Coupon Math is not the math you learned in school where 1 + 1 = 2. In terms of coupon deals, an item is “free” when you pay $10 at the register and earn $10 in rewards. For deals like this I try very hard to say “Free after rewards” but I am sure sometimes in my haste to bring you a deal I will fail & for that I apologize.
Here is an example of a coupon deal I saw posted in a braggers lounge (where couponers post their deals):
Transaction #1:
Bought Product X
Used a Coupon
Used $5 store rewards from last week
Paid $5 OOP
Got $5 store rewards= FREE
Transaction #2:
Bought Product Y
Used a Coupon
Used $5 Store rewards from previous transaction
Paid $5 OOP
Got $5 Store rewards= FREE
I got BOTH products FREE!
That math just doesn’t add up!
Cash paid out: $10
Rewards received: $5
Even in coupon math they still “spent” $5 after rewards.
Where did the math go wrong? They double counted their rewards. They counted the rewards redeemed AND rewards earned.
This might not seem like a big deal but instead of leaving thinking they spent $10 (which was their actual cash payment) they thought everything was FREE. Would they have purchased it if they realized it would actually cost $10? Maybe not.
It gives an understated view of what was spent. This is where we can get in trouble with our couponing. If we use coupon math we think we’re getting all those lotions, shampoo, etc for free but don’t realize that we’re using flawed math. Counting rewards and rebates twice puts us on a slippery slope where our coupon math doesn’t match our bank accounts.
How to avoid this: Consistency
Pick one method or the other. Count your rewards when you receive them or count them when you redeem them. There is no right way but it must be consistent always.
Since I like to focus on what I SPEND rather than what I SAVE- I prefer to calculate my rewards when they are used- because that is when they are beneficial to me. That’s when they make a dent on my spending. Plus if I earn a reward and count it then- what if I lose it? Or it expires? Then I’ve counted “money” that I never even got to use so it was a false calculation to me. A “free” item after $5 reward really isn’t “free” if that $5 reward gets lost and you cannot use it. That’s one reason it’s better for me to calculate them when redeemed- if it’s lost it’s never been used to make a “free” deal – I still lost the money but it doesn’t throw off my balance. I treat rebates the same way- I calculate them when they are received not when I fulfill them.
Which way do you prefer- counting when redeemed or when earned?
I think of them as a coupon. That way I know what I am spending oop and I am not suprized on how high it is.
I love this post, cause I has to learn this the hard way as a new couponer, and I have been guilty of spending the rewards on junk cause they were going to expire, and there wasn’t anything in stock that I actually wanted to use it on…. So in a way it’s wasted money!!! Rite aid was a tough store to learn this at, lol!!!! I got REALLY cheap shampoo(because of a $10 up reward), but don’t ever really shop there, so two weeks later I redeem it but not on anything good, I spent it cause it was going to expire if I didn’t, so that’s like a wasted $10
With this in mind I kinda use it both ways, depending on the situation, sometimes I’ll look at it with an after the “rewards” total only if I know I’m going to be spending that same cash for something else, if the cash is already going to the other item (ie sodas), why not spend it first on the GC promo, then use the gift card for the sodas, it’s like spending the same $5 twice 🙂 …… But I still get to claim I got it (ie St. Ives) for less than $1 each, and the sodas I just got at the sale price… I’m with you that there isn’t a wrong way just to be consistent…. I couldn’t say I saved on the sodas cause that would be double dipping…. And the rewards drive you to spend money, an example, the Epsom lotion ($8?) Register rewards???? That’s now an $8 coupon that I have to come up with $8 of something else to buy, it works when you have something to “roll” it into, but without that, you just have lots of filler items…
A con to ALWAYS counting them at redemption us you also should look out for money makers that result because of a “rewards” , ie aquafresh kids toothpaste, I wouldn’t be worth buying @$3-$4, but now it’s worth it cause it’s a gc that i will definitly use and makes for a great Christmas item for my neices (I suggests give them toiletries (bubble bath, princess toothbrush, bath toy, etc)…
Sorry for the lengthy comment 🙂
Also sorry for the grammer/typos!!!!
Wonderful points! We shouldn’t stop looking for “freebies” but just realize that they aren’t really free at the register!