Coupons: GOOD for Consumers… but BAD for Manufacturers? I Think Not!
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! 🙂
I think sometimes coupons *DO* hurt manufacturers, especially smaller companies trying to get their name out there *BUT* like you said usually most people will keep buying products (even at full price) that tend to really like. When there is coupon abuse, manufacturers do drop the value of the coupons so they are still able to profit (ie, P & G coupons are usually quite low) – so as long as the coupons are bringing in new customers who are willing to pay money for their products down the road, it is beneficial to produce coupons.
If coupons are costing a manufacturer and they are still issuing them, then they need to a )close or b) get better accountants.
I am so sorry this happened to you but what an educated thing to say (I am trying to be polite here)!
Just google coupon research and you will come up with tons of scientific/marketing research about it. It is a lot more complicated than what most people think but bottom line is: coupons are released by manufacturers to encourage customers to buy their product. How could anyone possibly believe they hurt the manufacturer and what the heck is the connection with their employees?
On a different note I found this article: https://www.forbes.com/sites/rogerdooley/2012/12/21/coupons-kissing/
I knew couponing made me feel GOOD! 🙂 Be happy everyone; we are providing for our families. Nothing, nothing to be ashamed of! 🙂
Ups I meant un-educated!
Perhaps you should re-read my comment if you think I am un-educated – I said *SOMETIMES* they *DO* hurt companies – like Tia mentioned – sometimes companies don’t have the best people making decisions and it DOES hurt the company. “Sometimes” is not “always” or even “often”. Look at what happened to EcoMom earlier this year when their coupon voucher marketing failed to work for them. It *DOES* happen, especially with smaller companies.
I am fully aware the coupons are a form of marketing to attract customers to become loyal to their products or to try new products.
I think this response was meant to be addressed to the original poster, not to your comment specifically.
Most products have such a large mark-up built in that they’re still going above & beyond production costs & making some money. Plus when it’s on sale & there’s a coupon they might make less on each item but they’re selling huge quantities.
They are GREAT for consumers, but I’ve never viewed them as bad for manufacturers. I just came across a situation last week where I was purchasing eye drops that were on clearance at a bigger retail store. I gave the cashier a $2 coupon and he told me he couldn’t take it because the drops were already on clearance and I was already getting a good deal. I couldn’t believe it! He said, “Well, you’d basically be getting them for $1 with the coupon, so I can’t take this coupon.” There was a woman behind me, so I didn’t want to cause a scene and just told him I didn’t want them (especially because they weren’t ringing up w/the clearance price). So I did feel like, gee, am I not right because I want an even better deal? Was this cashier just uninformed?
Yes the cashier was uninformed. If I don’t successfully use the coupon and I’m in compliance w/ all the rules, I ask to speak to the manager. I don’t back down if I’m entitled to the deal.
The cashier was completely wrong. I know of no store coupon policy that excludes coupon usage on clearance merchandise.
This happened to me at rite aid also
The cashier was wrong. Think of manufacturer coupons as another form of payment. If you wanted to pay for those eye drops with $2 in cash and $1 on your credit card, they would not deny you. The merchant/store gets reimbursed for all of the manufacturer coupons, therefore, they are like a form of payment. It in no way affects the employee! Sometimes employees act like the coupons are coming directly out of their paycheck. I think they are simply misinformed.
I would ask him to point out where the coupon says not good on clearance. If you can’t reason with him, ask for the manager. You can always take it to the customer service desk.
I think they are great. When Plum kids gave out the free coupons for their mash-ups I got one box and my son LOVES them! Now I buy them all the time without coupons. If I hadn’t gotten that initial coupon I would never have thought to try the product at all.
they are many many things I would have never tried had it not been for a coupon, a freebie or a sample…things I thought I would not like I end up loving and now use them( and telling others about) so I believe it is in the best interest of the manufacturer
It brings the manufacturer’s new business and also creates brand loyalty. The manufacturer would not be doing it if they weren’t making money.
I agree with Lindsay. There are a lot of products that I buy now without a coupon because I like the product so much. However, if I was never provided a coupon to try the product in the first place, I may never have purchased it.
The way I see it too is these stores aren’t losing money because they get the money back once they turn in these coupons
Stores aren’t manufacturers, so that’s a whole other topic there.
I think they are a win-win for everyone. We get a good deal, the store sells something to us, and the manufacturers sell their products. In most cases I believe the coupon is a low enough value that the manufacturers still make money on it. The high dollar new coupons just get us hooked. I fell in love with Morningstar back when they offered $1.50 coupons. Now I pay full price sometimes!!
Pepsi Co. reportedly signed Beyoncé to a $50 mil deal. I hardly think they (and many other companies) are worried about a small fraction of the public that uses coupons. I’m an Account Manager…it’s all in the budget. They have a dollar amount in that budget for everything from employee’s insurance costs all the way down to the bathroom supplies. If they couldn’t afford it, they wouldn’t be issued.
GREAT POINT!
Great point! TONS of companies use celebrity spokespeople! All that come at a high price. Cover Girl ALWAYS has them & many others…
Your first point says it is – if they lost out so much that the coupons returned no measurable value, they would stop distributing them! The fact that they allow online coupons and post coupons to their websites just goes to show that manufacturers see value in them. Coupons encourage people to try products and help to create brand loyalty in a time of store knock-offs! If I can get Heinz Ketchup for the same price I can get Valu Time… I’m going with Heinz every single time. (I’m from Pittsburgh so I go with Heinz every time anyway – I think the grocery store clerks zap people in Pittsburgh if they don’t buy Heinz)
But the point is, consumers are only using what the manufacturers put out. They have a line in their marketing budget each year for coupons and only a small percentage of available coupons are redeemed – they’re not losing out, keep using your coupons and keep saving your money! I work in marketing and I know this for a fact – all the coupons they release, are budgeted for. You’re not swindling them. To them, it is the same as a TV commercial BUT unlike a TV commercial, they can add up the number of redeemed coupons and get better ROI (return on investment) numbers! I’d much rather people redeem a coupon than watch our commercials. Helps me prove that my marketing dollars are well spent!
By giving us a coupon, it makes us like that brand a little more than the brands that never offer coupons. We form an attachment with them and when faced with buying something we need at full-price and similar brands, we’re going to go with the brand that usually offers up a coupon to us b/c we like that brand a little more.
I agree with Emily. I have a Marketing degree and have been working in Marketing and Advertising for years. It is simply one of the ways you use to market a product. In my line of business, it’s not necessarily a product. But we recommend our franchisees to go out there and use services like Val-Pak or newspaper inserts with money saving coupons to promote their services to the consumers. It’s just an incentive for a consumer to try your company over other competitors out there. The money spent on coupons is such a small budget compared to other things such as TV advertising where it costs upwards to millions of dollars for 15 second slot.
We also track the amount of coupons that are redeemed based on the number we have distributed, this gives us an idea of how many people out there are trying our services. If redemption ratio dips below a certain percentage, we may decide to drop the coupon promo for now because it is not producing the rate of returns that we’d like. Companies are a lot more in tune with how they use the coupons than that Lucy’s friend thinks.
There are SO many products I would have never bought, but I had a coupon and now regularly buy (even without a coupon!). I don’t think they are bad for manufacturers at all.
Most big companies have a marketing budget that allows them to issue coupons or discounts in order to promote a product or service. I’ve worked in marketing myself and at the end of each quarter, if we have any budget left over, we’re always trying to figure out how to use that money, either to advertise or issue free samples, etc.
It’s a win-win in my mind. So many people are struggling to make ends meet. I am a very good coupon money saver and people look down at their noses at me also. Sorry, but this is my job for my family. I keep track of all my savings that I get throughout the year and I tell you what I have a very good salary. Manufacturers want you to use their coupons for their products so you can try them out if you have never tried them and also to the their loyal customers. These companies would not have coupons if they didn’t want you to use them. The manufactures are giving back to their communities with having coupons available. Lucy you go GIRL and keep on using your coupons and Hip2save you keep on giving us the best savings ideas.
I agree with both comments and wish to add that if I, as the consumer of the product I purchased with a coupon, truly love the product I am likely to tell 2-6 of my friends and associates about it which is a very inexpensive form of advertisement for the company.
I have to agree with you 100% Collin! If issuing coupons, freebies, sales, etc. did nothing but make the company lose money, they would stop doing it! After all, lets not forget, the company is out to make money, otherwise, what is the point of being in business?! I think people that think the way her friend did have no clue how marketing and business work. She should tell her friend that #1, it is the company’s decision to issue the coupons and deals they wish, and there are those of us that are smart and frugal enough to use them to their fullest. People aren’t losing their jobs, and businesses aren’t closing because of coupon usage…I mean, REALLY?!
My husband recently started working for a Mars company. He gets to buy Mars candy at cost. A Duo Snickers costs $0.25. At cost. They are what, $2 in stores? That’s $1.75 per bar that goes to the pockets of Mars and the retailer. So, if we as couponers get it for $1 or less, that’s no sweat off their back.
Also, manufacturers issue coupons to help boost their sales numbers. Because high sales = boost to market share = increased stock prices = more profit. So yeah, if a small percent of their sales is break even or even at a loss, they don’t care, because in the end, their stocks go up, and they make money that way.
So, keep on couponing with a good conscience!
Great point!
Candy bars are a $1 and under near me. $2 is crazy – I can’t imagine paying that much!
I’m talking about the king sized Snickers, not the regular sized ones.
Since I started couponing around 2 years ago, I can’t tell you how many wonderful products I’ve tried. I now use a lot more name brand products thanks to those coupons so I think the manufacturers are definitely benefiting from releasing coupons.
Me, too!
Companies put out coupons so people will buy their products. I use coupons almost every time I go to the store. Some cashiers are visibly irritated when you tell them you have coupons and the people in line behind you can be rude if they think they have to wait an extra minute for the coupons to be scanned. With the economy the way it is you have to save wherever you can.
How ridiculous & uninformed to say workers & manufacturers are losing money, when it is the manufacturer that puts out the coupons. Frankly, I feel many products are so overpriced that a coupon just levels the playing field & sometimes even with a coupon it’s just not worth it to me. Coupons help many stretch their dollars to buy products they would otherwise never even consider, myself included.
There are so many things I wouldn’t buy if it weren’t for manufacturer’s coupons. There have also been several items I’ve fallen in love with because of free samples and freebie coupons, and therefore bought them again. The fact of the matter is, if the coupons are so bad for manufacturers, then why do they put them out for customers to use in the first place? Answer: They aren’t bad for them. Duh.
Same here…I was talking to a co-worker last week about what great deals I got from couponing etc and proceeded to share some deals with her that she might have interest in as they came a long cause whe was saying she needed a little extra money each month since her rent went up. After about the 3rd deal I shared with her, her true thoughts spilled out and it surprised and sort of insulted me at the same time! She said it is because of couponers like myself that manufacturers keep raising the price on goods for regular (non-couponers) folk like herself because they are losing money. My response to her was that if they are losing money they would not put out coupons and if there’s a coupon for a product out that you are buying and not using then you are throwing away your own money. Don’t blame others who are willing to put out the extra time and effort to find the coupon and save the money, just because you are not willing to do the same.
Lol..That’s funny she thinks that is why prices are rising.
I think so too! Manufacturers are smart or putting the coupon out there and even smarter if they make another consumer pay for it. Other things I think happen as well. Examples are formula and gallons of milk, I think these are all going up because regular consumers are paying for the “free” ones that the poorer families get through agencies such as Wic. Another topic but makes sense to me.
The idiot that told that lady that in regards to companies being hurt from coupons needs to definitely get a clue. First of all, the coupons are issued by the manufacturer in the first place. So, I don’t quite understand how someone can come to that conclusion unless they are hopelessly clueless. People need to think before they open their mouths it seems. Are there people out there that really think Kraft for example pays for the coupons that come in that someone one else decides to make?!
A coupon is no different than any other promotion that a company may hold to get their product name out there. Whether it’s advertising on billboards, radios or coupons, it’s all the same. It’s something that the manufacturer initiates.
I swear, there are some idiots out there. I’m glad to be surrounded by smart people in these forums though!
I wouldn’t say someone is an idiot, because they don’t know a whole lot about couponing, none of us know everything about every single subject out there. Coupon abuse happens often and with shows like extreme couponing, coupons do get a bad wrap – those are the scenarios people hear about. People don’t hear about the average coupon user who is just saving a little money to stretch their dollars each month. I coupon, but I buy products our family uses, so my average savings is 50-60% on our grocery bill – not the 99% you see on the shows.
Not only do manufacturers offer the coupons, they provide a bonus to the store for accepting them. Most of them have fine print to specify that they will reimburse the store plus $0.08 per coupon. As previously mentioned, they wouldn’t provide the coupon if it wasn’t getting them money in the long run. Marketing is a crucial part of most business’ budgets.
Believe me if manufacturer’s were losing money, coupons would not have been around for as long as they have been! As someone who used to work in retail, (not groceries) I can tell you that coupons brought in so much business they more than made up for any loss. They are a great marketing tool and help products and manufacturers grow their business!
Yes, the function of coupons are to market/advertise manufacturers’ products and are determined by the manufacturers. Coupons don’t determined employee salaries. The “unfairness” of corporate profits vs. wages of the employees is a separate issue.
I took an macro economics class that covered this discussion, under consumerism, and the professor actually spoke to someone from P&G, and found that for example, it costs companies a mere 3-8 cents to produce a bottle of shampoo, nine cents for a roll of paper towels, etc; so with consumers paying a three to four hundred percent markup in price, and the manufacturer issues coupons, then the company still makes a 250 percent profit.
Beyond this, let’s look were coupons originated from. In 1887, Asa Chandler, an original partner and first PR manager of Coca-Cola, printed coupons for one free tonic drink to consumers in the Atlanta area; he supplied drug stores with enough syrup to cover cost. By 1895, the program expanded to 8.5 million coupons, and 2,300 stores nationally offering the promotion. In 1897, Chandler told Coca-Cola, at its annual shareholders meeting, that Coca-Cola was being served in every state in the union! Coca-Cola was able to hire over ten thousand additional workers, add new distributers, and in turn other businesses had to hire on keep up with demand. What kept this business churning? Coupons.
I’m slightly offended by this assumption. My great-grandfather came to this country as an Irish immigrant, and worked hard at a clothing mill his whole life, and was pro-worker, pro-union, and pro-American. He instilled in his son an idea of saving money and saving jobs; he even taught six son to stock pile food and use rations and coupons to help his family through the depression. This lesson continues in my family, and with myself; I myself contribute quite a bit of extras to charity because of couponing as well. What helps people lose jobs is government mismanagement, low minimum wages, false inflations in pricing, and outsourcing promoted by sharholders. Couponing promotes jobs, promotes business, and keeps families fed.
Actually, it’s second degree price discrimination. You can divide the people who will consume the good into different groups from the ones who really like the product and pay any price to the ones who only buy the good if it’s on sale. If the manufacture only provides the good to the ones who are willing to pay the full price; its production is smaller and the costs are higher. When the good it’s on sale or an individual uses coupons the marginal cost for producing the extra good is getting smaller as it approaches to the equilibrium price. Therefore, the use of coupons it’s good because more people can enjoy the product.
You hit the nail on the head Misty. Well said.
I’m so glad you posted about this! I recently sent off a letter to Walgreens because I was just so frustrated with being treated like couponing is equivalent to stealing. I tried to do the Almay deal a couple weeks back, which would land me some makeup removers for free…and the manager got very rude and said “I can’t let you do this, you’d be getting the product for free!” We then had some back and forth because he was trying to negotiate with me on only allowing me to use some coupons, because he couldn’t just let me walk out the door without paying anything. Ultimately, I left everything on the counter and told him to have a nice day, but that I wouldn’t be back.
Walgreens did respond, apologizing over and over again, but at that point it was too little too late. I already felt that CVS was more coupon-friendly, and now I’m convinced I will ALWAYS shop there instead.
Even my husband, who does none of our shopping, said “Doesn’t he realize that coupons are the same as $$? The store gets refunded when they turn in the coupons!” Now, if my husband knows that from just watching me, how can a manger who’s been employed for over 20 years not comprehend that?
I had this same problem with Walgreen’s. CVS now gets 100% of my drugstore business.
The idea that BIG CORPORATIONS suffer when consumers use coupons is not only ignorant, but it is ABSURD! Not sure what planet the person who said this has been living on, but not only are Collin’s points valid about the fact that these CORPORATIONS HAVE REASONS TO ISSUE THESE COUPONS, but in case anyone hasn’t noticed, there is still a recession on with millions unemployed or underemployed.
While average families still struggle to make ends meet (and using coupons certainly helps), corporate profits are at record highs in many cases. Why is this? Because, while we’ve had some economic recovery, big corporations are still NOT HIRING! They’re perfectly happy to continue to ourtsource jobs overseas OR to make their what’s left of their smaller U.S. workforce work 60 hours a week while barely being paid for 40!
They do this while their CEOs collect multi-million dollar paychecks. Their only concern is making more money for the have and have mores, while the number of have nots continue to climb as the middle class continues to erode into oblivion. AND NOW THESE PEOPLE ARE BEGRUDGING THE HAVE NOTS THEIR COUPONS – PLEASE!
Here is a thought on this I want to share: I love Groupon deals (Living Social, Deal Chicken, etc). I often use them to go out to eat. I recently looked into how those deals work – the restaurant does not pay anything for the advertisement on Groupon, they only pay when Groupons are redeemed. Yes, for a $20 deal you only pay $10, and then Groupon gets a percentage of that, and then the restaurant is left with a percentage (I am guessing $5-$7 dollars) and you spent $20 at their restaurant, but they are 100% sure they got you in the door. However, if they would have paid out of pocket for the original advertisement and not offered a coupon or anything, how would they know it even worked? Rather than spending $200 on an ad that may or may not work, it is like they are using the $200 to advertise to specific people. That was my take on it. I thought this was a positive thing.
Wow – what struck me was the accusation that ‘factory workers’ were hurt by coupon use. This is obviously someone consumed by the current regime’s political dogma, someone trying to find a ‘victim’ abused by couponers. This crazy thinking that somehow a victim is created by couponing use is obscene and speaks to the person’s inability to think for themselves, they might be too lazy too coupon themselves or just don’t know how to get started and just want to attack someone else’s success, again an integral part of the current political regime’s attack on pretty much everyone that is successful at anything.
Coupons are created by manufacturers as a part of their marketing budgets. This is factored into product launches and ongoing brand awareness.
Oh, and when did we stop being employees and find it acceptable to call someone a worker?
Good point! I agreet.
Talk radio junkie. Spelling not necessary to finger point.
I don’t think coupons hurt businesses or companies, but “Extreme couponing,” can. No company intends 10 coupons to be used at one time, by one person.
Who really gets hurt, though, are Store owners. Grocery stores have extremely slim profit margins, and if the only things going out the door are loss leaders bought with coupons, then they Are losing money. Several groceries around me have gone out of business, and I feel terrible for the employees.
Couponing has been a huge blessing to my life, and I think, in general, that it’s a win-win for everyone, but do I think some folks took it too far for the wrong reasons? Yes, I do, and there is no doubt it’s why so many coupons now are smaller in value and have restrictions on the number that can be used. It’s honestly nothing like it used to be. I’m not trying to be negative-I certainly don’t think anyone should be ashamed of using coupons, but I do think it’s important to use them in an ethical way, and to follow bloggers like Colin who encourage ethical coupon use and shopping.
Couldn’t agree with you more – well said!! I feel like the “extreme couponers” have really given honest couponers a bad name 🙁
I only buy one paper, it does have double inserts – so if I “stock up” at most i’m buying only 2 products… You can still build a stockpile slowly using this technique, and still leave plenty on the shelf for everyone else. Besides, that way even if the item is “free” to me, i still only took 2. I think that’s being a responsible member of society.
Well-stated! 🙂
It is absolute ignorance to believe that coupons are detrimental to manufacturers! It is the manufacturer who support the use of coupons. They do this to increase product use and knowledge, create loyal customers who are likely to purchase their product regularly and to bring consumers back to “name brand” products. In current economic times, consumers are turning to non-name brands to save much needed money. Believe it or not, coupons are an inexpensive way to advertise for manufactures! More money is saved in advertising with the distribution of coupons than most other advertising options. The consumers who benefit from the proper use of coupons make couponing a win-win situation for all included!
I agree that the manufactures benefit enough from the coupons to cover the loss. However, having worked in a small family owned chain of health food stores (5 locations), I happen to know a bit from the retailer’s side. Most retailers get about $.40 on the dollar returned to them from the coupon companies. If a retailer is really diligent, they can get up to $.60 on the dollar. The companies that the manufactures have handle the coupons are being paid to find loopholes to not accept the coupon. They may demand to see a proof of inventory of the product, ask for copies of the receipt to see proof of purchase, and several other very time consuming things. Someone has to be paid to do that. So for a smaller company that maybe gets $300-$500 in coupons per week, they will spend about $100 in labor, and may not even get reimbursed for it all.
That being said, they are still willing to take them. It does the same thing for the retailer, as it does for the manufacturer. They both hope it will encourage future sales.
To me, a coupon that is 50 or 75 cents ioff if you buy 2 products is no bargain to me, even if it is doubled. The cost of groceries has gone up so much in cost, that either manufacturers need to increase the value of coupons, or just do away with them. That is just my opinion, though.
i totally agree with u. plus im over coupons. im not trying to clip or print a friggn coupon to save 75 cents when u gotta buy 3! its has to b an amazing deal for me to use coupons(like free):) i do love those online deals though!
If I didn’t coupon, i would NEVER buy anything name brand – point blank. Store brands are almost always cheaper than name brand UNLESS you use a coupon, that’s just my take. It’s all about the money for me, I could care less which brand it is – I just want a good deal. So I guess if they want my business, they’ll keep issuing coupons, otherwise I’ll go back to store brands only which is what I was doing before… doesn’t bother me any.
This happened to us with Izze’s, they released the $5 off coupon, I saw it here on Hip, and my husband and I tried the product. We love their drink so much we now buy it full price when we want a fizzy drink! Definitely a win for the manufacturer.
Coupons are a win-win for so many reasons. I love that they enable me, a stay at home mom with a newborn living on one income, to be able to donate items to my local shelters (human and animal, lol). I love the good you can do for others via couponing, even if you don’t have much $$ yourself. And I particularly like how Colin promotes this positive, giving attitude via her website. That is why Hip is my main couponing website (and it just rocks for deals, lol).
Coupons are a win-win situation for all parties. Companies can deduct the redemption of coupons as a cost of doing business. Corporations use coupons as a marketing tool. The consumer can save money by using coupons. I wouldn’t hesitate using any coupon when it is to my advantage. Also, stores get reimbursed for the value of the coupon plus handling. In Pittsburgh, most supermarkets double the value of the coupon up to 99 cents. So it pays to do a little work and save yourself some money.
I don’t know about other states, but in ME we have several bloggers whom I know about, who post links for readers to buy coupons from “coupon clippers”. Of course, they get a commission on those. Whether or not I have a coupon, and especially if a product is on sale, by the time I get to the store, everything is sold out. Even getting a raincheck does not always help, because week after week, the product is still sold out and eventually most of my coupons expire. Then guess what? I find lot of product on the shelves. Does anyone else have this problem? I know I am sick of wasting ink and paper.
I have often had this problem at Target. I go the store with my coupons and find that the shelves have been cleared out. I spoke to a sales associate about the problem and she told me there are people lined up outside the store each morning, waiting to buy large quantities of the best deals.
The manufacturers put out coupons for customers to use them. It’s about market share. Each corporation has a line of products available for purchase usually across product categories. Larger businesses are looking at fractions of gross sales contributing to profit. The same thing is true for retailers. This is all carefully orchestrated marketing. Great sales are available for Unilever, as an example, usually right when they have a marketing push with new coupons available in the Red Plum across retailers. The retailers each have their own loss leaders every sale. If you show up to spend, everybody wins. You can’t live off loss leaders. I’m not gonna eat toothpaste and shaving cream, are you? No. While you are shopping, you will also pick up the best price available items in other non extra low price sale items too.
Also, couponers provide the clearest signal from market to both manufacturers and retailers. We are very well informed customers that are price sensitive, by lowering the value of coupons, or raising the price incrementally, we provide information about elasticity in the market. How much higher can a price be without dropping demand. What’s the correlation? We volunteer this information in a easily tracked way. How many coupon clearing houses are there? Only a few, why, so the information is centralized.
Most of price increases on the retail are directly related to increases in fuel and feed costs, and somewhat by labor. Not couponers.
I am getting so much information from these responses. Thank you everyone for sharing your knowledge.
I love your blog Collin. I find more appropriate and friendly responses on your blog.
There are more than a few cashiers that have looked down on me for using coupons. I don’t really care because I am saving money for my family.
I think that as long as the consumer are using legitimate coupons and are abiding by the store coupon policy than no one gets hurt. The store gets reimbursed by the manufacturer. Like it has been stated before, the manufacturer wouldn’t release coupons if they are losing money.
In my opinion, I don’t think manufacturers are losing money from the coupons themselves. They are “losing money” from the fact that people are able to get acquire large quantities and are able to stockpile. Now I don’t think there are enough people out there stockpiling to hurt these huge corporations, but that’s beside the point. This is why there are so many restrictions on coupons these days. They dont want us to stockpile and not have to buy their product for a year or however long. For example, toothbrushes or dish soap. These two items can be kept for a long time. Therefore, I’m not buying it on a monthly basis like the manufacturer wants you to.
The production and distribution of coupons also creates jobs (media design, marketing, etc..) as well as additional revenue to newspapers and magazines (both in ad fees from the company and additional sales to the consumer). Do you buy All You for the articles or for the coupons? It is all part of the cycle in the economy 🙂
Great point!
Newspapers would all be out of print by now if it wasnt for Sunday coupons and flyers.
First, I would explain that the manufacturer is the one that cost the family their job by outsourcing manufacturing to another country, not a $1.00 coupon. Secondly, most of the great deals are manufacturing coupons paired with store coupons so the manufacturer is not taking a loss.
Good point made by hipsters above: why manufacturers would print coupons if they are not good for them? There is so many things happening behind our eyes:
They have hugh stock of product that they have to sell otherwise may go out of exp date (they know the sale numbers)- easier to sell it for its coat than lose it
They have to but the numbers- go get contracts, loans for machines, supplies etc
Etc etc etc…..
I feel sometimes that if i say “it was free”/ “paid almost nothing” meaning i didnt pay anything for it- people think it has to be a horrible quality.
So learned my lesson and just say – just got it as i wanted to try new product.
And as some people need something to keep them out of medicine and therapists- i need couponing to keep my brain working well and feel good.
When i was a kid we badly had any money to afford anything. So i couldnt just feel good if i would be spending, i am happy – and i tell my husband that he should be even more happy that saving is my hobby.
I agree with you Collin. And just because you use coupons doesn’t mean you will get the same deal that every one else get. For instance there are no stores around me that doubles. There is no CVS, Krogers, or any other grocery store around me other than HEB which sucks because I read all the post and I feel like I am missing out but to each is on, I still clip coupons because something is better than nothing, And like Collin said if I have a coupon for that item more than likely I am going to buy that item,
Coupons exist because of manufacturers and when you check out with your coupons, you are using another form of payment which is exactly how they should always be treated. I do not use coupons quite like I used to but I still sign up for free samples because I am interested in the given product. If I like it, I will use the enclosed coupon to purchase the item and continue to use the product. A great example is when Purex Crystals gave away free products and coupons last year sometime. To this day, I am an avid Purex Crystals gal and pay full price for them even if I do not have a coupon.
It’s all part of a greater marketing scheme. Watch Supermarkets, Inc. they show you the extreme lengths that manufacturers go to in order to trick us into spending more and buying their products. Grocery stores themselves have a very specific map that they use to layout their products in the precise way to make your brain want to buy more. Do they sit around thinking “well, maybe we shouldn’t carry this particular item because even though its popular with our demographic, they really shouldn’t be spending their money on it? No. Because they don’t give a darn about us. What they care about is their bottom line. And if coupons weren’t contributing to that, they would have stopped printing them a long time ago.
Are you familiar with the “loss leader” marketing ploy? Luring you into a store with a couple below cost items because they know once you’re in the store, you’re likely to also buy items that they get a good mark up on? Manufacturers and retailers are constantly trying to dupe us. Being a savvy couponer and stockpiler is only preventing them from psychoanalyzing us to get our money.
There is an entire science to making us spend more at the store. For thousands of people across the country, it is their sole job to trick us. Have you seen the commercial for the laundry detergent that “removes stains you can’t see?” Really? Or certain products that have a different formula for night time, one for day time, one for Thursday afternoon and one for when you feel stressed, one for when you feel fat, one for when you’re tired, and one for when you’re in the mood for the color green? Often times all seventeen products are exactly the same. Maybe colored differently to make you think they’re different. It’s a huge farce that we as consumers are supposed to buy into. And we do because we’re told to. How many times have you bought a box of rice for 3.59 for 12 ounces of plain white rice? A 50 pound bag of white rice is $15 at Costco. But it doesn’t say uncle ben’s on it.
Study marketing for twenty minutes. You’ll never again wonder if using coupons is wrong. But other than that, for the most part I don’t think manufacturers actually intend for coupons to be used. I think they intend for you to clip it and carry it in your purse and think about their product every single time you get into your purse for the next three months, then either forget you have the coupon, or find out that it’s expired when you go to actually use it. I believe that’s the way it works for most people. And I think that’s more than enough people that are getting duped to make it worth the manufacturer’s effort to deal with us couponers.
Corporate America has seen record profits while individuals are still in recession. Their methods work for them. It’s our job to find methods that work for us.
Coupons are made as an incentive to buy their products. Unless consumers are abusing them through deceiving tactics (misusing them), fraud, etc. I don’t see how it hurts the company. I graduated with a marketing degree, and this is all a part of promotional marketing. They want to create brand awareness, brand loyalty and they use coupons to encourage people to buy their products instead of alternative products or their competitors’, whether it’s for people who probably wouldn’t have bought their products without it or those who are brand loyal, but use coupons to further entice them to buying. Not to mention, there’s plenty of people who don’t use coupons and gladly pay the MSRP up-front without batting an eye which may offset some potential losses through promotions for the company. All in all, companies would rather sell something at a discounted price (which may mean a smaller profit margin) than to have it sitting on shelves and have no one buy it. Of course, when it’s a much smaller company (like a privately owned company that produces products at a much smaller scale) it may hurt them if there’s coupon abuse (a whole other story), but both kinds of companies use coupons for the same reason regardless.