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I realize that most banks and money markets are paying around one percent interest these sad days. Certainly not a meaningful inducement to place your cash in them, but it is the only game in town, as everyone pays about the same paltry amount.
That might be why D’Agostino, a grocery chain in the New York area, thinks one percent is a reasonable incentive that will keep customers loyal. Their rewards card asks you to spend $500, for the opportunity of receiving five dollars back.
Now I realize that items in a grocery store on the Upper East Side of New York are often ridiculously expensive. So spending five hundred dollars will take much less time than it would at a Shoprite in New Jersey. Hey, three cheeses, five bagels and some steak can get you halfway there. But seriously…spend five hundred dollars and get back five? Why would D’Agostino bother? And more important, why would a customer?
Got the idea?