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.

What Do the Terms on Energy-Saving Light Bulbs Mean?

Scott Olson, Getty Images
Scott Olson, Getty Images

There's a reason your parents used to scold you for not turning off a light when you left a room. According to the U.S. Department of Energy, an average American household uses up to 5 percent of their total energy expenditure on lighting. Living rooms get flooded with light. Dining rooms and dens are full of lighting accents. Motion lights, hallway lights, bathroom vanity lights, lamps—we like our lives to be nice and bright.

Fortunately, energy-saving lighting sources have largely replaced the conventional incandescent bulbs that once used up a substantial amount of power. Those bulbs heated up a coil, or filament, of tungsten wire that gave off light. Roughly 90 percent of the energy they passed on was in the form of heat, which siphoned off energy and kept utility bills inflated. Today's bulbs brighten without the waste. That's the good news. The bad? The varieties of bulbs can be confusing. If you've ever been lost in the fixtures section of the hardware store, here's a quick primer on what these terms mean.

Halogen Incandescent:

These are incandescent light bulbs that contain a halogen gas-filled capsule around the filament to help increase energy efficiency. While cheaper to operate than a conventional incandescent bulb—they use 25 to 30 percent less energy—they don't produce as much of a cost savings as other options. On the plus side, they reach full brightness immediately. Other choices may take time to warm up.

Compact Florescent Lamp (CFL):

When you see a coiled light bulb, it’s likely to be a CFL, which is simply a downsized version of the tubular florescent lighting seen in commercial spaces. Instead of an electric current traveling through a filament like in an incandescent bulb, the current goes through a tube containing argon and mercury vapor. The resulting ultraviolet light activates phosphor inside the tube, which emits light. It uses one-third of the energy of a halogen incandescent. The downside? They can take a little time to warm up, especially if used outdoors. They also contain mercury, a potential health hazard if the bulb breaks. (See the "mercury" entry below.)

Light Emitting Diode (LED):

This type of bulb uses a semiconductor to convert electricity into light. In addition to being energy-efficient, they usually last eight to 25 times longer than halogen incandescent bulbs and four to eight times longer than CFLs—perhaps as long as 18 to 46 years. You'll probably pay more up front, but the expense is offset by their durability. Most LEDs are compatible with dimming switches, too. Most CFLs aren't, so if that's important to you, you'll want to stick with LED.

Energy Star:

A bulb with an Energy Star label was evaluated by a third party to make sure its energy-saving claims are accurate, and they'll typically have a longer warranty than bulbs without the endorsement.

But what about the "nutritional label" style information box that appears on light bulb packaging? Let's take a closer look.

An example of a label that appears on energy-efficient light bulb packaging is pictured
Federal Trade Commission

Brightness:

You have probably inferred that brightness refers to the light output given off by a bulb. This is measured in lumens and rounded off to the nearest five. (A bulb will never be 822 lumens. It's 820.) The higher the number, the brighter the bulb. Since you're probably used to shopping by wattage, consider that a bulb with 800 lumens is roughly the equivalent of a 60-watt incandescent. A 1100 lumen bulb will resemble a 75-watt bulb.

Estimated Energy Cost:

This is a rough estimate of much it will cost an average household to operate the bulb. What's average? The wattage of the bulb is calculated with three hours of daily operation at a cost of 11 cents per kilowatt. Your actual cost will go up or down whether you use it more or less or pay your energy supplier a different amount.

Life:

This is how long the bulb is expected to last based on the same usage estimated for the energy cost and rounded to the nearest tenth of a year.

Light Appearance:

This refers to the color temperature of the bulb measured in Kelvin, a temperature scale measuring light color. The range is from 2600 K (yellow and warm) to 6600 K (blue and cool). Bright white is about 3500 K. You should probably avoid anything above 3000 K for any interior room.

Energy Used:

This is how much energy the bulb will require and is measured in watts. The lower the wattage, the cheaper it costs to operate. This is where the energy savings materializes, as a 10-watt LED bulb may give off as much light as an old 60-watt incandescent.

Color Rendering Index (CRI):

It's not on all bulb packaging, but if you see it, it refers to how accurate colors will appear under the bulb's light on a scale of 0 to 100. Halogen incandescent bulbs score high. CFLs and LEDs aren't quite as accurate, though they may still get the job done. Try to get a high CRI if you'll be using the bulbs in a bathroom, as skin tone can appear off with lower CRI numbers.

Mercury:

You might see some CFL bulb packaging with a mercury disclosure. This isn't an issue if the bulb remains intact, but if it breaks, it might release potentially hazardous mercury vapor and the introduce the very small possibility of mercury poisoning. Avoid using CFL bulbs in kids' rooms if there's potential for knocking over a lamp or light. Broken bulbs that contain mercury should be cleaned up by following Environmental Protection Agency guidelines—picked up with tape, not vacuumed—and disposed of properly. Old bulbs should be recycled.

Does the Full Moon Really Make People Act Crazy?

iStock.com/voraorn
iStock.com/voraorn

Along with Mercury in retrograde, the full moon is a pretty popular scapegoat for bad luck and bizarre behavior. Encounter someone acting strangely? Blame it on the lunar phases! It's said that crime rates increase and emergency rooms are much busier during the full moon (though a 2004 study debunked this claim). Plus, there's that whole werewolf thing. Why would this be? The reasoning is that the Moon, which affects the ocean's tides, probably exerts a similar effect on us, because the human body is made mostly of water.

This belief that the Moon influences behavior is so widely held—reportedly, even 80 percent of nurses and 64 percent of doctors think it's true, according to a 1987 paper published in the Journal of Emergency Medicine [PDF]—that in 2012 a team of researchers at Université Laval's School of Psychology in Canada decided to find out if mental illness and the phases of the Moon are linked [PDF].

To test the theory, the researchers evaluated 771 patients who visited emergency rooms at two hospitals in Montreal between March 2005 and April 2008. The patients chosen complained of chest pains, which doctors could not determine a medical cause for the pains. Many of the patients suffered from panic attacks, anxiety and mood disorders, or suicidal thoughts.

When the researchers compared the time of the visits to the phases of the Moon, they found that there was no link between the incidence of psychological problems and the four lunar phases, with one exception—in the last lunar quarter, anxiety disorders were 32 percent less frequent. "This may be coincidental or due to factors we did not take into account," Dr. Geneviève Belleville, who directed the team of researchers, said. "But one thing is certain: we observed no full-moon or new-moon effect on psychological problems."

So rest easy (or maybe not): If people seem to act crazy during the full Moon, their behavior is likely pretty similar during the rest of the lunar cycle as well.

This story was updated in 2019.

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