Comments on: Choice Magazine: Loyalty Schemes Cost Consumers Money http://www.qohel.com/2010/02/03/choice-magazine-loyalty-schemes-cost-consumers-money/ Make a Difference Mon, 06 Sep 2010 11:27:51 -0400 http://wordpress.org/?v=2.9.1 hourly 1 By: Peter http://www.qohel.com/2010/02/03/choice-magazine-loyalty-schemes-cost-consumers-money/comment-page-1/#comment-17784 Peter Wed, 11 Aug 2010 12:58:11 +0000 http://www.qohel.com/?p=2791#comment-17784 Yes, some people do get rewards. But that doesn't address the main point which is that overall, loyalty schemes do not save people money, because the cost of administration, advertising, stationery, etc, has to be added to prices. You are certainly better off ignoring reward schemes and just shopping for specials, but even so, you are still paying your share of those additional costs. It's a bit like Lotto - a tax on stupidity - except that in this case you pay even if you don't join. Yes, some people do get rewards.

But that doesn’t address the main point which is that overall, loyalty schemes do not save people money, because the cost of administration, advertising, stationery, etc, has to be added to prices.

You are certainly better off ignoring reward schemes and just shopping for specials, but even so, you are still paying your share of those additional costs.

It’s a bit like Lotto – a tax on stupidity – except that in this case you pay even if you don’t join.

]]> By: Phil Hawkins http://www.qohel.com/2010/02/03/choice-magazine-loyalty-schemes-cost-consumers-money/comment-page-1/#comment-17655 Phil Hawkins Wed, 03 Feb 2010 23:57:10 +0000 http://www.qohel.com/?p=2791#comment-17655 Choice's analysis was misleading and inaccurate. There is not one of 10 million FlyBuys cardholders that relies solely on grocery purchases to gain points. Unsurprisingly, those same households that buy groceries also fill their car with petrol, buy liquor, own credit cards and visit the likes of Kmart and Target. And they collect FlyBuys points across all of those activities, and more. If I was to take your conclusions and Choice's headlines literally then how would I account for the millions of rewards FlyBuys hands out every year? The truth is that Australian households find they can get a FlyBuys reward in as little as 2-3 months, just by doing their everyday shopping. Disclaimer: this response comes from Loyalty Pacific, which operates FlyBuys. Choice’s analysis was misleading and inaccurate. There is not one of 10 million FlyBuys cardholders that relies solely on grocery purchases to gain points. Unsurprisingly, those same households that buy groceries also fill their car with petrol, buy liquor, own credit cards and visit the likes of Kmart and Target. And they collect FlyBuys points across all of those activities, and more. If I was to take your conclusions and Choice’s headlines literally then how would I account for the millions of rewards FlyBuys hands out every year? The truth is that Australian households find they can get a FlyBuys reward in as little as 2-3 months, just by doing their everyday shopping. Disclaimer: this response comes from Loyalty Pacific, which operates FlyBuys.

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