40% off, it's a deal!?!

In town, there are two craft stores. Each week (and every week) each store offers (newspaper insert, print it online) a 40% coupon. Coupon is good for 1 week only. However, since these coupons can be found in the Sunday's Press--every week. Have an expired coupon? Well, there's one just like it in THIS Sunday's Press. Basically, you are never without a 40% off coupon.

Can I fill you in, in a little secret?

The coupon ain't no deal.

It's a pretty awful marketing deal if you ask me.

Why?

For conversation's sake, let's say craft store A has a 200% markup. A $2 product at wholesale is $8, right? With this 40% off coupon the product is now $5.60 ($8 times .7). The store is still making a 160% profit.

Ok.

Say Target has that very same product--$2 wholesale--yet a 100% markup. So, it's $4.

So!

Because you love that "I saved $x" feeling and you have that 40% off coupon, you get the product at the craft store. However, you could have bought that product at Target for cheaper--without a coupon.

ALSO!

If you're like me, you only go to these craft stores when you happen to have the coupon with you. Because it's NOT a deal unless you have the coupon. I am sure 90% off these craft store shoppers are only shopping there because they have a coupon. What if one day the store indefinitely stops offering these deals/coupons? And no clearance sale is good enough to attract customers?

Thoughts?