Comments on: Are we crippled by our own coupons? http://thesweetthesour.com/2010/06/09/are-we-crippled-by-our-own-coupons/ Sweet and Sour Stories: Where Chop Suey Is a Way of Life Wed, 23 Nov 2011 08:36:24 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Ben Kwan http://thesweetthesour.com/2010/06/09/are-we-crippled-by-our-own-coupons/comment-page-1/#comment-58 Ben Kwan Thu, 10 Jun 2010 04:00:14 +0000 http://thesweetthesour.com/?p=354#comment-58 Thanks for the astute observations, Eric. I agree that Punch Pizza has done something magical when it comes to the goodwill it has earned with the community. It's funny you mentioned them because FOX 9 did a story about discounts being offered online last spring and our restaurant and Punch were the two examples they used. My dad did a great job offering soundbites -- considering he doesn't even know how to use a computer! Thanks for the astute observations, Eric. I agree that Punch Pizza has done something magical when it comes to the goodwill it has earned with the community. It’s funny you mentioned them because FOX 9 did a story about discounts being offered online last spring and our restaurant and Punch were the two examples they used. My dad did a great job offering soundbites — considering he doesn’t even know how to use a computer!

]]> By: Eric Lundgren http://thesweetthesour.com/2010/06/09/are-we-crippled-by-our-own-coupons/comment-page-1/#comment-57 Eric Lundgren Wed, 09 Jun 2010 18:38:12 +0000 http://thesweetthesour.com/?p=354#comment-57 I'm not a coupon seeker myself but I do find the whole practice of issuing coupons very interesting. I agree that an overload of coupons can send a strong message to customers and change their behavior. For instance, when is the last time you bought something at Express without a coupon? They constantly mail out 30% off coupons and so their customers have been trained to wait for one to buy (it won't be long). Express positions itself as a somewhat high-end clothing store (among non-designer brands), but I think these coupons definitely erode the high-end perception. Whether this is good or bad for profits is another issue. Other companies who don't have a 100-person marketing department or a profit margin that allows for deep discounts might copy this strategy and lose money while simultaneously eroding their brand. One restaurant that handles coupons exceptionally well is Punch. Once in a while (maybe every 6-8 weeks) they will have a pretty crazy deal that runs for a few days like a free pizza or a buy one get one free offer. I said I'm not a coupon seeker, but I've stood in lines that literally spill out their door and down the street for a free pizza. Of course they lose money on these days, but I imagine the goodwill and customer loyalty it creates is enormous. I don't see deals like this weakening the brand either. Maybe even the opposite. It feels like a generous offer from a restaurant that is so healthy that it can just give out free pizzas for a night. Compare that to how a customer feels when they have a 15% off coupon. Maybe they are happy to save a few bucks, but I doubt it garners even 15% of the goodwill. I’m not a coupon seeker myself but I do find the whole practice of issuing coupons very interesting. I agree that an overload of coupons can send a strong message to customers and change their behavior. For instance, when is the last time you bought something at Express without a coupon? They constantly mail out 30% off coupons and so their customers have been trained to wait for one to buy (it won’t be long). Express positions itself as a somewhat high-end clothing store (among non-designer brands), but I think these coupons definitely erode the high-end perception. Whether this is good or bad for profits is another issue. Other companies who don’t have a 100-person marketing department or a profit margin that allows for deep discounts might copy this strategy and lose money while simultaneously eroding their brand.

One restaurant that handles coupons exceptionally well is Punch. Once in a while (maybe every 6-8 weeks) they will have a pretty crazy deal that runs for a few days like a free pizza or a buy one get one free offer. I said I’m not a coupon seeker, but I’ve stood in lines that literally spill out their door and down the street for a free pizza. Of course they lose money on these days, but I imagine the goodwill and customer loyalty it creates is enormous. I don’t see deals like this weakening the brand either. Maybe even the opposite. It feels like a generous offer from a restaurant that is so healthy that it can just give out free pizzas for a night. Compare that to how a customer feels when they have a 15% off coupon. Maybe they are happy to save a few bucks, but I doubt it garners even 15% of the goodwill.

]]>