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

iStock / WendellandCarolyn
iStock / WendellandCarolyn

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.

Turn Your LEGO Bricks Into a Drone With the Flybrix Drone Kit

Flyxbrix/FatBrain
Flyxbrix/FatBrain

Now more than ever, it’s important to have a good hobby. Of course, a lot of people—maybe even you—have been obsessed with learning TikTok dances and baking sourdough bread for the last few months, but those hobbies can wear out their welcome pretty fast. So if you or someone you love is looking for something that’s a little more intellectually stimulating, you need to check out the Flybrix LEGO drone kit from Fat Brain Toys.

What is a Flybrix LEGO Drone Kit?

The Flybrix drone kit lets you build your own drones out of LEGO bricks and fly them around your house using your smartphone as a remote control (via Bluetooth). The kit itself comes with absolutely everything you need to start flying almost immediately, including a bag of 56-plus LEGO bricks, a LEGO figure pilot, eight quick-connect motors, eight propellers, a propeller wrench, a pre-programmed Flybrix flight board PCB, a USB data cord, a LiPo battery, and a USB LiPo battery charger. All you’ll have to do is download the Flybrix Configuration Software, the Bluetooth Flight Control App, and access online instructions and tutorials.

Experiment with your own designs.

The Flybrix LEGO drone kit is specifically designed to promote exploration and experimentation. All the components are tough and can totally withstand a few crash landings, so you can build and rebuild your own drones until you come up with the perfect design. Then you can do it all again. Try different motor arrangements, add your own LEGO bricks, experiment with different shapes—this kit is a wannabe engineer’s dream.

For the more advanced STEM learners out there, Flybrix lets you experiment with coding and block-based coding. It uses an arduino-based hackable circuit board, and the Flybrix app has advanced features that let you try your hand at software design.

Who is the Flybrix LEGO Drone Kit for?

Flybrix is a really fun way to introduce a number of core STEM concepts, which makes it ideal for kids—and technically, that’s who it was designed for. But because engineering and coding can get a little complicated, the recommended age for independent experimentation is 13 and up. However, kids younger than 13 can certainly work on Flybrix drones with the help of their parents. In fact, it actually makes a fantastic family hobby.

Ready to start building your own LEGO drones? Click here to order your Flybrix kit today for $198.

At Mental Floss, we only write about the products we love and want to share with our readers, so all products are chosen independently by our editors. Mental Floss has affiliate relationships with certain retailers and may receive a percentage of any sale made from the links on this page. Prices and availability are accurate as of the time of publication.

What Is the Insurrection Act?

The Insurrection Act gives the president the authority to address domestic disturbances using the military.
The Insurrection Act gives the president the authority to address domestic disturbances using the military.
Tero Vesalainen/iStock via Getty Images

The use of military forces to address volatile situations normally under the purview of law enforcement within the United States is a very rare occurrence, and for good reason. Troops are legally forbidden to be involved in domestic law enforcement affairs without prior congressional authorization.

One loophole does exist. It’s the Insurrection Act, and it empowers the president to dispatch soldiers to combat an insurrection, civil disturbance, natural disaster, or terrorist attack on American soil. But actually invoking the Insurrection Act is no simple matter.

The Act was introduced in 1807 and gives the president the authority to direct American troops to intervene in state-level civil unrest in the event local authorities are unable to control the disturbance. (It was amended in 2006 following Hurricane Katrina to include disasters and terrorism.) It’s used sparingly, particularly as modern police forces have become more militarized. The last time the Act was invoked was in 1992, when riots following the acquittal of four police officers tried in the beating of Rodney King consumed Los Angeles.

At the time, the California governor requested military forces—and normally, the president would activate federal troops at the behest of a governor or state legislature. According to the Los Angeles Times, one exception for dispatching soldiers without state approval is an indication that states are violating civil rights, as was the case for several U.S. presidents (Dwight Eisenhower, John F. Kennedy, and Lyndon B. Johnson) who used military forces to back desegregation in Southern states. Alternately, the president would have to believe such events are interfering with a state’s ability to enforce their laws.

Put simply: Military forces are typically sent at the request of the state, but a request isn’t necessary if the president believes troops are needed to restore order.

When states believe local police are being overwhelmed, their preference is to use the National Guard, which is authorized to act as law enforcement on domestic soil.

If the Act is used, the president would first have to issue a proclamation ordering those involved in any disturbance to disperse. If that fails, the president would issue an executive order to activate the military. States would then likely argue against the intrusion of such forces. It is not clear, however, that they would have the legal justification to prevent such an action if the president calls for it.

[h/t Los Angeles Times]