If you're not among the 94 percent of Americans who use coupons when they shop at the supermarket, drug store, or department store, you're throwing money away.
In 2010, U.S. consumers spent an average of just 10 minutes per week clipping and organizing coupons, but reaped a whopping $3.7 million for their efforts, or approximately $416 per family per year, according to Charles Brown, vice president of marketing at NCH Marketing Services. By doubling the time invested weekly to just 20 minutes, the average shopper could save as much as $1,000, he says. Not too shabby.
To the approximately 2 million viewers of TLC's
Extreme Couponing, a savings of $1,000 may sound like small potatoes. After all, the shoppers featured on the reality show frequently save nearly that much in a weekend of marketing. But their experience is far from typical, and, as the program reminds viewers, takes a commitment of 35 to 40 hours a week – it’s a full-time job. When the C.W. Post Company introduced the first coupons in 1909 to promote breakfast-cereal sales, they never imagined a phenomenon like this.
A recent poll by industry website SupermarketGuru.com found that most consumers are not willing to spend that kind of time on their shopping, no matter the payoff. Nearly 60 percent agreed that saving time is equally important as saving money. Only 10 percent of U.S. consumers consider themselves "avid" couponers, and we can probably assume that most of those are not on the level of the shoppers highlighted on TLC. Another 78 percent of consumers (14 percent more than in 2007, before the economic crisis peaked) say they use coupons regularly.
But Americans still are using coupons, and in great quantities. In fact, there has been a huge recent spike in usage, says Phil Lempert, CEO of SupermarketGuru.com. "This behavior, which started about three years ago, has continued as food prices have continued to rise."
Boomers are especially high users. According to Brown, 93.8 percent of 45- to 54-year-olds use coupons, and 94.7 percent of those age 55 to 64 shop with them. "No matter how you slice it and dice it,” says Brown, there’s a high percentage of coupon use."
Lempert believes that Baby Boomers use coupons with the goal of putting every penny they can toward their retirement. In addition, Lempert stated in an article in The Record, a New Jersey newspaper, "Senior citizens or certainly retirees have the time ... to go through the newspaper or magazines and find the coupons."
Also, he says, there's a much higher incidence of Boomers having to help their kids, putting more pressure on their budgets.
Manufacturers have been producing more coupons than ever before to keep up with this demand. In 2009, they distributed a record-breaking 311 billion coupons via numerous channels; in 2010, that number rose to 332 billion.
Lempert feels that shows like Extreme Couponing have not influenced consumers to any great degree. "I don't think people have learned anything from it," he says. "People are more annoyed that shoppers like this come in and clear all the products off the shelves, leaving none for their fellow consumers."
In addition, says Lempert, retailers have reacted by creating policies to restrict such extreme couponing. "They're limiting the value of coupons allowed, decreasing the number customers can use, and more. They’re hurt considerably by it — the cost of double- or tripling coupons comes out of their coffers." And when retailers costs go up, so do the prices they charge their customers.
If you're looking for more coupons than those available in magazines or your local supermarket circulars, Brown suggests going online. He recommends sites like Coupons.com, RedPlum, SmartSource.com, and Catalina.com. At local retailers' websites, you can also find coupons that don't necessarily make it into the weekly circular. You can also download coupons to the loyalty cards available at all supermarket chains.
Whether you're someone who has hours to spare planning your supermarket trip or someone who only has 20 minutes a week, isn't it about time you started saving more money?
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