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.

Presidents Day vs. President's Day vs. Presidents' Day: Which One Is It?

iStock
iStock

Happy Presidents’ Day! Or is it President’s Day? Or Presidents Day? What you call the national holiday depends on where you are, who you’re honoring, and how you think we’re celebrating.

Saying "President’s Day" implies that the day belongs to a singular president, such as George Washington or Abraham Lincoln, whose birthdays are the basis for the holiday. On the other hand, referring to it as "Presidents’ Day" means that the day belongs to all of the presidents—that it’s their day collectively. Finally, calling the day "Presidents Day"—plural with no apostrophe—would indicate that we’re honoring all POTUSes past and present (yes, even Andrew Johnson), but that no one president actually owns the day.

You would think that in the 140 years since "Washington’s Birthday" was declared a holiday in 1879, someone would have officially declared a way to spell the day. But in fact, even the White House itself hasn’t chosen a single variation for its style guide. They spelled it “President’s Day” here and “Presidents’ Day” here.


Wikimedia Commons // Public Domain

Maybe that indecision comes from the fact that Presidents Day isn’t even a federal holiday. The federal holiday is technically still called “Washington’s Birthday,” and states can choose to call it whatever they want. Some states, like Iowa, don’t officially acknowledge the day at all. And the location of the punctuation mark is a moot point when individual states choose to call it something else entirely, like “George Washington’s Birthday and Daisy Gatson Bates Day” in Arkansas, or “Birthdays of George Washington and Thomas Jefferson” in Alabama. (Alabama loves to split birthday celebrations, by the way; the third Monday in January celebrates both Martin Luther King Jr. and Robert E. Lee.)

You can look to official grammar sources to declare the right way, but even they don’t agree. The AP Stylebook prefers “Presidents Day,” while Chicago Style uses “Presidents’ Day.”

The bottom line: There’s no rhyme or reason to any of it. Go with what feels right. And even then, if you’re in one of those states that has chosen to spell it “President’s Day”—Washington, for example—and you use one of the grammar book stylings instead, you’re still technically wrong.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

Full vs. Queen Mattress: What's the Difference?

iStock.com/IPGGutenbergUKLtd
iStock.com/IPGGutenbergUKLtd

If you’re in the market for a new mattress this Presidents Day weekend (the holiday is traditionally a big one for mattress retailers), one of the first decisions you’ll need to make is regarding size. Most people know a king mattress offers the most real estate, but the difference between a full-sized mattress and a queen-sized one provokes more curiosity. Is it strictly a matter of width, or are depth and length factors? Is there a recommended amount of space for each slumbering occupant?

Fortunately, mattress manufacturers have made things easier by adhering to a common set of dimensions, which are sized as follows:

Crib: 27 inches wide by 52 inches long

Twin: 38 inches wide by 75 inches long

Full: 53 inches wide by 75 inches long

Queen: 60 inches wide by 80 inches long

King: 76 inches wide by 80 inches long

Depth can vary across styles. And while you can find some outliers—there’s a twin XL, which adds 5 inches to the length of a standard twin, or a California king, which subtracts 4 inches from the width and adds it to the length—the four adult sizes listed above are typically the most common, with the queen being the most popular. It's 7 inches wider than a full (sometimes called a “double”) mattress and 5 inches longer.

In the 1940s, consumers didn’t have as many options. Most people bought either a twin or full mattress. But in the 1950s, a post-war economy boost and a growing average height for Americans contributed to an increasing demand for larger bedding.

Still, outsized beds were a novelty and took some time to fully catch on. Today, bigger is usually better. If your bed is intended for a co-sleeping arrangement with a partner, chances are you’ll be looking at a queen. A full mattress leaves each occupant only 26.5 inches of width, which is actually slightly narrower than a crib mattress intended for babies and toddlers. A queen offers 30 inches, which is more generous but still well below the space provided by a person sleeping alone in a twin or full. For maximum couple comfort, you might want to consider a king, which is essentially like two twin beds being pushed together.

Your preference could be limited by the size of your bedroom—you might not be able to fit a nightstand on each side of a wider bed, for example—and whether you’ll have an issue getting a larger mattress up stairs and/or around tricky corners. Your purchase will also come down to a laundry list of options like material and firmness, but knowing which size you want helps narrow down your choices.

One lingering mystery remains: Why do we tend to shop for mattresses on Presidents Day weekend? One reason could be time. The three-day weekend is one of the first extended breaks since the December holidays, giving people an opportunity to trial different mattress types and deliberate with a partner. Shopping Saturday and Sunday allows people to sleep on it before making a decision.

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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