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Email this5:05 pm
January 3, 2013
Offline
Hi. Does this make sense to you because it doesn't to me? Buy 2 boxes get a $5 prepaid visa or gas card offer.
I have been buying 2 of these boxes everytime (My kids love the Chocolate Serials), average $4.5 (for the big box). Total: $9. Then I upload the recepit to their site and I get a $5 pre-paid visa or Gas card by snail mail. The stamp shows a cost of $1.40.
Let's say printing the chipped pre-paid card and all the paper work plus hours of employees work and an online platform for updating costs $1.
$5 + $1 + $1.40 = $7.40
I paid $9 in store. Considering the store is making only 10%, that's another $0.90.
$7.40 + $0.90 = $8.30
9 - 8.30 = 0.70 for 2 boxes of serial each 575 grams. So each box for 35 cents.
How is the company making any money out of this? Unless it costs them less than 35 cents which doesn't make sense. Just the colorful package would cost more in printing!
I don't know maybe this is their Advertising campaign to have more customers liking and being attached to their product but I have been seeing this at least 4 times a year and everytime I see I buy 4 boxes which last till the next campaign. I am sure many might be doing the same.
6:44 pm
October 21, 2013
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It's all about getting you (or in this case your kids) addicted to the brand/product.
Cereal, I understand, is a big deal with kids.
If they get to prefer this cereal out of habit, then they are, it is hoped, going to tug at your shirtsleeves and whine in the grocery store every weekend until you buy it for them.
But you're smarter than that!
I imagine they have evidence that it works or is likely to work often enough to make it worthwhile. I think their challenge right now is that it's become more difficult to count on kids acting up int he store until they get what they want because, at least at Loblaw stores, you are only allowed to have one family member in store. This particular strategy may work because it offers soemthing for moms and dads.
I actually think cereal is likely a high profit item. The ingredients cost next to nothing as it is mostly air in many cases.
If it were me, I would ignore the whole thing. I would make porridge overnight in slow cooker. You can control the sugar; also healthier in fibre. Steel cut oat work well. A little bit makes a lot and cuts blood cholesterol.
6:56 am
January 3, 2013
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True for the addiction but my kids (thankfully) understand the concept of No means No.
Good points. Makes sense.
4:48 am
March 30, 2017
Online
Cereal is one of those foods once you stick to the taste of a particular one, it stays with you for life.
8:04 am
November 19, 2014
Offline
They also know that many people will be tempted by the "deal" and buy two boxes but then won't go through the effort you did to redeem the "offer" so the actual uptake on the "rebate" will likely be low.
Marketers know human behaviour very well.
Please write your comments in the forum.