What does a store make on a coupon? Its it worthwhile for them to accept?

[theguyz]

Just curious, as I have read some coupons and most say 'must provide proof of significant stock in past 90 days'

Does store get 100% coupon or more? This is just a estimated process could be longer or less

* Reality, coupon = 5 seconds extra as clerk verifies and inputs at cash
* Tills at closing must match up so including coupon counts etc = 5 seconds
* Management sorting coupons 3 seconds
* Reading 1 coupons details 1 minute
* Pulling up files of significant stock orders, printing or photocopying 5 minutes
* Mailing To company for reimbursement = Stamp ( $0.62+ ) + envelope

Seeing as there is time involved in store accepting coupons, do they get reimbursed...or just face value and if just face value, it is not in there best to accept coupons as = loss money.

Just curious if anyone knows this info...

[linnyeg]

They get reimbursed the full amount of the coupon plus a handling fee (which i think is something like 8 cents per coupon?) Keep in mind they would send all of the coupons at once to each company, so the cost of the stamp would be more than covered by the handling fees of all the coupons.

[theguyz]

So it would be fair to say they make 3-4 cents per coupon after labour/etc on each coupon used...

[Mrsb07]

I'm sure they make more then what they actually net on a coupon with increased sales of other products. Rarely do I ever just pick up what I went in to get with my coupons. I always find at least a couple other things. Accepting coupons brings them more business in my opinion. I went to the store today to use a couple FPC's but also picked up some pop and a roast that I would not have bought otherwise. And since I was going out in the first place to use my FPC's I would not have gone to a store that does not accept coupons.

[theguyz]

I've come across some coupons that state worth 1/16th value as well... which would work out to 6% approximatly.

[katie333]

Most coupons go to centralized redemption centres as well so the number of envelopes going out to these centres is quite minimal.

I've done some googling and handling fees are anywhere from 8c to 11.5c per coupon. The consensus seems to be that stores break even by the time they factor in the costs and efforts of getting reimbursed.

I think in the end it's about getting customers in the door and the other things they may buy. It's also goodwill and frankly, if certain stores decided not to accept coupons it could hurt that store's overall business and reputation.

[Chantel]

Regardless of the nitty-gritty cents amount, one must think of the sales.

Look at how many stores offer you products at the till. Superstore always asks, would you like the deal of the week. It's to push sales. Think of it like a race, where you get to move up a step for every thousand dollars of product sold, or certain number of products sold. The store wants to go up up up, they don't care how they get there.

So, for example, if I was going to buy one loaf of bread, but I have coupons that enable me to buy five loaves for the same price as I would pay for one, they should WANT me to buy all five. The minute it takes the cashier to scan over my coupons is getting them an extra $5+ in sales and four more loaves than I would have bought, and that is GOOD for them. It shows they're moving product and that the store has a good turnover, I think is what they call it. The faster products leave the store, the better.

So whether or not they do break even and don't actually gain any MONEY on top of the dollar value of the coupon is kinda irrelevant here, the sales boost it can give if they allow people like 'us' to use our coupons in large quantities is immense.

[Darth Penguin]

Regardless of the nitty-gritty cents amount, one must think of the sales.

Look at how many stores offer you products at the till. Superstore always asks, would you like the deal of the week. It's to push sales. Think of it like a race, where you get to move up a step for every thousand dollars of product sold, or certain number of products sold. The store wants to go up up up, they don't care how they get there.

So, for example, if I was going to buy one loaf of bread, but I have coupons that enable me to buy five loaves for the same price as I would pay for one, they should WANT me to buy all five. The minute it takes the cashier to scan over my coupons is getting them an extra $5+ in sales and four more loaves than I would have bought, and that is GOOD for them. It shows they're moving product and that the store has a good turnover, I think is what they call it. The faster products leave the store, the better.

So whether or not they do break even and don't actually gain any MONEY on top of the dollar value of the coupon is kinda irrelevant here, the sales boost it can give if they allow people like 'us' to use our coupons in large quantities is immense.

Yup. It's basically a "loss leader". Large chains can afford to offer item at 10,20,30% of thier recommended retail price(RRP) for a week or 2 because of the volume they buy and sell.

Encouraging shoppers to buy , say, tuna at 49 cents a can as opposed to $1.49 means there are more bodies in the store buying and those people may make impulse purchases, they hope, which will help beak even for the stores.

Coupons are how a manufactuer builds brand loyality, or so they hope.The cost of the coupons redeemed is much less than the value of sales made.

[Slaney]

'must provide proof of significant stock in past 90 days' is so stores can't just gather a bunch of coupons & mail them in pretending people redeemed them on products. This is one of the reasons stacking is an issue at London Drugs, they're sending in twice the number of coupons for products they have bought & sold.
And the stores get 100% of the coupon price back. That's why I don't like stores that don't allow overages. If you have a $2 coupon on a $1 item they just made $1 from that

[Insane]

* Pulling up files of significant stock orders, printing or photocopying 5 minutes

I don't think they have to do this unless asked. The coupons usually say "upon demand".