Harsh economic conditions sees coupons boom in the US

By Gabriele Chwallek Dec 8, 2011, 4:06 GMT

Washington - Saving money by using coupons and vouchers has always been a popular pastime in the United States but the current harsh economic climate has seen more and more people pick up a pair of scissors in an effort to make ends meet.

'I don't like paying the full price for things,' says Kimberly Pepper-Hoctor, who spends an average of six hours every Sunday sifting through a mountain of newspapers, direct mail and flyers, and then cutting out coupons.

The 42-year-old from Maryland also combs the internet for offers before then spending every Monday and Wednesday in supermarkets, pharmacies and department stores buying everything from cosmetic towels to toothpaste and toilet paper at a reduced price. Pepper-Hoctor estimates she spends an average of 30 dollars for goods normally worth at least double that.

Coupons have naturally increased in popularity due to the economic crisis but also because of the ever-increasing number of people like Pepper-Hoctor who go to extreme lengths to pick up goods at reduced prices. The internet is full of websites where a devoted community of bargain hunters exchange tips about how and where to get the best deals. The largest of these sites, SlickDeals, has more than 700,000 registered members.

According to Wired Magazine, the number of coupons redeemed in the US dropped from 4.6 billion in 1999 to 2.6 billion in 2008. However, the advent of the recession saw millions of unemployed consumers begin using coupons once again in an effort to cut household costs while retailers rediscovered them as a response to flagging sales.

Internet coupons have been the main engine of growth with the total increasing threefold, with redemptions as a whole growing by 27 per cent in 2009 alone. In 2007, 63 per cent of Americans used coupons regularly, according to the Washington Post, citing NCH Marketing Services. This figure had risen to 78 per cent by 2010 when 330 billion coupons were on offer.

Although NCH reports that fewer coupons were issued in the first half of 2011, consumers have still saved over 2 billion dollars during this period.

Coupons are a true American tradition. Coca-Cola inventor John Pemberton was the first person to use the marketing ploy when bringing his new product to the market in 1886 and the concept caught on quickly. Today, the market is populated by hardcore couponers like Michelle Harrison, who rose to the level of moderator at Hot Coupon World and has learned how to time prices and decipher barcodes.

Harrison has been visiting her local store every day with a selection of coupons. Her objective is to bring home 80 dollars worth of merchandise while spending less than a dollar.

According to Wired, some coupon shoppers have perfected a method called stacking, which involves combining multiple coupons on the same item, generally a manufacturer's coupon with a retailer's.

Pepper-Hoctor is mostly happy with making savings of between 25 and 50 per cent when she goes out shopping. 'Don't expect to be able to get everything for free,' she teaches on her couponing course.

Although Pepper-Hoctor makes a modest income she has always minded the pennies and doesn't have any major financial worries. 'Looking after what you spend has become a way of life,' she says.