On the afternoon when I nearly fell victim to the temptation of “20 times the points”.
It all began like this.
That afternoon, I simply wanted to buy a tube of toothpaste from a chain drugstore in Canada – Shoppers Drug Mart. Upon opening their PC Optimum membership points app, I saw the offer:
Spend $75, get 20 times the points.
Instantly, a suspicious algorithm began to operate in my brain:
20 times the points = save a lot of money;
Saving a lot of money = making money;
The more you buy = the more you earn.
Following this logic, all I needed to achieve financial freedom was perhaps an additional bottle of shampoo, two towels, and a jar of Vaseline that could last until the next Ice Age.
Thus, I found myself standing in front of the shelves taking stock of my household needs:
Only half a tube of toothpaste left, needs replenishing;
One bottle of shampoo still in stock, might as well stock up;
Face cream enough for at least two more months, but eventually, one must apply it, right?
Cotton pads? They’re never enough.
Body wash? Theoretically, it lasts a long time.
A home that was originally lacking just one tube of toothpaste suddenly became empty-handed.
My hand was reaching out for the “value family pack”. At that moment, I was 0.01 seconds away from owning a cabinet full of toothpaste, losing my last bit of rationality.
Fortunately, the words “accounting” suddenly halted me in my tracks.
Forget the multiplier, calculate the cash value first.
According to the rules of this points program, when members purchase most qualifying items at Shoppers, they usually earn 15 points for every $1 spent; and every 10,000 points can be redeemed for $10.
Assuming the promotion requires a pre-tax spend of $75:
$75 x 15 points x 20 times = 22,500 points
This equals approximately $22.50 in shopping value, which is close to a 30% points rebate.
This offer was indeed quite good.
If toothpaste, shampoo, and hygiene products were already on the shopping list, and if they were on sale, then the 20 times points deal would indeed save money.
But if nothing was originally needed, and you only spent $75 because of the 20 times points, you cannot say:
“I saved $22.50.”
The correct statement would be:
“I spent $75, acquired a bunch of things I temporarily don’t need, and gained 22.50 in points that can only be redeemed on a future purchase.”
Your bank account is $75 lighter, and your bathroom cabinet is full of excess stock.
You didn’t earn a plane ticket, but you now have enough toothpaste to last until the next World Cup.
If the total value of the things you really need amounts to $63, then there’s a $12 gap before reaching the $75 threshold.
At this point, your brain typically holds an emergency family goods meeting:
“Are we running low on cotton pads?”
“We do use body wash regularly, right?”
“An extra couple of toothpaste tubes won’t go bad.”
“Although we already have 3 bottles of moisturizer at home, who’s to say we won’t suddenly crave super hydration tomorrow?”
If the $12 in additional purchases is reasonable and will indeed be used up within three months, then this may not be a bad deal.
The real danger lies in: originally needing just a $5 tube of toothpaste, but, in order to meet the $75 threshold, you artificially create a $70 need for yourself.
It’s like buying a coffee machine and redecorating your kitchen just to save the money needed for a cup of coffee.
The store didn’t deceive you, and the points aren’t wrong.
It’s just that reaching the spending threshold cleverly reminds you that all those “will eventually come in handy” things at home should be purchased today.
Let’s take the same tube of toothpaste for example:
Shoppers sells it for $7.99, while another supermarket offers it for $4.99.
Even with Shoppers giving around a 30% points rebate:
$7.99 x 70% = about $5.59
After calculating the points, it’s still more expensive than the other store.
However, if Shoppers first reduce the toothpaste price to $4.99, and then stack on 20 times the points:
$4.99 x 70% = about $3.49
Now, that’s a real bargain.
So, my shopping approach now goes as follows:
Check the price first, then the points; compare with other stores before deciding on a purchase.
Offering points after marking up an item’s original price sometimes just means they’re overcharging you slightly before compensating in another form.
When I see a 20 times points promotion now, I ask myself three questions first:
One, if there were no points, would I still buy it today?
If the answer is no, it’s probably not a necessity but a desire created by the sudden promotion.
Two, will I finish these items within three months?
“Just in case I need it” doesn’t count. After all, someday we all have to go.
Three, after calculating the points, is it really cheaper than elsewhere?
The multiplier is just a number. The actual money paid versus the value received is what matters.
My stockpile limit is three months. Consumables that exceed three months’ usage, even if offered 100 times the points, go back on the shelf.
Because cash in the bank can at least cover utilities and unexpected expenses, while toothpaste sitting in the cabinet can only wait silently for me to slowly finish it.
The real way to save money is not letting promotions dictate your shopping list.
In the end, I put the family pack back on the shelf and only grabbed the toothpaste I immediately needed.
As I walked out of the store, I didn’t get 20 times the points but retained most of the cash in my wallet.
Managing personal finance isn’t about refraining from all purchases or running away at the sight of promotions.
Real savings come when the items you intended to buy are on sale and have bonus points; not when you create a $75 shopping list on the spot just to take advantage of points.
So, when you see 20 times the points next time, maybe give it a smile first:
Trying to entice me with toothpaste to tie up my liquid funds?
Let the accountant do the math first.
Discounting things you need and offering points is saving money;
Receiving more points for things you don’t need is just spending money with a bonus.
Whether it’s actually a bargain or not, don’t rely solely on advertisements.
Bring out your accounts, let the accountant tally for you.
In the next round, the accountant will calculate another “saving more, spending more” scenario: that moment when you thought you got a good deal with a 20% off card application.
Note: PC Optimum is a common membership points program in Canada, and Shoppers Drug Mart is a chain drugstore in Canada. Members at Shoppers typically earn 15 points for every $1 spent on most eligible items; and every 10,000 points can be redeemed for $10. Specific thresholds, exclusions, and promotion terms are subject to the current offer.