Why Are Coupons Worth 1/100th of a Cent?

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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Do 'Close Door' Buttons in Elevators Actually Do Anything?
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When you’re running late for work, one small comfort is finding an empty elevator waiting for you at your office building. You scurry inside, and since no one else is waiting to enter, you jab the 'close door' button. The doors comply, the elevator starts moving, and you breathe a sigh of relief.

This is a familiar scenario for many, but it’s also a big fat lie. That’s because most of the door-close buttons in U.S. elevators don’t actually work. In fact, they’re programmed that way.

But before you get ready to send off a strongly worded email to your office building’s elevator manufacturer, you may want to hear why this is the case. When the Americans With Disabilities Act was first passed in 1990, certain requirements for elevators were outlined, such as the installation of raised buttons, braille signs, and audible signals.

The act ensured that someone with a disability would have enough time to get inside, stipulating that elevator doors must remain fully open for at least three seconds and thereby preventing the button from cutting that time short. Some elevator manufacturers took it one step further by deactivating the button entirely.

Since the life span of an elevator is about 25 years and the Disabilities Act has been around for 28 years, it’s safe to assume that most of the elevators in operation today do not have a functioning 'close door' button, The New York Times reports. Only firefighters are able to close elevator doors manually through the use of a key.

It's important to note that there are exceptions to this rule, though. As the New York Daily News noted, New York City elevators are required by law to have working 'close door' buttons, even though some operate on a long delay (so long, in fact, that it calls the button's usefulness into question).

However, you’re in luck if you’re taking a lift (which, of course, is British for “elevator”). 'Close door' buttons are fully functional in most elevators in the UK, according to The Telegraph. A spokesman for the Lift and Escalator Industry Association told the newspaper that not all elevators have the button, but when they’re present, they do work. Again, the time it takes for the doors to shut after pressing the button varies from lift to lift.

While U.S. elevator manufacturers have a seemingly good reason for disabling the 'close door' button, some may question the point of propagating the myth and installing a button that serves no purpose in the first place. In response, some would argue that placebo buttons serve an important psychological function in society.

"Perceived control is very important," Harvard psychologist Ellen J. Langer told The New York Times. "It diminishes stress and promotes well-being."

That’s right: By believing that you’re in control of your fate—or at least how quickly you can make it up to the sixth floor—you’re better off. It doesn’t end with elevators, either. Buttons placed at city crosswalks are often disabled, and the thermostats in many office buildings are rigged so that the temperature can’t be altered (even if the numbers appear to change).

Some might swear up and down that elevator 'close door' buttons work, but this, too, could be your brain deceiving you. As author David McRaney wrote in an essay: “If you happen to find yourself pressing a nonfunctional close-door button, and later the doors close, you’ll probably never notice because a little spurt of happiness will cascade through your brain once you see what you believe is a response to your action. Your behavior was just reinforced. You will keep pressing the button in the future.”

According to The New Yorker, these buttons are designed to alleviate some of the subconscious anxiety that comes from stepping inside a tiny box that's hoisted up some 20 or 40 or 80 floors by a cable: “Elevator design is rooted in deception—to disguise not only the bare fact of the box hanging by ropes but also the tethering of tenants to a system over which they have no command."

So now you know: Next time you’re running late to work, take comfort in the fact that those few extra seconds you would’ve saved by pressing a functioning 'close door' button aren’t worth all that much in the long run.

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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What’s the Difference Between Prison and Jail?
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Many people use the terms jail and prison interchangeably, and while both terms refer to areas where people are held, there's a substantial difference between the two methods of incarceration. Where a person who is accused of a crime is held, and for how long, is a factor in determining the difference between the two—and whether a person is held in a jail or a prison is largely determined by the severity of the crime they have committed.

A jail (or, for our British friends, a gaol) refers to a small, temporary holding facility—run by local governments and supervised by county sheriff departments—that is designed to detain recently arrested people who have committed a minor offense or misdemeanor. A person can also be held in jail for an extended period of time if the sentence for their offense is less than a year. There are currently 3163 local jail facilities in the United States.

A jail is different from the similarly temporary “lockup”—sort of like “pre-jail”—which is located in local police departments and holds offenders unable to post bail, people arrested for public drunkenness who are kept until they are sober, or, most importantly, offenders waiting to be processed into the jail system.

A prison, on the other hand, is usually a large state- or federal-run facility meant to house people convicted of a serious crime or felony, and whose sentences for those crimes surpass 365 days. A prison could also be called a “penitentiary,” among other names.

To be put in a state prison, a person must be convicted of breaking a state law. To be put in a federal prison, a person must be convicted of breaking federal law. Basic amenities in a prison are more extensive than in a jail because, obviously, an inmate is likely to spend more than a year of his or her life confined inside a prison. As of 2012, there were 4575 operating prisons in the U.S.—the most in the world. The country with the second highest number of operating prisons is Russia, which has just 1029 facilities.

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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