Coupons - The Winning Formula
This morning in Uncle John’s Bathroom Reader I read that only 6% of coupons are used by consumers.
I don’t know but I bet that the companies who put out these coupons have to allow enough of a profit margin to pay 100% of the coupon redeemers, not just the 6%.
Naturally, based on statistics the companies know that only 6% will use their coupons which will make their profit margin even wider than they can officially foresee. Which such an unexpected profit margin, I’m sure the CEOs get big annual bonuses for raking in the profits.
And not only that but some grocery stores, such as Krogers most the time, double their coupons, and that means they have to allow a profit margin as if 100% of their customers will use the coupons, and then they only have to pay out to the 6% coupon users, they win too.
Everybody Wins! Except the 94% of consumers that don’t use coupons, they are paying for it.