How Accumulating and Redeeming Points Affects Your Store

I am wondering if anyone here knows how points work at the store level.

If I frequent one SDM for alll of my shopping and accumulate most of my points from purchases at that store....

and then for redemptions I head to a completely different store because it is 24 hours

does that negatively affect my regular store in any way.

My regular SDM is a wonderful place to shop, so if redeeming there is better for that store then I would have to re-think my mega redemption plan.

thanks !

Great Question. I would also love to know the answer. I know there has been some speculation in the past but does anyone know for sure?

I to think this is an excellent question and would love to know as well. Thanks to anyone with more information on this.

No it wouldn't negatively affect either store as each store pays a certain amount of money for the regular and store promotion(20X, spend $75 get 18500, etc) points(individual product bonus points are paid for by the vendors), that money is put in a pool which is then used to reimburse the stores back for the point redemtions. You are giving the store you redeem at extra sales that is all.

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Well that makes me feel like I should at least do half of my redemptions at my regular store they deserve it.

I would love to redeem at my regular store but they have NO electronics and they never get the makeup items i want!!! grr... now i dont know what to do!

ill spend this week shopping for a location to shop at lol and then make a decision.

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Originally Posted by Tabby40

Well that makes me feel like I should at least do half of my redemptions at my regular store they deserve it.

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Originally Posted by lecale

The SDM franchise that give you your points pays SDM for them

The SDM franchise where you redeem your points is paid by SDM for them

That means your "regular" store will incur a net loss and your redemption store gets a net gain

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that is right and it works the same for other point cards. points cost the store money so when you get points when you're not suppose to or when you go around the system the store has to pay for them. that is why most SDM are very careful now when promos start.

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Originally Posted by lecale

The SDM franchise that give you your points pays SDM for them

The SDM franchise where you redeem your points is paid by SDM for them

That means your "regular" store will incur a net loss and your redemption store gets a net gain

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I wouldn't say that the SDM franchise that gives you points incurs a "net loss". Especially with the huge margins SDM has with their high prices. The store likely made a nice profit off your purchase and just has to pay a small fee to SDM to award you points.

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Originally Posted by lecale

Depends on how you shop. If you buy low margin items like lots of page 1 sale items, and earn a lot of points on it, it will be a net loss to the franchisee. That's why some store owners don't want supercouponers in their store. It costs them money. If they were making any sort of, let alone nice profit, supercouponers would be greeted like VIPs.

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That's a topic on it's own - who covers the cost (lost profits) of low margin page 1 sale items when those sales are decided by HO. If it fell solely on the shoulders of the franchise, I would be hiding the bulk of the sale item inventory if I was the store owner.

I don't understand your comment on supercouponers - SDM gets reimbursed by their vendors for the coupons they accept so that does not impact SDM profits?

in the end does it really matter?

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Originally Posted by lecale

Depends on how you shop. If you buy low margin items like lots of page 1 sale items, and earn a lot of points on it, it will be a net loss to the franchisee. That's why some store owners don't want supercouponers in their store. It costs them money. If they were making any sort of, let alone nice profit, supercouponers would be greeted like VIPs.

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Supercouponers do cost stores money cause even WM told us that in training. They either clear the shelves, or get the product for free or overage etc and with SDM its a little bit different except for shelf clearing. But since the shelves are clear, or just your average person who purchases the item with out any coupons they pay full price and if there isn't any of the shelf they can't purchase it. With couponers they have to wait to send it in and my WM said once every few months and then it takes a month or so to get the money then they get the money back. When a person pays full price they get the money immediately and can turn it around for day to day operations.

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Originally Posted by anisa

in the end does it really matter?

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Nope, not to me.

I disagree on the loss - They are making money on the product.
As for the "super couponers". Thats the stores own fault for not limiting it.
But I still disagree on that aswell because the coupons also pay a handling fee so the store does make more money
off of it then the "average" person buying it.

the handling fee isn't much .08 cent per coupon or less Walmart said but it's to cover shipping it to them so they either break ever or loss money