Are register rewards worth it?

Photo by Evelynishere

Or do you just end up spending more?


Staples, Walgreens, and now even grocery stores are using "savings" programs that are mainly designed to make you a repeat customer. Even if it's somewhat forcibly.


The stores offer savings in the form of credit against future purchases. So while you think you're saving in the present, you're really saving in the future. Or, looked at another way, you're simply enjoying the benefits in the future from money you already spent in the past -- all while thinking you're getting a good deal. It's a tad dizzying, really.


Let me give an example: Walgreen's recently advertised Kashi cereal as 3 boxes for $7. You bought 3 boxes, paid $10 and got a $3 Register Reward slip. You can use that slip on your next purchase at the store.


So, in fact, you're not saving money on the cereal. You're saving money on future purchases. There's a pretty big distinction.


One of the main problems here is that Register Rewards (and programs like them) expire. So, like rebates, there's a good chance that people won't use them. The company gets product sold, makes about the normal profit and customers come away feeling like they got a great deal. How could companies not love this process?!


Second, there's the old double-accounting trick. At least, that's what I call it. I'm very susceptible to it. I attribute that to the following: My brain is continuously distracted by random thoughts, lists of errands and any nearby shiny objects. Once you add the fog that rolls in with my readily accessible fatigue, you've got a former calculus student working up a sweat trying to do basic math some days.


So, when I use these programs, it's pretty common for the ole' gray matter to account twice for savings that occur only once. Such as: "Golly, it's so cool that I just got 3 boxes of Kashi for $7" -- even though I just paid $10 -- and then later, "Hey, while we're here, I'm going to get this candy because it's practically free. I have a $3 off coupon!"


See what just happened there? (If so, you're often one step ahead of me.) The discount got used in two different ways. So, in my mind, I saved $6. In fact, the "discount" only works if I buy something I'd buy anyway.


And, as I said before, you could question whether I would save any money at all, really. I'd pay $10 for 3 boxes of Kashi. Then, I would come back to Walgreen's and spend my $3 in Register Rewards. Since your item has to at least be equal to the RR slip, I'd end up paying 27 cents in sales tax.


So, I shelled out a minimum of $10.27, got a $3 certificate, and am being told I got it for $7. Anyone else see a logistical problem here?


If you plan ahead, you can avoid some of the confusion inherent in such complex transactions. For example, I bought three boxes, received my RR slip and gave it to Tim. While his three boxes were being rung up, I went back and got the last three left on the shelf. When I came back, he handed me his RR slip.


So, we paid $10, $7 and $7. In all, we got 9 boxes for $24. That's $2.67 a box -- or 34 cents more than advertised. Oh, and now we have a leftover RR to use for our next drug store need. Definitely not the worst deal in the world. It's a heck of a lot cheaper than the usual $4+ grocery store price and even cheaper than the large boxes at Sam's Club. Even if we let the RR lapse.


Since all of my prescriptions are at Walgreen's, this isn't a big deal. But if you're not a regular shopper there, the store just guaranteed that you'll make a return visit. (If you don't, it doesn't have to give you the discount, so it's win-win.)


And most people don't just get the one item at the drug store. There are a few hard-core shoppers who can manage it. But for most, these Register Rewards act like loss-leaders. They lure you into the store for one cheap item; then you come out, dazed, with an arm full of stuff and a significantly lighter wallet.


It's insidious.


***


Albertsons has been doing something similar around once a month. If you buy $25 worth of certain products, you get $5 off. You have to look closely (or, at least, I did) to notice that it's in the form of a $5 credit toward your purchase the next week. Good only for that week.


Tim and I had to work carefully to be sure that we a) used it before it expired and b) bought only essentials with it, lest we fall prey to the notion that it was "free" money. These days, I only participate in those deals if I actually need $25 worth of the products. I rarely do.


***


For a long time, Staples/Office Depot/Office Max let you return empty printer cartridges. Each cartridge netted you a $3 discount on a purchase. Maximum of three a day.


This was a great way to get a discount on ink. Or get shipping supplies if you ran a small business. My mom actually collected cartridges at the University of Washington, where they were simply being thrown away, and would use the discounts to buy and donate school supplies: backpacks, binders, pens, pencils, and more for families who couldn't afford those items.


Then the stores wised up. Now, you can turn in as many as 25 a day (at least, at Office Depot) but the discount comes later. Once a quarter, to be exact. And the credit is valid only for a couple of weeks. If you miss that window, too bad.


This means that people will be rushed and panicked, especially if they wait until the last minute. They won't want to "lose" the credit, so they'll buy things they probably didn't really need. This easily leads to excessive spending, which means a profit for the company.


Really, though, the company wins in two ways:

1. People think small with small amounts. But as the amount grows, so does their imagination. So, if they get a $3 -- or even a $9 -- discount, they'll probably spend it carefully. But, over the course of three months, those discounts accumulate. When they get up above $10 or so, people start to think bigger. If they get it up over the $20 or $30 mark, they're likely to see it as a way to get a discount on a big ticket item. So what they once would have used to get things free, now becomes a means to afford expensive purchases. Nice little deal for the company.
   
2. People have to come back in. In order to use the credit, which most of us begin to think of as our due, we have to go back. Or on to the website. Either way, the store gets us back in -- and in a mood to consume, no less!
   

Of course, the stores lose out on people like my mom, who simply stocks up on paper and ink and rarely goes over her credit amount. Perhaps soon enough they'll change it to something that necessitates purchase? As in, "Get $40 off (a purchase of $75 or more)."


I certainly hope not. But I think it's important for all consumers to remember that companies create rewards programs to get customers in the door. In other words, no rewards program is completely selfless -- all have ulterior motives. These programs are created to get you in the store, spending. It's a careful balance for the companies: Good enough rewards to keep customers happy, without losing too many profits.


In other words, remember that companies create (and tweak) these programs to always be in their best interest. So long as you remember that, you stand a better chance of actually getting a deal.


Good questions to ask are:

• Would I normally buy/use these products?
• Will I actually use the products (or reward)?
  
• Is it in my financial interest to use the reward?

If the answer to any of the above is "no," taking advantage of the offer will more than likely lead to you, wandering aisles of a store, trying to find things to buy. Things you don't need. All so you can take full advantage of a deal that isn't really that great a deal.
If you simply remember that even the best rewards programs are part of a capitalist business, you will have, I think, a better chance of getting real value from these programs.

We're making progress

CC balance (4/22): $8342.74
CC balance (5/19): $6997.99


Yep, that's right folks: When the payment goes through tomorrow, we'll officially be under the $7,000 mark!


This was an exceptional month, mainly because we had a nice lil $500 boost from our favorite Uncle (Sam). I got $250 as part of the Economic Recovery Program. This amount was sent to people on SSI and, I believe, also disability. Tim got the other $250 as backpay from the unemployment department. Apparently there was a $25/week increase back in mid-February, but the state of Washington didn't get its act together until last week.


I'm pretty proud of us, though, because even without the $500 boost, we were able to pay down $844.75 of debt. Out of our actual budget of $3,145 (now $3245, thanks to the unemployment increase), that means we paid 27% of our relatively modest income toward debt.




My ongoing efforts to make a buck...


Another piece of good news: We didn't have to get a new Xbox 360! It turns out we were still in the warranty period for the Red Ring of Death. It's just that, in Tim's three or four phone calls to Microsoft, no one informed him that the warranty had been extended for an extra two years for equipment that exhibits the Red Ring of Death. We sent it off at no charge and were not charged for repairs.


So Tim gets his Xbox 360 back, and I get to throw rewards' money at debt. In the case of gift cards, I will either save them for Christmas shopping or I can sell them on eBay and put the proceeds against debt.


Here's an update of how my efforts:


Ebates

I'm happy to announce I finally got my first check from ebates, which Liz Pulliam Weston cites as one of the best sites for bargain hunting. We're not talking huge money by any stretch, but I was more than happy to put that $35.61 against our debt in this week's payment.


If you haven't yet joined ebates, now's the time. When you sign up, you get an automatic $5 credit to your account. This is an especially good idea if you have a lot of impressionable friends. Normally, you get $5 per referral; but for a limited time, every three friends you refer doubles the bonus. So instead of $15, you'll get $30.


When you're already planning on buying something anyway, it just makes sense to go through a program like this. (And to profit off your more obedient friends!) Sign up today!



Inbox Dollars

I'm almost ready to get my first check from Inbox Dollars. The minimum payout is $30, and I'm at $28.79. It's amazing how those emails add up! I didn't do any cash shopping and did very few surveys or cash offers. There are plenty of both, so depending on your willingness to participate, you could get your first $30 pretty quickly. Or, like me, you can just rely on those emails to add up over time. Either way, free money is free money.



Memolink

I'm almost at $25. After that, I may quit. I haven't decided yet. The main reason I loved this program was that it offered the daily lottery for 100 points a day: 10 points per game, 10 games a day.


So imagine my dismay to find that the lottery games are now only worth 1 point each. I wrote customer support explaining how upset I was that we weren't notified about the change. I didn't get a very satisfactory reply.


That said, there are some decent deals. For example, the site routinely doubles the points offered. This came in handy when we were replacing a pair of Tim's shoes. Shoebuy was cheaper than DSW, wouldn't charge us sales tax and has free shipping. We also got 15,600 points. (For reference, 19,300 points will get you $10.)


There are also routine opportunities to earn 480-600 per survey. A new one is introduced every two or three weeks. And if you can qualify for and finish the OTX daily survey, you make a quick 720 points.


In other words, the utility of Memolinks will probably be vary by person. Like I said, I'm torn about continuing. I'll keep you guys updated.



And saving the best for last....


Swagbucks

I am soooo addicted to Swagbucks, I may actually need an intervention!


When I wrote about rewards programs back on April 14th, I had 179 Swagbucks. Thanks to some referrals and being diligent about Swagcodes (more on that in a moment), I'm up to 393 (UPDATE: make that 411, as of 4 p.m. PST). For the math averse among you, that's 214 (er, 232) Swagbucks in just over 30 days!


How is such a thing possible? As with most things on the Internet, referrals are a large part. When you refer someone, you earn a buck for each buck he or she wins, up to 100. Tim and my Mom were a big help in this area, though a couple of you readers gave me a boost too.


Another big help: Swagcodes. Periodically, Swagbucks will post a code (or a clue to a code) on the Swagbucks blog or Facebook page. These are usually worth one Swagbuck. Given that there's usually one a day, that can add up pretty quickly. For those of you who pay attention to Twitter, follow Swagbucks, which will tweet every time there's a new code up. Otherwise, I like to use Engineer a Debt Free Life. It's good about keeping current on codes. I check it around three or four times a day.


I'm not sure what I'm going to get but here's a cool sampling:

• 45 Swagbucks for a $5 Amazon GC. Save them up for a big item, or use these for cheap, reader-attracting giveaways on your site!

• 220 Swagbucks for $20 Target GC. There's pretty much always something I need in that store. I'm not sure if it's evil or wonderful. But it's definitely useful.

• 320 Swagbucks for a $25 Macy's GC. Free clothes? A discount on a wedding gift for the upcoming nuptials season? The possibilities abound.

• 400 Swagbucks for 1600 Xbox live points. Great for getting quickie games, special armor and other items, or downloadable content to extend your play.

• 450 Swagbucks for a $25 Fandango GC. Because even frugal folks enjoy the occasional summer blockbuster. But we're too frugal to pay retail prices!

There are also Star Wars collectibles, Puma gear, electronics, songs and other sections.

Road to rewards revenue: Xbox 360 here we come!

About three weeks ago, Tim's Xbox 360 died. To be more exact, it stopped showing any video -- which is, arguably, a large obstacle to enjoying video games.


First we tried to determine the problem. (I'll actually do a separate post about our troubleshooting and research because it's important to know how to try and fix things first.) When it became clear we could not fix it, we agreed to replace it.


Of course, given our financial situation we cannot afford to buy one. This weekend, I got a Keynote evaluation opportunity. If you've never heard of this, it's a cool little program. From time to time (maybe 1-4 times a year) you can try to qualify for a survey. It usually takes about half an hour. You check out a website and are asked to give reactions. If you complete it, you're rewarded with $10 in Amazon credit.


That made me realize how well our current rewards program efforts are going. Here's how I'm finding the three top programs I'm working on.




Swagbucks Success


I'm really loving Swagbucks. I signed up Mom and Tim. Each time they get a Swagbuck, I get one, too -- up to the first 100. Even without their help, I got over 100 in the first two months. A month later, I'm at 179.


The $20 Target cards are only 220 Swagbucks. We can also get $5 Amazon e-cards for 45 Swagbucks, which we'll use to buy Target cards on Amazon. Yes, I'm truly that Machievellian.


One thing I like about this program is that you can get rewards so quickly. There are plenty of things you can get for under 100 Swagbucks. And the variety of merchandise is pretty wide, if slightly eccentric.


I like it so much, in fact, that I got a special Swagcode for those of you interested in signing up. By using the code IPICKUPPENNIES, you'll start off with 5 Swagbucks instead of the normal 3. So just by signing up, you're 1/9 of the way to an Amazon gift card!


To get the points to accumulate fast, here are a few tips:

1. Download the toolbar, which will remind you to do searches.
2. Check the blog/Facebook page for extra codes.
   
3. Use Twitter to enter for the daily 20-buck giveaway
4. Be sure to do your searches on Friday, when more are given away.
5. Offer up poll ideas. If one is accepted, that's an instant 10 Swagbucks.
6. And, if you feel comfortable doing it, get others to join. You'll earn Swagbucks right along with them. C'mon... All the cool kids are doin' it! (Which, by the way, should be the line you use.)
   

There are plenty of other ways to earn Swagbucks, so check out the site for all the details.


Just don't forget to use "IPICKUPPENNIES" when you sign up. And do it soon: The code expires on Thursday, April 16th, midnight PST. (If you miss the deadline, don't beat yourself up. You can still get 3 Swagbucks as a new citizen of the Swagnation.)





Multitudes of MyPoints


Of course, Swagbucks is still a relative newcomer to the rewards program scene. Probably one of the oldest and best is MyPoints. I've been with this site for more than 8 years now. I've gotten tons of gift cards from it.


MyPoints is terrific. Why? There are several ways to earn points without spending anything or completing free trials. They go from easy (email) to more in-depth (searches and coupons). No matter how you do it, you're on your way to fast rewards!


Personally, I get around 3-5 emails a day. With most worth 5 points, I could cash in for a $10 gift card (1,450 points) in about 3 months. Just for checking my inbox.



I like to go a bit further, though. Here are a few tips if you want the points to accumulate quickly:

1. Choose the maximum number of topics in each category of your profile. The more interest you have, the more emails you'll receive.
2. Print out your Coupons.com coupons through MyPoints. For each one redeemed, you get 10 points. If you redeem 10 or more in a month, you get an extra 25 points.
3. Download the MyPoints search toolbar. It's a quick 100 points. Plus you get up to 75 points a month for searches.
   
4. Visit the homepage. Fill out the "Tell Us & Earn" section for a quick 20-30 points. These refresh every 1-2 days.
   
5. Act quickly on the survey offers. If you actually want to participate in one, they fill up quickly.
6. Don't refer people right away. Seems counterintuitive, right? But every 2 months or so, MyPoints offers double points for referrals. So, once again, good things come to those who wait.
   

When you first register, you'll get between 60-100 points for signing up/filling out a profile. That will put you on your way to your first reward.


So, on the off-chance that there are still people on the Web who aren't MyPoints members, here's a link to the site. If you do sign up, please consider using me as a referrer: seattlegirluw@yahoo.com.






Memolink Merits



Finally, I'm working on Memolink. After about a month of concerted effort, I'm at nearly 9,000 points. That's about half of what I need for a minimum reward.

I think that may actually be what initially detracts from this program. Compared to MyPoints, you need a lot more to get as much as $10. In addition, the emails pay only one point more (6 vs 5). So people may give up too easily on Memolink.


But I can say that I've had some decent success here. I don't know how viable it is in the long-term, but at least for now I'm making good progress.

Memolink has the distinction of offering you cash rewards, in addition to gift cards. That could certainly intrigue some people. More importantly, the program offers a few items that really let you rack up points:

1. Memolink Lotto. Through Lucky Surf, you get a double reward here: points and a chance to win money. You can play up to 10 grids a day (only the 10th has a cash prize) and each one gets you 10 Memolinkpoints. Now that I have the routine down, it takes me about 3 minutes. Total points: 100 points.
2. Homepage. There are four "Videos of the Day" (2 pts each) and one "Site of the Day" (3 pts) that you can click through. Total points: 11 points.
3. Memolink Surveys. These refresh daily. None should take more than a couple of minutes to complete. You get anywhere from 3-10 points each. (If you qualify for the daily survey, you'll get an additional 720.) Total points: 30-50.
   
4. Easy Points. These include "surveys" that are really just excuses to get you to look at ads. One caveat: If you've ever completed Big Bucks Surveys and/or Eversave with the same email address, don't bother with those; they won't credit points. But there are still usually 8-15 quizzes from Quiz Jungle et al that will give you the points. (I've gotten credit for at least three or four, with others still pending.) They take around 3-5 minutes each, once you start to memorize where the "No Thanks" and "Skip" buttons are. Simple, free. Total points: 200-500 each.
5. Store ratings. Each time you get credited for a store, which can also include the easy point surveys, you can obtain 5 points for reviewing the experience. This is located in your account, under "Pending Store Ratings." Total Points: 5 each.
   

Of course, with any of these programs, you can ramp up points and rewards faster if you shop through the portals or do free trials. But Tim and I are trying to keep shopping to strict necessities, and I'm dealing with enough stress right now. So, I'm approaching these programs from the viewpoint of someone refusing to spend any money. And I think I'm relatively pleased with the results:


For Swagbucks, Tim should have at least $5 in Amazon e-cards. If Mom is feeling generous, she'll probably have $10 of Amazon e-cards. Between those two and my own searches, I should net a $20 Target card and $10 of Amazon e-cards. That would be a total of $45 worth.


For MyPoints, Tim and I each are approaching enough for a $25 Target card. So that will be $50. (We both last cashed in around Christmas, so that's about 3 months' effort there.) Mom has graciously offered up some of her MyPoints. That's between $50-75.


I should have enough in another two or three weeks to get a $10 gift card from Memolink.


Combine that with the successful Keynote Panel $10 reward, and that's already $115-140 of the $250 ($200 for the basic system, $29 for the extended warranty, $11 for sales tax) that we need for the replacement Xbox 360.

Happy birthday to me!

I forgot to mention the good news: J.D. over at Get Rich Slowly mentioned my "emergency fund" piece on his Sunday round-up. It's creating quite a bit of traffic flow as an awful lot of contention).


Between that and my guest post on MSN's Smart Spending, I think I may get spoiled by all this attention!


So thank you to both for the opportunity to drive some traffic to my site. And welcome to all Smart-Spending and Get-Rich-Slowly fans. I hope you'll take a look around. Be sure to read yesterday's "Martha Stewart of frugality? Not me" post all the way to the end.


I'm giving away a $10 gift card to the store of your choice if you write the best random-thought-pattern rant, ala Gilmore Girls.


And to all readers, I'm always open to suggestions if there are particular issues you wish I'd address. I am sure I won't get writer's for awhile, but if you feel like I've omitted something important I'd love some feedback.


By the way, I won't be posting or probably even moderating most of tomorrow. So if my usual-speedy reply is slow in coming, it's because it's my 30th birthday and I'm out gallavanting downtown and consuming large quantities of bad-for-me desserts!

And so, in that spirit, I thought I'd talk about all the cool stuff you can get on your birthday:

• Red Robin's eClub: Emailed free burger coupon (though you need to be careful who you go with, since part of its claim to fame is humiliating birthday folks by singing waiters)
• Cold Stone Creamery's Birthday Club: Emailed free Like-it-sized ice cream with two mix-ins.
• GB online (Gordon Biersch): Free entree with the purchase of another. (For joining the club you also get a coupon for a free appetizer w/ purchase of entree.)
• DSW rewards club: $5 off any purchase of $19.95 or more

Also, many spas will offer you a discount massage during your birthday month. So if you are desperately stressed, consider that!

Since that's about the extent of my knowledge, luckily we have Freebies for Mom who did an entire post about these handy-dandy benefits! Read up. I know I will (I have four months before Tim's birthday).

Rewards Programs

Volition.com:

If you only take away one resource from my site, make it this one. This is a huge site with tons of information -- all free -- about various money-making and money-saving processes.

• It has lists of mystery shopping companies, any category the companies specialize in, and links to sign up.
  
• It has a forum where open jobs are posted, along with location.
• It has a coupon section
• It has information on making money online -- from points programs to pay for reading email and surfing the net

MyPoints:

• This is a fabulous program. I've cashed in points for hundreds of dollars of gift cards over the past eight or nine years. Mom and I saved up for Sam's Club cards and used them to buy food for the wedding buffet
  
• You get 5 points for reading an email and clicking; 10 points if you try to take a survey and you don't qualify
  
• In addition, if you do online shopping, you can use MyPoints as a portal and earn points for each dollar you spend
  
• Or you can sign up for trial memberships (but be sure to write down the cancel-by date on a calendar)
• You can redeem for as little as $10 (1500 points), if a birthday or holiday is approaching.
  
• Just for signing up, you get 250 points
• If you refer a friend, you get 250 points
• If you do decide to sign up, I would love it if you'd use me as a referral: seattlegirluw@yahoo.com
  

MySearchBonus

• Like MyPoints, you earn points. Like MyPoints, you redeem points for gift cards -- including gas cards. But unlike MyPoints, you don't have to read anything.
  
• MySearchBonus gives you one point for every search you do, up to 50 per day.
  
• You get 50 points for signing up.
• You can refer people and earn one point for each search they do, up to 100 points.