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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 Do Cats Freak Out After Pooping?
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Cats often exhibit some very peculiar behavior, from getting into deadly combat situations with their own tail to pouncing on unsuspecting humans. Among their most curious habits: running from their litter box like a greyhound after moving their bowels. Are they running from their own fecal matter? Has waste elimination prompted a sense of euphoria?

Experts—if anyone is said to qualify as an expert in post-poop moods—aren’t exactly sure, but they’ve presented a number of entertaining theories. From a biological standpoint, some animal behaviorists suspect that a cat bolting after a deposit might stem from fears that a predator could track them based on the smell of their waste. But researchers are quick to note that they haven’t observed cats run from their BMs in the wild.

Biology also has a little bit to do with another theory, which postulates that cats used to getting their rear ends licked by their mother after defecating as kittens are showing off their independence by sprinting away, their butts having taken on self-cleaning properties in adulthood.

Not convinced? You might find another idea more plausible: Both humans and cats have a vagus nerve running from their brain stem. In both species, the nerve can be stimulated by defecation, leading to a pleasurable sensation and what some have labeled “poo-phoria,” or post-poop elation. In running, the cat may simply be working off excess energy brought on by stimulation of the nerve.

Less interesting is the notion that notoriously hygienic cats may simply want to shake off excess litter or fecal matter by running a 100-meter dash, or that a digestive problem has led to some discomfort they’re attempting to flee from. The fact is, so little research has been done in the field of pooping cat mania that there’s no universally accepted answer. Like so much of what makes cats tick, a definitive motivation will have to remain a mystery.

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
Why Do Baseball Managers Wear Uniforms?
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Basketball and hockey coaches wear business suits on the sidelines. Football coaches wear team-branded shirts and jackets and often ill-fitting pleated khakis. Why are baseball managers the only guys who wear the same outfit as their players?

According to John Thorn, the official historian of Major League Baseball since 2011, it goes back to the earliest days of the game. Back then, the person known as the manager was the business manager: the guy who kept the books in order and the road trips on schedule. Meanwhile, the guy we call the manager today, the one who arranges the roster and decides when to pull a pitcher, was known as the captain. In addition to managing the team on the field, he was usually also on the team as a player. For many years, the “manager” wore a player’s uniform simply because he was a player. There were also a few captains who didn’t play for the team and stuck to making decisions in the dugout, and they usually wore suits.

With the passing of time, it became less common for the captain to play, and on most teams they took on strictly managerial roles. Instead of suits proliferating throughout America’s dugouts, though, non-playing captains largely hung on to the tradition of wearing a player's uniform. By the early to mid 20th century, wearing the uniform was the norm for managers, with a few notable exceptions. The Philadelphia Athletics’s Connie Mack and the Brooklyn Dodgers’s Burt Shotton continued to wear suits and ties to games long after it fell out of favor (though Shotton sometimes liked to layer a team jacket on top of his street clothes). Once those two retired, it’s been uniforms as far as the eye can see.

The adherence to the uniform among managers in the second half of the 20th century leads some people to think that MLB mandates it, but a look through the official major league rules [PDF] doesn’t turn up much on a manager’s dress. Rule 1.11(a) (1) says that “All players on a team shall wear uniforms identical in color, trim and style, and all players’ uniforms shall include minimal six-inch numbers on their backs" and rule 2.00 states that a coach is a "team member in uniform appointed by the manager to perform such duties as the manager may designate, such as but not limited to acting as base coach."

While Rule 2.00 gives a rundown of the manager’s role and some rules that apply to them, it doesn’t specify that they’re uniformed. Further down, Rule 3.15 says that "No person shall be allowed on the playing field during a game except players and coaches in uniform, managers, news photographers authorized by the home team, umpires, officers of the law in uniform and watchmen or other employees of the home club." Again, nothing about the managers being uniformed.

All that said, Rule 2.00 defines the bench or dugout as “the seating facilities reserved for players, substitutes and other team members in uniform when they are not actively engaged on the playing field," and makes no exceptions for managers or anyone else. While the managers’ duds are never addressed anywhere else, this definition does seem to necessitate, in a roundabout way, that managers wear a uniform—at least if they want to have access to the dugout. And, really, where else would they sit?

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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