I just got off the phone with Woolworths. The rep tried to explain to me how the new program would work, but could not provide any concrete examples of earn rates under the new scheme. Time will tell if this is a worthwhile program, but as far as I can tell, this will be a massive devaluation.
Apparently how it will work is that selected items marked with orange labels will earn a certain amount of "Woolworths Dollars". These dollars can then be put towards savings at the checkout in blocks of $10, and you can store up to $50 worth of Woolworths Dollars on your account at any one time. The example the rep gave is that a $10 product might earn $1.30 in "Woolworths Dollars", but apparently that is merely an example - not an actual earn rate.
If they really wanted to offer savings, why not just make the hypothetical $10 item $8.70 in the first place and ditch the whole scheme?
>10% rebate on products? I call unlikely on that one. Even if it was a hypothetical 10% rebate achievable, do you think people will be swayed towards that over, say, Flybuys? If you could get 70-100 points on a $100 or $10 back, which would you take? I can see
infrequent travellers perhaps "benefitting"......
The way it is pitched seems to imply it is only a selection of products (perhaps changing from week to week) that will qualify for WW$. Not like a flat rate on the total spend, with perhaps some bonuses on selected products. So maybe some promotional products earn WW$, maybe new line products not normally on sale earn a bit more, but perhaps some basics like milk, bread, common fruit and veg might earn nothing.
Why wouldn't they just make everything less than the expected rebate? Well it makes no sense for them to increase prices across the board by the amount - anyone can see through that game. For example, if a loaf of bread costs $2 today, and let's say it earns 20c in WW$, they would be stupid to increase the price to $2.20 and people are going to fall for it that they can potentially get 20c of that back. Choice will be all over them like flies on manure. The idea would be that in order to get that 20c back, you need to commit to spending a minimum amount with them first. If they get really selective (i.e. some products have WW$, some don't) or variable (this product gives 10% of its value back as WW$, but this one only 1%), then they can also use this as a tool to spread unit losses across the business. Finally, some bubs might walk in, buy a product with an orange tag and out they go without scanning a rewards card. Woolworths gets the full profit (a la "breakage") if they don't reduce first and take a risk that that person will buy enough to recover it later, rather than give it straight away and risk that that person may not come back anyway.
Trade in earned WW$ for a smaller amount of Qantas points? (Similar to trade in your fuel discount for Qantas points?)
Qantas co-brand cards earn more points for Woolworths Group spend?
. A routine mopup I do with the kids every year to avoid accidentally losing points...
