In-Store Exchange Center Redeems Coupons for Cash

If you thought clipping coupons was valuable before, wait until the Coupon Exchange Center is installed in your local supermarket.The Coupon Exchange Center (CEC), developed by In Store Media Systems Inc., Aurora, Colo., is an in-store program that lets shoppers convert old coupons for new ones."With this system, we have maximized the potential for redemption and minimized the cost for the retailer," says Everett Schulze, president and ceo of In Store Media Systems.Shoppers insert unwanted or expired coupons into the CEC kiosk in their local supermarket. In exchange, the shopper receives at least one electronically printed InstaCash Coupon for each of the unwanted coupons. The old coupons are instantly shredded. The new coupons are randomly selected from among the 100 participating manufacturers during that contract period. "We're after all the impulse buys," states Schulze, which he says accounts for 81 percent of all purchases.At checkout, the cashier scans the InstaCash Coupons on a special Coupon Scanner/Checkwriter to verify that the specified product was purchased. Then, a check equal to the amount of all the InstaCash Coupons redeemed is electronically printed. The shopper can immediately apply the money toward the purchase, cash the check later or have the money deposited onto her "Free Money Card." (Shoppers using this card receive bonus coupons for products that fit their demographics or personal habits.)The CEC system "eliminates all of the retailer's problems," says Schulze, since supermarkets no longer have to deal with turnaround time and handling fees. The instant rebate and bonus prize checks, for example, are written against the account of ISMS, so the stores are receiving full price for products purchased with the coupons.The injection-molded kiosk is 52 inches wide by 102 inches high by 36 inches deep. It has three video monitors that broadcast coupon advertisers' messages over 250 times a day. An additional three light panels are static ads -- one promoting the supermarket and two promoting ISMS.An initial run of 25 kiosks was installed in supermarkets in the Midwest. The company expects to install 2,000 more units in supermarkets and retail outlets nationwide by September.In Store Media Systems installs, maintains and operates the CEC's at no cost to participating retailers. The company generates revenues through the fees paid by product manufacturers per redeemed coupon. Each kiosk costs approximately $50,000 to manufacture and install.Schulze designed the system. Continuum Technology Inc. in Ashville, N.C., manufactured the kiosk. The Forms Group, Chicago, supplies the coupons and check stock through an electronic inventory control program.

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