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Shark Bites: Coupon Redemption – Do the Stores Lose Money?

saveCoupon Redemption – Do the Stores Lose Money?

Several readers have asked me how the coupon redemption process works. More importantly, they wanted to know the stores you redeem your coupons at are losing money from the coupons redeemed. The short and simple answer is no. Stores do not lose money by you redeeming coupons. Stores actually get reimbursed by the manufacturer, and even make money by you redeeming coupons.

Coupons – From Point A to B

Most of the time, the manufacturer decided to launch a coupon and gets a coupon designed and printed. They then find a way to get the coupon out to the consumer, which is you. Manufacturer’s typically get coupons out to consumers through newspapers, stores, mailed samples, and even flyers. Once you use the coupon, the store takes the coupon, and organizes all of the coupon accepted. Once organized, the store ships all of their coupons out to a clearing house, where they are scanned and sorted. In the end, the stores get their money back on coupons redeemed. Plus, they get an additional $.08 for every coupon redeemed to cover postage fees. So if anybody tells you that a store is losing money by your coupon use, they are completely wrong!

Fraudulent Coupons

If a customer uses a fraudulent coupon, and it is accepted by the cashier, it can still hurt the store. The fraudulent coupon has a high chance of it being spotted as a fake when sent out to the clearing house, which means the store isn’t going to get reimbursed on this coupon. Don’t forget, copying coupons and using fraudulent coupons is not legal. Some people may think that ‘if it goes through, then it’s completely fine’, but they’re wrong. It’s only hurting the stores, which in the end, can contribute to increased prices.

What is “Shark Bites”? Shark Bites is a new money-saving tips series here on FreebieShark that aims to help you and your family get the most out of your money. “Shark Bites” posts are both educational and straight to the point. Just another way FreebieShark is helping you save!

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