Why Sears never makes any money

[nickjj]

Regular/Clearance Price Subtotal $99.24

Sale Price Savings -$41.98

Merchandise Subtotal $57.26

Total Points Applied to Items:
SYW Points (45589) $45.59
Surprise Points Applied (10000) $10.00

Pre Tax Subtotal: $1.67
Tax (Where Applicable) $0.11

Total Shipping/Handling Charges FREE

Total Due: $1.78
Total Charged to Credit Card $1.78


$100 worth of tools inc shipping $1.78...

(the 45000 points came from buying something for $35)

 

[jeffyhog]

That's awesome, but you're right- makes no business sense.

I always try to work those points as best I can and some times I don't see how they're not losing money on the sale.

 

[southpier]

they made it on the 99 other customers that day

 

[nickjj]

After getting the $100 order for $1.78 they then gave me another $10 in points, after I spent that (again with free shipping) they gave me $5.

I can't see how they are ever going to make a profit this way?

 

[Zrexxer]

I can't see how they are ever going to make a profit this way?

They make it up on volume...

 

[Loscaldazar]

That's what all my shopping at sears consists of know. Using points to get things for basically free. I posted a rundown of what I've bought at sears this year in another thread, but here is the summary. I've spent $48 to get $200 of merchandise this year. If you take out the $30 purchase I made because I actually needed the item, then I've used points to get $150 of merchandise for $18. Too easy....

 

[nickjj]

That's what all my shopping at sears consists of know. Using points to get things for basically free.

Regular/Clearance Price Subtotal $95.96

Sale Price Savings -$20.50

Merchandise Subtotal $75.46

Item Level Total Savings:
Member Coupon Savings -$5.00

Total Points Applied to Items:
SYW Points (689) $0.69
Surprise Points Applied (10000) $10.00

Pre Tax Subtotal: $70.46
Tax (Where Applicable) $3.74

Total Shipping/Handling Charges FREE

Total Due: $63.51
Total Charged to Credit Card $63.51

Pending Points: 55598
Pending Points Worth: $55.60

Spend $63 get $55 back...

How long can they keep this up??

 

[AmishFury]

how the hell are you getting so many points... i only ever get the usual piddly amount of points

 

[Loscaldazar]

how the hell are you getting so many points... i only ever get the usual piddly amount of points

It's often just luck. I went through May having an incredible amount of points being given to me. Now all through June and July, I've received $6 in surprise points that I used. Otherwise they keep giving me $10 off a $75 or $50 off a $500, both of which I won't use.

Occasionally sears sells something that you get more back in points then you spend. Finding those items is also part of it. If you need the item that they are selling for less than the rewards points, even better. I rarely do those ones though, because they are often something really pointless or unneeded.

It's a game, just like everything else. Knowing the rules and how to play are the important parts (as well as being willing to wait and spend the time to play it).

 

[Tellingthem]

Yep. They have been giving stacks of surprise points to me in the past week. 15 on 50. 10 on 25, 5 on 5. Stack with coupons and local deals have been picking up some nice things for pretty cheap. But went a few months without much of anything. So really seems to be hit or miss.

 

[nickjj]

how the hell are you getting so many points... i only ever get the usual piddly amount of points

I get $10 every month regardless, tool of the month (which I though was over, but seemingly not) and at least another $10 per week.

Weirdly some CM tools seem to bring in more in points than they actually cost.

These worked for me:

http://www.sears.com/craftsman-3-pi...p-00912624000P?prdNo=1&blockNo=1&blockType=G1

 

[rubberrodder]

they made it on the 99 other customers that day

Thats right! They count on the fact NOT everybody uses their points and credits. It's the same way third party"rebate"companies make money. The maker sells his total rebate "liability" to a third party for distribution at a discounted price.(and a tax credit) This 3rd party depends on 90% of the people NOT bothering to send in their reciepts and coupons. Whatever isn't claimed for rebate, and is left over, the rebate company gets to keep. Probably only 2 or 3 people a week use their points and credits and rebates.

 

[nickjj]

Probably only 2 or 3 people a week use their points and credits and rebates.

I thought the whole point of Sears now was the Shop Your Way thing, to try to convert Sears from a B&M to a mini Amazon?

I got another $5 surprise points thing tonight....

 

[iScream]

Are you guys paying for the SYW memberships?

 

[jcfields]

.

 

[nickjj]

Are you guys paying for the SYW memberships?

It's free.

There's a free shipping trial, that just extends and extends, sort of pretend amazon prime, only free.

 

[nickjj]

They just gave me yet another $16, I wish all shops were like this.

 

[iScream]

Just signed up for SYW and the max trial. Why not.

 

[firworks]

Wait so I have to sign up for some kind of Sears club and get free dinero for buying tools? How what where? Also... Do they have anything other than Craftsman? (I know they do)

 

[Richard Cranium]

all I get is the one save 10.00 on 100.00 coupons

 

[iScream]

I got a $10 off $30 when I signed up. Probably gonna be a week or so before I order anything though. Got a $1200 copay for kidney stone surgery coming up tomorrow morning.

 

[rob1200]

They gave me a lot of points last month. Mostly $5 for $5+, which is basically a free small item (which is how I used it). Doesn't make much sense to me, but such is the way of Sears.

Those $5 items don't ship free (min $10 for free shipping with SYWMax), so Sears is paying $5 to get you in their store, figuring you will buy other stuff too.

Of course that $5 item costs Sears maybe a dollar or two at wholesale, so it's a cheap way to get customers into their stores.

 

[morgaj1]

Thanks for the heads up, I didn't know about the SYW. Signed up tonight and ordered some Craftsman Pro screwdrivers I've been wanting and got $10 off.

 

[Jacobson]

They made money on all the stuff you bought to get those points in the first place.

 

[nickjj]

They made money on all the stuff you bought to get those points in the first place.

A $35 purchase lead to me getting a mountain of points.

All the UPS deliverys must cost a bit too.

 

[nickjj]

Today's email:

$10 in surprise points

Happy days!

 

[Olafur]

Unbelievable system.

 

[64merc]

I've wondered the same thing, but I bet for every one of us who takes the time to use the points system, there are 10 people who just grab something off the shelf and pay full price. Plus, they $5 suprise points get me in the store, when I wouldn't have gone otherwise. Unfortunately for them though, I try to only buy $5 worth of stuff every time.

 

[hangfirew8]

Unbelievable system.

I know. Last week I just got $25 in free points. Today I got another $15.

With the $25 I had to figure out the minimum order to get it to come up. Apparently the minimum order amount varies depending on which items you have in the cart... and I'm not talking Hot Buy vs. non-Hot Buy, that's yet another variable.

Of course the system kept adding in a $5 "coupon" which nixed my free points and I had to repeatedly remove it as I put various things in and out of my Cart, trying to maximize my points.

I ended up getting two Craftsman deadblow hammers (Made in USA by Nupla), 2 and 3 lbs, for less than half price. The system tossed in an extra 5% discount for using my Sears code, but only after I made the purchase. I probably could have gotten more for less, but these are items I've actually had my eye on for a while.

My last go-round with free points netted me both Lo Pro and Impact Bolt-Outs (turbo frozen nut removal sockets, Made in USA).

There's not a lot of USA made stuff left for me to buy. I think I'm on course to own everything worth having, about the time that Eddie shuts and locks the doors and puts up the For Sale sign to cash in on the real estate.

 

[nickjj]

There's not a lot of USA made stuff left for me to buy. I think I'm on course to own everything worth having, about the time that Eddie shuts and locks the doors and puts up the For Sale sign to cash in on the real estate.

I always assume Sears will go bust just after I've placed an order.

They must be running out of real estate to sell?

 

[rob1200]

I get $10 every month regardless, tool of the month

A $35 purchase lead to me getting a mountain of points.

Didn't you have to make a $200 order to qualify for Tool of the Month?

Edit: No need to hide anything from us... we're not your wife

 

[nickjj]

Didn't you have to make a $200 order to qualify for Tool of the Month?

Edit: No need to hide anything from us... we're not your wife

I bought a load of USA CM tools over a year ago, but still get the $10 every month, but over the last couple of weeks they seem to send me points on a daily basis.

The shipping and the rip off brokerage fees take the edge off the freebies though.

 

[NC-Shaun]

When I buy something Craftsman ( I research reviews and COO prior to buying) I do seem to get a crapload of points. I think I got a $100 Thread restorer kit for something like $40 bux, then they gave me another $10 in points used for an inspection mirror.

 

[valentine]

I mostly stay out of Sears now but sometimes I walk through and pick up something. Mostly I'm disappointed in the quality of today's Craftsman tools. Not just because they come from China, but because they really are crappy. China is capable of making good tools, they're just not the ones Sears buys to put in their Craftsman line. Sears is really hit or miss these days. I don't really go there expecting to find anything I'd actually buy but sometimes I do. The other day, for instance, Sears had a pair of side cutters for 50% off. USA made. Using my reward points, the tool cost me $1.60 with tax. How can you go wrong?

-Valentine

 

[sha]

Same thing: I spend surprise points, get surprise points. As long as the items are cheap enough, I rarely have to spend my own dime because of the free points from sweeps, personal shopper, etc.

High volume of points, discounts given, low volume of redeemers that take full advantage but their message gets out.

They're investing heavily in an online customer base because they know that we're creatures of habit. We'll see if they succeed before time runs out.

 

[nickjj]

Well my order arrived out of everything only 2 things were US made, the bit wrench and the pencils - and one of the pencils had no lead in it - so much for quality control...