Why It Works: Coupons, Sales Cycles, and Stockpiles

Before I started using coupons I tried to shop the ads. Being a good steward was important to me and I tried to buy only what we needed and avoided overindulging. I would buy sale items with a week or two in mind. While we hadn't started a strict grocery budget, I didn't want to buy too much and have a large grocery bill so I would buy a small number of sale items. I was saving money but running out of necessities and later paying retail. Until I figured out how to stockpile, I was at the mercy of the sales cycles.

Most items in the grocery store are on a sales cycle that causes prices to fluctuate from regular retail to rock bottom (a.k.a. "Buy Now" prices). This cycle may last 6 to 8 weeks. Using my old method of trying to buy a few weeks of sales items, I was hitting good prices some weeks and high prices the next. In order to ensure that a shopper only pays the rock bottom prices, they need to maintain a 6 to 8 week stockpile of shelf stable or freezer friendly necessities. Once I began shopping with the cycles in mind, I began buying enough of certain items to last 8 weeks when they hit my Buy Now prices.

Here is a coffee example. Starbucks was on sale for $4.99 (a fantastic pre-coupon price) AND I had $1.50 coupons to combine with the sale. I could buy a single bag of Starbucks for $3.49! But, if I didn't buy enough to last until the next great deal, I might have to buy the next bag at $6 to $11 (the normal price fluctuation). Instead, I bought four for $14. I spent more on coffee than I usually do, but I won't have to buy coffee for several months (giving me plenty of time to wait for a good deal).

One of the biggest hiccups to new couponers is that you may actually spend MORE in the first month or two of couponing. The reason for the bigger bill is that it will take you some time to acquire coupons and you will be buying more items to build your stockpile. But within two months, you will have a stockpile and your grocery bill will drop significantly.

Before I go on, I can picture some of you cringing at the thought of a stockpile. A stockpile is not hoarding, it is not selfishly clearing the shelves, and it certainly isn't wasting food by overbuying. It is simply providing your family with the products they need at the best price possible. Believe it or not, I can only remember tossing one expired product from my food stockpile in the last year. Because I am aware, I am not as likely to let food go bad. When I get fantastic prices that I can't pass up, I give excess to friends and charities. As a side note, my stockpile was an amazing blessing when I was pregnant with Ellie. Since even the sight of coupons made me sick, I did very little grocery planning in my first trimester. We had enough stockpiled to last during that queasy period with only occasional trips to the store for fresh foods.

Add in coupons! As I explain here, you don't have to use a single coupon to save on groceries. But coupons added to rock bottom prices make for huge savings, even to the point of being paid to take those items home with you! Using the stockpile method, your family may be able to buy 6 cereals for $9 ($1.50 a box at rock bottom prices). Simply add in 6 $.75 coupons and you'll get the same 6 boxes for $4.50. That's around 85% savings! While you aren't going to save 85% on every item you buy, keep it up and you will see hundreds of dollars of savings each month.

Coupon Lingo: A glossary of commonly used terms and acronyms in the coupon world

BOGO: Acronym for Buy One Get One free coupons or sales.

Blinkie: A type of coupon found in blinking machines in grocery and drug stores

Catalina (CAT): A coupon or promotion sponsored by Catalina Marketing that prints out at check out in most grocery stores, Target, and some drug stores.

Extreme Couponing: Using coupons and sales to purchase an extremely large number of products at rock bottom prices.

Hangtag: A type of coupon found on an item in store, often hanging from the product (such as on the neck of a bottle).

IP: Acronym for internet printable coupons.

IVC: Instant Value Coupon. These coupons are often called peelies since they are stuck to items to be peeled off at check out.

MIR: Mail in rebate

MQ: Manufacturer's coupon. These can usually be stacked with store coupons.

ONYO or OYNO: Acronym for On Your Next Order. OYNO is the logical spelling, but many couponers use the term ONYO as it has a better ring to it when pronounced. ONYOs refer to grocery coupons that print out from the Catalina machine that can be used to purchase most any item at that store.

Peelie: A coupon stuck to a product in the store that can be peeled off to use at checkout. Also called an instant value coupon (IVC)

PG: Proctor & Gamble. A company that sells a wide variety of products that puts out a monthly insert in the Sunday newspaper.

Purchase: A frequently used term on coupons indicating an item. For example, a coupon may read, "Limit one coupon per purchase." Each item is a purchase in a transaction so the buyer may match one coupon to each item purchased.

FB: Acronym for Facebook, a great place to find coupons.

RA: Short for Rite Aid.

RP: Red Plum. A coupon insert found in most Sunday Newspapers

Sales Cycle: The cycle of prices on a given item that fluctuates from retail price to rock bottom (buy now) prices. This cycle varies by product but usually produces rock bottom prices every 6 to 8 weeks.

SS: Smart Source. A coupon insert found in most Sunday newspapers

SQ: Store coupon. These can usually be stacked with manufacturer's coupons.

Stacking: The process of using multiple coupons, sales, and promotions

Stockpiling: The process of buying enough products at their rock bottom (buy now) prices to last your family until the item hits rock bottom again on the following Sales Cycle. A stockpile usually is enough to last 6 to 8 weeks. Contrast this term with hoarding, which I believe is selfishly cleaning out the store to have an unrealistic supply of certain items (years worth).

Tearpad (TP): A type of coupon found on shelves and displays in stores and gas stations as a pad from which the coupon can be torn.

Transaction: A total purchase of one or more items usually concluding in payment and followed by a receipt. Some coupons read, "Limit one coupon per transaction." The buyer may only use this type of coupon once per order, or transaction.

WYB: Short for When You Buy. Many promotions require the purchaser to buy a minimum number of items to get the promotional price. For example, Save Mart has boxes of General Mills cereal for $1.49 a box when you buy (WYB) four. If you only buy 3, you will have to pay a higher price.

How to Save Without Using a Single Coupon!

Can you save money in less than 10 minutes a week without printing or cutting a single coupon? YES! While I'm definitely a fan of coupons, many friends and family are concerned that they do not have the time or interest necessary for collecting and using coupons. If that is you, read on!

Most items in the grocery store are on a sales cycle that causes prices to fluctuate from regular retail (a.k.a. "price gouging") to rock bottom (a.k.a. "BUY NOW"). This cycle may last 6 to 8 weeks. A Cheerios example:
June 1-14: $4.49 (retail)
June 15-21: $2.49 (sale)
June 22-28: $4.49 (retail)
June 29-July 5: $2.99 (sale)
July 6-12: $4.49 (retail)
July 13-19: $1.49 (rock bottom sale) Run, don't walk, to the store and buy Cheerios!
July 20... Retail again and cycle repeats
While this is a fictitious example, most products follow a similar cycle.

Here's where you come in. Become familiar with what you spend on items that your family needs or wants. Check the weekly ads at your favorite store and buy enough of the items that hit rock bottom prices to last 6 to 8 weeks.

A Tale of Two Moms

Learning Lana's family consumes 1 box of Cheerios every week. She buys one box every time she shops. According to our fictitious cycle she would pay aproximately $29 dollars for 8 boxes of Cheerios over an 8 week period.

Savvy Sarah's family also consumes a box a week. She waits until Cheerios hits rock bottom then buys 8 boxes at $1.49. She pays aproximately $12 for 8 weeks worth of Cheerios.

Moral: Knowing the best prices on your family's favorite items and waiting until they hit rock bottom to buy results in big savings.



If you only have 10 minutes a week and no desire to mess with coupons, go through your store's circular and list all the items that your family needs that are at rock bottom (buy now) prices. Buy enough of those items to last the cycle (6 to 8 weeks). On perishable items that won't freeze, try to buy only the items that are on sale and plan your meals around those items.

This method may take a cycle to see savings. The first month or two of stockpiling may cost a little bit more as you purchase larger quantities of groceries, but savings will become very apparent as you don't have to rush to the store to buy more Cheerios at the mercy of that week's price. ;)

Quick Tips:

• Get to know the rock bottom (buy now) prices of the items your family needs. You can either chart the items or keep a couple months worth of ads to track cycles.
• Review the ad and buy the items that your family needs that are on sale. If any item is at rock bottom price, buy at least 6 weeks worth.