Do stores lose money when accepting coupons?

Extreme Couponing Tip: 8¢ Handling Fee

Extreme Couponing Tip: 8¢ Handling Fee

“I was wondering if you would do a post about the coupon redemption process on the retailer side of things and exactly what the 8 cent ‘handling fee’ really is.” – Natalie S.

• Manufacturer coupons include a handling fee, usually $0.08, to cover the cost of shipping, sorting, and handling.
  • If a small grocery store handles, sorts, totals, and invoices the manufacturer on its own, that stores keeps the handling fee in addition to the coupon value as reimbursed by the manufacturer.
  • If a store uses a clearinghouse for the coupon work, the clearinghouse cost is covered by the handling fee, and the store is reimbursed for the coupon’s face value. Some larger grocery stores still get a portion of the handling fee back from the clearinghouse.
• A common misconception about retailers is that they either lose or make a substantial amount of money by accepting coupons.
  • Because of the cost of shipping and handling (and the clearinghouse fees, when applicable), stores break even a majority of the time.
  • One main reason that stores accept and encourage coupon use is to get you in their doors with the hope that you will also purchase additional products at full retail price or pick up extra things that weren’t on your list (which is effective in most cases).

Thanks, thekrazycouponlady