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Guest Post: This post was written by Ella Davidson of couponing website, Coupons. Coupons.org is an authoritative source for coupons and deals and couponing techniques.

Anywhere you look today, whether it is in your Sunday circular or online, you come across a myriad of savings options. Savings options exist in the form of manufacturer’s coupons, sales, discount codes and deals, and they all serve one purpose – to save you money. If you think about your local grocery store, they offer different deals and store coupons each week in an attempt to sell those products and bring in customers that may otherwise shop at competing stores. Some popular deals that you may think of occur around the holidays, Black Friday being one of the best times of year to shop. The reason why stores are so willing to offer money savings is because of the many benefits they gain.

Benefits of Offering Discounts

Retail stores do not pay full retail price, they buy the merchandise directly from the manufacturers at a less than wholesale cost. This allows them to offer the products at a discount and still make a profit, even if it is not the full profit they would otherwise get. So why do businesses sacrifice some of their profit by issuing discounts and coupons to customers? The answer is simple – they benefit from the purchases in the following ways:

• Customer Loyalty – For many years, companies have been issuing manufacturer’s coupons as a way to instill customer loyalty. They figured if they sent out the coupons that offered a cost savings on their products, customers would continue to buy the items because they were cheaper than the competition. It has been a smart, successful strategy that has created industry giants because of the repeated sales. Others offer a one time deal – such as Swiffer’s $5 off their starter package – as a way to have customers try their products. Their reasoning is that customers will love the products and return to purchase more.

• Move Inventory – It is common for many clothing stores to host an end of the season sale quarterly. You can find clothes that are marked up to 80% off the original sales price. The main reasons why stores will host this kind of deal is because they want to move the inventory in order to make room for incoming inventory. They figure selling the items for a portion of the cost – even if they lose money on the deal – is still better than not selling the goods at all. The next time you are out shopping at a large department store – visit the clearance racks. You will find that 99% of the times, the clothes are on sale because of the need to move inventory – not because there is something wrong with them.

• Competition – Every store wants to be the number one sales generator. This is especially true when there is a huge amount of competition, such as with online retail stores. Many people launch new businesses every year online and the only way that they can generate any sales is to competitively price their goods. In these instances, not only will you be able to shop around quickly, but you can also find discount codes that will allow you to save even more than you normally would. Discount codes can be found online by doing a simple search in any search engine.

There are many ways to save money when shopping and businesses know that the greater savings that they offer, the more business they are likely to get. In times of economic turmoil, the company that offers the most amounts of savings is likely to come out on top. Offering deals, coupons and discount codes may affect the amount of a profit that a business takes in. However, without these money-saving deals, competitors would be more successful.