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Heads up bargain shoppers. Serving as a reminder that clipping coupons is a fun and easy way to save at the grocery store, Sept. 1 marks the start of National Coupon Month.
Concerned about the rising cost of food, consumers are clipping more coupons and saving more money. Whether you shop at Albertsons, Fresh Market, Harmons, Macey’s, Sam’s Club, Smith’s Food and Drug, Walmart or Whole Foods, shoppers have become more frugal in tough economic times.
According to the Promotion Marketing Association, spending as little as 20 minutes a week clipping coupons can save the average family about $1,200 a year.
Coupon distribution and use have increased substantially in the last 36 months. According to the PMA, more than 89 percent of Americans admitted using coupons last year. With more than 175 billion coupons offered by retailers in the first half of 2011, this growth builds upon the record-breaking trends of 2009 and 2010 when 311 billion and 330 billion coupons were distributed.
Many of my friends, co-workers and social media fans regularly wonder how I receive cash back at my favorite South Florida supermarket. Although I accumulate printable coupons from the Internet, the Sunday Miami Herald and South Florida Sun Sentinel remain my favorite.
In accumulating coupons from multiple papers — including the Spanish version as the coupons are generally different — I have several for use when an item goes on sale or becomes free as a “BOGO.”
The coupon itself dates back to a handwritten one for Coca-Cola in 1886. They now come in many varieties, the most common being the manufacturer's coupon. This coupon provides a discount on a particular product and is distributed directly by the manufacturer. Grocery stores accept manufacturers' coupons because they receive reimbursement upon redemption.
- Use printable Internet coupons
- Don't forget about newspapers
- Use sites that allow users to sell/trade coupons
- Use "deal of the day" sites
- Don't forget about restaurant gift certificates
- Combine coupons with sales or BOGOs
Most people use the Sunday newspaper as their main source of coupons. While grocery retailers allocate about 85 percent of their coupon distribution to a free-standing insert, Internet distribution has grown faster than all other sources combined. The most popular online printable coupon sites are www.smartsource.com, www.coupons.com, www.valpak.com, www.pgeverydaysolutions.com and www.redplum.com.
In the last few years, online promotional codes have become increasingly popular, providing incentives ranging from free shipping to a percentage off discount. According to eMarketer, digital coupons have become so popular that 88.9 million shoppers used them in 2011.
Manufacturers and retailers also send coupons to shoppers who personally request them. Obtaining coupons from these sources is as simple as searching the Internet for your favorite brand or store and typing the term “coupon” into your browser. For instance, typing the term “Starbucks” and “coupon” yields approximately 689,800 results.
Most companies have a separate section for coupons or special discounts. Thereafter, it is simply a matter of printing the coupon for redemption at the retailer.
Whether you shop at Albertsons, Fresh Market, Harmons, Maceys, Sam's Club, Smith’s Food and Drug, Walmart or Whole Foods Market, each of these retailers offers an online section for coupons, coupon policies and other store discounts.
Shoppers visiting a store website need only direct themselves to the coupon section, then click and print their desired grocery coupons.
Thousands of websites exist that allow coupon users to buy, sell and/or trade coupons. Although illegal and frowned upon by eBay, this popular auction site has become No. 1 in coupon sales. Some of my personal favorites are Jill Cataldo, Super Couponing, Retail Me Not, Coupon Dad, Coupon Cabin, Coupon Mom and Fat Wallet.
When it comes to “deal-of-the-day” discounts, Groupon, LivingSocial and LuckyFan are fast becoming industry leaders.
“Today’s shopper is more discount-focused than ever before,” Jamie McDonnell, CEO of LuckyFan, told KSL. “In tough economic times, daily deal sites are becoming a more common reality. Shoppers not only expect but demand discounted prices.”
When it comes to dining out, Restaurant.com is my personal favorite for restaurant gift certificates. With more than 18,000 restaurants nationwide and more than 45,000 daily gift certificate options, customers have saved more than $500 million since program inception. Restaurant.com also offers deeply discounted promotional codes for loyal email subscribers and Facebook friends.
Spending as little as 20 minutes a week clipping coupons can save the average family about $1,200 a year.
In 2011, Restaurant.com filled more than 5.5 million tables nationwide with more than 18.4 million customers, an increase of 10 percent from the previous record year. Its gift certificate strategy generated almost $400 million in revenue for a struggling restaurant industry.
“We are extremely proud of our achievements in 2011,” said Christopher Krohn, president and chief marketing officer of Restaurant.com. “These numbers tell a story that goes far beyond our own success. We’re lowering the financial barrier that keeps millions of people away from dining out in an economy that’s still struggling in the wake of a recession. We’re keeping tables filled at establishments that employ tens of thousands of workers around the country, saving jobs from being eliminated and restaurants from closing.”
A common misconception among non-coupon users is that shoppers using coupons have low incomes, are disadvantaged or are struggling financially in tough economic times.
According to the Nielsen Co., a global leader in measurement and information, the biggest coupons users are college-educated Caucasian women under the age of 54 with incomes in excess of $70,000 a year. In contradicting every preconceived notion, these women are among what has become known as "heavy coupon users."
Coupons represent free money and additional income to those who indulge. Quoting from Nielsen's report, "the better educated and more affluent consumers are much better at looking for deals, as they recognize the value of money." Grocery bills account for nearly 12 percent of an average family budget.
While finding the right coupon for specific products is easy, using them to their full potential can be more challenging. While coupons used on a regularly priced product might save a few cents, combining them with sales or BOGO’s can substantially increase your savings. The savvy coupon shopper pays attention to normal product prices and only uses coupons on “stacked” specials resulting in huge savings.
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Among those shoppers who are not clipping grocery coupons are consumers who could benefit the most. Of 100 shoppers who make less than $20,000 a year, just 1.6 percent use coupons to their best advantage.
On the other hand, in a category in which I apparently belong, the savings are more dramatic. As a "coupon enthusiast," I cannot resist the thrill of "stacking" my way to a great money-saving deal, occasionally earning money back on the purchase of a BOGO item using a manufacturer’s coupon for each, and coupling with a competitor coupon or double coupon offer. “If it’s free, it’s for me” has quickly made its way into my vocabulary.
Defined as someone who uses 104 or more coupons in a six-month period, coupon enthusiasts accounted for 65 percent of all coupon usage and 21 percent of all purchases last year. Avid coupon users purchased nearly 23 percent of everything bought with a coupon.
Coupon enthusiasts love coupons and use them with such frequency that it has become a way of life. Another statistic is that approximately 22 percent of shoppers are responsible for 83 percent of all coupons redeemed. Aside from “coupon enthusiasts” and “heavy coupon users,” the remaining 78 percent of shoppers used just 17 percent of all coupons redeemed.
In celebration of National Coupon Month, www.ilovecouponmonth.com — an online resource for coupon information, statistics and savings tips created by www.couponsherpa.com — has provided 30 tried and true methods to maximize your shopping experience.
While finding the right coupon for specific products is easy, using them to their full potential can be more difficult. While coupons used on a regularly priced product might save a few cents, combining them with sales or BOGO’s can substantially increase your savings. The savvy coupon shopper pays attention to normal product prices and only uses coupons on “stacked” specials, resulting in huge savings.
To learn more about National Coupon Month, visit www.nationalcouponmonth.com.
Bill Lewis is the principal of William E. Lewis Jr. & Associates and host of "The Credit Report with Bill Lewis" — a daily forum for business and financial news, politics, economic trends and issues on AM 740 WSBR in South Florida.
