How do manufacturers coupons work?

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Isn’t it kind of dickish to give away coupons for your products that stores have to accept? You’re taking away money that should’ve been the stores without their permission, cutting into their profits. Is there a way they’re compensated?

In: Economics

3 Answers

Anonymous 0 Comments

Stores send the coupons to the manufacturer and receive money and/or credit for the products that they sell.

Anonymous 0 Comments

It’s a promotional agreement. Coupons would not exist it they did not lead to more profit.

Edit: coupons lead to increased customers and more of the product being purchased. How often have your purchased something you would typically not have if you didn’t have a coupon?

Anonymous 0 Comments

Stores submit the coupons collected to the manufacturer for reimbursement — hence the name. If it were a store coupon, then it’d be the store losing profit margin.