How Do Stores Get Reimbursed For Coupons?

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You looked at the store match ups,  made your list, clipped your coupons and head to the store. When you redeem your coupon and get your savings, the store now has a small scrap of paper that’s worth money.  In order to get the money back, the store has to mail the coupon to the manufacturer.  On the bottom of most coupons in fine print, the manufacturer lists the mailing address for the store to send the coupons to in order to get their money back.  The stores not only get redeemed for the face value of the coupon, they also get on average $0.08 cents extra per coupon. Redeeming a coupon would not be that bad if there were only a few of them, but some major grocery chains collect millions of coupons.  While redeeming coupons for money may be a major headache for the stores, $0.08 profit per coupon adds up!

Have you ever wondered how a doubled coupon works and why some stores do and do not accept doubled coupons?

We are very lucky to live in a county that has tons of pharmacies, grocery stores and as crazy as it sounds, two Targets within 3 miles of one another.  Some stores fully double to $1.50.  Other stores double to $1.00.  If the store doubles coupons, the manufacturer is not responsible for reimbursing these doubled amounts to the store.  The store absorbs the loss.  Well, sort of.

So why would a store want to take a loss on a doubled coupon?  They really aren’t taking a loss as far as their cash flow goes.  The stores are making it up on the other side of the balance sheet by increasing the amount you pay for other groceries.  In other words, the store is planning on you buying more than just the items you have coupons for!  This also increases their sales, employs their employees and brings customers into their store.  Find out which stores in Chester County double coupons and what they double to.

Do Manufacturers lose money when consumers use coupons?

Manufacturers release coupons hoping that you will purchase the product, try it, like it and purchase it again at full price.  They also know that people talk and recommend products to one another.

Fraudulent Coupons – What you need to know…

Fraudulent coupons will not be paid by the manufacturer.  After a store submits the coupons to be reimbursed, the manufacturers check over the coupons and make sure the correct products were purchased within the promotional period.  Any coupons that are copied, fake, expired or used on the wrong products are declined and in return the store will not get paid.  Sometimes coupons will not scan even though the coupon matches the product bought.  It happens quite often.  Nicely explain to the cashier and/or CSM the coupon and show them the product that was bought.  If we use good coupon ethics, coupons will be around for a long time.

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