The Canadian Tire Corporation was founded in 1922 when its first store was opened in downtown Toronto by J. William Billes and Alfred J. Billes. Today, says the company, it has “1,200 general merchandise and apparel retail stores and gas bars as well as a major financial services provider and a federally chartered bank.”
It even has its own “money.”
First Canadian Tire “Money”
In 1958, Muriel Billes, wife of Alfred Billes, came up with the idea of rewarding loyal customers with a discount coupon to mark the opening of the company’s first gas station.
At the time, gasoline companies were giving away toasters, tumblers, and dishes to attract customers. The Canadian Tire approach was to hand out little pieces of paper printed to look like currency with values from one cent up. It was printed on banknote-style paper, had anti-counterfeiting measures such as numbers, and had the feel of real money.
The “money,” officially called a “cash bonus,” could be redeemed to reduce the cost of the next fill up (it’s no longer accepted for gasoline purchases). The program was a huge success and three years later, the idea was extended to the retail stores.
Canadian Tire Money Becomes Iconic
The company created Sandy McTire to adorn its “currency.” Sandy started out as a tire with feet and a smiling face running alongside a coin. Nowadays, Sandy McTire is a smiling, moustachioed Scotsman sporting a Balmoral cap. Contrary to popular belief, the character on the bills is completely fictional and is not Canada’s first prime minister, Sir John A. Macdonald.
Alan Middleton, is an assistant marketing professor at York University’s Schulich School of Business and co-author of Ikonica: A Field Guide to Canada’s Brandscape. He is quoted by Globe and Mail writer Dakshana Bascaramurty (“Hands off our Funny Money,” February 22, 2011) as saying, “There was something very attractive about a funny little piece of paper that had five Canadian cents on it.”
While other rewards programs have fell by the wayside as people’s cupboards filled up with dishes and glasses, Canadian Tire money has kept on going and has worked its way into the psyche of the nation.
According to the company “The Canadian Tire ‘Money’ rewards program overall has a 90 percent redemption and participation level.”
Value beyond Store Discounts
The cash bonus started out being worth five percent of the purchase price but has since been whittled down to less than half of one percent. But, even such a small discount does not shake the faith of Canadians in Canadian Tire’s funny money.
Charities frequently ask for people to donate their Canadian Tire “money.” Here’s Natalie Bahadur, writing for Microsoft Home Magazine (“Be Generous: Donate to Charities Online”): “Did you know that the Canadian Tire money you have lying around can serve a purpose? Many schools, hospitals, and local SPCA organizations use donated Canadian Tire money to fund their causes.”
Meanwhile, collectors will pay some pretty high prices for rare examples of the coupons.
The Globe and Mail’s Dakshana Bascaramurty interviewed Thayer Buock of Fonthill, Ontario, who has “16 binders of organized bills and several boxes full of Sandy McTires to be sorted.” He says some coupons from the very early days of the program can sell at auction for as much as $2,000.
Quite a mark-up for a piece of paper with a face value of a few cents.
Rupert Taylor - Rupert Taylor is the editor of a magazine that provides background to current events.
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