Why Do Coupons Exist? | Compound Interested Ep. 4

More than 320 billion paper coupons were distributed in the U.S. last year, but less than .4 percent (yes, that’s four-tenths of 1 percent) of them were redeemed. So why do manufacturers spend valuable resources to make and distribute them?

One big reason: Coupons are a useful weapon in the behind-the-scenes battle manufacturers often wage with retailers to get new products on the shelf.

Catch up on more episodes of Compound Interested:
Watch: “Is organic food a rip-off?” – http://bit.ly/2nX05oz

Watch: “Why so many tech companies are valued at over a billion without making a dime in profit” – http://bit.ly/2mjl4RV

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