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.

Where Did the Term Brownie Points Come From?

bhofack2/iStock via Getty Images
bhofack2/iStock via Getty Images

In a Los Angeles Times column published on March 15, 1951, writer Marvin Miles observed a peculiar phrase spreading throughout his circle of friends and the social scene at large. While standing in an elevator, he overheard the man next to him lamenting “lost brownie points.” Later, in a bar, a friend of Miles's who had stayed out too late said he would never “catch up” on his brownie points.

Miles was perplexed. “What esoteric cult was this that immersed men in pixie mathematics?” he wrote. It was, his colleagues explained, a way of keeping “score” with their spouses, of tallying the goodwill they had accrued with the “little woman.”

Over the decades, the phrase brownie points has become synonymous with currying favor, often with authority figures such as teachers or employers. So where exactly did the term come from, and what happens when you “earn” them?

The most pervasive explanation is that the phrase originated with the Brownies, a subsect of the Girl Scouts who were encouraged to perform good deeds in their communities. The Brownies were often too young to be official Girl Scouts and were sometimes the siblings of older members. Originally called Rosebuds in the UK, they were renamed Brownies when the first troops were being organized in 1916. Sir Robert Baden-Powell, who had formed the Boy Scouts and was asked to name this new Girl Scout division, dubbed them Brownies after the magical creatures of Scottish folklore that materialized to selflessly help with household chores.

But the Brownies are not the only potential source. In the 1930s, kids who signed up to deliver magazines like The Saturday Evening Post and Ladies' Home Journal from Curtis Publishing were eligible for vouchers labeled greenies and brownies that they could redeem for merchandise. They were not explicitly dubbed brownie points, but it’s not hard to imagine kids applying a points system to the brownies they earned.

The term could also have been the result of wartime rationing in the 1940s, where red and brown ration points could be redeemed for meats.

The phrase didn’t really seem to pick up steam until Miles's column was published. In this context, the married men speaking to Miles believed brownie points could be collected by husbands who remembered birthdays and anniversaries, stopped to pick up the dry cleaning, mailed letters, and didn’t spend long nights in pubs speaking to newspaper columnists. The goal, these husbands explained, was never to get ahead; they merely wanted to be considered somewhat respectable in the eyes of their wives.

Later, possibly as a result of its usage in print, grade school students took the phrase to mean an unnecessary devotion to teachers in order to win them over. At a family and faculty meeting at Leon High in Tallahassee, Florida, in 1956, earning brownie points was said to be a serious problem. Also called apple polishing, it prompted other students in class to shame their peers for being friendly to teachers. As a result, some were “reluctant to be civil” for fear they would be harassed for sucking up.

In the decades since that time, the idiom has become attached to any act where goodwill can be expected in return, particularly if it’s from someone in a position to reward the act with good grades or a promotion. As for Miles: the columnist declared his understanding of brownie points came only after a long night of investigation. Arriving home late, he said, rendered him “pointless.”

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Grocery Stores vs. Supermarkets: What’s the Difference?

gpointstudio/iStock via Getty Images
gpointstudio/iStock via Getty Images

These days, people across the country are constantly engaging in regional term debates like soda versus pop and fireflies versus lightning bugs. Since these inconsistencies are so common, you might have thought the only difference between a grocery store and a supermarket was whether the person who mentioned one was from Ohio or Texas. In reality, there are distinctions between the stores themselves.

To start, grocery stores have been around for much longer than supermarkets. Back when every town had a bakery, a butcher shop, a greengrocery, and more, the grocery store offered townspeople an efficient shopping experience with myriad food products in one place. John Stranger, vice president group supervisor of the food-related creative agency EvansHardy+Young, explained to Reader’s Digest that the grocer would usually collect the goods for the patron, too. This process might sound familiar if you’ve watched old films or television shows, in which characters often just hand over their shopping lists to the person behind the counter. While our grocery store runs may not be quite so personal today, the contents of grocery stores remain relatively similar: Food, drinks, and some household products.

Supermarkets, on the other hand, have taken the idea of a one-stop shop to another level, carrying a much more expansive array of foodstuffs as well as home goods, clothing, baby products, and even appliances. This is where it gets a little tricky—because supermarkets carry many of the same products as superstores, the next biggest fish in the food store chain, which are also sometimes referred to as hypermarkets.

According to The Houston Chronicle, supermarkets and superstores both order inventory in bulk and usually belong to large chains, whereas grocery stores order products on an as-needed basis and are often independently owned. Superstores, however, are significantly larger than either grocery stores or supermarkets, and they typically look more like warehouses. It’s not an exact science, and some people might have conflicting opinions about how to categorize specific stores. For example, Walmart has a line of Walmart Neighborhood Markets, which its website describes as “smaller-footprint option[s] for communities in need of a pharmacy, affordable groceries, and merchandise.” They’re not independently owned, but they do sound like grocery stores, especially compared to Walmart’s everything-under-the-sun superstore model.

Knowing the correct store terms might not always matter in casual conversation, but it could affect your credit card rewards earnings. American Express, for example, offers additional rewards on supermarket purchases, and it has a specific list of stores that qualify as supermarkets, including Gristedes, Shoprite, Stop & Shop, and Whole Foods. Target and Walmart, on the other hand, are both considered superstores, so you won’t earn bonuses on those purchases.

And, since grocery shopping at any type of store can sometimes seem like a competitive sport, here’s the ideal time to go.

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