Shoppers have to spend as much as $4750 to earn a $15 reward through New Zealand's biggest loyalty card scheme.
That's the expense required to rack up 95 Fly Buys points through Contact Energy or any of a string of holiday companies signed up to the scheme.
And that's only enough points for a fitness DVD similar to titles available on the internet for $15. The findings have prompted a marketing expert to warn the benefits of such schemes could be over-rated.
Auckland University senior marketing lecturer Rick Starr said shoppers who stayed loyal to Fly Buys-affiliated retailers, and companies belonging to similar schemes, should calculate the savings they made or value of the gifts they earned. Otherwise they could be spending more - for little return.
"Could people get a better deal by shopping around rather than being blindly loyal? Yes, they probably could."
Our calculations were based on standard rates of point earning, although many participating retailers usually offered bonus points at any given time.
Andy Symons, chief executive of Loyalty New Zealand, which runs the scheme, said the average family would accumulate about 600 points a year.
But he acknowledged shopping at participating outlets may not always mean the best deal: "It is a tough economy and I support that many consumers are looking for bargains and are being careful with their money. If you can get a bargain somewhere else, you should take it."
Symons also accepted having to spend more than $2000 at New World to earn a DVD could be seen as excessive.
"It may look like a lot of money to spend when you do those sums, but keep in mind at any time almost half the retailers we work with are offering special deals.
"What we try to do is reward people for everyday shopping, and while there are other bargains to be had, people need petrol, electricity and gas.
"You're not paying anything different for the underlying product."
The point-based system also applies to credit card reward schemes. A Consumer New Zealand investigation found that even spending $25,000 over two years on any credit card from a major bank would not be enough to pay for a $500 return flight from Auckland to Sydney.
After deducting annual card fees, the net value of the rewards equalled just 37 per cent of the ticket price when using a Qantas ANZ Visa - the most rewarding scheme.
Consumer's comparison of 29 cards showed the next best was BNZ's American Express Gold Global Plus at 33 per cent, while 13 of the 29 cards had a negative net value.
Starr said gaining points through your credit card would only work for most people if they made all the repayments.
"I'm willing to bet a lot of people are fooling themselves into thinking they're getting a good deal (but) they are not paying off their credit cards.
"The maths is more complicated than people want to do, and many just don't want to know about it."
Starr said research showed people would rather pay more for convenience than shop around.
"Pak'nSave might be the cheapest supermarket around, but most people won't do all their shopping there - they'll go to other shops for top-ups, and that's where loyalty cards come in."
What to buy?
Brother sewing machine: 1160 points
Required spend: $29,000
Bungie jumping: 705 points
Required spend: $17,625
PlayStation 2 console: 1250 points
Required spend: $31,250
Samsung DVD player: 640 points
Required spend: $16,000
CK One fragrance: 400 points
Required spend: $10,000
A pointless exercise
April Poualii, 21, West Auckland
I don't use them but my mum does heaps. I think they're a bit dumb. You could go on a trip for that much money. It puts me off doing it.
Stuart Gardyne, 52, Wellington
I do use them and I've gained about 7000 points in three years. You plan to build them up for flights but I've never got around to using them. I mostly use mine at New World with my Visa, so then I get double points.
Claude Lewenz, 58, Waiheke Island
I think they are a gimmick. The only one I use is for the AA, but I think the other ones are a bit silly. I don't think it's worth it to use them; you don't get much of a reward.
Simon Martin, 28, Herne Bay
I think it's a rip-off. I've used them in the past but what you have to spend to get a reward is not worth it for me. It's not something I would do again because I don't think you really benefit.
Loyalty cards like Fly Buys - are they worth it?
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