Price Discounting

The tobacco industry spends billions of dollars on marketing including discounts to make tobacco products more affordable. These discounts are deadly – bringing disease and death to the people who use tobacco including more than 100,000 youth in New York State.

Youth tobacco use in New York State is still a big problem. Each year, 12,900 kids under 18 become new daily smokers in New York.

  • In New York State, 11.9 percent or 107,000 high school students smoke.
  • 88 percent of first cigarette use will occur by the age of 18, with 98 percent of all first use by 26 years of age.

The tobacco industry understands the relationship between price and consumption so it has developed creative strategies including coupons and multipack discounts to undermine the impact of tobacco taxes. Coupons directly reduce the price of a product at the point of sale while a multipack discount is a promotional tool that includes the sale of multiple packages or products for one price such as a buy one, get one free offer.

This ad from ClearWay Minnesota pretty much says it all.

ClearWay-coupon-600x387

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