Why Not Eliminate Coupons and Reduce Prices
Over the years I have heard this request many times: Eliminate Couponsâ€â€Reduce Prices. It will never happen.
Manufacturers have an advertising budget that is used in many different ways. Television and radio commercials, newspaper advertisements and other promotions that include coupon distribution are all part of getting their product out there.
Television gives the product instant recognition as do radio and newspapers. But commercials are expensive, and that adds to the cost of the product. But, a coupon, although part of the advertising budget provides the shopper with a savings, the only money-saving form of media out there. Match that coupon to a store sale and you have a double savings.
For the manufacturer a coupon is a way to get you to try a product, and to keep you using that product. Savvy consumers take advantage of these discounts. After all you can’t take TV commercial to the supermarket and ask for a 20% discount. You can take coupons and get a 20-50% reduction each and every time you shop.
The idea might be to eliminate all forms of advertising; that would surely reduce prices. But with 50,000 to 75,000 products in the average market manufacturers use whatever tools available to get you to buy their product. It’s all part of our competitive system which is not likely to change.
Tags: coupon, Discounts, Grocery, Supermarket
