Today I got my Style Insiders card from Penningtons.
This replaced the old card that earned you a $25 reward “cheque” for I believe every $500 you spent in the Pennington stores.
If I am remembering those numbers correctly then the reward that you got was 5% of the money you spent at the store, before taxes of course.
Now Penningtons has a new reward program and according to the letter I got, for every dollar spent, again before taxes, you get 20 points. The rewards break down like this:
At 5,000 points you get a $15 reward coupon
At 10,000 points you get a $20 reward coupon
And at 15,000 points you get a $25 reward coupon.
Now for a little math. If you get 20 points per dollar then in order to earn 5,000 points you must spend $250. If you receive a reward of $15 for every $250 you spend then that equates to a return of 6%. This is better than the old reward card and you can realize the reward sooner since you can cash in after spending $250 instead of $500.
If you save up 10,000 points you get a $20 reward which is a 4% return on your spending, and had you traded in at 5,000 points twice you would have saved $30 overall instead of $20.
The same holds true at the next level since for 15,000 points you could get 3 x $15 which would be $45 total as opposed to the $25 they are offering which is a return of only 3.3%,
The letter I got does say that there is “always more going on, especially when you get up to those higher levels”, but it doesn’t indicate what that means, nor is it apparent that there is any further financial incentive.
So assuming I have all of the information it appears that there is no incentive to earn more than 5000 points at a time, and in fact the longer you wait and the more points you earn, the less you can save. It is nice to see that the new rewards are slightly better than the old system, but I can’t help feeling that they are actively trying to bamboozle us. It’s almost as if they are counting on the stereotype that girls can’t do math.
Good things Goddesses can.
– the Goddess