Author Topic: Woolworths introduces cashback rewards offer - but increases prices to match  (Read 2687 times)

mustachepungoeshere

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http://www.news.com.au/finance/business/spend-2-get-2-back-customer-spots-woolworths-rewards-card-fail/story-fnkgdftz-1227606554522

Quote
WOOLWORTHS’ revamped loyalty scheme has run into its first snag.
News.com.au reader Stewart has pointed out a pretty uninspiring deal currently being promoted on the BWS website and emailed to customers last night.
You can either: buy a 24-case of 330mL Bitburger Premium Beer Bottles for $40, or buy the exact same product for $42 to earn $2 worth of Woolworths Rewards points.
“$2 extra if you want $2 back — seems fair,” Stewart says.

FrugalUndercover

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The revised Woolworths scheme is terrible.  Even after allowing for cash back, the price isn't any better than discounts at Coles.  They are just holding onto your money.  (Note I am a biased Coles fan)

Ashyukun

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Wait, Woolworths still exists?!?

marty998

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Wait, Woolworths still exists?!?

Australia, mate.

ozbeach

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Under the new scheme I've got $2.50 cash back after four shops. Under the old scheme I would have a few hundred Qantas points. At this rate I'll probably get $10 off every four months, so $30 a year vs 2000 Qantas points. It's probably line-ball for me as to which scheme is better.
Late to FI; but better late than never!

mustachepungoeshere

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My husband is becoming increasingly concerned about the amount of tracking and direct marketing involved in the scheme, so he refuses to scan his card.

I'm not thrilled about it either, but if they've jacked up prices to compensate then we lose out by not scanning our card.

This is why we try to shop local where we can, local butcher, etc.

ozbeach

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My husband is becoming increasingly concerned about the amount of tracking and direct marketing involved in the scheme, so he refuses to scan his card.

I'm not thrilled about it either, but if they've jacked up prices to compensate then we lose out by not scanning our card.

This is why we try to shop local where we can, local butcher, etc.
If you're using a credit card to pay for the groceries, they're tracking you regardless...
Late to FI; but better late than never!

Scandium

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My husband is becoming increasingly concerned about the amount of tracking and direct marketing involved in the scheme, so he refuses to scan his card.

I'm not thrilled about it either, but if they've jacked up prices to compensate then we lose out by not scanning our card.

This is why we try to shop local where we can, local butcher, etc.
If you're using a credit card to pay for the groceries, they're tracking you regardless...
So no loyalty card, and pay cash only. And all bills with checks on the mail. And no online shopping.

You'll be paying quite a bit more for this. I'm always ranting about the NSA, but in this case I'm not sure it's worth it (IMO).

Hunny156

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Wait, Woolworths still exists?!?

Australia, mate.

I too, clicked on the link just to see where Woolworth's still exists!  :)

frugalnacho

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Doesn't this just give the tax man a bigger cut of every transaction at woolworths?

MgoSam

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Doesn't this just give the tax man a bigger cut of every transaction at woolworths?

Perhaps, but seems silly to give someone a $2 "reward," while adding $2 to their price. Then again, it may be brilliant if their customers don't notice and end up spending more to get these rewards.

frugalnacho

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Doesn't this just give the tax man a bigger cut of every transaction at woolworths?

Perhaps, but seems silly to give someone a $2 "reward," while adding $2 to their price. Then again, it may be brilliant if their customers don't notice and end up spending more to get these rewards.

I assume the $2 "reward" you get can only be spent at woolworths, so they are effectively just forcing you to continue spending money there.   It just seems like the tax man is going to be taking the same percentage even though you upped the price, so you pay more in taxes.  Then you come back to spend your "reward" at woolworths and the tax man takes the same percentage from an inflated price. 

Taken to the logical extreme they would up the price from $40 to $1,040.  Now you get charged taxes on a $1,040 item instead of a $40 item, AND you have to come back to spend your $1000 "reward" (and also get charged tax on that purchase). 

EDIT: So wouldn't you just be better off foregoing the inflated $42 price and just pay the $40?  The $2 you save (even more because you pay less taxes on a $40 item) can then be used to purchase more goods at woolworths if you want, but it can also be used for anything that money can.
« Last Edit: November 19, 2015, 10:28:41 AM by frugalnacho »

ozbeach

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The article posted by the OP pointed out that this was an error.

I have seen the new $ rewards on items that are normal price as well as sale price. I have not seen any items with prices inflated to account for the reward $.
Late to FI; but better late than never!