I was looking at this catalog of items you can get from redeeming reward points that you accumulate as a result of purchasing a particular companyâ€™s products. Essentially, you register the products online for points which you then redeem for items. This reward program was a little different as you have to spend your reward balance by the end of the year as it will get wiped.
By the looks of it this made a lot of people specifically buy more products in an effort to accumulate the appropriate amount of points to obtain items that they want. With the fear of loss mentality too where the points would get wiped at the end of the year it seemed like many people donâ€™t think it through thoroughly.
It would be like for every $100 you spent you get a dollar. In order to cash out you need to accumulate at least ten dollars. It sounds silly to spend say an extra $900 to get say $10 when you think about it. I guess it is just a bit harder to see this when you are trying to base it on actual items as oppose to numbers. Thatâ€™s a better way to try to look at it if you are getting sucked into spending more money than you usually do for a rewards program Iâ€™d say.