How Many Free Coupons Can You Use Until They Should Cost Something?

[seoulsearch]

Hey Singles!

I was wondering how everyone else feels about things like this. When you get coupons for a free product or service, do you ever feel compelled to return as a paying customer?

"Stop In For A Free Donut Or Coffee"...

A local donut shop sends out these coupons every so often, and I had received 2 in the past 3 months (which I fully utilized). As much as I'd love to say I went for the (black and calorie-free) coffee, I don't think it's hard to guess which option I chose! (Raspberry-filled the first time; blueberry the second.) Hey, at least I'm getting some fruit (flavors!) Ha ha ha.

These were the first donuts I'd eaten in over a year, because, as yummy as they are, I try not to make them a regular part of my diet!!! However, whenever I receive a free coupon for something, I always make an effort at some point to try to go back as a paying customer because I don't want to take advantage of the business--I want to try to support them, if even in a small way. Last week I stopped in and bought a few donuts on my own as a token of appreciation.

One reason for this is because I've worked in product sales all my life, and I've seen many examples of people taking what I see as an unfair advantage of such things. For instance, my Grandma, as much as I loved her, would ask for stacks of bags for children's meals at a local fast food place because each bag had a free ice cream coupon (even though it was specifically stated that this was for children 10 and under with a limit 1 per child) and would use every single one of them as often as she pleased. If she encountered any hesitation, she became aggressive to the point where they just gave in to her (as is common in customer service.)

I understand that if a business offers something, it's there to be taken advantage of. But that is the issue for me--where is the line between appreciating what's offered and just plain taking advantage of people?

I've known many people who see businesses and say, "They have enough money, they don't need to take any from me." But my heart is always with the workers, because I've been a worker all my life, as well as the daughter of a business-minded father who worked long hours, 7 days a week, doing work that others often thought they were too good to do. Many of the people working at such places are often being paid pennies on the dollar and they have bills, health concerns, marriages to keep together, aging parents, and children to take care of, too.

This Bible passage is always close to my heart: 1 Timothy 5:18 -- "The laborer is worthy of his wages".

Because of this, I don't mind making small sacrifices (for myself, I don't eat out much or buy daily coffee/energy drinks/pop/fast food so that saves a bit of money) in order to make sure that a few other laborers receive the wages that God says they are worthy of (and even if not, God says He is kind to the evil and unrepentant and we are to be as well). And maybe all I can afford to place is a less-than-$5 order. But if Jesus witnessed a widow putting less than 2 pennies in an offering box and said it was worth more than the offerings of the wealthy because it was given sincerely and in faith, I know God will bless my small efforts to support other businesses as well.

I was just wondering if anyone else thinks about these kinds of things?

These are just a few of the things I encounter in my daily single life as a Christian and I was wondering if other fellow Christians feel this way too.

 

[tourist]

I try to take advantage of buy one - get one free offers. I would not feel guilty about the use of coupons because this is a form of advertising.

I agree with you that the laborer is indeed worthy of the wages earned. Your Grandma was shrewd in the gathering of the bags but like yourself, I would not condone such an action as it was basically dishonest.

If each business acted upon biblical principals the world would be a happier place.

You wrote an outstanding post, per usual.

 

[Grace-Like-Rain]

I feel guilty taking food samples at the grocery story when I know I'm not going to buy any.

For some reason, that doesn't apply to store discounts though. I don't know why... maybe because it's less personal? Part of me rationalizes that the store wouldn't offer it if it didn't make them money in the long run.

(If Hobby Lobby can keep a running coupon for 40% off anything in their store, does that mean they are marking everything in the store up 60% to begin with?)

I don't work in retail, you can probably tell. Haha.

 

[ChandlerFan]

The way I look at it, the psychology behind coupons is for a business to get people shopping around in its store. Even if they don't make the highest possible profit on the discounted item, people are more than likely also going to spend money on other items as well that are not discounted. Also, the hope is that when you come to their store and buy their product(s), you will be satisfied with not only the product, but the experience as a whole, which will bring you back later. So from that perspective, I don't really feel obligated to buy something at full price even if I've bought it at half-price every single time before because more than likely I've spent full-price money on other items.

As far as store-wide, running coupons go (I didn't know any store did that, btw), I won't pretend to be an expert on economics, but I just know that it's not as simple as marking everything up 60%. I think supply, demand, and inventory all come into play in different ways there as well. One thing that probably helps them out, though, is the oblivious people who don't use the coupon haha. Also, perhaps it's possible that they find ways to cut costs that allow them to employ a running discount similar to the way that Aldi operates.

 

[Grace-Like-Rain]

The way I look at it, the psychology behind coupons is for a business to get people shopping around in its store. Even if they don't make the highest possible profit on the discounted item, people are more than likely also going to spend money on other items as well that are not discounted. Also, the hope is that when you come to their store and buy their product(s), you will be satisfied with not only the product, but the experience as a whole, which will bring you back later. So from that perspective, I don't really feel obligated to buy something at full price even if I've bought it at half-price every single time before because more than likely I've spent full-price money on other items.

As far as store-wide, running coupons go (I didn't know any store did that, btw), I won't pretend to be an expert on economics, but I just know that it's not as simple as marking everything up 60%. I think supply, demand, and inventory all come into play in different ways there as well. One thing that probably helps them out, though, is the oblivious people who don't use the coupon haha. Also, perhaps it's possible that they find ways to cut costs that allow them to employ a running discount similar to the way that Aldi operates.

Hobby Lobby and Michael's too I think, both offer weekly coupons and you can always find a current coupon for 40% off of a single item in the store. (Not the entire purchase, just to be clear - wouldn't that be nice!)

Yes I agree, I think a benefit for them is often just to get people comfortable in their store. We all like to shop where we are comfortable. I hate going into a grocery store when I'm not familiar with where things are located. Once I get more familiar I am much more likely to go in. We are creatures of habit, so the challenge is often just getting customers to continue coming in until they are past that stage.

I was standing in line to pay for some shoes once and noticed the lady in front of me using a smart phone coupon for a nice discount. She stood there just long enough for me to find the coupon for myself and use it when I paid, too. Saved me about $7. Oh yes, I imagine oblivious customers make up a large portion of store profits. Haha.

 

[thezachattack]

I don't necessarily feel bad about it. I figure most businesses understand what the return on their offer will be. For example, if I use direct mail, I know my return will only be around 1%. So if I send 1000 postcards, I know I may only get 10 replies. I imagine a bakery (or whatever the product or service may be) would understand not everyone that tries the sample (even repeatedly ) may become a customer.

Now if I knew a business was making such an offer out of hardship, I wouldn't take advantage of it unless I knew I was going to make a purchase.

 

[seoulsearch]

Tourist, thank you for the kind comment.

Grace, you bring up some excellent points, as always!!

I am certainly no saint myself. I guess the primary reason I wrote this is because I was interested in what other people think about the issue, and I don't mean to over-think everything, but it was something that caught my attention regarding my own behavior.

I myself am notorious for not exactly passing up free food samples! I have a membership at one of those local wholesale warehouse clubs and there have been times I've stopped at enough booths to not even need lunch (so yes, I literally hocked a free meal without buying anything!) My reasoning is always that I do shop there on a very regular basis for several staples. However, if I want to get technical about it, I'm usually not buying the products from the companies represented (yes, those fried-and-breaded chicken bits dipped in heavy, sugary-salty sauce were outstanding. But no, I neither want nor do I need to buy a 50-pound bag of them.)

I also agree with you in having wavering feelings about "never ending" supplied of coupons. I've used them on the most mundane things, including using a 40% off coupon on a 40-cent skein of embroidery floss. Even the cashier said, "You really don't want to use this coupon on this," but I really did, because that's all I needed at the time.

You are also right about markups in retail but it varies greatly from business to business. However, and I know it's hard to believe, but for many places like grocery stores, only 1% of what they bring in is actual profit (at least at the ones I've worked for.) If you think about that, that means only $1 out of every $100 coming in can be considered profit. I am often amazed that stores can even stay in business. And of course, one of the ways to keep their earnings high on paper (and their CEO's and stockholders happy) is to pay as low of wages as possible.

Now, I have no idea what kind of profit margin a store like Walmart has but I know they pay their basic-level workers the least amount they can get away with, which is pretty much a cardinal rule in retail.

Markups for individual products can also vary by leaps and bounds. I worked in a store that was part of a national chain and, seeing as I worked in the pricing department, saw what the store cost was for many items. I can't remember exactly what item it was but one store-brand item we carried had a cost of $9.20--and the retail price was $24. However, most products we carried had nowhere near that high of a markup. Name brands sometimes have very little to no profit margin.

In grocery stores, milk, eggs, and produce items--especially when on sale--are often being given away at cost or at a significant loss, just because they are staples every place has to carry in order to do business. There are often times when a store has a very significant item on "sale", like milk, and they sell through hundreds of cases. But for each gallon sold, the store is actually LOSING 5 cents per gallon that goes out the door. But, they do this to keep up with the competition and to keep customers.

This is just my own experience among 3 different chains of retailers--others may have experienced something different.

And you don't even want to think about it if the product is an overseas specialty item. If any of you ladies out there have heard of the luxury hair care brand Phyto--I had read about it in magazines and always wanted to try one particular product. I finally found it at a specialty store--and it was $28 (I passed.)

Imagine my shock when I found the exact same product when I was in France (where it's made), not in a high-end, specialty store, but at a local equivalent of our Walgreens that could be found on any corner. The price? $8!!!! Now of course, all I had to do to get it for that price was fly to Europe... Ha.

But it gave me another eye-opening look at product mark-up.

(Am trying to read everyone's posts--THANK YOU ALL for turning this into a really interesting conversation!!)

 

[ChandlerFan]

Hobby Lobby and Michael's too I think, both offer weekly coupons and you can always find a current coupon for 40% off of a single item in the store. (Not the entire purchase, just to be clear - wouldn't that be nice!)

Yes I agree, I think a benefit for them is often just to get people comfortable in their store. We all like to shop where we are comfortable. I hate going into a grocery store when I'm not familiar with where things are located. Once I get more familiar I am much more likely to go in. We are creatures of habit, so the challenge is often just getting customers to continue coming in until they are past that stage.

I was standing in line to pay for some shoes once and noticed the lady in front of me using a smart phone coupon for a nice discount. She stood there just long enough for me to find the coupon for myself and use it when I paid, too. Saved me about $7. Oh yes, I imagine oblivious customers make up a large portion of store profits. Haha.

You've gotta love technology, huh? I think there's even an app now where you get "points" or something just for scanning certain products' bar codes at the store, and once you rack up enough points you'll get a little $5 gift card or something.

And 40% off of a single item makes more sense haha. 40% off the entire purchase every time seem slightly generous If that were the case, though, I'd totally be shopping there.

 

[seoulsearch]

40% off the entire purchase every time seem slightly generous If that were the case, though, I'd totally be shopping there.

Have you ever noticed that certain large retailers like JCPenney often DO have continuous sales for 40% off many of their clothes? I'm pretty sure though, that the compensation for this is in their markup.

Most of my clothes are from places like Penney's but being someone who has a little experience with sewing and fabrics, I'm pretty sure there's no way most of their clothes are worth the supposed actual "regular retail" price on the tag.

The fabrics are often poor-quality, the knits (stretchy fabrics) will pill or sag out of shape after the first few washings, and the stitching is sloppy. I can tell you there is NO WAY that sweater you think you're getting such a deal on is actually worth the supposed regular asking price. There are many thing I've had to return or repair myself even within or before the first wear.

Now, there ARE many nice things I've gotten there... but there always has to be a way to make things up somewhere or of course, stores couldn't stay in business.

 

[ChandlerFan]

Have you ever noticed that certain large retailers like JCPenney often DO have continuous sales for 40% off many of their clothes? I'm pretty sure though, that the compensation for this is in their markup.

Most of my clothes are from places like Penney's but being someone who has a little experience with sewing and fabrics, I'm pretty sure there's no way most of their clothes are worth the supposed actual "regular retail" price on the tag.

The fabrics are often poor-quality, the knits (stretchy fabrics) will pill or sag out of shape after the first few washings, and the stitching is sloppy. I can tell you there is NO WAY that sweater you think you're getting such a deal on is actually worth the supposed regular asking price. There are many thing I've had to return or repair myself even within or before the first wear.

Now, there ARE many nice things I've gotten there... but there always has to be a way to make things up somewhere or of course, stores couldn't stay in business.

Yeah, I worked at JC Penney for a holiday season and I don't see how they don't mark everything up so that they can make you think you're getting a big discount when you bring your coupons in. While working there I did get a white suit coat for like $15 on Black Friday, though. That was pretty awesome until I had to buy some matching clothes for it that cost like three times that much all together.

 

[Siberian_Khatru]

I fully subsist on freebies. I am the biggest freeloader the retail world has ever seen. They created this monster, but they can't contain it!

I actually never receive coupons or take free samples. Promotions flood my email inbox and are usually deleted, but from time to time I'll jump on a good offer. Still, these are discounts, not giveaways.

The only freebie I take advantage of is the lucky dozen reward at Starbucks, which is, in fact, not free since I have to buy 12 food items or drinks to earn the reward. $2.25 for your smallest coffee ─ which you probably have a profit margin of about 300% on? Okay, I'll take a free vente frappuccino, you villainous conglomerate you.

 

[seoulsearch]

Another way to put this into perspective is to think of it this way: Let's say that YOU are a business owner and like the example I used of the grocery chains I have worked for, 1% of the money coming in is profit.

So in other words, you have to sell $10,000, that's TEN THOUSAND DOLLARS, worth of product for $100 worth of profit.

You have a staff of 9 people besides yourself that helped you bring in that $10,000, and in the end, you have $100 to split amongst 10 people. Some people put in a lot more effort than others.

But YOU are the business owner. It's YOUR business. If you had free reign (no unions or government laws to tell you how much to pay people), how would YOU decide to split up that $100? How much would you keep for yourself, and how much would you share with the people who brought it in for you?

Keep in mind, you have stockholders you also have to pay off so that they will invest more into your business and allow you to expand, buy more product, and advertise. I could be misunderstanding this, but if the stock pays a dividend, that's all the more expenses you'll have to worry about those profits covering. (I'm not sure if this would be included as expenses though... and therefore not part of the leftover 1% profit...) If anyone out there knows, please feel free to correct me. I'd like to know myself.

If you look at it this way, it's easy to see why retailers HAVE to rely on increased sales, big numbers, and low wages.

You can also see why so many businesses don't make it.

 

[Siberian_Khatru]

Oops. I didn't really respond or address the question here.

Personally, I think it's a little tacky to capitalize on free offers but never give a business business. I can understand taking advantage of one to two free offers; maybe the first experience was sort of 'meh,' so you took the second offer to either affirm or dispel the first impression. To do it repeatedly and/or never pony up from there onward seems unethical.

 

[Arlene89]

In regards to coupons and free products, I believe most business use this method to appeal to our sense of 'guilt'. From most of my experiences, this is the automatic response when getting something free all while my brain is telling me 'I should be paying for this' and the most natural response is to buy more of their products that I don't necessarily need.

At the well known grocery stores, many coupons are printed on the back of the shopping dockets with 'Buy 1 coffee get one free' and 'All sushi plates, $3' deals to help advertise the local businesses in the immediate area. But I never, ever use them because I don't want to be sucked in to buying something I don't need or want. I don't eat free samples of food at food places because I know with that bite comes the flooding of obligation to buy that product.

*Shrugs*

I'd rather buy products from a store because I have trust in their quality of products and because they have good customer service.

 

[zeroturbulence]

The only free coupons I've seen where they actually give you something free are from Harbor Freight. Its usually one of those little flashlights or scissors or a screwdriver. The only other ones are where you buy something at regular price and you get one free (usually you have to buy more than one). If there was a place that gave free donuts around here, I'd be in big trouble.. emphasis on BIG.

 

[Lynx]

The stores offer free coupons for a reason. It's what they call "loss leaders," products they expect to take a loss on because they know most customers will buy other stuff. Believe it or not they have computer programs that tell them how much they can get away with marking up items before people will no longer buy them. That's why Wal-Mart has (and advertises loudly) certain items for less than other stores, but quietly marks up other items as much as it can get away with.

Now if I went around collecting all the freebie coupons I could find and cashed them all in, yeah I would feel a bit guilty about that. But one freebie here and there, that's no problem. They WANT you to try their product for free, because you might decide you like it and keep buying it for the rest of your life. I have no intention of buying their product but I will definitely take one for free.

But then, I'm not the average person. They make their money by playing the averages. Rest assured, they will come out ahead financially because of their freebie coupons. They know exactly what they're doing.

 

[seoulsearch]

I guess to me, and this is only me, abusing something such as free coupons and never patronizing a business is a kind of like...

Always taking something from God, and never paying any attention to what He says or obeying His commands.

Now of course, I'm not putting God on the level of human businesses at all. I'm just saying... I think that as Christians (again, this is just me, I'm not speaking for anyone else), we need to be conscious of our choices and not abuse or take advantage of others, including businesses.

The main point of my thread was never about whether or not a business actually makes money, but rather, looking at what we as the general public do that could hurt or help them when it comes to our own actions. In our personal relationship with God, His biggest concern is usually about OUR actions, not that of someone else.

He doesn't care if a business is making a hundred trillion dollars if we're the ones acting improperly towards it and if it's our own hearts He's trying to change.

 

[zeroturbulence]

I guess to me, and this is only me, abusing something such as free coupons and never patronizing a business is a kind of like...

Always taking something from God, and never paying any attention to what He says or obeying His commands.

Now of course, I'm not putting God on the level of human businesses at all. I'm just saying... I think that as Christians (again, this is just me, I'm not speaking for anyone else), we need to be conscious of our choices and not abuse or take advantage of others, including businesses.

The main point of my thread was never about whether or not a business actually makes money, but rather, looking at what we as the general public do that could hurt or help them when it comes to our own actions. In our personal relationship with God, His biggest concern is usually about OUR actions, not that of someone else.

He doesn't care if a business is making a hundred trillion dollars if we're the ones acting improperly towards it and if it's our own hearts He's trying to change.

This owner of a large chain of stores completely agrees with you.. because if enough customers take advantage he might miss a payment on his lambo or his bentley..

 

[seoulsearch]

^^^ Yup. We've all felt like this at some time. I know I have as well.

But we also have to remember that people in the Bible such as Abraham, Jacob, and David were neither poor nor completely guilt-free. Solomon freely used forced labor, aka, slavery.

If these people are doing wrong and God wants to deal with them, that's between them and God.

But if WE'RE doing something wrong and God's trying to deal with us, it doesn't matter how many cars or houses that CEO might have. God is looking at something in US.

Besides... We also know that Jesus said, "In my Father's house are many mansions... I go there to prepare a place for you." John 14:2.

I've told God many times, I have no need of a mansion. The cardboard box I was found in here on earth is just fine.

But I think this also illustrates the need that have to guard our own hearts, because when we make these kinds of comments about CEO's and what they have, it's certainly not out of love. It's because of our own jealousy and bitterness.

Which is something God might be even more concerned about than how much that CEO is paying for his yacht.

 

[CatHerder]

I love coupons and promotional offers! I feel no guilt in getting only the super-discounted stuff and nothing else. I think yer granny went a bit far though - I do stick with the rules of the promotion. But just as often as not, if I am in the store for a coupon for free eggs and the gourmet Havarti-dill cheese is half price, I will get a lamb shank or something from the same store and pay full price and just say "well, they suckered me in again!"

I shop at Trader Joe's a lot. But sometimes I just wander in for the free samples. I like going to Sam's Club on sample day too. I have no intention of buying the stuff, but sometimes I actually do change my mind or buy that item on a subsequent trip.

You didn't mention restaurant coupons. I have taken advantage of those as well. I am careful to tip according to the non-discounted price however. For example, if using a 2-for-1 coupon and my check is for $15, I will tip according to the $30 non-discounted price. My momma taught me that!