All Line Rover
Established Member
- Joined
- 17 Feb 2011
- Messages
- 5,222
I don't understand this point. If they were fully subsidising it, why would it make any difference to the companies whether it was 4x or 3x? Seems more likely that for 3x they receive a greater proportion of the face value of the vouchers from Tesco than for 4x. The rest of the value is probably written off as the advertising/marketing benefit RSH gets by being associated with Tesco (which is probably quite huge).
For companies with a large profit margin and perhaps selling leisure-based or "occasional treat" goods and services, or simply things that people don't buy every day, only getting 50% of the tripled vouchers may be sustainable, especially if they factor in the advertising benefit.
For a company like RSH that presumably has a very small profit margin and sells something that people can and do use every day, it was probably unsustainable. In fact double points is probably unsustainable too IMHO.
A few months ago (at the end of last year, I think) Tesco sent out an e-mail (and plenty of postal correspondence) saying that they were reducing the value of "rewards" from 4x to 3x. Why? According to Tesco: "To attract new businesses who do not find the 4x rate sustainable." Surprise, surprise, many new companies join at the 3x rate - including Redspottedhanky! All of the companies have stayed at the 3x rate, except Redspottedhanky!
If Redspottedhanky intended for the 3x to be an "introductory" offer, they should have made this clear at the start. Many companies have done this in the past. For example, Goldsmiths are currently advertising a 4x rate as a "temporary" offer, clearly stating that it will go back down to 3x from January. (http://www.tesco.com/clubcard/deals/product.aspx?R=2219)
Why didn't Redspottedhanky do the same, with 3x going down to 2x? It would still have attracted an awful lot of customers.
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My ones expire on 31/12/11.
What bothers me more is that they reduced the ClubCard accumulation rate last month. So we've suddenly gone from £1 spend = 6p of RSH vouchers to £1 spend = 2p.
I understand Tesco does not pay the ClubCard Deal suppliers the full face value of the vouchers (Pizza Express and several other retailers will not accept Deal vouchers to pay for any of their own special offers, only for full-price menu items) so what's probably happened here is that Tesco offered ATOS the choice of a worse conversion rate or paying ATOS a lower percentage of the face value of the vouchers while maintaining the ×3.
Any vouchers ordered in the past month or two expire 31/12/20. Clearly Redspottedhanky expect to be around for a LONG time!
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He does have a point though. You go around claiming it is like it's a human right, but it isn't.
It is not a human right for me to be able to exchange my Tesco vouchers into Redspottedhanky e-vouchers at a 3x rate. I will still be shopping at Tesco since plenty of good deals remain - Eurostar in February, for example.
I am annoyed at the manner in which Tesco have gone about this. They said "rewards" were going down to 3x to entice more companies to join. Redspottedhanky joined. They never said they were going down to 2x! Then, in September, they said that some "rewards" were going back up to 4x. Did they say any were going to go down ever further? No! They've done it completely on the quiet, and had I not been reading www.moneysavingexpert.com, I might not have realized the change before December!
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The best conversion for Tesco vouchers is probably now Avios, if you've got a lot of them. 20,000 Avios can have value of £1,627 in the right circumstances (by upgrading a British Airways World Traveller Plus ticket from London to Chicago to Club World).
Avios will, in February, be 1000 points per £2.50 (instead of 600 points per £2.50). An excellent deal - I'm now accumulating all of my points for that offer.
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