
6 How Do Coupons and Product Discounts Differ? How Merchants Should Choose
Choose the right offer format based on how customers participate, promotional goals, and in-store operations
Both coupons and product discounts provide savings, but the way customers participate and use them differs. Coupons usually need to be claimed or purchased first and then used according to the rules; product discounts mainly relate to the selling price of designated products. Drawing on scenarios such as in-store promotions, product campaigns, and service redemptions, this article helps merchants determine the suitable offer format and plan costs, rules, and reception processes in advance.

When planning a promotion, merchants usually first consider:
๐ฐ How large a discount should be offered?
๐๏ธ Should customers first claim a coupon?
๐๏ธ Or should the product price be reduced directly?
๐ช How can customers be attracted to visit the store?
๐ณ Can customers buy a package first and redeem it later?
๐ Which is more suitable: a gift promotion or a direct price reduction?
In fact, a promotion is not only about how much cheaper something is; more importantly, it is about what action you want customers to take.
If you want customers to claim a promotion first and then arrange a store visit, you can consider free coupons.
If you want customers to buy specified products, packages or services in advance and then arrange redemption, you can consider paid coupons.
If you want customers to see the promotional price while browsing products and decide to buy, you can consider product discounts.
When planning a promotion on WeiCity, merchants can make their choice based on the promotion goal, product type, customer participation steps, campaign cost and actual execution method.
This article introduces the differences between three common promotion methods, their applicable scenarios, cost calculation and promotion planning methods, to help merchants choose a promotion plan that better suits their business needs.
Both coupons and product discounts can be used for promotions, but customers participate in different ways.
Customers do not need to pay to purchase a coupon; they can claim it according to the campaign requirements.
They can then use it according to the rules.
For example:
โ Claim a free RM5 drink coupon.
๐ฝ๏ธ Claim a discount coupon for a specified set meal.
๐ Use a coupon to take part in a spend-and-receive gift promotion.
Customers usually need to:
๐ View the promotion.
๐๏ธ Claim the coupon.
๐ Confirm the validity period.
๐ช Use it according to the rules.
Customers first pay a specified amount to purchase a coupon, then redeem the corresponding benefits according to the rules.
For example:
๐ฝ๏ธ RM39 two-person set meal redemption voucher.
๐ RM68 beauty treatment trial voucher.
๐ RM25 specified product redemption voucher.
Customers usually need to:
๐ View the benefits.
๐ณ Pay for the coupon.
๐๏ธ Obtain the coupon.
๐ Schedule the time of use.
๐ช Redeem according to the rules.
The merchant offers a promotional price directly on specified products.
For example:
๐๏ธ Original price RM100, promotional price RM80.
๐ฆ Bundle discounts on designated products.
๐ข Buy two items to enjoy the campaign price.
Customers usually need to:
๐๏ธ View products.
๐ฆ Select the specification.
๐ท๏ธ Confirm the promotional price.
๐งพ Check the order.
๐ณ Complete the purchase.
Free coupons: claim first, then use.
Paid coupons: buy the benefit first, then redeem.
Product discounts: offer savings directly on the product's selling price.
The specific operating process is subject to WeiCity's current actual features and the merchant's settings.
If a merchant wants customers to notice a promotion first and then arrange a store visit, free coupons can be used as a promotional method.
For example:
A cafรฉ is launching a new drink.
The merchant hopes nearby customers will learn about the product first and then arrange a time to visit and try it.
You could consider offering:
๐๏ธ A free RM5 coupon for a specified drink.
After claiming the coupon, customers can arrange to use it according to the campaign rules.
For example:
A coupon for a specified new drink.
For example:
A coupon for a specified lunch set.
For example:
Customers who meet the specified spending requirement may claim a gift with the coupon.
For example:
A promotion for a first-time trial of a specified service.
For example:
A specified promotion available on weekday afternoons.
๐๏ธ Customers can first obtain eligibility for the promotion.
๐ Customers can plan their use according to the validity period.
๐ช Merchants can promote around a specified store or service.
๐ฑ Customers may need to show the coupon when using it.
A free coupon does not mean that every customer who claims it will visit the store.
For this reason, the campaign rules should clearly explain:
๐ The validity period.
๐ช Applicable stores.
๐๏ธ Applicable products.
๐ฐ Minimum spend.
๐ How the coupon is used and redeemed.
๐ If the promotion aims to encourage customers to pay attention first and visit later, free coupons can be considered.
If a merchant wants customers to understand the promotional price immediately after seeing a product, product discounts can be considered.
For example:
A retail store sells specified products.
Original price:
RM100.
Promotional price:
RM80.
Customers can see directly:
๐ท๏ธ Specified product promotional price RM80.
Customers do not need to refer to another coupon to determine the product price.
For example:
Promotional price on specified apparel.
For example:
Campaign price for the 500ml product.
For example:
Buy two items to enjoy a bundle price.
For example:
Promotion on a specified gift box.
For example:
Discounted prices are offered within the specified dates.
๐ท๏ธ Customers can see the discounted price directly.
๐ฆ Products and specifications can be compared together.
๐ข Product amounts can be calculated based on the actual quantity.
๐งพ Customers can check the charges at checkout.
Product discounts need to match prices with the actual products.
For example:
๐ฆ Which specifications participate in the promotion.
๐จ Which styles apply.
๐ข Whether a specified quantity must be purchased.
๐ When the promotion ends.
๐ Whether delivery fees must be paid separately.
๐ If the promotion goal is to let customers directly compare products and decide to buy, product discounts are usually easier to explain around price.
For some merchants' products or services, delivery does not necessarily have to happen immediately after payment.
For example:
๐ฝ๏ธ Restaurant set meals.
๐ Beauty care.
๐ Course trials.
๐ธ Photography services.
๐ Designated gifts.
If a merchant wants customers to first purchase specified benefits and arrange redemption afterward, Paid Coupons may be considered.
Suppose a restaurant launches:
RM39 Two-Person Set Meal Voucher.
The coupon includes:
๐ Two portions of designated main course.
๐ฅค Two cups of designated drinks.
Customers first purchase the coupon, then redeem it in store according to the promotion rules.
Suppose a beauty center launches:
RM68 Designated Care Experience Voucher.
The merchant needs to explain:
๐ What services are included.
โฐ Service duration.
๐ The validity period.
๐ Whether a reservation is required.
โ Whether there are any additional charges.
๐ณ Customers pay the coupon fee first.
๐๏ธ After purchase, the corresponding benefit is obtained.
๐ Redemption can be arranged according to the rules.
๐ช The merchant must provide the agreed products or services.
Paid Coupons involve prepayment, so the merchant needs to consider actual fulfillment capacity.
๐ฆ Whether there is sufficient product inventory.
๐ฅ Whether there are enough service staff.
๐ Whether reservation time slots can be arranged.
๐ How to handle situations where the service cannot be provided.
๐ Whether refund and cancellation rules are clear.
If a service requires a reservation, customers should still confirm the actual date and time as required by the merchant.
๐ If the promotion goal is to let customers first purchase specified benefits and redeem them later, Paid Coupons can be an option, but the merchant must ensure it can honor the redemption commitment.
Merchants can first determine the promotion goal, then consider which method to use.
You may consider:
๐๏ธ Free coupons.
For example:
Claim a coupon for specified products and use it in store later.
You may consider:
๐ท๏ธ Product discounts.
For example:
Original price of the specified product RM100, promotional price RM80.
You may consider:
๐ท๏ธ Display the set meal's discounted price directly.
Or:
๐ณ Offer a set meal redemption coupon.
The difference is whether the redemption benefit must be purchased first.
You may consider:
๐๏ธ Free trial coupon.
Or:
๐ณ Paid service redemption coupon.
The specific choice depends on the service content, booking method, and operating costs.
You may consider:
๐๏ธ Free coupons.
For example:
After meeting specified spending conditions, customers claim a gift with the coupon.
You may consider:
๐ท๏ธ Multi-item discount.
For example:
Buying two items gives a specified bundle price.
Do you want customers to claim a discount first, or buy the product directly?
Do you want customers to pay now, or visit the store to consume later?
Does the promotion require a reservation or redemption?
Is it easy for staff to carry out?
๐ Deciding first on the action you want customers to complete, then choosing the discount format, is usually more organized than deciding the discount percentage first.
Cost cannot be judged based on the discount format alone.
Merchants need to calculate actual revenue and operating expenses.
What is the regular selling price?
How much is actually deducted per transaction?
What is the cost of the product, raw materials, or purchasing?
Does staff need to provide additional service?
If the promotion includes a gift, how much does it cost?
For example:
Packaging.
Delivery.
Other delivery costs.
Assumed:
Regular selling price:
RM50.
Product cost:
RM25.
Discounted selling price:
RM40.
Other expenses are not calculated for now.
Gross profit per product:
RM40 โ RM25 = RM15.
Assumed:
Product selling price:
RM50.
Product cost:
RM25.
Gift cost:
RM5.
Other expenses are not calculated for now.
Gross profit per sale:
RM50 โ RM25 โ RM5 = RM20.
In this assumption:
The gross profit from the direct price reduction is RM15.
The gross profit from giving a gift is RM20.
However, you cannot decide which promotion is more suitable based on gross profit alone.
You also need to consider:
๐ฏ Whether customers want the gift.
๐๏ธ Whether the promotion can bring additional orders.
๐ฆ Product inventory situation.
๐ฅ Service and reception capacity.
Rent, wages, marketing, and other operating expenses may also affect the final result.
๐ Merchants should calculate promotion plans based on actual costs, rather than looking only at the discount percentage.
Although free coupons do not charge a purchase fee, merchants may still bear the corresponding discount cost when customers use them.
For example:
๐๏ธ Spend RM30, get RM5 off.
If a customer meets the conditions and successfully uses the coupon, the merchant needs to consider the impact of the RM5 reduction on revenue.
Decide the discount amount based on the product's profit margin.
For example:
The coupon applies only when spending reaches the specified amount.
Avoid keeping the promotion open for a long time without management.
For example:
Limit of one use per person.
Arrange according to actual business needs.
Avoid including products unsuitable for promotion in the campaign.
Customers should be able to understand the main conditions before claiming the coupon.
๐ Controlling the cost of free coupons should be based on real product profit and clear usage rules.
Paid Coupons involve customers paying in advance.
Merchants need to ensure they can provide the agreed content afterward.
If it is a product redemption coupon, confirm supply capacity.
For example:
Main course.
Drinks.
Quantity.
For example:
How many customers can be served per day.
Ensure customers have a real opportunity to use it.
If a reservation is required, provide a clear confirmation process.
For example:
Upgraded services.
Additional accessories.
Add-on products.
For example:
Refunds.
Cancellations.
Postponements.
Handling when fulfillment is not possible.
After selling Paid Coupons, merchants still need to provide the agreed products or services.
๐ The key to Paid Coupons is not only completing sales, but also being able to smoothly honor redemption commitments.
Besides helping customers understand, promotions also need to consider how staff actually operate them.
Staff may need to:
๐ฑ Check the coupon.
๐ Verify the expiry date.
๐๏ธ Check the spending conditions.
๐ Complete redemption according to the actual process.
Staff may need to:
๐๏ธ Confirm the coupon benefit.
๐ณ Distinguish between the paid coupon fee and any additional charges.
๐ฆ Verify the redemption contents.
๐ Confirm the reservation.
๐ Complete redemption.
Staff need to:
๐๏ธ Confirm the products participating in the promotion.
๐ฆ Verify the specifications.
๐ข Verify the quantity.
๐ฐ Check the actual discounted price.
๐งพ Verify the order amount.
If a product discount directly corresponds to a clear selling price, customers usually understand the price more easily.
However, if the promotion involves multi-item purchases, different specifications, or complex stacking rules, it may also increase the difficulty of operation.
Coupons, on the other hand, require considering voucher viewing and redemption procedures.
It is recommended to start with:
๐ฆ A clearly defined product range.
๐ A clear promotion period.
๐ฐ Price calculations that are easy to understand.
๐ฅ Easy-to-follow steps for staff.
๐ Whether a promotion format is suitable also depends on the merchant's actual service capacity and operational ability.
Merchants may offer different promotions in different activities.
However, clear rules are needed on whether the same purchase can enjoy both.
For example:
Specified products receive a discount.
Another group of products can use a coupon.
For example:
Discounted products cannot be used together with other coupons.
For example:
Products already have a discount, but a specified coupon may still be used when conditions are met.
Assumed:
Original product price:
RM100.
Promotional price:
RM80.
Coupon:
RM10.
If the activity allows combining promotions and the coupon applies to the products in this purchase:
RM80 โ RM10 = RM70.
If there are no other fees:
The product amount is RM70.
๐ Whether stacking is allowed.
๐ฆ Which products are eligible.
๐ How the minimum spend is calculated.
๐งฎ The order in which promotions are calculated.
๐ฐ Whether there is a maximum discount amount.
You may start with a single promotion format.
Make sure customers and staff can easily understand it, then adjust according to actual business conditions.
๐ Offering both coupons and product discounts does not mean customers can necessarily use both on the same order.
Different industries can arrange promotions according to the characteristics of their products and services.
You may consider:
๐๏ธ Free drink coupon.
๐ท๏ธ Special price for specified drinks.
You may consider:
๐๏ธ Lunch coupon.
๐ณ Redemption voucher for a two-person set meal.
๐ท๏ธ Discount on specified set meals.
You may consider:
๐ท๏ธ Designated product discounts.
๐ข Multi-item purchase offer.
๐๏ธ Spend-and-save coupon.
You may consider:
๐๏ธ First-visit trial coupon.
๐ณ Redemption voucher for specified treatments.
๐ท๏ธ Special price for specified services.
You may consider:
๐๏ธ Course trial offer.
๐ณ Redemption voucher for specified courses.
๐ท๏ธ Special promotional price for specified courses.
You may consider:
๐ท๏ธ Festive gift discount.
๐ณ Product redemption voucher.
๐๏ธ Gift-with-purchase promotion.
Merchants should arrange activities based on their actual products, services, and currently supported features.
๐ No single promotion format suits every industry; the key is to match actual business needs.
Whether choosing coupons or product discounts, complete promotion details should be prepared first.
For example:
Attract customers to the store.
Promote new products.
Increase sales of specified products.
Promote set meals or services.
For example:
RM5 off.
20% off.
Redemption of specified set meals.
Instructions:
Regular selling price.
Promotional selling price.
Cost of purchasing the coupon.
Specify products, specifications, and quantities.
State the start and end dates.
For example:
Designated outlet.
For example:
Minimum spend.
Specify the required purchase quantity.
For coupons, explain the steps to claim, purchase, and use them.
If the promotion requires redemption, explain who confirms it and how it is done.
State whether other promotions may be used at the same time.
Especially for paid coupons, clearly state how refunds, cancellations, and situations where the coupon cannot be honored are handled.
Make it easy for customers to ask questions before participating.
๐ The more complete the promotion details, the easier it is for customers to understand and for staff to carry out.
The following are hypothetical promotion plans and are not actual WeiCity activities.
Activity name: RM5 Off Specified Drinks Coupon
๐ Claim fee: Free.
๐ฐ Offer: RM5 off when eligible.
๐ Purchase condition: Spend RM20 or more on specified drinks.
๐ Activity period: Within designated dates.
๐ช Where to use: Participating outlets.
๐ How to use: Present and redeem as required by the merchant.
Activity name: RM39 Two-Person Set Meal Redemption Voucher
๐ณ Purchase price: RM39.
๐ฝ๏ธ Included: Two specified main meals and two drinks.
๐ Validity period: Within the specified dates.
๐ช Redemption location: Participating restaurants.
๐ Booking requirement: If a booking is required, please confirm in advance.
๐ After-sales arrangements: Handled according to the purchase terms and applicable law.
Activity name: 20% Off Specified Products
๐ท๏ธ Original price: RM100.
๐ฐ Promotional price: RM80.
๐ฆ Scope: Specified products and specifications.
๐ Activity period: Within designated dates.
๐ซ Combining offers: Subject to the activity rules.
๐ Delivery fees: Calculated based on actual delivery arrangements.
Free coupon:
Customers first obtain eligibility, then use the offer.
Paid coupon:
Customers first purchase a specified benefit, then redeem it.
Product discount:
The offer is provided directly through the product price.
๐ Merchants can choose the promotion format that matches the action they want customers to take.
After a promotion ends, merchants should not only look at the number of participants or orders.
They should also assess the business results to judge whether the promotion met expectations.
If free coupons were used, review the claim records that are actually available.
Understand how many coupons were actually used.
Confirm whether the coupons sold can be honored as agreed.
Review the actual sales performance of the products included in the promotion.
Reconcile sales revenue during the promotion period.
Calculate expenses for products, materials, and giveaways.
Assess staff reception and service arrangements.
For example:
Whether the promotion conditions are easy to understand.
Whether customers frequently ask how redemption works.
Whether any price disputes occurred.
Based on actual results, consider:
Adjusting the discount amount.
Narrowing or expanding the product range.
Changing the promotion period.
Simplifying the participation process.
Not all activities provide the same statistical features.
๐ Whether a promotion is effective should be judged by actual revenue, costs, order fulfillment, and customer feedback.
First determine the promotion goal, then choose based on product type, how customers participate, and operating costs.
They can be used for activities where customers first claim an offer and then use it according to the rules.
They can be used for activities where customers want to see the offer price directly and choose products.
They can be used for activities where customers first purchase a specified benefit and then redeem products or services.
Not necessarily; check the actual offer.
Not necessarily; it depends on the benefits included in the coupon and any additional charge conditions.
If the discounted selling price is applied directly, there is usually no separate step to present a coupon; the actual transaction process still determines this.
Judge based on the actual coupon code and how it is used.
Check whether the promotion allows stacking.
Do not judge by format alone; calculate actual revenue and operating costs.
You can start with a small-scale activity that has a clear product range, controllable costs, and simple steps to carry out.
Clearly state the applicable refund and cancellation conditions, and comply with relevant consumer protection rules.
If the discount is a limited-time offer, the validity period should be clearly stated.
The scope of application can be set according to the event arrangements, and should be clearly explained in advance.
Specific functions such as free coupons, paid coupons, product discounts, price calculation and redemption depend on WeiCity's actual features at the time.
๐ There is no single answer for choosing an offer format. The key is how well it aligns with your promotion goals and your actual ability to deliver.
Before running a promotion, merchants can start by asking themselves three questions.
๐ If you want customers to claim an offer first and visit later.
Consider a free coupon.
๐ฆ If you want customers to pay first and then redeem a specified product or service.
Consider a paid coupon.
๐๏ธ If you want customers to see the discounted price directly and make a purchase.
Consider a product discount.
๐ฆ What is the product cost?
๐ฐ How much revenue is lost on each transaction?
๐ Does it involve the cost of giveaways?
๐ฅ Does it require additional service staff?
๐ Are there delivery or fulfillment costs?
๐๏ธ Do customers know how to claim or purchase the offer?
๐ฑ Is it easy to find the voucher?
๐ Do staff understand how to redeem the offer?
๐ท๏ธ Are the product prices clear?
๐งพ Is the checkout amount easy to verify?
The right promotion is not necessarily the one with the biggest discount, but the one that customers understand, merchants can deliver, and costs are affordable.
For WeiCity merchants:
๐๏ธ Free coupons: Can be used to encourage customers to first obtain eligibility for an offer, then take part in the event according to the rules.
๐ณ Paid coupons: Can be used to pre-sell specified redemption benefits and arrange fulfillment afterward.
๐ท๏ธ Product discounts: Can be used to display discounted prices directly and help customers make purchasing decisions.
The three formats can be used separately for different products, services and promotion goals.
If you plan to run several offers at the same time, first define the scope of application, calculation rules and operating process.
When planning a promotion on WeiCity, we recommend first defining your promotion goal, then checking product costs, supply capacity, customer steps and how staff will carry it out, and finally publishing the promotion based on the features currently supported.
Specific details of coupon claiming, purchasing, product price display, offer stacking and redemption depend on WeiCity's current pages, merchant settings and actual features.
๐ Open WeiCity: https://wei.city/
