Friday, February 23, 2007
About Credit Cards (PART 1) - Rewards
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Good : You get discount/ earn points / rewards for using your Credit Card (part 1)
Better : You exchange a good strategic amount of vouchers with your points (part 2)
Best : You use the vouchers when the shops are having a SALE! (part 3)
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Rewards (in order of preference)
1. The best is strangely No Rewards. Just an upfront discount. This way you spend less for getting the same.
2. The next is a straight % rebate.
3. Then a $x.xx amount rebate for each $10 spent
4. The last being pure points
The best best case is you get a combination of 1 and 4, but I havent seen it offered.
The best available is 2+4.
Though the most widely available is 3+4, and the worst is just 4. argh.
Lets do the math.
1. Buy $108 worth of Goods. 5% discount. You spend $102.60 but get $108's worth
2. Buy $108 worth of Goods. 5% rebate. You spend $108, get $108's worth, and $5.40 discount on your next purchase.
3. Buy $108 worth of Goods. $0.50 rebate on every $10. You spend $108, get $108's worth, and $5.00 discount on your next purchase
4. Buy $108 worth of Goods. $5 spent = 1 point. You spend $108, get $108's worth, and 21 points, and you need 200 points to get $10 worth in voucher. And you most likely forfeit the excess points which do not add you to the lowest/ next tier for exchange.
The most interesting myth about Rebate is this:
It is only an illusion, you only FEEL that you are getting 2 bites of the cherry, which is too good to be true.
No wonder more shops and credit cards are offering rebates.
Good : You get discount/ earn points / rewards for using your Credit Card (part 1)
Better : You exchange a good strategic amount of vouchers with your points (part 2)
Best : You use the vouchers when the shops are having a SALE! (part 3)
..................................................................................................................
Rewards (in order of preference)
1. The best is strangely No Rewards. Just an upfront discount. This way you spend less for getting the same.
2. The next is a straight % rebate.
3. Then a $x.xx amount rebate for each $10 spent
4. The last being pure points
The best best case is you get a combination of 1 and 4, but I havent seen it offered.
The best available is 2+4.
Though the most widely available is 3+4, and the worst is just 4. argh.
Lets do the math.
1. Buy $108 worth of Goods. 5% discount. You spend $102.60 but get $108's worth
2. Buy $108 worth of Goods. 5% rebate. You spend $108, get $108's worth, and $5.40 discount on your next purchase.
3. Buy $108 worth of Goods. $0.50 rebate on every $10. You spend $108, get $108's worth, and $5.00 discount on your next purchase
4. Buy $108 worth of Goods. $5 spent = 1 point. You spend $108, get $108's worth, and 21 points, and you need 200 points to get $10 worth in voucher. And you most likely forfeit the excess points which do not add you to the lowest/ next tier for exchange.
The most interesting myth about Rebate is this:
You feel that you are getting a discount on your current purchase since you get rebates credited to you, AND when using your rebate points in your next purchase, you feel that you are getting a discount or even FREE (if fully credited against rebate points).NOT TRUE. You are effectively paying FULL PRICE NOW, for a discount on the next purchase.
It is only an illusion, you only FEEL that you are getting 2 bites of the cherry, which is too good to be true.
No wonder more shops and credit cards are offering rebates.
Labels: to Read Think, to Shop Buy
# posted by yojanjan : 2/23/2007 04:33:00 PM
