously overpriced services marked down "on sale" to almost reasonable prices, although still too high. There is a major regional clothing retailer where I live where about 1/4 of the store is "on sale" at any given time, up to 50% off, in a random rotation. The other 3/4 of the store is marked up well over 100% over "reasonable market prices". This is how to make money in a locust economy, market yourself as a locust feeding frenzy location, and financially manage yourself to handle a larger inventory and smaller cashflow than a "normal" store. So one week per month, sell socks at a normal market price, yet advertised as a "half off sale" at $10. The other three weeks per month mark them up to about twice market price $20 and eat the zero sales volume. The zero volume is OK; you probably needed the break to reorder and ship and restock anyway. Its sustainable and it works.