What Are The Disadvantages To Using Discount Codes?

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1. Your Company’s Product Quality Is Questioned

Despite gaining a strong reputation as a high-selling business, discounts can have a counteractive effect in that people may question the product quality. Everyone expects higher quality goods and services to cost more; for example, Tiffany jewelry and Mercedes Benz cars are more expensive than the average retail store. Similar to the large brands, pricing should have aspirations. One of the drawbacks to discounts is that price reductions will devalue the company’s image and instead of bolstering confidence in the brand, you will cause consumers to question your offerings.

2. Dropping Prices Can Result In A Price War

Another con to using coupon codes is that it causes consumers to compare prices. As a small company owner, discounting products will force you to compete with larger businesses that have a cost structure. This means that whatever price you set, there will always be a brand that can offer a cheaper service or product. By doing a simple online search, customers will be offered numbers options and can choose the alternative that suits their budget. It is a cycle that small businesses cannot avoid and this price war makes it difficult to remain a front-runner.

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