Deals and coupons allow companies to drastically increase their sales, because it gives customers a sense that they’re getting a steal. Customers want to feel like they’re making a smart decision by making this purchase. Deals and coupons allow you to create that feeling. Deals and coupons also create a sense of urgency, which helps get people to take action rather than wait to buy – Then forget or “cool off” on your product.
These are the top 10 industries that use deals and coupons to promote their products.
Industry #1: Grocery Stores
This is one of the most common industries to use coupons. In fact, open just about any newspaper in the country and you’ll probably find coupons from supermarkets right in the middle of the newspaper.
Grocery stores often advertise one item, like eggs, at a significant discount. They do this because they know people don’t just come in and buy eggs, but buy many things at once.
Industry #2: Books
You wouldn’t think that books were a very discount centric industry. In reality, it is.
Take a look at Amazon.com. Any book you see, there’ll be a list price that’s crossed out. Below that you’ll see “our price,” where Amazon gives their buyers a steep discount on the book.
Industry #3: Mail Order
The mail order business is all about discounts. They create a product that has a ton of perceived value, then discount the product until it seems like a killer steal.
For example, they might build up the value of a package of home-made beef jerky by describing at length what it took to create it. They make it sound like it’s worth $100 – Then sell you five for $15.
Industry #4: Electronics
If you browse through sites like NewEgg.com or PriceWatch.com, you can see the extreme price competitions and discounts that go on in electronics.
Many electronics sites, for example Woot.com, will refurbish equipment in order to provide steep discounts to buyers.
Electronics retailers like Frys will frequently use deals and coupons to lure people into their stores. In cities near Frys warehouses, they’ll often buy full spread ads in newspapers and magazines.
Industry #5: Automotive
The car industry is also built around discounts. The sticker price is never what you pay. If a car’s MSRP is $25,000, it’s entirely reasonable for you to drive off the lot for $22,000 or even $21,000.
That’s just how the industry works. The car salespeople want you to think a car is worth a certain number, so they can make a profit when they sell the car. They can create the impression that they’re giving you a special deal because they like you by discounting.
Industry #6: Education
Did you know that the average price of what students pay to go to college hasn’t gone up at all in the last 20 years? Yes, the “sticker price” of education has risen exponentially – But so has the rate of scholarships, financial aid and grants.
Schools often use scholarships and grants as a way to lure in students. If you’re going to get a $40,000 a year education for just $8,000, wouldn’t you take them up on their offer?
Industry #7: Hotels and Vacations
The hotel and vacation industry is all about giving discounts. Instead of paying $150 a night, you can get five nights for just $300. Or perhaps you can get a time share, where you pay once and get to spend time at a vacation spot every year.
Industry #8: Consulting
The consulting industry is also built on special deals. Most coaching packages and consulting packages are sold in bulk, where the hours billed are greatly discounted if people buy more hours upfront.
This applies to both small time coaches, all the way up to multi-national corporations like Deloitte and Touché or IBM.
Industry #9: Finance
You don’t generally think of discounts with finance, but that’s really what it is. When a credit card company offers you a 0% APR on your credit card for 9 months, they’re really giving you a “special deal” to try and lure you in.
This applies to all aspects of finance. For example, 0 point mortgages are another form of discounts in the finance industry.
Industry #10: Advertising
You never, ever pay what the rate card (advertised price) is when you buy advertising. For example, if you were to buy a newspaper ad and the rate card price was $1,000, it’s not unreasonable for you to end up paying $600 when all is said and done.
These are ten industries where deals and/or coupons are frequently used to lure in customers. The reality is, almost everyone does it because it’s so effective.
Author Bio – This article has been written Isaac Chiriboga who works for Simpledeals.com. Visit his site today for the best and the cheapest deals in town and for printable coupons of your favourite products.