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Bed Bath & Beyond has a Coupon Problem

Posted on Tuesday, October 13th, 2015 at 10:16 pm
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Bed Bath and Beyond LogoHow many times have you gotten a big, blue and white, coupon from Bed Bath & Beyond in the mail? You’ve probably lost track of how many of those coupons you’ve received over the years. It turns out that the popularity of that coupon is actually causing problems for Bed Bath and Beyond.

Bed Bath & Beyond sends 20 percent off coupons in the mail to countless consumers. It gives people 20 percent off one item – any one item that the customer wants to use the coupon on. This type of coupon is helpful to consumers who need to buy a replacement frying pan, or a new coffeemaker, and want to be able to stay within their budget.

Stores give out coupons like these because they want to attract customers. People come in to use the nifty 20 percent off one item coupon. The store is hoping that the consumer will continue to shop after picking up the one item they want to use the coupon on.

Often, these type of coupons end up encouraging consumers to overspend. They come in for the item connected to the coupon so they can get it for a lower price. As they walk through the store in search of that item, they find more stuff that they decide to purchase in addition to the thing they came in to get.

It turns out that the coupon from Bed Bath & Beyond, that frequently appears in so many people’s mailboxes, is causing problems for the store. There are people today who wait until they have the coupon before they head out to the store to do some shopping. Consumers see that coupon as a “given” and not as a “treat”. It’s no longer special – it is expected.

The Washington Post reports that Bed Bath & Beyond has seen its profit margins “squeezed” as a result of having more and more customers relying on the coupon.

In an article that was posted on September 30, 2015, the Washington Post wrote: “In the most recent quarter, Bed Bath & Beyond reported that its revenue rose 1.7 percent, to $3 billion, but profit fell 10 percent, to $202 million.” Bed Bath & Beyond blames that decrease in revenue on “an order of magnitude increase” in expenses related to coupons.

Do you have a Bed Bath & Beyond coupon that you are planning on using? It might be a good idea to check the store’s coupon policy before you go out the door. Or, call the store and make sure they are still honoring the 20 percent off coupons that they send in the mail.

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