While this system sounds ideal when the concept of how it is supposed to work is explained, reality is quite a different matter. Here is the basic set up the coupon certificate programs, how they are sold as working and how they work in reality:
Promoter: The promoter, usually the owner of the company, recruits sales people by charging a “distributor fee” for the business opportunity of selling coupon certificate booklets. The investor (i.e. sales person) is told he/she can sell the booklets to consumers for $15 to $50 each. The booklets contain 20 to 50 certificates with each certificate having a redemption value for $10 worth of grocery coupons. If the math alone is considered, it looks like a great deal. Each booklet has a coupon value of between $150 and $500 so selling them for $15 to $50 should be easy. The investor can make a big profit selling the booklets to consumers and the consumers can save big money by using the coupons when they buy the groceries. It appears to be a win – win – win situation for everyone involved. The reality is, however, that only the promoter will make money.
Investors: These are the people who spend several hundred to several thousand dollars to buy the certificate booklet distributorship. They end up losing money because the large earnings the promoter claims they can make are never realized. The main problem is that the consumers realize that the coupon books are not the value that is claimed and thus there is no repeat business making continued sales difficult.
Consumers: These are the people who purchase the coupon books expecting large savings on their groceries. There are several issues that keep them from getting the savings they thought they would receive.
1) To redeem the certificates, you have to list a minimum number of items, so you wind up with a lot of coupons for items you rarely use.
2) You are usually required to send in a “processing fee” of $1.00 or more with each coupon redeemed which cuts more into the savings
3) You are usually required to send a self addressed stamped envelope with each order meaning stamps and cost of the envelope reduce your savings further.
4) The redemption value of the coupons is often very low.
5) The promoter says they will try to fill the order, but makes no promises. If you send in your order form and do not receive all of the coupons you requested, you’re simply out of luck.
6) The expiration dates are often within a month or two of the time of receiving the coupons. That results in difficulty in using all the coupons if multiples of the same coupon are requested.
The result of all this is that the consumer receives very little, if any, real savings from these coupon books. You can read more about this scam at ftc.gov
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I received the same call 3 times, hard to understand them because of their accent. They say they are Lifeguard. (Lifguard??? I repeatedly asked him to spell it and he left of the “e”). They want to send your package from AZ, they say the grocery coupons don’t expire for 2 years. If you agree to receive them they transfer you to processing where they get your credit card info so they can charge you. I told them to remove me from their calling list. I hope that is the last I will hear from them, I wonder where they are getting phone numbers from???
I also received a call from these guys this morning. The caller was clearly Indian, and if her name was really Feona Morris, I’ll eat all of my hats. My wife did not chAnge her name when we married, so I know it’s a scam when they give me her last name.
I will certainly report the caller ID number to the do not call registry. I would reinforce the admin note about giving out your credit card to cold callers. Even if they aren’t ID theves, they can use that as evidence that you have a relationship with them and then call you with all sorts of offers, even if you have registered with the do not call list.
When I got this phone call tonight I had to laugh when he told me his name was Alex Stewart, not with that accent it isn’t. So I said to him, “OK, that’s not really your name” and he started telling me about his parents and repeatedly said, “so, that is why I speak with an accent, now I will transfer you to my supervisor”. This guy began with flattery, “what a lovely voice you have michelle”, and ended with “why do you not understand, it can be any card number, Visa, Walmart, zero balance or just one dollar”. Again I had to laugh, and told him there was no way I was giving him any account number (although he referred to it as an identification number) from any card. Suprisingly he said good bye and hung up, and I went to the computer and found these postings in under 3 seconds. They are still out there, although they didn’t use the name Lifeguard, it was something like Shop Smart, so be careful.
BEWARE NOW THEY ARE CALLING YOU AND SAYING THAT YOU WON A VOUCHER FOR $200.00 THAT YOU CAN USE AT ANY MALL IN THE USA.yOU JUST HAVE TO PAY $4.95 FOR THE SHIPPING. I HAVING KNOWLEDGE OF THE SCAMS OUT THERE TOLD HIM THAT I DIDN’T HAVE ANY CREDIT OR DEBIT CARDS, AND HE STILL PROCEEDED TO TRY AND TOLD ME I COULD GO BUY A CREDIT GIFT CARD & PAY THAT WAY. i SAID I WAS UNEMPLOYED, AND HE SAID YOU CAN AFFORD $5.00. SO I TOLD HIM IF YOU WANT ME TO HAVE IT WHY DON’T YOU PAY IT FOR ME,THAT’S WHEN HE SAID HE WOULD CALL ME TOMMORROW.HIS NAME WAS ERIC SMITH.