How does coupon (circulars) and promo codes make money?

Jake Hilton

Jake Hilton

Répondu il y a 82w

How does coupon (circulars) and promo codes make money??

If you're starting to understand the concept of using coupons to save money, then you've probably come across some of the terminology on the Internet for applying discounts and achieving savings for online purchases.

There are so many ways to get free coupons by mail. It is really easy if you know the correct places to get them. The key it knowing when and how to request them. There are many other places to get free printable coupons as well.

The best two, according to me is :

Grocery Coupon Network

How does coupon (circulars) and promo codes make money?

Harris Poll Online

How does coupon (circulars) and promo codes make money?

Most commonly, coupons on the Internet are referred to as “online coupons” or “promo codes” (which stands for promotional codes). While promo codes essentially achieve the same goal as coupons, that is to offer savings into the end consumer, there are some differences to look out for.

The most obvious difference between promo codes and coupons is that promo codes are used to make purchases on the Internet, while coupons are physical pieces of paper that must be taken to a physical store.

Promo codes are usually a combination of letters and numbers that are entered in a special text box before submitting payments for a product on service online. Most often, you would find the promo code box at the checkout stage. Once the promo code has been entered, the merchant’s website automatically checks its validity and updates the cost of your transaction. If the promo code is valid against your purchase, you should immediately notice that your total purchase price has dropped. Success!

In some circumstances, and this varies from merchants to merchant, you may be given an opportunity to apply more than one promo code against your order, so for example you might be fortunate enough to apply promo codes that are valid for both a percentage off, plus free shipping.

This is all a bit different to using traditional paper coupons. For the most part, coupons are used to save money to save money on grocery and general household items. It is uncommon to find paper coupons that can be applied towards bigger ticket items such as clothing, jewelry, electronics etc. This is where online coupons become so valuable, because savings can be applied to much more expensive items.

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While clipping and organizing paper coupons is a great deal of fun (and very rewarding), I must say that I enjoy the simplicity of using promo codes for purchases on the Internet. It's especially easier of course if you know where to look for them.

A common Google search made by consumers looking to achieve discounts on their online purchases is “promo codes 2012”. This search will usually return a good mix of websites offering deals and discounts from well-known online merchants.

One of my favorite websites for finding great deals is CouponSnapshot. They have teamed up with over 16,000 merchants to bring massive online savings and discounts. The process is easy; simply search for the company you wish to buy from, and then select “Use This Deal” when you find one that you like. You will be given a promo code to use at the checkout, or sometimes taken directly to the merchant’s website with the deal already applied. If that’s the case, all you have to do is shop and checkout.

Unlike coupon clipping, there is no need to worry about whether the coupon will be valid in your country, or if it has passed its expiry date. Internet technology takes care of all that for you, returning only the most up-to-date and useful coupon codes.

So, even though promo codes and coupons have their differences, each type serves one common goal, and that is to save us money. I’ll be continuing to use a combination of both promo codes and coupons to save money on all my future purchases.

Dan Holliday

Dan Holliday, Manager at the Gap, Target, Walmart, Costco and Kohl's

Répondu il y a 252w · L'auteur dispose de réponses 14.5k et de vues de réponses 121.3m

I can only answer for the newspaper coupons. The inserts that contain the coupons within the newspapers are sent to the newspaper companies. I don't have absolute specifics. But the process looks like this.

The newspaper does get a small kickback for the effort of transporting the coupons. This is because the newspaper is printed at the local facility. Then it is transported to the local distributor (who places the paper in your paperbox or on the lawn). They must FIRST assemble the papers with local-specific inserts.

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This is done by employing a team of people to do so. My boyfriend did this for a few years. Every Saturday night / Sunday Morning from Midnight to 2am, he stuffed the papers with local fliers. He'd generally be paid $30 for the effort. Not bad, but really lame work.

Now, where do the fliers come from? The evil Canadians generally dominate this process. And not just the evil Canadians, but the ones who speak a language OTHER than English. Quebecor prints newspaper inserts and fliers for companies.

From here I'm going to extrapolate and say that there are likely only a few companies that do this process. The timing and costs and distribution are pre-negotiated to allow for economies of scale. "Okay, Frothmart, it looks like JCPenny, Kohl's and Bed, Bath & Beyond all have their coupons sent to us by a week from print date. Your cost will be X. We will print your coupons as an individual flier placed within the flier bundle. Because you want to spend X amount of money, your coupons will appear in the middle of the flier. If you'd like a more prominent position, we can move them forward at X cost to you."

Then the coupons are printed and shipped. They arrive at the local distribution facility where young ladies and gentlemen are assembling the newspapers and stuffing them with the appropriate coupons.


As to the "benefit" for the product company issuing the coupon, the benefit is simple: consumer loyalty. For a quick overview on the coupon process, see: Dan Holliday's answer to Why do retail stores accept competitors' coupons?

Retailers and product sellers KNOW that brand loyalty, cross merchandising and frequency of return are king when it comes to selling products. If you are a product seller, then you're hoping to create brand loyalty. One of the sneaky things in retail is an ingrained knowledge of YOUR shopping patters better than you know yourself. This is because producers like Procter & Gamble have teams of psychologists and marketers are burning the midnight oil studying what you like and why you like it.

They have discovered that [1] most shopping for home-goods, sundries and clothing is done by women (+/-80%) and [2] women are typically brand loyal and will stick with a product once they fall in love with it. Therefore, a company like Tide (from P&G) desperately needs to get women who use Wisk (produced by competitor Produits solaires) to fall in love with it and keep using it.

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But that can't happen unless P&G makes it so impossible to refuse the purchase of Tide that the previously loyal lady temporarily makes the switch because of the impossible pricing. "Hmmmm. My Wisk is $16.95, but fuck me! This Tide is only $13.95! Oh. Okay. I'll give it a shot!" And thus, that brutal tyranny of Wisk is broken and another lady is brought over to the ranks of Tide. (Consequently I use "ALL free and clear").

Eric Lee

Eric Lee

Répondu il y a 252w

You know what ads is, coupon is a way of advertising. you may lose $1 for one single product, but you will make more profit by the extra growth of sales volumn from coupon, and of course a lot of accountant work's involved to make sure the final margin is acceptable.

And for the agents who publish or issue coupons, they collect commisions from the seller.

So everyone is happy in this case.

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