Well, almost free. What if you could do a little reading and web surfing and turn a $40 investment into $1050? Sounds crazy right? Everyone would do it. So why aren't you?
Probably because like most people you think grocery coupons are a hassle and a waste of time. Yep, grocery coupons. I didn't believe it either. I've only been doing coupons for about a year and I have saved a few thousand dollars.
That $40 into $1050? Well, on a regular basis it is more like turning .40 into $10.50, but the metrics are the same. For about .40 I can order 10 coupons with a face value of .35 each. When I use them at my local stores I get triple that value, so $1.05 X 10, or $10.50.
I debated doing a series on my addictionhobby. I know DKos is about getting Democrats elected and that there is also a bit of community building. I have no ambition to turn DKos into a deal site, just thought many could use some extra dough.
You could use it to cope with your medical bills while we all wait for universal healthcare. You could use it to support your favorite candidate. Or maybe you could just use it to get by.
And, as a bonus, if you really don't need or want some of the products there are many worthy charities that would LOVE to have them. Free tampons? Cosmetics? Shampoo? The local women's shelter would love to get them. Free toothpaste? Charity dental clinic. Pet products? Hello, ASPCA? Food? Everybody.
Bear with me as I try to cram information gleaned over 11 months into 3 diaries. I plan to share all that I know and answer as many questions as possible.
Common Misconceptions
To begin I will address some misconceptions about coupons and their use starting with the idea that when you use a coupon it costs the store money. Used properly coupons don't cost the retailer a thing. The retailer is reimbursed the face value of the coupon + an 8 cent handling fee. Large chains use coupon clearinghouses which sort and count the coupons and then reimburse the retailer. Many clearinghouses are now electronic and the physical coupon may not even leave the store. If a store "doubles" or "triples" the coupon value then the store is out the extra amount, but most likely they share the pain with the manufacturer as part of a planned promotion.
For manufacturers coupons and store promotions are marketing expenses incurred to increase sales. Profits may not always be the goal, which is why we sometimes find incredible deals. Best selling pasta sauce? Maybe because it is often the cheapest. Also manufacturers know that very few coupons are ever redeemed - the figure most often quoted is less than 1%.
Most people at most flip through their newspaper inserts and clip the few things that they might buy. Then they either forget to take them to the store, use them when the items aren't at a deep discount, or let them expire. And, even if you do clip your coupons and use them faithfully, manufacturer's look out for their retail partners by issuing coupons that are friendly to that area's retailers. This is why an area with no "double" coupon stores may get a coupon for .35, while an area where stores "double" up to .50 will get a coupon for the same item for .55.
Here are a few more misconceptions:
Everybody Gets The Same Coupons
No, absolutely not. As stated above different regions get different coupons, and even different papers in the same region get different coupons. Many times there will be a coupon which is more valuable in your region that you will not get. You have to know it is out there and how to find it.
Coupons Are Too Much Hassle
It takes work to maximize your savings. Checking ads, buying papers, ordering coupons, all add up timewise. You can be much more efficient thanks to the internet, and, if you are really time pressed, or need more hand holding, there are paid services that can do the legwork for you (more on that later). It's an individual decision. I'm just trying to open your eyes to the possibilities.
Coupons Are For Old People
Not sure where this started, but it probably has to do with the generation that survived the Great Depression. Thrift is a good thing. Most of the couponers I meet online are 25 - 45 which may have more to do with the venue than the practice.
Coupons Are Only For Processed Junky Food
Also wrong. There are coupons for natural and organic products, dairy products, meat, and sometimes produce. Even a strict vegan may benefit by saving on purchases of non-food household items like soap and toilet paper.
You Can Only Use 1 Coupon At A Time
This is a very common misconception. Individual retailers may enforce whatever coupon policy they like, but one coupon per purchase means one coupon for X for one unit of X (i.e. if you use 2 soup coupons you must buy 2 cans of soup). The wording is meant to prevent the use of 2 coupons on one product. Rarely you will see a coupon that is worded 1 coupon per transaction, in which case you should only use 1 at a time. Be prepared to "train" a few cashiers on this concept and to lose this battle a time or two. Which lead us neatly to...
Coupon Fraud
Most people, even people working at the stores, do not know what coupon fraud really is. Getting an item for free is not coupon fraud. Even if you use a $1 coupon for an item that the store is selling for .95 the store will be reimbursed $1. Despite this fact most stores now will "adjust" the value of your coupon so that you will only receive .95 cents value for your coupon. You still get the item for free, but the store makes an extra nickle. Sometimes I wonder about the legality of this, but c'est la vive.
Consumer coupon fraud is using a coupon in any way that is prohibited in the coupon fine print. Most likely examples being:
Using more coupons than items purchased (6 soup coupons for 1 can of soup)
Using a coupon for the wrong item (coupon for brand X soup, but buying brand Y soup)
Using a coupon for an item not purchased (using a soup coupon, but bought no soup)
Modern coupons all have bar codes which are scanned by the cashier and the only way a consumer is likely to be able to do any of the above is if there was a mistake made by the manufacturer, printer, or cash register programmer. Using expired coupons is not always fraudulent. Some stores and most military commissaries accept coupons for up to a month past the printed expiration date, which is why some people donate their expired coupons to military families.
More rare is the fake or phony coupon, which I have read of a few times. Fake coupons are, in my experience, usually printable internet coupons for a high value. Because of these phony coupons many retailers will not accept high value internet coupons, or, in my area, any manufacturers' internet coupons at all.
The more significant coupon fraud is fraud committed by a retailer. Retailer coupon fraud consists of a retailer submitting more coupons for redemption than items sold. In some cases manufacturers may even require a recount of coupons accepted. I have read message board postings indicating that CVS and Target were having manufacturer push back about the number of coupons they have been redeeming. This is strictly rumor, but my take on it isn't that there was actual fraud on the part of these companies. I think their percentage of redemptions to units sold is high because of the rocking hot deals they have had.
Next week:
Part II: How To Get Started