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Friday, February 25, 2011

When is $3.99 a better deal than $2.99?

When I compared this week’s sales flyers, I saw something interesting and thought it a good illustration of how the good use of register rewards changes a sale.
This example features Arm & Hammer Laundry Detergent. The detergent is currently on sale at Rite Aid for $3.99 with a $1 RR. It is on sale at Walgreens for $2.99. There is also a $1 off when you buy two, coupon available on this sale, making it even better. Is this the same sale? Which is the better bargain? In the end, both products will cost $2.49 each when you buy two. Or will they? This is where the use of RRs come into play. Let’s assume you have two $3.50 RRs from the Colgate sale last week, totaling $7.00 RRs.
Option 1: Rite Aid Scenario $3.99 each, less $1 RR
Transaction 1:
Purchase 2 Arm & Hammer Laundry Detergent= $7.98
Plus .05% tax .40 cents = $8.38 *filler needed of .02 cents
Less $1.00 coupon= $7.38
Pay with $7 RR and $1.38 out of pocket,
     earn two $1 Rewards

Transaction 2:
Purchase 2 Arm & Hammer Laundry Detergent= $7.98
Plus .05% tax .40 cents = $8.38 *no filler needed
Less $1.00 coupon= $7.38
Use $2.00 Rewards= $5.38 out of pocket,
     earn two $1 Rewards

Transaction 3:
Purchase 2 Arm & Hammer Laundry Detergent= $7.98
Plus .05% tax .40 cents = $8.38
Less $1.00 coupon= $7.38
Use $2.00 Rewards= $5.38 out of pocket,
      earn two $1 Rewards

6 bottles cost $12. 14 out of pocket, & earn $2 Rewards=
$2.02/bottle

Option 2: Walgreens Scenario $2.99 each

Transaction 1:
Buy Six (6) Arm & Hammer Laundry Detergent= $17.94
Plus .05% tax .90 cents = $18.84
Less three (3) $1.00 coupon= $15.84 out of pocket=
$2.64/bottle

On a level playing field, without rewards, the lower price is a better deal, but this is where those register rewards really adds up. And, the $2 left over rewards from this sale can be rolled towards next week’s sale

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