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All You Need To Know About Discounts, Deals & Coupon Codes.

Everyone these days knows enough about Discounts, coupon codes or voucher codes. We all have a winning feeling when we purchase something at half price or on some discount from sale or by using any coupons, but at the same time we all have an unanswered question in our minds “how can a retailer sell it at half or discounted price?, won’t he lose money rather than making profit? Etc..”



This is basically called paying with customer’s minds because of a psychological effect of the buyer when he/she saw the magical words “sale, 30% off, etc..” These are literally magical words by which the one who has no intentions to buy a particular thing also buys that too. It is basically a midway where buyers and sellers both are in benefit. Before diving straight into the pool let’s clear some basic concepts and differences of discounts, coupons, sales and their types.


1- Coupon Codes:

Coupon codes is a concept of discount, there is a secret code which has the capability to reduce the amount (whatever the store has offered). These coupons are not very easily available and a bit hard to find out and they offer a comparatively bigger discount as compared to other offers. These coupons are released by stores themselves but not officially. There are some channels which flow these coupons to the market to limit the coupon usage so that stores can control their sales. There is an expiry date of the coupons also. Each coupon has its own life or validity period.



The phenomena behind this coupon is really shocking and might be a very new thing to you.

For example: Store X has a product A of retail price $100, the profit margin on Product A is 20% with this price. store X is selling 50 units of product A. This is how the store is making a profit of $1000 from product A in a month.


At the beginning of next month the sales manager got an idea and he released the coupons of $20 Off on product A in the market valid up to one month and updated the price of product from $100- $110.

Next month when they analyse the sales the figures were like blow:

No of unit sold: 100

80 units were sold by using Coupons & the rest 20 were on regular price.

Profit on sale by using coupons = $800

Profit on sale without coupons = $600


 + The store gets 20% raise in their sales + Extra units sold & new customers.

+ While the 80 Customers got product A on $10 less.


This is the basic phenomenon, the regulating body of coupons is human emotions or senses which a non buyer buys a product when He/ She saw the word 20% off Coupon Code somewhere.


There are subtypes of coupons let’s discuss them:


Sitewide coupon is the coupon with fixed discount value and is applicable on all items available on store, it has no limitations and no conditions.


Usually the coupon concept is on online stores. There are coupon websites like Couponer Heaven that offer coupons to multiple online stores and that code can be applied on the check out procedure and the buyer can avail the discount.

Printable or in-store coupons or voucher codes are the codes available online or somewhere which can be printed and used while physical shopping.


So this was the phenomena and sales strategy behind coupons. Now let’s see how sales is beneficial for buyers and sellers.


2- Sale:

The Sale is not a new word to you, almost every store has a sale going once in a month, where there is a discounted (fixed or multiple) collection of a product. It is a very common and regular thing in apparel and clothing stores.


If you have noticed that sale items are not very likely selling or fast running products. Usually stores put those items on sale which are less running items and it will take too long to sell those products on regular prices.

For example: A store clears out its one article on an average of 2 weeks and then it gets an article which has taken more than 4 weeks and still not sold yet. The store is actually losing money because the stuck stock is occupying space in inventory and in display shelves where other fast moving articles can be sold.



So the store put those slow running products on sale and cut down their profit margin for example a unit buying price for store is $80 and selling price is $140 then store drops its price by $100-$120 the profit margin dropped but the the stock which could take up to 4 more weeks to clear out got sold in a day or two.



+ Now the Store can add more articles to its shop.

+ Stuck money is collected from stuck articles.

+ Sale Volume got Boost.

+ Customers get the $140 priced product at $100.


This is how sales is beneficial for buyer and seller.

There are furthermore types of sale let’s discuss them one by one:


Seasonal sale is very common almost everywhere in the world in clothing and apparel stores. When a new season arrives like winter the store starts winter sale, when summer comes they start summer sale and put relevant products on sale. The phenomena is the same behind, but targeting customers by the name of season is added.



Occasional & Festival sales are the most popular sales all around and the king sale among occasional sales is the sale of black friday. 99% stores put the extra discounts, lower their profit margin and maximise the sale volume. There are other occasional sales all around the world accordion to their tradition and customs.



Early bird sales are basically pre arrival sales, the phenomenon behind pre arrival sale is that stores put some discount on pre arrival items and get the idea of how much quantity should a store buy.


Clearance sale is also a kind of sale in which the store clears out its leftovers, for example the store has winter stock left and winter season is about to end. Then clearance sale is set and the only purpose is to clear out the stock because of this reason most of the stores reduce the price to increase the sale volume.



3- Deals & Promotions:

Deals and Promotions offers are also kind of discount offers. There are various types of deals and the core purpose of all these deals and offers is customer attraction and maximise the sale volume.

There are too many kinds of deals in which few of them we are discussing.


There is nothing to explain in it. In this deal or offer, when you buy a product you will get another for free. 

Stores putt all the not running or stuck items in buy 1 get offer and get all the stock cleared in a week.

Here the stores actually took their profit margin to 100% for example you are buying 1 get 1 and one product cost you $100 and you are getting another for free. But actually the product you have paid $100 is worth $50. And here is how you paid the price of two in one. But at the end seller and the buyer both are happy so cheers!


Free Shipping Offer is an attractive offer to online customers because they have to pay some extra couple of bucks to the item delivered to their homes.

Let’s say the average order value of an store is $200 and store average shipping charges are $10 all the store have to do is increasing the prices by 5% which no one notice and put the banner on front in large fonts “ Free Shipping Sitewide” and all the customers stick to this offer by like bees.

Like in all offers, the customer is already paying for shipping but unknowingly.


For Service industries Loyalty Points are very common. Like airlines there is an offer in almost every airline that a free miles on xyz miles and one mile will count as one point etc…

These loyalty offers secure their business because customers will always stick with your brand. And it is the key to win the competition.


Note one thing in mind ever; a retailer, brand or store never pays for your discount from their pocket there is a system going on the backside which purpose is to give benefit to both buyers and the sellers, improve the shopping experience and enhance the market. All these tactics are invented by great sales and marketing teams and are well accepted by the market.


Hope you like the information.

See you in next topics!


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