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Franklin

Let's use the example of the FREE Stayfree pads from a few weeks back. Rite Aid had a BOGO sale and aetcpced a BOGO coupon making 2 Stayfree free. Rite Aid doesn't eat the full cost of the 1st item fyi - a large discount was given them (quite likely the wholesale cost of the free item) by a merchandiser acting on behalf of Stayfree. It was Rite Aid's policy to give both products for free in this instance, as it was their policy, so there was no problem, according to them to do so. But who actually lost out on the revenue? 1st Stayfree did because they gave a discount, and likely they gave Rite Aid a reduction in purchase cost equivalent to the BOGO item (just like a coupon). Stayfree actually wanted shoppers to buy the other product so they made some money, (businesses like to do that) but no one paid a dime for the second item. That means a double loss for them. Secondly, Rite Aid lost out. They purchased the product, at a reduced price, as a promo sale so they could make some money on the second item purchased to cover their cost on the 1st item, but again, no one paid a dime for the second product either. Stores are in business to make money. We can't expect them to continue to give everything away or they'll fold. It's about revenue and when no one makes any, coupon policies change. And actually, I have never used a BOGO coupon on a BOGO item even if the store allowed it as I believe, for myself, that it was a flawed policy on Rite Aid's behalf.