MrConsumer always likes getting good news in the mail. This letter just arrived from Office Depot’s reward program announcing “Exciting news for Advantage members”. Â The envelope goes on to say that rewards are now unlimited (previously there was a $50 cap per quarter). Inside, members learn the bad news.
*MOUSE PRINT: “Earn 5% back when you spend $200 or more on qualified purchases during the reward period.” [Direct mail piece, May 27, 2006.]
Office Depot’s original program paid back up to 10% when you spent $200 to $500 a quarter. It was by far the most generous reward program among the big three office supply superstores. Now instead of getting $20 back for a $200 purchase, you will only get $10 back.
While removing the cap on rewards benefits large purchasers, there is no getting around the fact that the reward has been halved (for those purchasing just over $200, $300, $400, or $500 per quarter).
The above description is not meant as a complete analysis of the pros and cons of the Office Depot reward program.
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Computer printer companies practically give away their printers because they know they will make the real money by selling high-priced replacement ink cartridges.They are not fond of no-name companies that sell refilled cartridges at much lower prices. One way to get consumers to buy the name brand is to tout its superiority. HP claims in this ad that its cartridges are “35 times more reliable than bargain ink cartridges.*”