The Coles weekly catalogue commencing tomorrow has an offer for Coles MasterCard Gift Cards on the back page.
The “generous” offer of 10% off on a $50 gift card is totally erased by the $5 purchase fee.
Why would anyone in their right mind buy these Coles MasterCard gift cards instead of the usual Coles gift cards?
It might be my American heritage but I am always amazed how so many companies entice customers with promotions that only give them a ‘ticket’ in a draw instead of a discount. The prize usually costs the business far less than reduced profits from a discount everyone could access. Oft times the extended period of a draw and the same one being offered by multiple ‘come-ons’ makes them all but farcical unless you are The Top Winner.
Australian consumerism is sometimes leading edge globally, and sometimes difficult to fathom why it works.
Here you have produced a perfect example where many of ‘us’ still buy the discount not the price/cost.
This is all the explanation needed:
‘A fool and his money are soon parted’ is quite an early proverb in the English language and, as such, might be thought to contain the wisdom of the ancients.
The notion was known by the late 16th century, when it was expressed in rhyme by Thomas Tusser in Five Hundred Pointes of Good Husbandrie
A foole & his money,
be soone at debate:
which after with sorow,
repents him to late.
The good news is that the 10% discount allows you to buy a $50 face value card for the bargain price of $49.50 ($55 less 10%). Whilst this is not worth crossing the road for, you can also buy cards with a face value of $250 (normally $257) for $231.30, which is a discount of 7.48% on the face value.
As they can be used anywhere that accepts Mastercard, there is an opportunity to save a few bucks.
Coles has a similar offer starting today and ending 21 June 2022. They have $100 Mastercard gift cards for $94.50 (5.5% discount) and $250 cards for $231.30 (7.48% discount). Ts & Cs below.