coupons

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Extreme Couponing Backlash: Manufacturers, Stores Limit Coupon Use

If you have ever watched “Extreme Couponing” on TV, you know that shoppers on the program demonstrate how they received hundreds if not thousands of dollars worth of merchandise for only a few dollars (if that) by using coupons. They will buy dozens of the same item, using dozens of identical high value coupons (often doubled in value by the store) to accomplish this feat.

Now some manufacturers and retailers are fighting back. Look what P&G is now printing on its manufacturers coupons.

*MOUSE PRINT:

Here the manufacturer is imposing a limit of four identical coupons that can be used when buying the same product. But now some retailers are getting in on the action too.

*MOUSE PRINT:

“Rite Aid may accept up to 4 identical coupons for the same number of qualifying items as long as there is sufficient stock to satisfy other customers within the store manager’s sole discretion.” – Rite Aid Coupon Acceptance Policy, May 2011

“You may double a maximum of 4 identical manufacturers’ coupons. For example: if a customer purchased five boxes of Cheerios and presented 5 manufacturers’ coupons for 50¢, the first four coupons would be doubled to $1. The fifth coupon would only be redeemed for 50¢. Up to an additional 12 identical manufacturers’ coupons/items will be redeemed at face value for a total of 16 identical manufacturers’ coupons.” — Stop & Shop and Giant coupon acceptance policy.

If these practices are actually enforced, and other companies jump on the bandwagon, extreme couponing may become a thing of the past.

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July 4th Sales Gone Awry

We’ve got two stories this week, submitted by readers, all complaining about deceptive July 4th sales.

Story #1:

One of the most common forms of retail advertising is to promote a storewide sale on “everything.” Rarely is everything really on sale, but retailers still insist on using the word “everything.”

CVS Pharmacy is no exception. Just in time for July 4th, they sent out a mass email with the subject line: “4th of July Sale- 20% off EVERYTHING! 3 Days Only on CVS.com .” No exceptions, no exclusions, no asterisks. However, when you open the email, you see the graphic above with the small asterisk after “everything.”

The asterisk inevitably leads to a long list of exclusions.

*MOUSE PRINT:

*Offer available online only. Expires 6/30/10 at 11:59 PM EDT. To receive the 20% off sitewide discount enter coupon code JULY20 at check out. These products are not discounted: AeroGarden, Align, Alli, Acra Hair Removal Device, As Seen on TV products, Beauty 360 products, Belli, Better Body Solutions, Bodi Rocker, Burts Bees, Conair Infinity, Epilady, GHT, GoWear, Hormel, Ionic Pro, Jitterbug, Kelemata, Kidco, LaneLabs, LaRoche-Posay, Lierac, LipFusion, Maxoderm, Medela, Medical Nutrition Products, Olay Pro X, Omnilux, OXO, Philips Heartstart Home Defibrillator, Rapidlash, Resperate, Rock Hard Weekend, Sinupulse, Skin Doctors, Vector Hair Removal System, Vichy/Dermablend, Violight, Zanfel, Zeno. The 20% sale cannot be combined with another product sale running at the same time. You will receive the larger discount. The 20% sale excludes prescriptions and gift cards.

Thanks to Richard A. for the submission.

Story #2:

PetSmart sent out an email telling shoppers they could save up to $15 with coupons this weekend, both online and at their stores.

Here’s a part of their email:

*MOUSE PRINT:

Offer valid through July 4, 2010 at 6am ET

Nothing like having to get up early on a holiday morning — before 3am West coast time, and before 6am East coast time to use the coupon online before it expires. And the 6am time was not a typo, because trying to use it at 9am resulted in this error message:

Incidentally, their brick and mortar coupons were good all day at the store because they did not have a time of day expiration.

Thanks to Kelsey P. for the submission.

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P&G’s One Coupon Equals One Meal Deal Revealed

Give a MealProcter & Gamble is advertising a “one coupon = one meal” promotion whereby the company will donate money to Feeding America for every coupon redeemed by shoppers from its November coupon insert.

Feeding America is the new name for America’s Second Harvest — a network of food banks around the country.

Checking P&G’s website, one learns the company has a “goal of donating up to 20 million meals this holiday season.”  Even if P&G was only donating $2 per meal, that would be a commitment of $40 million.  Certainly, a very generous donation to a very worthy cause.

Inside the coupon insert is a further explanation that “for every brandSaver coupon redeemed, P&G will help Feeding America provide one meal to a person in need.”  A simple graphic confirms the message:

That little spot to the right of “one meal” is an asterisk, that leads to an almost unreadable disclosure on the bottom of the page.

*MOUSE PRINT:

” *Coupon value to Feeding America equals $0.0625″

Huh? Six and a quarter cents for each coupon redeemed is what they are donating? How in the world could six and a quarter cents pay for a meal?  And what does this meal consist of — half a cup of rice?

Ross Fraser, the media relations manager for Feeding America explained. The vast majority (85%) of food that they distribute (two billion pounds a year) is donated, while they purchase fill-in items that are not usually contributed.  They have figured out (through somewhat convoluted math) when they divide the number of pounds of food they distribute by their costs of operation, it works out that they are able to donate 16 meals for every dollar they receive.

And, when you do some further math, you see that that equals 6-1/4 cents per meal — the amount that P&G is donating per coupon. Whewww.

So, if enough coupons are redeemed, the maximum contribution that P&G will be making is $1.25 million — not the tens of millions dollars you might have assumed from their advertising.

One and a quarter million dollars is still a generous contribution, and Feeding America is certainly a worthy cause. It just would have been more straight forward to say that they would donate up to $1.25 million to cover the administrative costs of delivering 20 million meals.  A P&G spokesperson said the company preferred to characterize the donation in terms of meals given rather than six and a quarter cents.  Gee, I wonder why? They also said that their contribution was not supposed to be used for overhead.  The spokesperson did not put her comments in writing despite a request to do so by Mouse Print*.

Other companies, like the makers of Duncan Hines, promote their donation to Feeding America in a more straight-forward manner, saying how much money is being given per coupon redeemed, and how much the maximum donation will be (click banner):

Duncan Hines