Economic Shock Gives Boost to Coupon Firms

Florida coupon franchisor Valpak discusses with CNN how coupon cutting, introduced by product franchisor Coca-Cola over a century ago, is becoming popular again. The increased use of coupons coincides with the rising price of consumer goods and the prospects of recession.

Florida-based Valpak, whose signature blue envelopes land in about 45 million homes each year, has seen use of its coupons increase 8 percent since last year for products such as groceries, take-out food, home improvement products and specialty retail.

"Coupons motivate customers when they're looking at different stores that offer the same goods. They're more likely to go with a store that offers coupons," Valpak spokeswoman Marsha Strickhouser said.

Compare the 8 percent rise with the numbers from Charles Brown, co-chair of the Promotion Marketing Association's Coupon Council. "Couponing," as Brown calls it, has risen in dollar stores and convenience marts by 14 percent since last year, even as the use of coupons as a marketing tool has declined in packaged goods.

Coupon franchises are not alone in claiming that their products have a negative relationship with the economy. That is to say when the economy goes down these franchises boom. Cartridge World, a refilling service for ink cartridges, expects sales to increase as well when the economy takes a dive.

Read full article at CNN.com