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.

Celebrate the Holidays With the 2020 Harry Potter Funko Pop Advent Calendar

Funko
Funko

Though the main book series and movie franchise are long over, the Wizarding World of Harry Potter remains in the spotlight as one of the most popular properties in pop-culture. The folks at Funko definitely know this, and every year the company releases a new Advent calendar based on the popular series so fans can count down to the holidays with their favorite characters.

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Right now, you can pre-order the 2020 edition of Funko's popular Harry Potter Advent calendar, and if you do it through Amazon, you'll even get it on sale for 33 percent off, bringing the price down from $60 to just $40.

Funko Pop!/Amazon

Over the course of the holiday season, the Advent calendar allows you to count down the days until Christmas, starting on December 1, by opening one of the tiny, numbered doors on the appropriate day. Each door is filled with a surprise Pocket Pop! figurine—but outside of the trio of Harry, Hermione, and Ron, the company isn't revealing who you'll be getting just yet.

Calendars will start shipping on October 15, but if you want a head start, go to Amazon to pre-order yours at a discount.

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Why Do We Say 'Trick or Treat' on Halloween?

"Give us candy, or else!"
"Give us candy, or else!"
kali9/iStock via Getty Images

Each Halloween, hordes of costumed kids trudge from door to door exclaiming the same phrase at each stop: “Trick or treat!” It’s really a treat-only affair, since adults always shell out candy and children rarely have tricks up their sleeves (except perhaps for those dressed as magicians). In other words, they may as well save half a breath and simply shout “Treat!”

So, where did the term come from?

Halloween Hijinks

Halloween wasn’t always about cosplay and chocolate bars. During the 19th century, Irish and Scottish children celebrated the holiday by wreaking (mostly harmless) havoc on their neighbors—jamming hot cabbage into a keyhole to stink up someone’s house, frightening passersby with turnips carved to look ghoulish, etc.

According to History.com, kids didn’t give up that annual mischief when they immigrated to the U.S., and Americans happily co-opted the tradition. Toppled outhouses and trampled vegetable gardens soon gave way to more violent hijinks—like the time a Kansas woman almost died in a car crash after kids rubbed candle wax on streetcar tracks, for example—and these pranks escalated during the Great Depression.

Almost as terrifying as a turnip.London Stereoscopic Company/Hulton Archive/Getty Images

In short, tricks were a huge part of Halloween throughout the early 20th century. So, too, were treats. For All Souls’ Day in the Middle Ages, people went door-to-door offering prayers for the dead in exchange for food or money, a tradition known as souling. A similar custom from 19th-century Scotland, called guising, entailed exchanging jokes or songs for goodies. While it’s not proven that modern treat-begging is directly derived from either souling or guising, the practice of visiting your neighbors for an edible handout around Halloween has existed in some form or another for centuries.

Canada Coins a Catchphrase

With tricks and treats on everyone’s minds come October, it was only a matter of time before someone combined them into a single catchphrase. Based on the earliest known written references to trick or treat, this may have happened in Canada during the 1920s. As Merriam-Webster reports, a Saskatchewan newspaper first mentioned the words together in an article from 1923. “Hallowe’en passed off very quietly here,” it read. "'Treats' not 'tricks' were the order of the evening." By 1927, young trick-or-treaters had adopted the phrase themselves.

"Hallowe’en provided an opportunity for real strenuous fun," Alberta’s Lethbridge Herald reported in 1927. "No real damage was done except to the temper of some who had to hunt for wagon wheels, gates, wagons, barrels, etc., much of which decorated the front street. The youthful tormentors were at back door and front demanding edible plunder by the word 'trick or treat,' to which the inmates gladly responded and sent the robbers away rejoicing."

The phrase appeared in Michigan’s Bay City Times the following year, describing how children uttered "the fatal ultimatum 'Tricks or treats!'" to blackmail their neighbors into handing out sweets.

Donald Duck's Endorsement

Sugar rationing brought trick-or-treating to a temporary halt during World War II, but the tradition (and the phrase itself) had gained popularity once again by the early 1950s—with some help from candy companies and a few beloved pop culture characters. Charles Schulz depicted the Peanuts gang cavorting around town in costume for a Halloween comic strip in 1951; and Huey, Dewey, and Louie got to go trick-or-treating in a 1952 Donald Duck cartoon titled Trick or Treat.

Fortunately, the treat part of the phrase has thoroughly overtaken the trick part. But if you stuff rank cabbage in your neighbor’s keyhole this Halloween, we won’t tell.

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