Clarification of Reimbursement of Coupons at Store Level

[The__Rock]

Hi everybody,

I have a question for all the "coupon experts" out there as I am having an argument with somebody.

I few people were showing off their recent hauls where they snagged a bunch of the Cascades paper towel and toilet paper at Walmart for $1 using the $2 off coupon. The coupon clearly states "one per customer". However, people were saying "depends on the cashier". I am of the believe that if a front-line cashier can't read properly and accepts coupons incorrectly (i.e. accepts multiple coupons when only supposed to accept one, or accepts an expired coupon or a coupon for a wrong product), the store ultimately loses out because they wont get refunded.

The person I am arguing with says that stores get reimbursed regardless as long as they carry the product and they simply just send in a receipt, and that the fine print on the coupon basically means nothing.

His point of view doesn't make sense to me. If manufacturers were that laid back about reimbursing a store for a coupon, then why wouldn't stores be more accepting of coupons that may not match the product exactly. Also, why wouldn't a Shoppers Drug Mart or Walmart store simply take a few P&G Brandsaver booklets (which usually have about $150 in savings per book), snip out the coupons and mail them in order to basically get a whack of cash (other than the moral aspect of doing this).

I basically told this guy that knowingly giving a cashier a bad coupon (either its expired, or for a different product, or giving multiple coupons knowing its supposed to be one per person) is no different than sticking the product under your coat and walking out with it, and the guy got all upset with me.

Curious to see what the masses think!

[dariusz8]

I was told through giant tiger a couple years back that they can offer overage as their systems are not linked to coupons.... Its difficult for a manufacturer to know how many customers there were going through a single transaction.... if the coupon says 1 coupon per transaction and your using more then the manufacturer could possibly frown on it I guess? but when I happen to shop with my family of 6 we all are customers.... so they have no trouble doing 6 coupons in one transaction as long as the coupon doesn't state per transaction. If they chose they can do separate transactions but hardly ever do knowing its one per customer. So I don't think that they don't get reimbursed if that's what your asking.

[bdkmosher]

In this case, the coupons are being used on products someone is actually purchasing - whether it is one person using 5 coupons or five people using one coupon each. The cashier could let them ring them in all at once, or the customer could come back multiple times I guess, with one coupon at a time. Maybe it is just easier to let a customer ring them in at once, as they will still be reimbursed.

His point of view doesn't make sense to me. If manufacturers were that laid back about reimbursing a store for a coupon, then why wouldn't stores be more accepting of coupons that may not match the product exactly. Also, why wouldn't a Shoppers Drug Mart or Walmart store simply take a few P&G Brandsaver booklets (which usually have about $150 in savings per book), snip out the coupons and mail them in order to basically get a whack of cash (other than the moral aspect of doing this).

I assume the manufacturers look at the inventory sold versus coupons redeemed by a store. If the store submits 100 coupons, and has only sold 50 units of the item from their inventory, obviously the coupon submission by the store would be rejected, however, if the store has sold 100 units, and is redeeming 100 coupons to the manufacturer, things match up in the end whether it is 100 customers with one coupon each, or 20 customers with 5 coupons each. The inventory sold vs coupon quantities is what prevents any store (aside from the moral aspect) of doing what you suggest in this scenario. I believe there are checks and balances in place, whether it appears so or not.

[The__Rock]

But I wouldn't think that a store such as a Shoppers Drug mart or Walmart each individually deals with a manufacturer. The manufacturer must ship and sell to a distribution centre or wholesaler which in turn distributes or sells to individual stores. So i'd assume that a Proctor and Gamble would sell 10,000 units of product to Walmart distribution centre, and Walmart distribution centre sends them out as needed to various stores. So the Manufacturer wouldn't know how much an individual store has from inventory to check the coupons redeemed.

I interpret it that when it says "Limit one per customer" the manufacturer is basically relying on the end customer to be honest and only use it once, but may be tough for them to enforce which is why I think at the end of the day, technology like Checkout51 will become the standard versus tearpads or paper coupons because Checkout51 can control 1 per person.

[acosta]

I interpret it that when it says "Limit one per customer" the manufacturer is basically relying on the end customer to be honest and only use it once, but may be tough for them to enforce which is why I think at the end of the day, technology like Checkout51 will become the standard versus tearpads or paper coupons because Checkout51 can control 1 per person.

That's an interesting thought .... hummmmm

[super807]

Unfortunately, I think this one because a question of values. If the coupon states "one per person" or "one per customer", personally, I take that to mean one per person, period. Not one per transaction, and go back and do 12 transactions. To me, the intent of that phrase is what I go by. Whether the store gets reimbursed or not, I am observing the intent. Some people don't share the same point of view.

Manuafacturers put out coupons to try to attract new customers. They don't do it to give us never-ending discounts on their products. That is why there is restrictive wording on so many coupons.

As for expired coupons, no the stores won't get reimbursed for accepting expired coupons.

Coupons go through clearing houses, and clearly, there are some checks and balances, otherwise stores would not be imposing limits, would not ask their cashiers to read them to make sure they are acceptiing valid coupons, etc.

And if a store is trying to get reimbursed for 100 coupons, and can only show they sold 100 items, they likely won't be reimbursed. Coupon redemption rates are aroudn 2 to 3% in Canada. That means that 2 to 3% of the coupons that are created get used. Although we here use coupons, most Canadians do not. The significant majority of items being sold in stores are sold without the use of coupons.

[dariusz8]

Even with checkout 51 theres tricks around it unfortunately if you have the time... I don't think coupons personally will disappear any time soon.

But I wouldn't think that a store such as a Shoppers Drug mart or Walmart each individually deals with a manufacturer. The manufacturer must ship and sell to a distribution centre or wholesaler which in turn distributes or sells to individual stores. So i'd assume that a Proctor and Gamble would sell 10,000 units of product to Walmart distribution centre, and Walmart distribution centre sends them out as needed to various stores. So the Manufacturer wouldn't know how much an individual store has from inventory to check the coupons redeemed.

I interpret it that when it says "Limit one per customer" the manufacturer is basically relying on the end customer to be honest and only use it once, but may be tough for them to enforce which is why I think at the end of the day, technology like Checkout51 will become the standard versus tearpads or paper coupons because Checkout51 can control 1 per person.

[The__Rock]

Even with the Smartsource.ca printouts. I wonder how many people just print numerous and go to different stores. Its obvious if you hand a cashier 10 coupons with the same PIN and Order ID that its a reproduction. But if you go to 10 different stores, a cashier doesn't know what another store received. I've seen a Smartsource.ca printout say that "reproduction or copying is fraud and you can get hit with a $5,000 fine". I would be curious to see if this will ever be enforced. Its would be easy enough for manufacturer to request that the store provide them with sales receipt, and from there if paid with credit or debit card, or if a loyalty card was used, to see who the person is that is misusing or abusing the coupon.

[SnowFlakey]

If coupons say 1 per Customer, you can be a Customer 10 times. You are still a Customer, no matter what. You can stand at the cash and ask the cashier to ring up the transaction 10 times. If it says 1 per purchase, you can purchase 20 and use 20 coupons.

[The__Rock]

SnowFlakey - Yes if you want to get technical, but obviously the manufacturer intends the coupon to be for a person to TRY one product by giving them a deal, not having a regular customer take advantage.

[lshortt]

Even with the Smartsource.ca printouts. I wonder how many people just print numerous and go to different stores. Its obvious if you hand a cashier 10 coupons with the same PIN and Order ID that its a reproduction. But if you go to 10 different stores, a cashier doesn't know what another store received. I've seen a Smartsource.ca printout say that "reproduction or copying is fraud and you can get hit with a $5,000 fine". I would be curious to see if this will ever be enforced. Its would be easy enough for manufacturer to request that the store provide them with sales receipt, and from there if paid with credit or debit card, or if a loyalty card was used, to see who the person is that is misusing or abusing the coupon.

I wonder if the smartsource.ca issuing a pin number for each print will eventually link back to a particular email address and accounts being cancelled. just a thought

[dariusz8]

I wonder if the smartsource.ca issuing a pin number for each print will eventually link back to a particular email address and accounts being cancelled. just a thought

You are very correct if someone prints just a couple and makes reproductions smartsource can easily put a block on the persons computer from all future prints. They collect data of your computer as does coupon printer that links each coupon printed to your computer...

[dariusz8]

Unless it was a massive scale use of fraudulents... its much easier and cheaper for them to block you computer...

Even with the Smartsource.ca printouts. I wonder how many people just print numerous and go to different stores. Its obvious if you hand a cashier 10 coupons with the same PIN and Order ID that its a reproduction. But if you go to 10 different stores, a cashier doesn't know what another store received. I've seen a Smartsource.ca printout say that "reproduction or copying is fraud and you can get hit with a $5,000 fine". I would be curious to see if this will ever be enforced. Its would be easy enough for manufacturer to request that the store provide them with sales receipt, and from there if paid with credit or debit card, or if a loyalty card was used, to see who the person is that is misusing or abusing the coupon.

[anastasia1009]

Last year and part of this year I use to work for Sobey's HQ - I worked at 4 stores here. I would go through each stores coupons - put similar ones together, looks at expire dates and if we took in 100 coupons for a two week period and we only ordered 60 products in the same two week period(same upc etc). I would have to put the 40 coupons in a envelope and at the end of my shift destroy them and I would destroy over 150+ coupons or more. I would have to compare coupons, sometimes we got letters from manufactures etc and then I would mail them to the address and send then Puralator. I would say over 15% of printables were fraud and about 18% we used wrong (i worked it out in excel to show them). I am doing a few shifts in Dec training someone as I got a full time job in a dental office

[super807]

Last year and part of this year I use to work for Sobey's HQ - I worked at 4 stores here. I would go through each stores coupons - put similar ones together, looks at expire dates and if we took in 100 coupons for a two week period and we only ordered 60 products in the same two week period(same upc etc). I would have to put the 40 coupons in a envelope and at the end of my shift destroy them and I would destroy over 150+ coupons or more. I would have to compare coupons, sometimes we got letters from manufactures etc and then I would mail them to the address and send then Puralator. I would say over 15% of printables were fraud and about 18% we used wrong (i worked it out in excel to show them). I am doing a few shifts in Dec training someone as I got a full time job in a dental office

Wow, thanks for the insight anastasia on how things work. That's very interesting. I wonder if different store chains would have about the same % of problems, or if some chains have more.