Who pays for doubles/triples?

Discussion in 'Money Matters' started by jtm, Jul 30, 2006.

  1. jtm

    jtm Well-Known Member

    Okay, first, let me make sure my logic is sound:

    Stores take coupons, because the manufacturer will pay the store the face value of the coupon, plus a small handling fee of about 8 cents. So, the store doesn't lose any money either way. They just have to go through the trouble of submitting coupons to the manufacturer. Right?

    Okay, then there are stores that double coupons (like Harris Teeter). Using a 50 cent coupon as an example, the manufacturer will send Harris Teeter the 50 cent value of the coupon, plus maybe an 8 cent handling fee. The other 50 cents (the doubled portion of the coupon) is just written off by Harris Teeter, as a cost of being competitive. Am I right so far?

    Okay, if both of the above are true (and please let me know if they're not!), then what's the purpose of a "do not double" coupon? If the manufacturer pays the same amount either way, why should the manufacturer care if the store doubles, triples, or even quintuples a coupon?

    Just curious...
     
  2. jtm

    jtm Well-Known Member

    ..bump.. Does this mean nobody else knows why, either?
     
  3. harleygirl

    harleygirl Well-Known Member

    I don't know but what you said makes sense to me. 8)
     
  4. froggerplus

    froggerplus Well-Known Member

    bump

    Still curious myself...
     
  5. nsanemom22

    nsanemom22 Well-Known Member

    I got it! Maybeeeeeeee ......maybe the store that takes advantage of the "do not double" is a "mom and pop" type store...? They probably have a harder time eating the extra cost.... :idea: :?:

    Good question! I bet Faye knows for sure...
     
  6. frugalmomoftwo

    frugalmomoftwo Well-Known Member

    Well, I appreciate your confidence, but I am not sure at all about my answer on this one. I have done some internet surfing and have yet to find a good answer.

    Your reasoning is sound and I have wondered the same thing myself. Why hassle couponers by issuing DND coupons when it is the store who takes the hit on the doubled amount? Doesn't make sense to me either.

    So, my "expert" answer is..... I don't know! BUT, I am going to call a couple of manufacturers who often indicate DND on their coupons and ask why. I will also ask the managers at Lowes and HT next time I shop those stores and see what they think.

    I'll update when I have any actual answers. :)
     

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