Asa Candler introduced the first coupons in 1894. Candler bought the formula for Coca-Cola (back when the concoction included a spike of cocaine). He was so certain that consumers would love his carbonated tonic that he handed out handwritten tickets for free samples.
Post (cereal company) saw the beauty of this marketing idea and offered a more traditional coupon for one cent off Grape Nuts Cereal. Company executives wanted buyers to try out the new health cereal. The idea of providing a ticket or coupon would boost sales and also allow tracking of purchases related to marketing.
Today, 86% of Americans use coupons as reported by the Promotion Marketing Association, Inc (PMA). Not surprisingly, the PMA (which bills itself as an educational public forum) says coupons are popular and beneficial to consumers.
Using Coupons Spells Savings
Certainly, coupons do help in cutting costs for those consumers who do use them. PMA suggests that couponing consumers save as much as 20% on purchases. This is akin to the store sales that indicate that buyers will save up to 70%. Some may. Most do not.
If you look at any given basket of goods purchased by a person armed with coupons, certainly there will be savings or perceived savings. A $1.00 off on a single $4.00 item in a grocery cart will make the total look attractive and will contribute to the idea that coupons mean big savings.
But, What Are You Buying With Coupons?
Coupons benefit companies, or companies would not offer coupons. Most coupons are designed to entice buyers to try new products or to buy luxury products. The companies know what they’re doing.
If you have a coupon for a product that is on your list, and the new item costs less than your usual brand, then a coupon may be a good deal. That’s assuming that you like and use the new item.
For luxury items, a coupon may look very attractive. You get a bag of potato chips (which are not nutritious) while the bag of fresh potatoes runs at a lower price per pound and/or serving and will offer a more balanced diet option. There’s a reason why it’s rare to see coupons for green peppers and squash. They are healthy, staple items that hopefully make it into your grocery cart. The junk food doesn’t sell itself in the same way. Coupons help make such choices more attractive.
Your Time is Valuable
Most people who do not use coupons note that the time involved to look for, clip, and organize coupons is not worth the savings. They do have a point. It does take time to be the coupon queen or king.
If you do have free time and do enjoy couponing, then that's great. Consider it a hobby. If it's not fun, then the time may be better spent earning money in other ways or written off as the cost of having fun with the kids or with friends.
Coupons Are Not Manna From Heaven
Although coupons may seem like free money, they are part of an industry and do come at a price. See How Stuff Works for an overview of the process of couponing. There’s no way to print, distribute, and divvy up on the proceeds on coupons without passing on the costs.
Should You Use Coupons?
As long as coupons are out there, it makes sense to use them. The non-vocal minority who refuse to do so pay more and help support the system.
It’s important, however, to weigh the costs. If you’re buying something you do not really need or want, then a coupon is not a deal – even if it sounds great.
Factor in the impact on your health. You may save a bit on processed foods (and most coupons fall in this category), but this may not be a savings in the long run when you factor in health issues. Those cookies with a coupon are not as good for you as the fruit without coupons.
Note to the Companies on Coupon Coercion
Coupons may help introduce buyers to new products on the market and may sell goods that consumers really do not need to chuck in the cart. Of course, it’s all about selling the stuff, but think about the consequences.
It really would be better to offer all customers fair prices on good food and save the marketing money spent to support the coupon industry. Companies pay to put coupons out there. Stores pay to process those coupons. Customers pay and usually a higher price than recognized. Look carefully at those coupons and see what you're really buying. Is it worth it?
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