Are you a coupon clipper? Two thumbs way, way up. There are some great savings to be found out there hiding in those little pieces of paper. But are you really saving as much as you think you are?

You might be surprised.

Coupons Make Good Business Sense

You have probably wondered why stores so cavalierly hand out numerous coupons every week from various manufacturers. What rewards can the store possibly reap by this practice? Why do they waste all that time and money printing and distributing those small slips of paper?

Think about it though. The stores aren\’t printing those coupons to save you money at their expense. They do that to save you money once and then keep you coming back to spend more each time you return to the store. And return you will to take advantage of all the savings you found there the first time.

Here\’s how it works. Everyone\’s feeling the pinch of today\’s economy. Cutting back. Looking for ways to save money on the things they have to buy and functional alternatives to the things they don\’t, but want anyway. So where do you think they\’re going to shop? The place that\’s going to save them the most money, right?

If you were a store owner, wouldn\’t you want to be that store that distributes a ton of coupons and runs specials galore every week and watch the customers pour in? If you are a grocery store owner, you are a coupon clippers best buddy. People come to your store because you have a terrific sale on turkeys a week before Thanksgiving. And…your customers have been given a coupon for a turkey! That huge turkey that will feed 15 people is almost a freebie. Since your customers are already in the store they will also buy their pies there, some extra paper napkins, wine, soft drinks, yams and a ham for those turkey snubbers. The customer also needs some gravy, eggs, bread and so on. You get the picture.

But who wants to go to a hundred stores trying to find everything they need for Thanksgiving dinner? That\’s too much hassle in the middle of the holiday hustle and bustle. So while you\’re at the store that has the big turkey sale, you\’re also going to pick up your pies. Your napkins. Your beverages. A ham to go with the turkey, for the people who won\’t touch the stuff. Some gravy. The yams. The eggs. Your sauces and seasonings and…

You see where I\’m going with this. That store just made far more from your extra purchases than they lost by honoring your coupon. And that, my friend, is why coupons are good business.

But Wait, There\’s More…

Here\’s another question for you. How often do you go to the store and just pick up what you came for? I\’d guess I do it maybe one in five times I go shopping, and somehow it never happens when I have the kids along.

And why is this? Stores are very aware that customers shop for key staples. Grocery stores in particular are aware of this phenomenon. This is why the milk and frozen foods are as distant from the cash register as possible and why those expensive, but tempting pastries are right next to the family friendly loaves of bread. Grocery store owners know very well that if they put their customers in a position to go past extra goodies on their way to the necessities, they will succumb to temptation and grab \”just one\” of those packs of cherry tarts.

Over and over and over again.

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Category: Finances
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