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The loyalty reward scheme of outlets such as Officeworks and Bunnings has increased its rewards points, from one point for each dollar spent in-store to five points, while maintaining the membership fee at $4 a month, or discounted to $40 if paid annually upfront.
While the extra points on in-store spending at Kmart, Target, Bunnings and Officeworks is the main enhancement of OnePass’ refreshed rewards program, members now also receive free delivery on eligible items from Bunnings and Officeworks, as well as from Kmart, Target and Catch.
OnePass members now receive five Flybuys points for each dollar of in-store spend at Bunnings and other retailers.Credit:
Members now receive express “click and collect” from all outlets, excluding Catch, which is an online-only retailer, and up to 365 days to return a purchase, across the outlets, from the mostly 30-day returns policies of the retailers.
Flybuys is a joint venture between Coles, the supermarket chain and liquor retailer, and Wesfarmers, which owns Kmart, Target, Catch, Bunnings and Officeworks, and is the largest rewards program in Australia, with nine million active members.
Pros: OnePass provides an opportunity to earn rewards without the need for a rewards credit card and the conditions on earning points and the fees that the cards have. Fees on rewards credit cards are usually more than $40 a year, often significantly higher.
The offer of five Flybuys points per dollar spent is more than double the typical number of points available on most rewards credit cards. Members also receive exclusive access to special offers.
Cons: The five points offer is only available to those spending in-store at the four key outlets, so you will likely need to be a regular in-person customer.
It may not suit those who do most of their shopping online, as you will not earn the points, although OnePass members earn two points for every $1 spent at Catch and, of course, there is the OnePass fee that needs to be considered.
Verdict: Peter Marshall, the banking and rates expert at comparison site Mozo, says the enhanced OnePass offer of five points for every $1 spent is attractive, when most rewards or frequent flyer offers are between half and two points per $1 spent.
He calculates that 2000 Flybuys points are typically needed to earn a $10 gift card to spend at Flybuys partners.
With the OnePass offer of five points for every dollar spent in-store, that means customers would have to spend $400 to receive the $10 gift card.
They would have to spend at least $1600 during the year, in-store, at the partner outlets to cover the annual fee, beyond which you will be getting ahead on rewards points, Marshall says.
Overall, the enhanced offer is a good one, as it “gives the opportunity to earn rewards points on purchases, without the need for a rewards credit card”, he says.
But it may not suit online shoppers. The five points offer is only available to those spending in-store at the four key outlets. Not everyone has Kmart, Officeworks, Bunnings or Target stores nearby.
On the other hand, OnePass could be particularly good for online shoppers from regional areas who may have expensive shipping and delivery costs, he says.
“If you pay more than $40 a year for shipping from Bunnings, Kmart, Target or Officeworks, the annual fee would likely be worth it,” Marshall says.
Marshall says the 365-day returns change-of-mind is not an offer made by many other outlets.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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