Photo: Sibte Hassan
Even when a coupon isn’t redeemed, it’s still a marketable tool for your business.According to a study by researchers at the University of Virginia’s Darden School of Business, coupons create awareness for a brand or retail, whether they’re used by consumers or not.
Sibté Hassan hopes that his coupon business will drive its own success — because the product itself is marketing.
Hassan’s startup Karmio will launch this month, and the founder said that what makes his company different than its competitors, such as Living Social or Groupon, is that Karmio will focus on services rare to the coupon world.
“I’m not looking at bars or restaurants, or cruises for a deal. I’m looking at a guitar teacher or a writing teacher who runs a twelve seat classroom to teach creative writing,” he said. “The only thing required is that from this campaign, they should be able to raise a minimum of $10.”
A portion of the company’s profits will go to charities and non-profits, which Hassan said will also help the business grow since these non-profits usually have a network of strong supporters who will likely become new business for Karmio.
“Non-profits already have a set of donors who have given money and they believe in their project and they believe in their existence,” Hassan told us. “And now those donors are already probably vendors, or they have businesses or jobs.”
“Since they are already donating to this charity, they can also become their own supporters so even a single donor list can be the sellers and the buyers within themselves.”
Furthermore, the founder said he will set standards higher than his competitors by not working with clients who won’t agree to honour coupons they put out there. This will eliminate overpricing and underselling behaviour that turns customers away and will also help to build a stronger reputation for Karmio.
“The whole thing comes to Karmio and we look over everything to make sure it is correctly priced,” Hassan said. “Once we verify a company, it will actually post to the main homepage just like a job listing.”
Karmio will offer coupons solely online in order to better target consumers and provide greater options for small businesses.
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