When I first started couponing I wondered if I was costing a store money by using coupons. Or, maybe it wasn't ethical for me to get some of the products for free. However, I soon learned that the stores weren't the ones paying for the coupons, manufacturers are.
Why do manufacturers do this? It's just another form of advertising that they use to get the word out about their products. This is when it donned on me that they want me to use their coupon because they want me to use their product and tell others about it. Once you use it at the store the coupon's next step is at a coupon clearinghouse
What is a coupon clearinghouse? This is an independent third-party that determines how much the manufacturer owes each store. The store should then be reimbursed for the coupon's amount, plus 8 cents for handling fees, if all rules are followed. It will also determine whether or not a coupon was used fraudulently, which will cause the stores to lose money. This is also why some stores no longer accept Internet coupons.
The only exception to this is store coupons. These are released by stores to attract customers.
So, using coupons, even when getting freebies, is both legal and ethical as long as it's done correctly. This made me feel better and hopefully helps you if you "fear" using a coupon.
I didn't realize there was an additional fee for the manufacturer to process the coupons. I guess if they are chalking it all up to advertising expenses though, it doesn't make a big difference. Thanks for sharing your insights at the This Is How We Roll Thursday party.
ReplyDeleteI was just as confused when I started! I felt like I was robbing the store by grabbing all the free products and had no idea they were actually making money off me using manufacturer coupons. As a reformed extreme couponer, I can honestly say that coupons are a win/win for everyone involved :)
ReplyDeleteMost retailers welcome coupons since they make an added few cents over each dollar, but I have found it is the cashiers that are often nervous about accepting fraudulent coupons... or don't know how to enter basic manufacturers coupons. Thanks for the info.
ReplyDeleteWhen I worked cashier at a gas station we had people who would bring in fake photoshopped coupons to get cheaper or free cigs, which is sad in the long and and had to not allow coupons printed only ones from the companies themselves. But they have really beef up the printed coupons these days so it's harder to not copy. But people like to cheat, one day they will ruin it for the rest of us.
ReplyDeleteI'm glad you've found this post useful :) I agree with you Andrea that some of these cashiers are very uninformed. I spent 30 minutes with a cashier struggling through my order the other day. I swore I'd never get in her line again, even if I had to wait in a bit longer of a line LOL
ReplyDeleteNatalie, that's sad that someone always has to cheat the system. I'm glad the printed coupons are harder to copy today as I really do like using them :)
We spend a lot of money at the grocery store. I need to return to using coupons. I look forward to the rest of your series. Hopefully we can start saving money.
ReplyDeleteThis post was very useful to me! I have been wanting to start couponing for a long time, and this post has inspired me to look into it more! Thanks for sharing!
ReplyDeleteI'm glad you found this useful, Tami & Lauren. I hope you'll be just as inspired by the rest of the series.
ReplyDelete8 cents in handling fees charged to the manufacturer can be pretty hefty once you add up all the coupons being used! I believe 'couponing' is really a marketing ploy (that I often fall into I definitely admit!) that knows consumers love a great deal. That perhaps the real price may even be the discounted price, but there are coupons and sales that make it appear we are getting a hefty discount from the retail price.
ReplyDeleteYou know Cara, what you say does make a lot of sense. I don't know if it's true or not but I do know I'll keep using coupons where/when I can just so I can get the great deals on the products I need :)
ReplyDeleteI know what you mean about feeling guilty about using coupons but now that I am well informed I am good. I feel sorry for stores when people use coupons fraudulently because they lose out.
ReplyDeleteThis is interesting. While I do not coupon, I have a few friends who do and they have never expressed feeling like they are doing something unethical or illegal. They have mentioned feeling bad about cleaning selves or taking all of one product from a store. The amount of money it saves some families is incredible.
ReplyDeleteI love to use coupons they make my budget go so much further. I love when I can find coupons that are good on produce and meat now. I hate paying full price for anything and love when I can get things free with coupons
ReplyDeleteEveryone has different feelings but overall coupons are a positive thing. I just laugh it off anymore when I clean off a shelf. The store can always get more and usually have more in the back that just needs stocked. Overall I save at least $100 a month with couponing.
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