Posted on July 22, 2011 in Build Your Brand by Katie Oskin
Okay, so for a small business person like me, I think coupons are not healthy. After realizing that I sold almost 20 items last month and cleared ONLY $11 profit, I realized it was due to offering coupons to my customers. While $11 might seem great to some, my Etsy fees alone were almost $30, and I haven’t added any PayPal fees yet. I do not mind offering a discount when discounts seem appropriate (multiple item purchase, etc)…however, that being said, we use a very strategic pricing guide to estimate the actual “cost” of all of our items. Because of this, I feel that our items are priced very fairly for each and every buyer. As judging by our profit last month, this is evidence to prove that.
So, in the end….for our small studio, coupons are NOT worth it. We have removed all coupons from our stores EXCEPT the frequent customer coupon which is sent with every order. We will now begin to have sales 4 times a year and offer a coupon at that time. There will be no more “standard” coupons that we submit for BNRs, special team events, etc.
We hope that we have not offended our buyers in any manner. However, we feel that our items are fairly priced for what you are receiving. As for other stores, we can NOT make decisions for them regarding the use of coupons. However, I feel that unless they have a significant markup on their items, other stores will begin to realize that coupons are not advantageous to the small business owner.