Coupons: GOOD for Consumers… but BAD for Manufacturers? I Think Not!
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I recently received this email from Hip2Save reader, Lucy…
[h2s_box]First of all, thanks for all your hard work into letting us know about all the great deals out there! 🙂 I felt the need to contact you because as I was talking to someone about my couponing and all the great deals and I was shocked by the response I got. They told me I should be ashamed of myself because I should think about the manufacturers and the people who work for the manufacturers (factory workers) and their families and how they lose money because of people like us who don’t pay what it should be (normal price). Since you know a lot of things about couponing, I want a response into how this isn’t true or how I can tell this person they are wrong. I would greatly appreciate your help. [/h2s_box]
This such a great topic for discussion! First, I would like to point out that manufacturers are responsible for creating and releasing coupons to be used by consumers. If manufacturer’s were truly losing money as a result of coupons, then they would stop releasing coupons. So the question is why do manufacturers issue coupons (i.e. what’s in it for them?!). I personally believe that the 2 main reasons are listed below…
Increase Brand Recognition/Attract New Customers
If I have a coupon for Scott Toilet paper, that is the first brand that I am going to check out when I get to the toilet paper aisle at the store. I will look past the 10-20 other brands to zoom in on the Scott brand. Even if I decide not to purchase Scott Toilet paper at that time, I have still made a connection with the brand and will likely recognize it on future shopping trips.
Promote New Products
When a manufacturer releases a new product, they often release coupons as well. These money-saving coupons encourage consumers to try out the product for little out-of-pocket expense. Obviously, the manufacturers hope that you will fall in love with the new product and then continue to purchase it with or without coupons.
And the truth is that as hard as it is to admit, I have in fact purchased items at full-price with no coupons because I love the products that much!
So what are your thoughts?! Are coupons good for consumers and bad for manufacturers or are they a win-win for everyone? Please share in the comments! 🙂