Guess what back for the summer heat FREE NESTEA

Yes, but there's also the markup. You could be selling the cupcake for $1, but it actually costs you 10 cents to make, so the math will be different.

The company made lots of goodwill and happy customers on the promo too. Future customers are worth a lot to Nestea at a critical time right now:

Coke and Nestle have severed their relationship. http://www.ajc.com/news/business/cok...-on-its/nQP8Z/. Nestle owns the name to Nestea. Wonder if it was Nestle who came up with this whole promo last year and was reimbursing Coke for the coupons, so people would get hooked on Nestea and not switch to Fuze brand Iced tea that Coke plans to make.

If that's not the case, Coke reimburses the grocery store for the price paid. If the cases are on sale for $2.99 (which is sold as a loss leader, and the grocery store eats the loss), Coca Cola reimburses the store for $2.99. But let's say Coca Cola sold that case to the store for $4.99. Then Coke is making money.

And though it seems unfathomable to us in the coupon community, redemption rates on coupons aren't high. I saw some cases on store shelves unredeemed, even after the coupon expiry date last year. How sad...lol

I don't know the true markup and selling rates, so these were just examples. Even though we sometimes can't believe the deals they give us, they wouldn't be in business for 100+ years if they didn't know what they were doing.

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Originally Posted by JennyFromTheRock

of course they lost money. They may have made up for it with other products under the coca cola brand but the nestea lost money for sure.

If you had a bakery and sold cupcakes, and typically a cupcake sold for $1, if you sold 100 cupcakes you would make $100. If you had a "free cupcake" coupon on the wrapper and 2 customers each bought 1 and got the rest free using the "free cupcake" coupon, you would make $2 instead of $100. Just apply that to a much larger scale. If thousands of people bought one case of nestea for $4 and got 100 cases free, instead of making $400 off that product, they make $4. Obviously a huge cut in profit.

Again, like I said, I loved this promotion as much as the next person. It was awesome, but to think they didn't loose money would be denying simple math.

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Went to Walmart:
...Walking down the bread aisle, pop wall at the end of the bread aisle.
...Spotted Nestea.
...Spotted pink arrow on the box.
...Heart stopped beating for 5 seconds.
...Jumping for joy inside.
...Picked up the pace.
...Approaching Nestea boxes.
...Read the pink arrow.
...$2 off coupon only....
...Dreams crushed
...Left Walmart crying on the inside...

I don't think they lost money either.......out of how many cases of Nestea they sold were freebies?? ......I agree although on this website it seems like the world coupons....in fact, it is a very small percentage.
........and it costs very little to make Nestea (or Coke for that matter).

LOL! That was so funny and sad, all at the same time.

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Originally Posted by web3

Went to Walmart:
...Walking down the bread aisle, pop wall at the end of the bread aisle.
...Spotted Nestea.
...Spotted pink arrow on the box.
...Heart stopped beating for 5 seconds.
...Jumping for joy inside.
...Picked up the pace.
...Approaching Nestea boxes.
...Read the pink arrow.
...$2 off coupon only....
...Dreams crushed
...Left Walmart crying on the inside...

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Quote:

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Originally Posted by web3

Went to Walmart:
...Walking down the bread aisle, pop wall at the end of the bread aisle.
...Spotted Nestea.
...Spotted pink arrow on the box.
...Heart stopped beating for 5 seconds.
...Jumping for joy inside.
...Picked up the pace.
...Approaching Nestea boxes.
...Read the pink arrow.
...$2 off coupon only....
...Dreams crushed
...Left Walmart crying on the inside...

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Lol too funny! Same thing happened to me except it was N Frills! Thought I hot the jackpot... was knocked down a notch or two after seeing the $2 off coupon!

Oh man I still have 4 or 5 milk crates full in my basement!! I don't think I will get as much as I did last year! But it is such a great deal!

My point is though that even though the Mark up is high, money would still be lost. It doesn't matter that some coupons weren't redeemed, the point is that some people bought one case for $4 and ended up with 200+ cases, now I realize iced tea is inexpensive to make, but I'm sure they can't make, can, package and deliver 200 cases of iced tea for $4. Also in their operating expensives are employees and marketing. Myself for example, I bought one case and got about 50. There is no way they manufactured 51 cases of iced tea for $4. The cans alone would cost more than that.

Im not complaining about the promo, I loved it as much as the next person, who doesn't love free stuff? But they lost money. Any time something is given for free money is lost, perhaps they did it to build a fan base, perhaps it was a mistake, and then perhaps they don't care about loosing money, but my point is, a buy 1 get 100+ free promo would loose money in comparison to a year without this promo. They may not have ended with a net loss, other sales may have covered it, but they made far less money then they would have.There's no way around it.

I'm thinking this isn't happening..

Can I just say it's stupid to say Coca-Cola made money? Of course they did. But Coca-Cola owns coke, sprite, barqs, fanta, vitamin water, dasani etc. etc. etc. etc. etc. In other words, they can lose money on Nestea but make money on everything else. It's the benefit of being a huge company...you can sink a ton of money into brand marketing, and make up for it in other areas.

Doesn't a company lose money every time we use a coupon? Really, how does sweet baby rays make any money at all on BBQ sauce with the great coupon they put out every year?

... On sale currently at Rexall for $2.99. So that's .99 per box. You also get Airmiles if buying here, so I say go for it if you drink the stuff and collect Airmiles. Also watch for bonus Airmiles rewards on Nestea which, from what I've seen, happens fairly often in the summer. Though I wish it was free because you earn AM even on FPCs so Imagine what you could rack up!! (I wasn't into couponing last year. I missed out on a lot, apparently...)

I agree! and in the same boat as you last year..

Just to mention I went to Rexall on Saturday (a few different lcoations) and they had a movie promo on the boxes here in Ottawa West -I do not even know of this promo but we do not go to movies that often so I'm certain it is probably somewhere on SC or maybe over. 1 Sobeys too and no promo.

2.99 and a 2.00 coupon is still good for me. I'm happy.

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Originally Posted by CanadianCouponCollector

... On sale currently at Rexall for $2.99. So that's .99 per box. You also get Airmiles if buying here, so I say go for it if you drink the stuff and collect Airmiles. Also watch for bonus Airmiles rewards on Nestea which, from what I've seen, happens fairly often in the summer. Though I wish it was free because you earn AM even on FPCs so Imagine what you could rack up!! (I wasn't into couponing last year. I missed out on a lot, apparently...)

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rexall is aeroplan, not airmiles

or is that only mine...

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Originally Posted by mcon

rexall is aeroplan, not airmiles

or is that only mine...

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Believe Rexall does Aeroplan in the West, Airmiles in Central and Eastern Canada

Quote:

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Originally Posted by Frugal Lisa

Doesn't a company lose money every time we use a coupon? Really, how does sweet baby rays make any money at all on BBQ sauce with the great coupon they put out every year?

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They lose money initially but make it up on future sales that wouldn't have happened without the marketing(coupon).