Demaestro - 5:19 pm on Dec 2, 2010 (gmt 0)
A lot of companies are willing to offer these coupons at a loss and put the costs against their marketing budget.
Typically they aren't trying to make 1 sale per coupon.... they are hoping to make 1 repeat customer per coupon.
Factor in the redemption rates and use some smart tactics and these can work out really well for companies.
One tactic to minimize the costs, for example would be a cleaning company offers a $80 coupon for $40 but their cheapest service is $120, so even if they only get $18 from the $80 coupon they will still get another $40 on the cheapest service which means they get close to $60 for a $120 service... not too bad... if they can retain the customer even better.