Couponing is definitely a craze that is taking the nation by storm. The debut of television shows that demonstrate the behaviours of “Extreme Couponers” continues to pull more and more people towards the money saving habit. From outward show it would appear as if the only one who gains through a coupon transaction is the customer who gets a good deal. This is simply not true. If you consider the many levels of industry that are involved from manufacturing through to the point of sale–not to mention what drives businesses, it becomes apparent that there would need to be some form of gain for each entity involved in the process.

The Undercover Benefits Of CouponsAt the Manufacturing Level

For manufacturers coupons can serve many purposes. These may include:

  • Moving products that have not been selling well.
  • To create buzz around a product that they feel will do well in the market.
  • To gain exposure for new products.
  • To create a positive repertoire between themselves and consumers.
  • As an incentive for stores to stock their product.

As you can see the manufacturer uses coupons as a tool, to both market their product and gain saturation in the marketplace in hopes of creating a loyal customer base. By creating a loyal following for a product or company, the business will recognize an ongoing increase in profits and capital. The companies who issue the coupons only print a limited number in order to ensure that a profit is made and they don’t end up going broke.

At the Retail Level

For stores, coupons are also very beneficial. The store adds extra to their workload by accepting manufacturers coupons, therefore there needs to be some incentive for them to do this. When a store accepts a coupon, the process begins. For every coupon that a retailer accepts the manufacturing company reimburses the amount of the coupon, but that is not enough incentive for having to file the coupons for this reimbursement. The stores also get a little extra money on top of the refund amount. This helps the store to build onto it’s net profit without having to sell as many items.

At the Consumer Level

This is by far where the greatest benefits are obvious. The consumer gets more product for less money, a product for a cheaper price, or even free product. By allowing the consumer this opportunity to get a good deal, the customer gets to retain some of their hard-earned money while still getting the products they need.

 Coupons have been a great way to keep product moving off the shelves. This has been especially important due to the economic hardship that many people have felt. The other factor that is offset by issuing coupons is the rising cost of goods and manufacturing. Coupons have been a means for consumers to take back buying power and for manufacturers to essentially put the power back in the consumers hands. As you can now plainly see coupons have much more impact than people seem to realize. They are an excellent marketing tool and a great way for you to try products for a lower cost than you may have paid without one. So next time some coupons come in the mail, don’t throw them out, pull out your scissors and feed the economy while saving yourself some money.