Coupon

In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions. They are often widely distributed through mail, coupon envelopes, magazines, newspapers, the Internet (social media, email newsletter), directly from the retailer, and mobile devices such as cell phones.

Distribution
The New York Times reported "more than 900 manufacturers' coupons were distributed" per household, and that "the United States Department of Agriculture estimates that four families in five use coupons. "Only about 4 percent" of coupons received were redeemed. Coupons can be targeted selectively to regional markets in which price competition is great.

Most coupons have an expiration date, although American military commissaries overseas honor manufacturers coupons for up to six months past the expiration date.

Taxation
Depending on the jurisdiction, coupons may or may not reduce the sales tax which must be paid by the consumer. The most consumer-friendly tax situation taxes the actual price paid, including when the store does double and triple coupon reductions.

The above applies when the retailer is the source of the coupon, since the product is offered at the post-coupon price. In jurisdictions seeking to tax more, if the coupon is issued by the manufacturer, the original price is still paid but some of the price is covered by the manufacturer instead of the consumer and the full price remains taxable.

Trading
Coupon manufacturers may or may not place restrictions on coupons limiting their transfer ability to ensure the coupons stay within the targeted market. Since such restrictions are not universal and are difficult and/or costly to enforce, limited coupon trading is tolerated in the industry. Organized coupon exchange clubs are commonly found in regions where coupons are distributed. Often coupons are available for purchase at some online sites, but since most coupons are not allowed to be sold, the fee is considered to be for the time and effort put into cutting out the coupons.

Some types of coupons may be sold. The New York Times not only said "the traffic is legal" regarding selling airline discount coupons, but wrote "check the commercial notices column in The New York Times or the classified advertising section under 'Miscellaneous') in The Wall Street Journal. During war time or economic hardships, trading or selling ration coupons is an economic crime.