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Thursday, April 21, 2011

GANG-CUTTING COUPONS


Have you heard of Gang-Cut Coupons? This may be a new term to some of you. When you stack multiple copies of inserts together and cut them as one it is referred to as gang-cut coupons. With coupon usage on the rise, gang-cut coupons are causing issues for manufacturers and retailers alike.

How does this affect the retailer? When these identically-cut coupons are submitted for redemption, the manufacturer may assume that the coupons have been sold to the consumer, either through a clipping service or e-bay. Manufacturers can refuse to reimburse the store that submitted the coupons. Even if you did buy 20 boxes of cereal and used 20 coupons, if the cereal coupons are gang-cut, meaning each coupon will bear the same cut lines as the one before it, they are flagged and the manufacturer does not have to pay the retailer for it.

What does this mean for us? Basically, manufacturers want to see the resale of coupons ended. That means no more e-bay or coupon clipping services. That is why when you order coupons they state that you are not paying for the coupons but paying for their time. It may come about in the near future that retailers may deny coupons that appear to be gang-cut. I plan on making sure when I cut my coupons they are not cut exactly alike. If I order them on-line, I may re-cut some of the coupons so they don't look like they were all cut together. This assures me that they will be accepted and that the retailer will be reimbursed for them. Maybe I am a little ahead of the game, but I sure don't want to see the retailer not being paid for the coupons because it has been flagged or having them not accept my coupons because they have been cut alike.

This is just something to put in the back of your brain. No stores have ever said anything about this. I think this is something the manufacturers may push. I just want to stay one step ahead and give you the heads up as well.

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