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The Future Of Pizza Coupons Are pizza coupons going to be obsolete in the near future? Believe it or not, that's a raging debate that's going on right now in the pizza industry and among retail dining consultants. Many people, especially those who do a lot of ordering out for pizza, are probably having a hard time imagining that there might come a day when there's no more pizza coupons. For most of us, they've been a part of our lives ever since we can remember. They were in the newspaper, in the TV that came with the newspaper, in the phone book, in the mail, and left on our door in plastic bags.
And if you're like most Americans, you've used countless coupons over your lifetime to order pizza at a discount. So why in the world would the pizza industry be talking about getting rid of them? Well, the debate is all about "branding" and profit margins. Let's say Joe's Pizza sells a large pie for $15, and make $6 profit on each one. Well, if they send out coupons for a large pie for $12, they only make $3 per pizza, but they might sell three times as many, making more money on volume. But it's a whole lot more work. Plus, eventually people won't pay full price anymore. If they don't have a coupon, they won't order. This really cuts into profits.
That leads to the branding problem. If you flood your market with coupons, and people come to expect them, you run the risk of being seen as low quality pizza. The market won't view your product with as much respect as they do your competitor who rarely or never offers coupons. Most pizza parlors don't want to be known as "the cheapest pizza in town", but rather the best pizza in town. But it's pretty hard to make that case when you're practically giving your product away. That's why the debate rages. Will Domino Pizza Coupons go away then? Probably not completely, but don't be surprised if you see a lot fewer of them. |
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