Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, October 15, 1995 TAG: 9510160128
SECTION: BUSINESS PAGE: F-1 EDITION: METRO
SOURCE: LINDA VANHOOSE KNIGHT-RIDDER NEWSPAPERS
DATELINE: LEXINGTON, KY. LENGTH: Long
Keaton, of Union City, Ky., is an ace couponer. Each Sunday, she clips coupons and diligently sorts them into categories: frozen food, dry goods, cleaning products, kids' stuff. Every other Friday, she can be found redeeming about 20 of those coupons at the local Kroger or Food Lion. Keaton estimates she redeems $10 to $15 in coupons for each biweekly trip to the grocery store. All-time record: $23 off on a $136 total bill.
She's not alone.
Coupons turn 100 years old this year, and they've never been hotter.
``Coupons help you save each month so you can buy some extra things,'' said Keaton, a diabetes nutritionist for the Fayette County Health Department. ``You get more food or products for your money. I'm saving more money and have more dollars for my grocery budget.''
Manufacturers report that 310 billion coupons were produced last year, or 1,240 coupons for every man, woman and child in the United States. And according to the Bloomberg Business Report, 30 percent of all Americans report that they wouldn't go to the store without them.
``At a time when fads and trends are proliferating, the fact that coupons are celebrating their 100th anniversary is truly a notable accomplishment,'' said John Kalemkerian, executive director of the Promotion Marketing Association of America Inc.
``Coupons are regarded by millions of smart shoppers as a good value that is both easy to use and time efficient. In addition, they greatly assist manufacturers in making consumers and retailers aware of the value of their products.''
In 1895, Asa Candler, the druggist who helped popularize Coca-Cola, began distributing special handwritten tickets offering customers free glasses of Coca-Cola from the soda fountain.
Today, more than 3,000 manufacturers offer coupon discounts on everything from cold cereal and laundry detergent to fast food and services. They are found in advertisements, stores and on product packages. They come in many forms, ranging from glossy, four-color sections inserted in Sunday newspapers to in-store electronic coupons and direct mailings. In fact, if you don't have a coupon for laundry detergent in your wallet, you must be just dying to pay full price. Detergent and cereal are two of the biggest categories.
How much you can save depends on whether you are willing to use different brands or change stores; how organized you are; whether you buy only necessities; whether you keep a list of items that you will need soon; whether you buy a sale item with a coupon; and whether you use coupons on days when supermarkets offer one-and-a-half, double or triple values.
According to a 1995 survey, 71 percent of all consumers report using coupons on a regular basis and more than 6.2 billion were redeemed last year, an increase of 226 percent since 1974.
``The main reason that coupons are so popular is that they increase the financial power that consumers wield at the cash register, and they are an effective tool to help them gain control of their economic futures,'' said Adriane G. Berg, a nationally recognized family financial planning expert and publisher of Wealthbuilder, a family financial newsletter.
Shoppers can save 10 percent of their weekly grocery bill by spending 20 minutes clipping and organizing coupons, studies show.
Using coupons often leads people to plan their purchases and meals before they go to the store, cutting down on time spent at the grocery and discouraging ``impulse'' purchases that can quickly add up. Of course, you might be tempted by a new product, which you weren't planning on buying, simply because you have a cents-off coupon.
``The key to a successful couponing strategy is threefold: Planning your grocery needs; planning your budget; and finally, planning how to generate the most value from your coupons,'' Berg said. ``But all of this planning pays off in the end, because you've managed to save a nice amount of money while shortening your shopping trip.''
About coupons
Free-standing inserts: These are four-color ads with coupons distributed as multipage inserts in Sunday newspapers. They are by far the most popular method for coupon distribution, accounting for 80 percent of all coupon circulation. They are known for their cost efficiency and ability to reach more than 55 million households in a single day.
In-store electronic couponing: Includes coupons that are dispensed at the point of purchase as part of a customer's grocery receipts, as well as instant coupon machines that offer coupons right in grocery aisles.
In-store handouts: Favored by groceries, drugstores and mass merchandisers in major U.S. metropolitan areas, this accounts for 3.5 percent of all coupons distributed.
Newspaper run-of-press: These coupons are printed typically in newspapers' food sections, accounting for 4 percent of all coupons distributed. They offer flexibility and local tie-in capabilities.
Direct mail: Distributed through the postal system in both multiple advertiser and single advertiser formats. Noted for targeting specific audiences.
Source: Knight-Ridder Newspapers
\ Top redeemed coupons
Cold cereal
Soap
Deodorant
Dog food
Laundry detergent
Butter/margarine
Toothpaste
Pain medicine
Soup
Ice cream/frozen yogurt
Source: Knight-Ridder Newspapers
by CNB