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Why Are Coupons Worth 1/100th of a Cent?

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The next time a coupon shows up in your mail, take a look at the fine print. There’s a pretty good chance it will read something to the effect of “Cash Value 1/100th of a cent.” Why in the world is that writing on there? And are 10,000 copies of this coupon really worth a whole dollar? Let’s take a look at this coupon quirk.

Putting a Stamp on Customer Loyalty

Before we can answer the coupon-value question, we need to take a peek into a seemingly unrelated footnote in the history of commerce. Let’s talk about the mostly forgotten practice of businesses handing out trading stamps with purchases.

Trading stamps first found their way into merchants’ registers in the 1890s. When customers made a purchase, stores would given them stamps that reflected how much they had spent; a common exchange rate was one stamp for every dime spent on merchandise. Once a customer had saved up enough stamps – often over a thousand – they could swap them for something from the stamp company’s catalog, like a toaster or a clock.

The trading stamps were a runaway success. Supermarkets, gas stations, and department stores would advertise that they gave away a certain brand of stamps to help lure customers in, and the customers could then lick and paste their saved stamps to get “free” merchandise. Everyone was happy, and the system flourished. At one point in the 1960s, S&H Green Stamps printed more stamps each year than the Postal Service did. The circulation of the company’s catalog topped 30 million. The big stamp makers like S&H even built brick-and-mortar “redemption center” stores around the country.

As any economist worth his cost function can tell you, though, the toasters and vacuum cleaners that customers got weren’t free at all. Merchants had to pay for the stamps they gave away, and the cost of the stamp obviously got passed along to the customer in the form of higher prices.

Even in the early days, it didn’t take long for customers to figure out that the system wasn’t quite as rosy as merchants made it out to be. By 1904 New York had enacted laws that forced stamp makers to put a cash face value on each stamp that would enable consumers to bypass catalog redemptions and get money back for their stamps. Other states followed suit.

As one might guess, the individual stamps didn’t get princely face values. A 1904 New York Times piece noted that most stamp makers were given the value of “one mill,” or 1/10th of a cent. That valuation meant that a customer with a full book of 1,000 stamps could redeem it for a dollar. The same piece noted, though, that a customer who used the stamp makers’ catalogs could probably get an item worth three or four dollars for the same number of stamps, so the cash-redemption idea never really took off with most shoppers.

What happened to trading stamps? Their popularity peaked in the 1960s when nearly 80 percent of American households saved stamps, but within a decade the craze had died. Manufacturer coupons that shaved money off of items’ prices became more popular as inducements to get shoppers into stores, and the fuel crisis of the early 1970s sapped away the stamps’ large market at gas stations.

So What Does All This Have to Do With Coupons?

At first glance, coupons and trade stamps wouldn’t seem to have all that much in common. After all, coupons lower the price of an item, while the beef with trade stamps was that they passed a hidden (and often unwanted) cost along to consumers. But some states legally lump trade stamps and coupons in together, so coupons distributed in these states have to bear some printed cash redemption value.

According to the Association of Coupon Professions, only three states require this declaration of redemption value: Indiana, Utah, and Washington. Since many coupons are designed for national distribution, though, the redemption value ends up printed on all of them. As with the old trade stamps, it doesn’t really matter how infinitesimal the stated value is as long as it’s not zero. Thus, you see coupons that are worth 1/10th, 1/20th, or 1/100th of a cent.

So Can I Round Up 20 Coupons and Get a Penny?

In theory, yes. It’s hard to find reliable, concrete examples of someone schlepping in a hundred coupons to swap them out for a penny, but the web is full of anecdotes in which people “test the fine print” by trading in a giant stack of coupons for their face value at the supermarket. In all likelihood, though, you’d need to mail the coupons to the issuing company, which is a pretty lousy financial proposition given the price of stamps.

If you’re sitting on a big pile of Shake N Bake coupons, you might as well give it a try; your supermarket will probably gladly surrender a penny to ensure you don’t make a scene.

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Big Questions
Why Can't Dogs Eat Chocolate?
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Even if you don’t have a dog, you probably know that they can’t eat chocolate; it’s one of the most well-known toxic substances for canines (and felines, for that matter). But just what is it about chocolate that is so toxic to dogs? Why can't dogs eat chocolate when we eat it all the time without incident?

It comes down to theobromine, a chemical in chocolate that humans can metabolize easily, but dogs cannot. “They just can’t break it down as fast as humans and so therefore, when they consume it, it can cause illness,” Mike Topper, president of the American Veterinary Medical Association, tells Mental Floss.

The toxic effects of this slow metabolization can range from a mild upset stomach to seizures, heart failure, and even death. If your dog does eat chocolate, they may get thirsty, have diarrhea, and become hyperactive and shaky. If things get really bad, that hyperactivity could turn into seizures, and they could develop an arrhythmia and have a heart attack.

While cats are even more sensitive to theobromine, they’re less likely to eat chocolate in the first place. They’re much more picky eaters, and some research has found that they can’t taste sweetness. Dogs, on the other hand, are much more likely to sit at your feet with those big, mournful eyes begging for a taste of whatever you're eating, including chocolate. (They've also been known to just swipe it off the counter when you’re not looking.)

If your dog gets a hold of your favorite candy bar, it’s best to get them to the vet within two hours. The theobromine is metabolized slowly, “therefore, if we can get it out of the stomach there will be less there to metabolize,” Topper says. Your vet might be able to induce vomiting and give your dog activated charcoal to block the absorption of the theobromine. Intravenous fluids can also help flush it out of your dog’s system before it becomes lethal.

The toxicity varies based on what kind of chocolate it is (milk chocolate has a lower dose of theobromine than dark chocolate, and baking chocolate has an especially concentrated dose), the size of your dog, and whether or not the dog has preexisting health problems, like kidney or heart issues. While any dog is going to get sick, a small, old, or unhealthy dog won't be able to handle the toxic effects as well as a large, young, healthy dog could. “A Great Dane who eats two Hershey’s kisses may not have the same [reaction] that a miniature Chihuahua that eats four Hershey’s kisses has,” Topper explains. The former might only get diarrhea, while the latter probably needs veterinary attention.

Even if you have a big dog, you shouldn’t just play it by ear, though. PetMD has a handy calculator to see just what risk levels your dog faces if he or she eats chocolate, based on the dog’s size and the amount eaten. But if your dog has already ingested chocolate, petMD shouldn’t be your go-to source. Call your vet's office, where they are already familiar with your dog’s size, age, and condition. They can give you the best advice on how toxic the dose might be and how urgent the situation is.

So if your dog eats chocolate, you’re better off paying a few hundred dollars at the vet to make your dog puke than waiting until it’s too late.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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Big Questions
What is Duck Sauce?
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A plate of Chinese takeout with egg rolls and duck sauce
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We know that our favorite Chinese takeout is not really authentically Chinese, but more of an Americanized series of menu options very loosely derived from overseas inspiration. (Chinese citizens probably wouldn’t recognize chop suey or orange-glazed chicken, and fortune cookies are of Japanese origin.) It would also be unusual for "real" Chinese meals to be accompanied by a generous amount of sauce packets.

Here in the U.S., these condiments are a staple of Chinese takeout. But one in particular—“duck sauce”—doesn’t really offer a lot of information about itself. What exactly is it that we’re pouring over our egg rolls?

Smithsonian.com conducted a sauce-related investigation and made an interesting discovery, particularly if you’re not prone to sampling Chinese takeout when traveling cross-country. On the East Coast, duck sauce is similar to sweet-and-sour sauce, only fruitier; in New England, it’s brown, chunky, and served on tables; and on the West Coast, it’s almost unheard of.

While the name can describe different sauces, associating it with duck probably stems from the fact that the popular Chinese dish Peking duck is typically served with a soybean-based sauce. When dishes began to be imported to the States, the Americanization of the food involved creating a sweeter alternative using apricots that was dubbed duck sauce. (In New England, using applesauce and molasses was more common.)

But why isn’t it easily found on the West Coast? Many sauce companies are based in New York and were in operation after Chinese food had already gained a foothold in California. Attempts to expand didn’t go well, and so Chinese food aficionados will experience slightly different tastes depending on their geography. But regardless of where they are, or whether they're using the condiment as a dipping sauce for their egg rolls or a dressing for their duck, diners can rest assured that no ducks were harmed in the making of their duck sauce.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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