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By Pat Swartley
Coupons and coupon offers have been around a long time and they are a very
successful marketing tool for the retail and service industries. So why not
resale shops? Yet, whenever I mention coupons the most common comment is,
"Sounds wonderful, but I can't afford it." We will talk about the math of
coupons later, but first let's explore the possibilities of how coupons can
help you increase sales.
 Who is your target
market? Loyal customers, who will
be thrilled to have another reason to come in to shop, and brand new, never
been in your store customers. Both customers are vital to your success.
What is the best offer? A
free offer is best. Forget those 20% off any purchase of $50 or more, or
similar offers. Too many restrictions or limitations kill the effectiveness
of the offer. My best coupon response has been with a simple $5 off any
purchase with no restrictions, period. Oh yes, the really dedicated coupon
lover will search the store for a purchase as close to $5 as possible. BUT,
in their search they will look your store over and they will be back. The
next coupon user may spend $100 and then whip out the $5 coupon. If your
store sells furniture or high-end merchandise, perhaps a free offer of $10
off will work better for drawing customers.
Best way to offer coupons?
Through in-store and out-of-store
advertising. How about offering a new consignor a coupon to be used any
time? Offer a coupon to the consignor whose clothes you turned down so they
don't feel their trip was wasted. Offer coupons at the sales counter to
encourage the shopper to come back. Store bucks (one given for each $25
spent, for example) is a good "cash back" incentive. Give a couple of bucks
to the first time customer who didn't buy anything to encourage a return
visit. Mail a few "bucks" with consignor checks. Give loyal customers coupon
certificates to give to friends or family members who have never shopped
with you. When the coupon is redeemed, send a coupon to the loyal customer
who made the referral. Out-of-store coupon advertising works well in coupon
books that are mailed to homes in your area. Newspaper coupons tend to be
less effective. Avoid offering coupons after Thanksgiving or at the
beginning of the summer. Offer coupons in your own direct mail-out's or on
your website. Pass them out at networking meetings.
How do I know if the
coupon was effective?
Keep track by writing the amount
of the sale on the redeemed coupon. Keep a separate envelope for each coupon
offer. Add up the total in sales generated by each coupon and drop those
offers that generate little revenue.
Should I put an
expiration date on the coupon?
That depends on the reason for the coupon offer. Remember, limiting the use
of the coupon will decrease its possible use.
How do I handle coupons
at the register? Ring up all items, subtotal,
subtract the coupon, then add tax. Coupons are subtracted from the gross
sales total for the day. Individual tickets are not marked down.
Am I losing money
with each coupon used?
Maybe, but consider how much income the coupon
generated that you might not have had? How many new customers did it bring
you? How many happy loyal customers shopped more often?
Last but not least—notice how much your customers appreciate
getting a coupon. There is an army of dedicated coupon clippers out there.
Lure them into your shop!
Pat Swartley is the former owner of The Clothes Basket in Seabrook, TX.
Now retired, she is a NARTS Life Member and Past Board Member, frequent speaker at conferences and valued
contributor to our newsletter. This article is an excerpt from "Positive
Promotions", a workshop Pat presented at the NARTS 2002 Conference in
New Orleans..
 
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