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?
Interesting I have wondered how the whole process worked after we turned it in!
Thanxs.
Oh visuals are always fun!
I really appreciated this explaination because myself and fellow couponers have had conversations about how the stores redeem the coupons, etc (haha…silly us!). And I am sure I would watch a video with you exploring this if you made it, but don’t drop any other great or better ideas that may come along before!
I would love to see this. Pleaseeeee do it!!!!
I’d love to see a video of the process. So would my 14 month old she loves to watch you and always signs “more” when Follow Me Monday is over!
That is funny. My 3 year old daughter likes to watch too. Although this week she couldn’t figure out why Colin was at home and not in a store.
I’d love to see a video like this.
A little bit off topic:
I’d also love to see/hear what retailers think about people like me (using a coupon for every single item). Love me, hate me?
I want to take you and so does my husband. He loves all the cheap brandname products i get him.
ooo, I kinda like that idea too, interviewing cashiers and managers to know what they think when a couponer hands over a stash.
Me too. Do they think we are just annoying or are they rootin for us to save as much as we can????
I worked at a department store (Like Kmart or Target) and I LOVED when people used coupons as long as they were using them correctly. I would kindly explain if they were using it incorrectly and some coupon user would be rather rude about it, others would ask to go get the correct item or what not and I would turn off my light and let them run back quick and swap or call another team mate and have them bring it up. I also worked in the Cash Office and we LITERALLY added the total of the coupons on a sheet of paper and then what the total should have been, wrapped it up, put it into an envelope and sent it to corporate weekly. That was all there was to it. I had more problems with Cashiers not turning in the coupons (throwing them away, losing them, so on) then taking them incorrectly.
I would LOVE to see this!
This has been one of your most informative and invaluable posts. Go for the gold! Your videos make my day!
It would be to every Hip2Savee’s advantage to print and save this post. Related to these codes could you please explain if it is possible to use 2 different, lets say Crest, coupons on the same tube of toothpaste, if they were different codes, such as one was .75 off and the other $1.00. It seems to me that you or others have said this is possible. Perhaps only the last code is different on the coupon, which seems to me would make it OK.
I think that would only be ok if one was a store coupon and one was a manufacturer coupon. Usually you can’t use two manufacturer coupons on the same item.
It won’t work to use two coupons on the same item because there will not be an item to match the second coupon to. I believe when the coupon is scanned, the computer finds the product match for that company & family code. When the second coupon is scanned, it won’t find another available product with that same company and family code. The value of the coupon doesn’t matter in this respect because it doesn’t have an available product to pair it with. So, the value of the coupons being different is not enough to make it ok to use two on the same product. Besides, most coupons say one coupon per item purchased.
I should have clarified, I’m just talking about using two manufacturer coupons here. Of course you can stack a store coupon with a manufacturer coupon for the same item….
Thanks for your comments, now I understand.
I LOVE knowing this stuff–always have, going back to Mr. Rogers taking us into the crayon factory or the peanut butter factory. 🙂 i would really enjoy seeing a video from birth to death of a coupon.
My first thought was Mr. Rogers & the crayons too!! haha 🙂
i sometimes use coupons for not the “exact” item at my walgreens. they dont have a problem with it, and either do i. maybe i should feel guilty about “coupon fraud” but in this economy, i’ll stick it to the “man”….
As George Washington once said:
Few men have virtue to withstand the highest bidder.
If you’re following an ethical coupon blog like Collin’s, I really can’t imagine you’re serious about that statement.
Perhaps the statement needs some explaining. It is the utmost of ethical. I have found myself caught up in couponing, and often times I am tempted, and have succumbed to being dishonest a few times to save .50 or a $1.00. When I get home I realize that my integrity is worth much more than .50. The point of his statement as I have always interpreted it is that most of us can be tempted for the right price, whatever that might be.
And, if enough people like you commit coupon fraud – it will make it harder for those of us who are legit coupon users.
I’m sorry,but I completely disagree with your ethics. You aren’t “sticking it to anyone” as you say, but yourself because companies, like Walgreens might stop taking coupons or reduce their use. There is no ‘man’ you are sticking it to. Ugh what a poor expression.
Sorry for the heated discussion, it was obviously a poor explanation. I can’t imagine that there aren’t a number of readers on Collin’s post, that although very honest people, haven’t on occasion used a coupon that a cashier pushed through. I read about it all the time on this site. I DON’T CONDONE it in any shape or fashion, but on a very few occasions I have found myself in that situation. The point I was trying to make was that sometimes I get caught up in saving money, it can be rather addicting (as many have said), and then I regret that I compromised my standards. Enough said.
So you’re using the tough economy to legitimize breaking the law?
so i feel really bad about my post earlier. im not some scummy criminal–i have just been so frustrated lately with prices. i live in a realllllllllllly small town and the superwalmart is our head hancho store…and they jack everything up sooo high because they know they can. it really ticks me off! so when i made the dumb comment about “sticking it to the man” thats who i was referring to. ive honestly only done it a few times (im not trying to justify for you all, but its been a few times….) and its been at walgreens which i frequent as much as i can instead of walmart….and i outright asked the girl, this coupon says its for “little movers diapers” you dont carry that line, can I use it on snug and dry? and she said lets see if it scans–it did, she said–there ya go! same with dawn dishsoap and revlon eyeliner. i know the workers there and they said it was fine, so i dont feel as dishonest as maybe i should–i shouldnt have posted the comment in the state of mind ive been in (my husband lost his job earlier this month and it seems like the prices doubled the same time–of course!) so ive just been grouchy with walmart. i love collins site and she truly has helped my family save so much money (the right way) and i apologize if my “fraudlent” activity offended any of you.
Yeah, you know, I agree with you. You’re pretty much buying the same thing (different variety of diapers by same manufacturer). The company who provided the coupon is still getting money by selling their products, and the company who takes it will get reimbursed. I don’t do this all the time, but sometimes I do-on diapers like you-if I have to. Obviously I try not to, but I don’t feel bad using a “cruisers” Q on a “pull up” if necessary.
I woud love to see a video of the life of a coupon!! I would like to know if it’s ok to override the face value of a coupon! Several times things have been a few cents over & the cashier will either modify the coupon or will not accept it!! (which aren’t the prices & coupon values set by the same company!?!?) I don’t think that’s right if they modify a coupon when the company gets reimbursed the whole amount! I would love to know what the coupon sorter people or whomever say about that!!
I’ve often wondered this as well, especially when my coupons are adjusted down at Target! I read on another site about this as well, and if it is all done by computers and the codes are just scanned, then I have a problem with them adjusting the amount of the coupon down when they are receiving the full amount! I don’t ever expect to receive overage (and only ever get it at Publix!) and don’t feel that I need to “make” money, but I don’t think it is fair for Target to pocket the extra amount. I would love to know more about the write-in coupons or modified amount coupons!
Great info but don’t need a video. Spend your time on something else.
I agree. No need for a video.
Thanks for the info–very interesting!
the info you provided in this segment was good. don’t need the video you mentioned. thank you, though.
I would love to see how all this works, it really helps us to know that we are just doing our part of the coupon cycle by using them 🙂
Do it!
I would so like to see the “life of a coupon” I actually learned something today. thank you so much. Now I know the “5 & 9” and the ending on of the coupon bar code. Looking forward to the video.
I would love to understand this process better. It will make me more confident when I am using them.
I would LOVE to see that…please do it 🙂 pretty pretty pleaseeeeeee 🙂
I think it would be kinda cool….. Plus I just heard on the radio that “coupon ing” is IN… of course everyone on this site is already HIP… 🙂
I would love to see it. THe thought of it all amazes me!
I am a total nerd when it comes to this sort of thing so YES, I want to see! 🙂
I would love to see a video on the life of a coupon. I think it would be an awesome resource for teaching kids too!!!
So interesting!! Definitely interested in a video!
YES!
Do it!! Please, I can’t get enough of couponing, and it would be so helpful to have this background information. Thanks for everything you do. 🙂
1. When a coupon is adjusted down its marked on the coupon itself (or they should be!) and the store only gets reimbursed for that amount.
2. Generally cashiers/managers dont mind people using coupons (I am a supervisor at Rite Aid) BUT there ARE people we dread coming into the store with coupons. Not because they usually have a lot, but because they try to slide things past us… like ripping off the expiration date, using it on an item thats not listed… etc. Thats really what makes us warey of some people (and internet coupons)
3. No you can never use two manuf coupons on one item. Collin stated she wasnt posting the coupon info to encourage fraud, but I (sadly) see people leaning that way.
4. Coupons are NOT added to the cash total in a drawer as they are NOT actually cash (this is true for the two drug stores I have worked for) They are totaled up, but its added into a seperate coupon line.
I think everybody here understand that they cannot use two man q’s on an item.
But shopping at Rite Aid is both confusion and frustating because some of their in-ad coupons state that they are manufacture coupons even though their bar code starts with RC versus other in-ad coupons that effectively are manufacture coupons (the ones that have redemption instructions). I don’t know if the store has an agreament with the manufacturer, which gives the store permission to issue “manufacture coupons” or what’s the deal. Most cashiers at Rite Aid will not let me combine these RC coupons with the man q’s for a single item. Granted both say Man Q.
I’ve following this blog and have NEVER been encourage to fraudulently use coupons.
I think this is really interesting. I have always wondered how this whole coupon process works, and how to read a coupon. A video would be interesting too! Thanks for all the helpful info you give us everyday !! Cant wait to see whats next!
I would love to see a video of it!
So basically these companies actually make extra money when we use coupons.
Yes and no… You would think they do, but remember… theres people who are in the company who specfically deal with coupons. Without coupons, they wouldnt have to have the person on payroll. So I think it might come out to even in the end.
The money the manufacturer’s make isn’t from the coupons themselves, but the exposure the consumer has to new products, and the hope that you will be a life-time purchaser of their product. In certain product markets such as cereal, where there is lots of competition, it is another way to obtain market share.
I agree. I have never shopped at Walgreens because their prices are higher than Walmart’s, Target’s, and the two grocery stores in our town. But since I’ve started using coupons, Walgreens is getting a lot of my business because combining their sales prices with coupons is cheaper than the other stores a lot of times.
I would watch the video. It is helpful to know how things work! Thanks for the explanation of the codes.
You go girl!!
great, great post!! Thank you!!
Yes, this is something that I have always wondered. Please don’t take time away from posting us the latest deals, coupons or savings.
yes, please!
I would enjoy seeing a video…I’ve often wondered about where they really come from and where they go in the end.
I would LOVE to see the “Life of the Coupon” video after it is made. How fun! Thanks for sharing all of this info. It helps me to appreciate the couponing business EVEN MORE! Thanks for all of your insight in the coupoining world. I have saved so much money since I found your sight, Collin!!
I’m a Mr. Rogers “factory tour” FAN too, so this would be SO neat to see. Please do!! 🙂
It would be a very interesting video. We (“couponers”) would all love to see what actually happens after we hand over our coupons. It would help us to understand why some are for and some are against. And you would make it fun and educational!! I worked as a cashier and in the cash office and never had an issue with people using coupons (and that was BEFORE I found your AWESOME site and started clipping coupons myself!!).
Very interesting. Would love to see a video on this. I always wondered who actually sorted all of these out and how stores got reimbursed.
Sounds interesting!
It would be very interesting and HEY, you would even have the fun of traveling to see it. Maybe you could show how you would save on the trip too! (ie. food, lodging & travel) 😉
I appreciate the information and would love to see a video. Thanks for all you do!
That would be so cool!!
I have a question relating to the ‘life of a coupon.’ At Target I tried to do the herbal essence deal (buy a trial sized item get a styler free), and the manager told me that the manufacturer wouldn’t accept the coupon from Target, and wouldn’t reimburse them if they ‘allowed’ me to buy the items like that… Does the manufacturer refuse to reimburse stores if they don’t like the way the stores accept the coupons??? I’ve heard this argument once or twice before from the Target I shop at, so just was wondering if it is true…
My husband and I love watching how things are made/done, so I’d totally like watching a video of you following a coupon from the beginning to the end. Sounds like fun!!
Collin answered that in the teens. Looks like they (the coupon mfg’s) don’t even look at the items sold so this is a poor excuse. I just think the cashiers and managers get mad that they don’t score good deals! LOL
I meant teens in the comments – the first page 🙂
Oh thanks! I must have missed it!! Thought I read from the top!!
Yeah, do it. I would definitely watch. I am more of a “visual” person anyway… all those numbers got me dizzy! 🙂 LOL! I would love to see a video! Thanks Colin for all you do!!
Great read!
Cool. Thanks for the info.
Have always wondered how they stay so on top of products and beeping! Thanks for writing this and I would DEFINITELY watch the video.
i think the more we all understand coupons and the whole process ….we will be more confident when using them……especially toward those snippy cashiers…….I say …….bring on the video………it will be a big hit……
I too would LOVE LOVE LOVE to see the birth and death of a coupon LOL