Coupon Arbitrage: Tips for Saving Money

Dec 28th, 2011 Steve Albright

In these hard financial times everyone is looking for ways to cut costs and save money. Living frugally can go a long way in helping you get there and survive the hard months ahead, as most economists predict that there is still worse to come. One simple solution to saving money is a technique called coupon arbitrage.

I know that everyone out there has used a coupon at one point or another and in fact many heads of shopping duty use them religiously to save a few bucks here and there. However, what most people don't know is that they can be getting much more value out of their used and unused coupons.

Over the years the coupon industry has ballooned and in fact most advertising that you see in your paper or in your mail box will feature tons of coupons. This is one way that retailers generate more traffic to their stores and products. By offering you a small discount they give you incentive to shop at their location and buy their merchandise. This is an obvious tactic and a mutually beneficial partnership as you get your desired item for less currency and they get a customer.

The coupon arbitrage method is really just a fancy word for targeted bulk buying of coupons in order to save yourself the most amount of money. The coupon industry has gotten so big that not only is this a common day occurrence but in fact coupon savers clubs and websites have popped up all over the place.

The trading and bartering of coupons has also become very common place and with the help of the internet and online coupons people don't have to sift through tons of random advertisements. Using the arbitrage method you can get a great deal on exactly what you want.

The most common example is to think of these transactions in terms of products that you religiously buy. If you are a big fan of a certain $5 brand of cereal and someone is offering 10, $1.50 off coupons for this product for $4, financially it makes sense for you to pay money upfront for these since you are investing only $4 but saving $15, after you deduct the costs you still come out $11 bucks ahead.

That's the coupon arbitrage method in a nutshell. I know it may seem silly to pay currency for something tha's free and designed to save you money but if you follow the math you see that it is worth it. This can also be applied trading and selling coupons.

If you get your hands on a set of coupons that you will never use do not simply discard them as they are worth something to someone out there. And you can easily find a buyer for them on a forum or coupon trading website.

In the end it may not seem like much and to some people using arbitrage may not even seem worth the effort but to others even saving a tiny bit maybe crucial.

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