Be a Confident Shopper by Understanding Coupons…
Have you ever really took the time to look at your coupons and wondered what the heck all those different codes and numbers mean?! Well, my goal today is to break down the “secret” coupon codes, so that you are more confident and educated when using your coupons! Please note that I am in no way trying to provide information that allows you to use coupons inappropriately or for an unintended use!
A typical coupon barcode looks like the image below on the left that says “UCC Coupon Code”:
(Thanks to AccuGraphiX for this image)
UCC Prefix – This portion of the code will be either a 5 or a 9. It deals with doubling. If your store doesn’t double coupons, then this number has no purpose. If your store DOES double coupons, then any coupon coded with a 5 will double (up to your store’s doubling limit) and any coupon coded with a 9 will not double.
UCC Company Prefix – These numbers identify the manufacturer of the couponed item and MUST match positions two through six of the UCC Company Prefix on the product that is being purchased (this is the way that the register can validate you are purchasing the right product(s) for the coupon being used).
Family Code– Most manufacturers break their products into families and the family code allows the coupon to be coded for a specific product that the manufacturer sells (i.e. Crest may have a coupon that is only good for Crest Pro-Health Toothpaste so the family code on the coupon would validate this at checkout and would beep if you purchased a different variety of Crest toothpaste).
Value Code-This code tells the register what you need to purchase and how much to take off at checkout. The are over 100 value codes, so I will not be listing them all. Here are some examples:
00: Free product Coupon– will beep and require the cashier to manually input the amount to take off.
14: B1G1
50: $0.50 off
99: $0.99 off
*Keep in mind that coupons will occasionally scan successfully for items not listed on the coupon or even excluded by the terms written on the coupon. Just because the coupon scans does NOT mean that it is okay to use coupons for unintended items…this is actually coupon fraud and is illegal!
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OK, so now that you understand coupon coding, do you really know how the process of coupon redemption works for stores?! What do stores do with those stacks of coupons that they collect from all of us savvy shoppers?
Coupon Redemption Process:
-Manufacturers design coupon promotions with their sales/marketing teams
-Coupons are distributed via newspaper inserts, direct mail campaigns, via the internet etc.
-A very “hip” shopper excitedly enters the store and proudly uses all of his/her coupons at checkout 😉
-The cashier scans the coupons and puts them into the cash drawer. Typically, at the end of the day the coupons in each cash drawer are added up as if they were cash, and that amount is added to the cash sum to be sure the overall total for the drawer is accurate.
-Once per week, all of the manufacturers’ coupons (and any coupons issued by the grocer) are sent in plastic bags or pouches to the store’s corporate headquarters.
-There is a very lucky person at headquarters in charge of processing the coupons. That person boxes all of the bags of coupons and ships them to a third-party clearinghouse.
-The clearinghouse is then responsible for doing the most important part of the coupon redemption process– separating the coupons by manufacturer or by scannable coupons versus damaged/torn coupons. Most of this process is done by hand. Sometimes coupons are put face up on a conveyor belt and move under a scanner that reads the UPC codes and tallies the amounts. However, damaged and torn coupons have to be tallied by hand. The clearinghouse then sends all the sorted coupons with an invoice to the manufacturer.
-The manufacturer will reimburse stores the face value of coupons or if the coupon calls for free merchandise, for the retail-selling price up to the stated maximum value printed on the coupon PLUS 8¢ for handling each coupon properly redeemed (this 8¢ value may vary slightly). Many times manufacturers, such as ConAgra Foods, will also reimburse retailers that are using a clearinghouse or billing agent at a rate equal to $5.50 per thousand of coupons redeemed.
-The manufacturer either reimburses the clearinghouse for the amount of the invoice, and the clearinghouse mails a check to the store for the amount of the coupons OR the manufacturer sends a check directly to the store and the store then pays the clearinghouse. (The clearinghouse is paid a certain amount per coupon by the store, plus shipping and handling).
(Thanks to HowStuffWorks for some of the info on explaining the coupon redemption process!)
You can view a visual diagram of the coupon life cycle here and/or check out an example of the coupon redemption policy for ConAgra Foods here.
Here are a few interesting fact on coupon use in 2009:
-With a sour economy, consumers used 27% more coupons in 2009.
-Brands issued 367 billion coupons, at an average face value of $1.44 (That’s a total of $528.5 Billion)!
– Out of those coupons above, a total of $3.5 billion worth of coupons were redeemed.That sounds like a lot, but compared to the $528.5 Billion that were available– that’s less than .7%!
(Facts credit: Coupon Info Now!)
OK, so now that I have thoroughly overwhelmed you with the coupon coding/coupon redemption process, I have a question for ya…would you be interested in seeing a visual depiction (i.e. video) of the life of a coupon starring me Collin, the coupon, starting at the “birth” of the coupon and ending at the “death” of the coupon? My wheels are turning about this topic and I may pursue it if enough readers are interested. What are your thoughts?
I do not blame any retailer for being a little cautious about coupons. Myself, I know where I “DO NOT” like to shop w/coupons anymore so I just avoid those places altogether ! Not worth any type of frustrations to get a good deal.
I would love to see a Follow-Me-Monday life of a coupon episode. Thanks for enlightening us.
I’m addicted to your videos so “yes” I would love to see it.
I agree – this would definitely be a fantastic video for you to make, Collin!!!!!!
I always like to be more educated-my vote is YES! Take us on a trip we’d never get to do ourselves! Can you imagine a family vacation to the coupon clearing house? Hilarious.
What is the last digit, the check digit for? Did I miss that somewhere along the line.
I was referring to the check digit on the UPC code. Was it explained?
Here’s an explanation from AccuGraphiX:
“Check Digit: The last digit in the UCC Coupon Code is the Check Digit. It appears to the right of the bar code. The Check Digit is calculated from all the other digits in the bar code symbol and it changes as the UCC Coupon Code Number changes. The Check Digit is always in the bar code symbol, in the bars and spaces, and, it is also required in the human readable interpretation under the bar code. Scanners use the Check Digit to ensure that the numbers it has read are the correct numbers.”
The mathematical reason is based on “mods.” Basically, the codes all have a mod base, for example 7. The final digit makes this mod work out to have a 0 remainder. Basically you add up the numbers in a certain way (some numbers are multiplied by say, 3 first), divide by the mod and if you get a whole number, it checks out. Thanks to my Algebraic systems teacher for that one 😉
Hey, thanks to Heather and Jen for your answers to the check digit number. I will copy and paste your explanations to the previous information Collin shared with us. I know I won’t remember all of this so I copied it into a word document to keep with my coupon notes.
Thanks so much for this information. I’ve always wondered what the process was.
Yes!!! Do It!!
I am not always able to use a manufacturer coupon with a store coupon. I thought that was okay, but sometimes the cashier says no and because I am new to couponing, I really don’t know. Then sometimes the coupon even says it is a store coupon, but they insist it is a manufacturer coupon (so I can not pair it with another manufacturer coupon).
Also, some cashiers do not let me use a 1.00 off coupon when the item is .99. They won’t do it. I ask them to adjust the coupn, they say they can’t, so I ask them to adjust the item for sale to 1.00 instead of .99 and they say they can’t do it. So I have to walk away. Does the store really lose a penny or gain a penny if they would take my coupn for a dollar, but the item was marked/sold for .99?
So I get discouraged, but feel I need to be more educated to get more enpowered. Thanks for all the info!
Be sure to check out the posts Collin has up for store coupon policies….great information and I keep them in my binder so if the cashier frowns at me, I simply whip out their policy so I don’t have to throw a fit in the middle of the store.
I have asked this same questions before. I didn’t get an answer. But i emailed Walgreens corporate to ask if they have a corporate coupon policy. I had a $3 off coupon for an item that was on sale for $2.49 and the register beeped and she said she couldn’t take it. I asked if she could adjust the coupon amount like some of the other stores do and she said no she couldn’t do that. I should have just asked her to ask a manager but I shrivel at the thought of conflict so I let it go. later I emailed corporate asking about their policy and the next morning I had a phone call from the local store manager asking me to come in and they would give me the cash back. And he sent out a memo saying it’s ok for to accept coupons in those situations. Not sure if they will adjust the price down or not.
I, personally, don’t need a video but it seem I’m in the minority sooooo…..
What I’d be more interest in is hearing directly from manufacturers, their thought on coupons, how they intend for them to be used etc. For example, do they mind when we use a BOGO plus a $ off coupon? Or did they never intend for that to be the case? Why do they print “do not double or triple” on the coupons? How do they feel about people entering different zip codes on printable sites in order to get coupons that were intended for a different area? Those are the kinds of questions I’d like to have answered. Straight from the horse’s mouth, so to speak.
Amanda’s questions are some of the same I have regarding coupons. I also wonder why manufacturers don’t always exclude trial sizes…..do they realize that consumers are using them that way?
I also want to know if they can tell if a coupons was used on the wrong product. For example, if I have a coupon for Jello pudding, but use it on Jello gelatin instead, do they know that and does the store still get reimbursement for the coupon.
They don’t restrict trial sizes because that’s a lot cheaper then sending the free samples in the mail IMO
I like this idea, too. I really want to know about the B1G1 and $ off coupons combined. Is it really okay, or really fraud. I know that you, Collin, post deals using both coupons, so I assume it is okay. Sometimes, those cashiers can be pretty convincing about how when you use a B1G1 the two items actually become one item and therefore you can’t use another coupon with it, for the item that is not free. I have only ever walked away empty handed at Wal-Mart (which used to be my favorite store). I’ve also wondered about the regional (zip code) internet coupons. I did see the reply that you made earlier about the store never having to submit information about what the coupon was actually used for unless they send in more coupons than number of items in their inventory. Very interesting. Another question that I have is about the manufacturers coupons that print from the Target coupon site and don’t say “redeem at Target”. Is it worth it to try to get Walgreens or another store to take the coupon? How can I defend myself? Is there something in the code?
Ditto! It would be interesting to learn the intents as a manufacturer when it comes to coupons. Mostly because I think some cashiers seem to make up their own rules and as a customer I don’t have much back up on what the manufacturer intended. In fact, I think all stores should make this information mandatory for all cashiers to watch and learn. I hate having to argue with a cashier or have them remove items because they won’t let me do something perfectly legitimate all while there is a long line waiting behind me. So in essence, I’d like TWO videos 🙂 One on the “life” of a coupon and one on the publication of coupons with the purpose/intent of them.
ME TOO!!! TWO videos PLEASE!!!!! I’d really like both videos. I just had a terrible experience at Walmart, I already knew I didn’t like couponing at Walmart. But now I REALLY don’t like it, and to think that my frustration could have been avoided by me and the cashier being more informed. Not only would she not accept them but another cashier wouldn’t accept them from me two days later because she was a register behind the one I had problems with. Now isn’t that frustrating. Thankfully I got the clerk I like at customer service. I hope she doesn’t get tired of seeing me. I enjoy her.
FOR SURE, DO IT (just like NIke says to do)
That would be interesting to see. 🙂 I’m not just saying that! I feel that when you know more about the couponing process, you really are more confident about using coupons and even explaining it to others (b/c so many people have a minimal understanding of coupons). It’s also good to know it’s affects (positive or negative) on the stores, the economy & the manufacturer. Good idea!
love the info! never had any idea what those numbers meant! thank you! (and think the video would be very interesting!
I have always wondered what the numbers on the back of a coupon really meant and what actually happened with them once they were out of my hands.. I would LOVE to see this! Thanks for explaining.
VERY interesting Collin! I would love to see a video on the life of a coupon to the death of a coupon. It’s interesting to me how it all works! Thanks for all of the interesting info! 😛
puh-leze make the video, collin!
I think it would be interesting to see someone from all the major stores (walmart. kmart. rite aid. cvs and others) explain their coupon policies. I saw on one of the comments sections that someone was told by a cashier that walmart is going to stop taking printable coupons maybe you could find out if this is true.
I’ve always wondered what happens to a coupons when you have to return an item. I understand the store can’t give you cash back on the coupon value, since you didn’t pay that portion, but i don’t think they remove the coupon before it gets sent to the clearing house. So the store is actually still getting re-imbursed from the manufacturer, and we’re out a coupon.
I’ve wondered this too. I’ve read before that they do get compensated for coupons that were used on items that were returned… and I’ve read that it is Walgreens policy not to subtract the coupon amount if you return an item (this is not the same for store coupons), however I really don’t know if this is the case.
At the same time, I’ve wondered if they can tell which exact item is attached to the coupon. B/c they will sell tons of the same item w/ no coupon.. But do they know which item was attached, was it on sale, was it returned later, etc?
Whenever I’ve had to return something I used a coupon for (at Target or Walgreens), I always get the full price back. They’re going to be reimbursed for the coupon, so it’s not right to keep that amount and not refund the customer for the coupon (unless they’re returning the coupon to you, which they usually can’t do because it’s been sent in already). I don’t often return items I used coupons for because I feel like it’s wrong to turn the coupon into cash, but if I need to return it for a genuine reason, I will. I don’t do it with the intent to get cash for the coupon.
I bought some band-aids at Target with the $1.00 off coupon in hopes of using them for the Princess and the Frog $5 rebate. They were priced at $1.82, minus the $1, I paid .82 plus tax. They were Diego band-aids and would not work on the rebate, so I went back to Target to the Customer Service desk and told her the above situation, adding that I only wanted the .82 + tax back because that is what I had paid out of pocket. She absolutely insisted on giving me the full amount, there was no getting around it. I didn’t feel right about it, but there was nothing I could do.
I’m confused about when a store doubles or triples a coupon. Does the manufacturer reimburst the store or does the store lose that money?
Usually, if a store doubles coupons, the store pays the double price. And for instance, Wegmans in my town, doubles coupons up to $0.99 without giving overage – they will only double it up to receiving the item for free, so if the item is $1.50 and you have a coupon for $0.99, it would take off $1.50 NOT $1.98. This is not actually in their policy, but it holds true when I shop there.
I think they mainly do this as a way of competition to other stores. Wal Mart may be cheaper, but Wegmans doubles coupons up to $0.99 and Wal Mart does not, so it gives Wegmans an edge to get thrify shoppers.
I think it would be a great idea, if not in the video in another posting, about why it is not a good idea to photocopy coupons once printed off the internet. It seems this is coupon fraud and could be prosecutable.
That would be a great video… also getting other answers to the questions about using coupons and getting things for free with coupons (ie when the coupons value is $1 and things are .99) and answers about using a coupon in general. Great topic though.
Yes! I would be interested in the details of how that works. I was trying to explain to a manager the other day that they will get fully reimbursed for a coupon from the manufacture whether I get overage or not. I would like to know the exact process to explain that better. He claimed they only got reimbursed for the amount the item sold for, not the total coupon amount- and this is face value, not store doubles.
The more I know, the better I feel about using coupons.
As a cashier and couponer alike I was wondering what your opinions were on this issue? When I plan on using a coupon/coupons I always hand them over to the cashier. Now on the other hand when I am working people often yell, rant, and rave because either I miss a peelie on an item or another cashier misses it. Now it is not that I purposely miss it, sometimes they are on the side that I am not handling. I feel that if you plan on using coupons that it is your responsibility and not anyone else’s to inform the cashier and hand them over. Any thoughts?
I’m not a cashier, but I would think it’s the customer’s responsibility to bring all coupons to the cashier’s attention. I would never expect a cashier to pull a peelie off a product and scan it. Mainly because I’ve purchased products with peelies on them, but I didn’t use the peelie right then because I had a better coupon in hand. So I’d say that if you don’t tell them you’re using it, it’s your own fault if it doesn’t get scanned.
I agree! It is not the Cashiers job to look at every side of a product in case they might miss a peelie. I take them off before I put the item in my cart, and add them to the rest of the coupons I plan on using. That’s just pure laziness on the consumers part!
I agree, not your responsibility to check for peelies-or ask for coupons for that matter. As a new couponer, I am sure to hand my Q’s to the cashier BEFORE they start ringing my transaction. If I have a bunch of BOGO Q’s I even have them i order of which they will be scanned to make it easier for the person on the other end- nothing like having to search a receipt of 150 items to find the price on something.
I agree with everyone else. It is not the cashier’s job to find that peelie. A lot of times the person buying the item doesn’t even notice the peelie. Take the peelie off because I’m usually already using a better coupon.
I would love to see that video. It would be very interesting. I also have a coupon redemption question: Depending on a store’s policy when there is a BOGO sale and you pair it with a BOGO coupon you get the item for free. Does it work the same with 2 BOGO coupons? Thanks!
yes i too have many ?’s regarding this coupons that would be greatful if you make the video and moreover why stores doesnot accept $1 coupon for a product which is .99 or else manufacturers should give this as good for one travel size item. I came back many times without anything in hand.
Yes, I would love to see a video on this and have some of the previous questions posted answered.
Yes, I would enjoy watching a video on “The Life and Death of a Coupon”! Plus I would love a video on previous questions posted – where Amanda talks about talking to manufactures and their take on coupons. Thanks for all you do to help us save every day!
I just wanted to thank you for this post. I learned a lot and knowledge is power. Thanks bunches!
I personaly got a lot out of this post, and don’t feel a “life and death” video is really necessary. I did like the food pantry video (except for the loading in the background), so I’m sure this would be great too. I would like to know the answers to the questions that have been asked about the ethical use of coupons. I would LOVE to know more about defending my coupons! I also wish there was something we could do to help educate cashiers at our favorite stores, but I realize there isn’t much that “we” can do about that.
Yes, I would love to see a video! This is very interesting, I was wondering how it all works.
I think it’s a great idea! Even though I have been using coupons seriously for about a year now, there are still moments that something doesn’t work out the way I have planned and it helps to have these explanations. I think it would be great to have a sort of behind the scenes look at the “life of a coupon” as you say. New couponers would find it helpful to see how when we get items for free, the companies do not lose money!
YES!!!!!! That would be awesome!
Go Falcons! 🙂
I love all the videos you do, go for it Collin!
Do It!!!! It would be very interesting. Anybody that thinks they know everything about coupons would probably learn something new. I would also like to know which stores use which method of redeeming (getting reimbursed for) their coupons. CVS has a pouch method and weighs thier coupons that they turn in. Did you know that?
This is a good idea- DO IT!!!
Very good idea! I would love to see this. You could even contact an educational TV show to see if they were interested in following it with you!
Yeah, I think Collin needs a T.V show of her own. I’m thinking the Syle channel or something.
I have a whole bunch of coupons that start with 5 and are not to be doubled. It says so right at the top. So the 5 & 9 thing can still be unreliable. I just make sure I read the whole coupon first.
This is a little misleading. Even though it says DND (do not double), if a store has registers that are programmed to double coupons and the coupon starts with a 5 than the register will double it automaticly. It is my understanding that the DND at the top of coupons is more to let the retailer know that they will not be reimbursed the doubled amount. When a store doubles a .50 coupon and makes it $1, the manufacturer still only reimburses the store .50. The store is then paying for the other .50. Most stores that offer double coupons will double all coupons up to .99 regardless of the DND, because they understand that they will get reimbursed the same amount either way. 🙂 I hope that makes sense.
Yes it does. Thank you.
I would love to see a video on this.
I think this is great information for us to have, and I would love to see more info along these lines! The more we know, the better couponers we will be, and the more successful when we have disagreements, such as your plan A, B, and C issues lately!
I have always wondered what stops a store from submitting coupons that were not redeemed by customers? I’m sure most stores are really ethical, but it would be easy for them to submit all of those tear pad coupons without ever putting them out on the sales floor.
I think I have a criminal mind, but I try to be very ethical when I coupon!
I would LOVE that video. I imagine it would be hilarious.
I’m fairly new to couponing so it would be really interesting to watch the life cycle of a coupon. Hopefully it would give me more insight into what I’m doing and right and what I’m doing wrong.
I would also love to know (but am obviously too lazy to do the research myself) how much companies spend on developing & physically producing/distributing the coupons, let alone mailing out special ones. This is probably a bigger topic than you have time to handle, Collin (I’m assuming your family does want to see you at some point!), but I was floored at the info on how many dollars’ worth of coupons are made available vs. how many are actually redeemed! And the big manufacturer’s (like P&G or Unilever) are often paying for special inserts and promotional rebates. How much would items cost if companies didn’t have to pay for this marketing . . . but how many new products would I (and others) have never tried and loved and kept on buying, without a promotion or a coupon?
Thanks for today’s lesson! Really fascinating subject.
do it!
I would love to see that!!!
Would love to see a video on the life of a coupon!
I wish I could get my hands on some of those “dead” coupons! lol 😉
I love learning this stuff! Bring it on!
I would love to see a video. This is was a great post! Thanks 🙂
I love the behind the scenes stuff. So I would totally be interested!
Thank you so much. This clarifies a lot of things for me.