The blue envelope, please

The recession has hit the consumer pocketbook hard, and that means coupons are back en vogue.

Valpak of Central Virginia, a company that sends out coupon-packed envelopes to 350,000 households in the area every month, is having one of its best years in more than 30 years in business.

The company won both Franchise of the Year and Sales Team of the Year at the annual Valpak awards ceremony in St. Louis. The company has almost 200 franchises, and never before has one won both awards in the same year.

Mike Meyer, a co-owner of the local Val-Pak franchise for 27 years, said business has always ticked up during recessions.

“There is a higher interest among the consumer in saving money,” said Meyer. “Advertisers look more closely at ad dollars and are looking for things that they measure the return on investment.”

Things like coupons, which customers take with them to buy something. That way the business can see exactly how many sales their ad dollars generate.

Meyer said the company has millions of dollars in annual sales and this year posted a 21 percent increase over last year, an amount he said was in the upper six figures.

Meyer credits not only the economy for the boost in business, but also the sales team, led by fellow owner Biff Wittkamp. The company has about 20 employees.

Al Harris is a BizSense reporter. Please send news tips to Al@richmondbizsense.com.

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