Coupon Quicksand: Don’t Get Sucked In
28 July 2006One of the worst potential problems that anyone looking to save money can get trapped in has to do with clipping coupons. That may sound a little strange to some of you at first - how can it be a financial PROBLEM that I’m clipping coupons? I’m saving money, right?
Actually, not always - sometimes you’re losing it. To understand why, you have to think about why a company would issue a coupon in the first place. They don’t do it because they have some desire to make the world a better place by giving stressed out housewives an extra 30 cents off dish cleaners. They do it because they know people will be more likely to buy their product if they convince themselves they’re saving money. Coupons exist because companies know you will use the coupon to rationalize buying the product.
If you think about the way many people clip coupons, this becomes obvious. They look through a big pack of them, and what are they doing? They’re shopping. They’re looking through the book, finding products they want to buy, and clipping out the coupon to convince themselves they’re saving money by doing it. The company has reeled in a buyer before the person has even gone to the store. When you get to the store, you may not bother to look and find out that the generic store brand is $1.00 cheaper even after the coupon. It is a pretty basic rule of thumb that coupons only exist for the pricier name brands. It’s also true that in most cases you would have been better off financially just getting the cheapest thing in the store without even clipping the coupons - or shopping at stores like Sam’s that discount everything anyway. If you’re doing this, you’ve let yourself get sucked in - you want that 40 cents off so badly you’re willing to spend 80 cents more to get it.
So how do you avoid this trap? First of all, only clip coupons for things you buy regularly anyway. Don’t decide to buy a product because you found a coupon for it. Second, if you’re thinking about doing that, always make the final decision in the store. Be willing to crumple up the coupon and throw it away if you find a cheaper version of the same thing. After all, if your motivation is to save money, why would you buy a new product you’ve never used before if there’s something dependable and cheap right next to it? Third, it can be a good idea to come up with a “coupon list.” This is a list of coupons you look for each week when you’re clipping them. Go through the stuff you have in your house and list everything you want to buy again, regardless of whether there’s a cheaper store brand. Don’t treat those little newspaper inserts like it’s a shopping trip. Clip only what’s on your list. The coupons are there to save you money on the stuff you buy anyway because you value the quality more than a price cut - if you find coupons on the list, great. If not, don’t fret about it - and don’t go looking for something else if it’s going to end up costing you more even after the coupon.
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