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Calculating Free Point Rewards In Price Comparisons

financial planning

Earlier today I walked into this supermarket and there were a whole whack of advertisements in its store flyers saying how you can get so many free stuff by earning points on your purchases. Interestingly enough, the person I was with seemed very enthusiastic about this offer and had the mindset that he would save so much money this way.

Upon looking at the prices though, it seemed like everything was so much more expensive compared to the other businesses around the area. Therefore, it made no real sense to me in terms of saving money as you will either save more money shopping elsewhere or at best break even with the point offers.

In general this is something I usually factor in when it comes to shopping at certain places only if the prices are good alone. When you think about it, it is money after all. However, I can see like in this case how it can be easy to overlook the fact that you can be paying more if you simply get lured by the notion that a company is rewarding you to buy from them.

Kind of reminds me as a kid where when I had to choose which cereal to get, often if a particular brand came with a special gift I would go with that. Afterwards though I realized how “cheap” some of those gifts were and hence just focused on what I wanted as well as the value of the purchase. Same thing as an adult now I’d say except the gifts have a higher value to entice you more.

So with any point rewards structure when it comes to in-store specific deals, I always focus on the price of the items first as the points only play a factor afterwards. For example, if both places sell the item for $1 then the rewards factor would lure me to buy it at that place. I avoid factoring it in first usually as I tend to be a more loyal type of shopper and can see how you can easily spend more than you have to by being a loyal shopper solely based on a rewards system that may or may not save you money in the long run.

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