REWARDS PROGRAMS--MAKE THEM WORK FOR YOU

I'm a bit of a Rewards junkie. Although I’m a consumer advocate, I have to confess that I sometimes become too eager to take advantage of rewards programs. At those times, my inner advocate goes to sleep and my inner couponer takes over. And there are consequences to that. Generally nothing devastating but, let’s say that chasing rewards can become a bit “overextended”.

For example, CVS receipts often spit out “Extra Bucks” rewards based on purchase history. How can I let a $5 reward expire without using it? Sometimes I think things through, take inventory and realize that I really need something. When I combine the reward with a sale, a manufacturer’s coupon and a CVS item specific coupon, I can buy the product at a good price. Or, it may even be free or so low cost that it’s a wonder that they make money. I think that I figured out how they make money—money rolls in when I (and everyone else) am driven to use that reward whether or not I need something. I usually buy anyway. My thought process goes something like this:

“What do we need? We don’t really need anything right now. I can’t let this reward        expire. I know—toothpaste is a staple. I’ll buy toothpaste.”

Pretty logical. Well, sort of. I just took inventory before I started to write this. We have 7 tubes of toothpaste in the bathroom cabinet. That doesn’t count the one that we just opened this week. Yes, you can always use toothpaste. But you should know that they have expiration dates. Just look at the stamp on the box and on the edge of the tube. Or, try to look—my close vision is pretty good, but it’s hard to see. (ARE YOU LISTENING, MANUFACTURERS? MAKE YOUR EXPIRATION DATES EASILY VISIBLE!)  Since it’s just Howard and me, we’ll share the booty with Tracy and Jonah. Unfortunately TSA won’t let us take it in a carry on bag when we see Cory in California. 

It looks like we’ll be brushing a lot. I guess that’s a good thing.

I could write a whole book about rewards programs. But I won’t. Suffice it to say that there are quite a few ways to reap benefits.

1) Don’t forget about small businesses. They’ve had reward programs for years—before the big guys overran the marketplace. The best children’s bookstore in the world, Children’s Book World, in Haverford, PA, has a book club card. Purchase 10 books (no time limit), and they’ll discount the next purchase. And the added reward is that it’s so much fun to shop there!

2) Some rewards programs are too complicated. That was the case with Whole Foods. You had to go online to see the rewards available to you. It was cumbersome. I complained. I guess that others did, as well, since I have an email saying that they are simplifying the program this month. I’m looking forward to seeing what that looks like.

3) If you forget your supermarket or drugstore club card, you can usually access discounts by either having the cashier enter your phone number to pull up your rewards account, or they’ll just scan a generic card. It’s better if you can use your own account, since the purchases specifically tied to your account lead to more rewards.But a generic card will still get you that day’s discounted prices.

4) Reassess your perks periodically. If we’re in travel mode, we’ll use a hotel or airline rewards credit card. If we’re in department store mode, we’ll use the department store card more often. 

5) I find American Airlines distasteful and heavy handed. After they merged with US Airways, they continued to charge for their “Advantage” card but reduced the perks significantly. No more $99 yearly companion fee on a domestic flight; no more yearly use of the lounge. (Really!!! How much does it cost them to allow a passenger to use the lounge once a year???) They do it because they can--the worst possible reason for an action. But, trapped in Philadelphia, where they are the dominant carrier, there aren’t so many choices. What was the government thinking when they allowed that merger to go through? (But, I digress…)

Bottom line—you can save big time by using rewards programs. Just make sure that you do it logically and with forethought.