I was in a store the other day, making what I thought was an $8.99 purchase, according to my quick look at the sign on the shelf. When I got to the register I was surprised to see it ring up at over $15. I thought the clerk had made a mistake. “Oh, that’s the rewards program price.” he said “Do you want to sign up. It only takes a minute.” I was agitate, in a hurry, and really didn’t like the idea although I wasn’t exactly sure why at the time. I paid the $15+ and vowed to shop elsewhere in the future.
So what’s the big deal? Lots of companies have “rewards” programs. It helps them offer you products you like and you get great deals right? No, not really. I don’t believe that an almost $6 difference in a $15 product is the difference between a normal mark up and a sale. Obviously you are paying a steep penalty for not participating in their data collection program. That’s what bothered me about it. It’s not really a reward. It’s extortion.
Not every “rewards” program works this way. For example, I can swipe my Lowes card or not. It doesn’t change the price of anything. It just records my purchase to the benefit of both Lowes and myself. They get information on customer habits. I don’t have to worry about finding a receipt if I should have to return something. Better still, if I decide not to use the card one time, or I forgot it, or it just slips my mind, I don’t get reamed. Auto Zone has a similar program, although after several purchases over $20 you do get a coupon or discount. Office Max’s card also does not make you pay a jacked up price for not having one, but you will get lots of email offers if you do have one.
I’m not really swayed by the discounts and rewards because ultimately, they’ll get what they need to get. You lower the price on this, raise the price on that. You can’t sell dimes for five cents each and make it up in volume. It’s a head game. I know it’s an effective head game, but I prefer the honest approach. Give me you best deal. If you need more information, we can work something out that doesn’t piss me off.