Why Do Coupons Exist? | Compound Interested Ep. 4
More than 320 billion paper coupons were distributed in the U.S. last year, but less than .4 percent (yes, that’s four-tenths of 1 percent) of them were redeemed. So why do manufacturers spend valuable resources to make and distribute them?
One big reason: Coupons are a useful weapon in the behind-the-scenes battle manufacturers often wage with retailers to get new products on the shelf.
Catch up on more episodes of Compound Interested:
Watch: "Is organic food a rip-off?" - http://bit.ly/2nX05oz
Watch: "Why so many tech companies are valued at over a billion without making a dime in profit" - http://bit.ly/2mjl4RV
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More than 320 billion paper coupons were distributed in the U.S. last year, but less than .4 percent (yes, that’s four-tenths of 1 percent) of them were redeemed. So why do manufacturers spend valuable resources to make and distribute them?
One big reason: Coupons are a useful weapon in the behind-the-scenes battle manufacturers often wage with retailers to get new products on the shelf.
Catch up on more episodes of Compound Interested:
Watch: “Is organic food a rip-off?” – http://bit.ly/2nX05oz
Watch: “Why so many tech companies are valued at over a billion without making a dime in profit” – http://bit.ly/2mjl4RV
Subscribe to VICE News here: http://bit.ly/Subscribe-to-VICE-News
Check out VICE News for more: http://vicenews.com
Follow VICE News here:
Facebook: https://www.facebook.com/vicenews
Twitter: https://twitter.com/vicenews
Tumblr: http://vicenews.tumblr.com/
Instagram: http://instagram.com/vicenews
More videos from the VICE network: https://www.fb.com/vicevideo
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I always forget the coupon at home!
coupon for toilet paper , i glady use it anytime
i haven't been to a physical store for anything other than food, in almost two years. physical is dead, digital is in.
whats the second song?!?!? I am getting sick and tired of people grabbing music and not giving credit to the artists… I want to listen to that song and now I can't find it?!?!?! what kind of shit is that
All I know is that these people need some help there heads are WAY to small for there body's
Wow, When is saving money a bad thing??
Stop copying Vox.
there are more reasons why coupons exist. It's called price discrimination. The physical act of cutting out a paper coupon, adhering to the sale dates as well as actually bringing the coupon to the store in question, producers gain valuable information of peoples willingness to buy their product. A producer will make money provided they sell their product at above marginal cost. At the same time it is impossible to sell the largest quantity of goods at a single price. Even if you lower the prices significantly, there are people who want to buy luxury goods, for example, at high prices. By offering coupons and other forms of price discrimination, a producer can sell more of their product at different price points, catering to a larger variety of preferences. heres a coupon for a potato
Interesting
Loved the animations
The quality of your content is falling RAPIDLY across all channels…
Vice News, you are a great news outlet that I wish was more widely available. Please don't dilute your quality news with this kind of sponsored content.
If you're buying something that you wouldn't have bought otherwise if you didn't have a coupon, you're not saving money. This seems to be a concept that a lot of people I know don't realize lol.
Why does vice exist??