As the cashier was ringing up all my coupons, he said "great, looks like Stop and Shop just lost a ton of money". WOW--that could not be farther from the truth! I explained the abbreviated version of how the coupon process works to him, and that got me thinking...maybe more people need to know how it works.

Let me answer that question for you:
NO Stores DO NOT lose money when you shop with coupons!
In fact quite the opposite. You'll be happy to know that the store doesn't lose a dime when you use coupons. In fact, the store makes more money when you use coupons to save.

If you read the fine print on a coupon it says "Manufacturer will reimburse retailer the face value of this coupon plus $0.08 cents handling fee".

So not only are they getting the full face value of the coupon, they are getting there 8 cents worth too!

Eight Cents might not seem like a lot, but when you consider that a store will handle thousands of coupons, it can certainly ad up in the stores favor. So you save buy using the coupon, and the store actually makes money too!

Manufacturers want you to try their product.

They work hard marketing a brand. They are trying to build product awareness and brand loyalty. Manufacturers spend millions of dollars annually trying to get consumers to buy, and continue buying their products. They introduce new products with a coupon to get you hooked. In addition, coupons in newspapers and magazines double as print advertisements. Even if you do not actually clip and use the coupon, you see the advertisement that contains the coupon, which helps build brand and product awareness.It is all part of a larger business plan.

About 6% of the population uses coupons..really...that's it! So that means that of the hundreds of thousands of inserts printed and distributed each week, about 94% of them get thrown in the trash! Imagine that, throwing money away!

When you compare the amount of money manufacturers spend on marketing their new brand and the amount of consumers that actually use coupons, you will see that they are not losing money.
Manufacturers will not stop issuing coupons just because we get products for free by using the coupons.
Knowing why a manufacturer issues a coupon will make it easier to agree with that statement. If you used their coupon, it means you bought their product. If you bought it, you might like it and tell your friends, and continue buying it yourself.



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