If you sell to consumers, you know discount coupons bring customers into the store. But distributing coupons — using newspaper advertising and direct mail — adds substantially to the cost of the promotion. If your competitors are using coupons, you can find your own business in a costly coupon war.
You can keep from losing your customers to your competitors’ coupons, and hijack some of their coupon traffic, without incurring any couponing expense. Simply offer to honor their coupons. Put a big sign in your store window that says “We accept our competitors’ coupons.” You’ll be running a coupon promotion, with your competitors paying for it.