Sharing Daily Discoveries About Personal Finance And Business Topics

Viewing Store Reward Points As A Loan For The Companies

I have often said that when it comes to reward points it is very silly to buy items just for that if the price for the product itself is like a higher than normal deal prices that you may find. Example, paying ten dollars for an item that can be bought for two dollars just to get reward points that are worth like one dollar in value. For many people this still doesn’t discourage them from this kind of purchasing habit. Recently for one store I have noticed that they were offering sale prices that were more expensive than the competitors. However, it was offering reward points that would technically make the cost about the same. The main problem with that though is how you can only redeem your points after you reach a certain balance. Until then your money just sits with the company.

Someone then told me how this was essentially like giving the company a free loan. That’s kind of true when you think about it. In many ways you should simply get it where you can get a return of your investment right away. Would changing your way of thinking in this case help to encourage you to make sure that the deal is actually good to warrant parting with your money where it will take you awhile to redeem it? I know for myself anyways it would make me expect more. Like in this case, the rewards value in total should be better cash value wise than if I was to buy it from the competitor without the reward points.

Companies usually expect some kind of return of investment if they were to loan you money as an example. So it’s only fair that you kind of expect the same.

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