We all love freebies and receiving a gift when trying out a new online store. Discount coupons, bonus codes and free gifts are a very effective marketing tool across all retail segments. But clever shoppers know that not all free gifts are worth it.
Read on to find out which type of coupons we think could end up costing you more than you realise.
It is a common practice for food delivery apps such as UberEats and Grubhub to offer coupons that promise good discounts on your orders. While these coupons do save you a little bit of money on your food order, they could actually cost you a lot more in the long run. These coupons are effective in making consumers feel that they are saving money on food by ordering out, which results in consumers ordering much more frequently than they otherwise would have.
The use of discount coupons which have short validity periods will further push the consumer to use the coupon before it expires. For example, if you were to order through a food delivery app and receive a coupon for your next order of 10% discount but it is valid only for the next three days, it could easily convince you to order again within 72 hours even if you had no intentions of doing so if not for the coupon. If you look at it mathematically, despite getting a coupon, you have now spent money on two orders instead of just one.
People love shopping for clothes and accessories online. Online fashion brands use whatever tools they have in their arsenal to keep shoppers hooked and this can cause borderline shopping addiction in some consumers. In fact, there was even a 2009 American movie called ‘Confessions of a Shopaholic’ which flirted with the concept of online shopping addiction.
One of the most effective ways online shopping portals attract consumers to their websites and keep them there are by using coupons. If you were to receive a coupon in your email saying you will get a discount on shoes, shoes may not have been on your mind at all, but suddenly you find the need for a new pair of kicks. Coupons could make you buy merchandise you don’t really need.
The workings of an online casino bonus are dictated by the casino’s general terms and conditions as well as the bonus terms. While these terms and conditions are intended to thwart the unfair exploitation of bonuses and thus avoid huge losses for the casinos, a few online casinos use them to their own benefit by making it challenging for a player to actually profit from a bonus in any way.
If you’re consider signing up with an online casino based on a particular offer, we urge you to read the terms and conditions to fully comprehend the details of how the bonus will work and whether you will actually profit from it. Here are five bonuses that online casinos market which could actually end up costing you more than what they are worth.
Welcome bonuses are the most popular type of bonus in the online casino industry. These bonuses are reserved for new members who have just signed up at a casino. Most welcome bonuses require players to make a first deposit. A stereotypical example of a welcome bonus would be – 100% bonus on your first deposit up to a maximum of $100. Therefore, if you make a first deposit of $100, you will receive another $100 courtesy of the bonus and have $200 balance ($100 real money and $100 bonus balance).
What the casinos won’t tell you straight up is that for you to withdraw any winnings made from the bonus money, you need to complete certain wagering requirements. For example, the wagering requirement for the above bonus could be 35x the bonus amount. This would mean that you need to wager and play through $3500 of your own money at the casino before you are able to withdrawal the $100 bonus money you received. One of the best ways to avoid such traps is to play only at no wagering casinos. NoDepositKings has one of the best lists of no wagering casinos on this page.
In some cases, coupons don’t really offer you any value at all. They are just discounts on marked up prices that make you think you are saving money. They are actually just product advertisements disguised as discount coupons.
Many online coupons are actually designed to make you opt for the more expensive product. For example, let us consider you are in the market for a new toaster oven, and you have a coupon offering a flat $50 discount. However, the coupon may only be used for a total cart value above $1000. You have narrowed down two options: the first toaster oven is $900 and the second one is $1200. Now you only get the $50 discount if you purchase the second one and this compels you to buy the second one, thereby making you spend more than you would have if you never had the coupon in the first place.