Many business owners offer discounts and coupons to acquire and retain their clients and customers but - should they? Before we talk about the psychology that can be at the heart of making these offers available to customers, let’s examine the metrics of doing so first. If these discounts do not add up to a return on your investment, it makes no sense to offer them.
Let’s say a golf course wants to acquire more golfers. They offer a coupon worth $100.00 in tee times with this end in mind. The golf course makes $8.00 profit per golfer per round. It will take 12.5 months for the business to break even on that coupon.