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Wealthy Clip, Use Coupons

By GREGORY KARP
July 13, 2008

The most avid coupon users are not who you might expect, a recent study shows.

A study of consumers by coupon research firm CMS Inc. revealed several seemingly counterintuitive findings. Although the study is meant to help manufacturers and marketers use coupons more effectively, the results have a number of implications for consumers.

Coupon users tend to be women, but they also tend to be middle- to upper-class white shoppers with higher education levels than non-coupon users. The study is quick to say that people in other demographic groups aren't against using coupons, but marketers aren't reaching them effectively.

Using coupons can be a fundamental weapon in the battle to spend smarter, but use has declined steadily for 25 years. Manufacturers in 2007 offered savings through 302 billion coupons at an average face value of $1.28 each. The number of coupons redeemed? A mere 2.6 billion, or less than 1 percent.

Using coupons might take about 20 to 30 minutes a week for savings of 10 percent to 15 percent off your grocery bill. The government says the average family of four spends a combined $6,000 a year on food at home, housekeeping supplies, personal-care products and non-prescription drugs, all product categories that offer coupons. That's a potential annual savings of $600 to $900 from coupons. Here are a few findings from the 2007 CMS Consumer Study:

Smart People Use Coupons
Coupon use increases with consumer education levels. The most avid users are those with bachelor's and master's degrees. Part of the reason is that educated people are more likely to receive the Sunday newspaper, where the majority of coupons are available, and be on the Internet, another source of coupons.

Wealthy People Use Coupons
This is a corollary to the education level, as more education typically leads to higher income. The biggest users of coupons? Households with incomes of $150,000 or more, according to CMS.

In his study of millionaires, Thomas Stanley, author of "The Millionaire Next Door," found that "being frugal is the cornerstone of wealth-building." He tells the story of a millionaire who approached his wife, who was sitting at the kitchen table clipping coupons from the newspaper. He surprised her with a gift of $8 million worth of stock in a company he just took public.

"I appreciate this. I really do," she told him as she returned to clipping coupons for 25 cents and 50 cents off.

Coupons Useful For Stockpiling
About 28 percent of coupons require multiple purchases, the CMS study found, such as save $1 on two items. That can be especially good if the non-perishable items also are on sale, which often requires a customer loyalty card.

Using coupons and sales in tandem can save significant money. Sometimes you will receive products half off or free. Learn more at The Coupon Mom (couponmom.com), which is free, and TheGroceryGame.com, which charges a small fee.