Why do companies prevent you from combining $X off coupons? If someone makes multiple purchases they still are discounting the same total amount right?

Question

Why do companies prevent you from combining $X off coupons? If someone makes multiple purchases they still are discounting the same total amount right?

In: 0

Answer 1

Coupons are intended to encourage you to spend more. While up front a $1 or 10%-off coupon costs the mfgr that amount, the idea is over time they will make that lost $1 or 10% up in increased sales. If you get two $1 off coupons on a $5 item, well maybe your brain gets inclined to buy TWO of those $5 items instead of just one. Company loses $2, but earns an extra $3 because you bought an extra one.

Also, if you’re somewhat indifferent to brand loyalty, and say a new laundry detergent is $1.50 cheaper than your usual, you go “hrmm, maybe Ill try it”. You do and you like it so you switch.