Opinion

The point of points

By Scott T. Hards

My wallet is bulging, and unfortunately it's not with wads of those new, high-tech yen bills (So why did Fukuzawa Yukichi alone get a second term on his bill? And what's wrong with Higuchi Ichiyo's nose on the ¥5,000 bill? She looks better in the watermark!).

No, my wallet is fat with point cards, those little things that keep track of how much I'ｖe purchased at various stores. I'ｖe got cards for three different electronics shops, two camera stores, a movie theater, a bakery, a toy store and a tire shop. And that doesn't even count all the other, non-point cards I have to carry around daily, like those for two video-rental shops, a telephone card, my driver's license, my alien registration card, two bank ATM cards, and four credit cards (two for my business, and two for me).

So I'ｖe started saying no to salespeople who insist on trying to give me yet another point card. And a recent shopping experience in Tokyo has also convinced me that these point systems may not be as wonderful as they first seem.

I wanted a new digital camera so I looked at prices in the rural area of Tochigi where I live. The model I wanted was around ¥70,000. I had a trip to Shinjuku planned a few days later and figured I could probably get a better price at one of the many large electronics and camera shops there. How wrong I was! The same model was priced at about ¥80,000 everywhere. When I pointed this out to a salesperson at a well-known camera shop there, he explained that yes, while the cash price was higher, I would be getting 15 percent of my purchase back in points that I could use in their store, so the actual cost to me would be slightly less.

His explanation was only partly true, however. Indeed, if I decided to do all my camera shopping for the rest of my life in their store, it would be cheaper. But living 150 kilometers from Tokyo, I have no plans to do so. So I turned down their offer and purchased the camera back home in Tochigi.

And there's another savings option for consumers, too: Some major credit cards give you points for every purchase you make, regardless of where you use them! It's like a universal point card. Such points can be redeemed for gifts, travel and other bonuses. So it can make sense to use "plastic" even when you have cash available.

In these days of cutthroat competition, points may seem like a good way for stores to keep the customers coming back. But it's up to the consumer to remember that the money saved with a good old cash discount can be redeemed in any store in the world, plus you don't have to carry another darn card in your wallet!

Shukan ST: Dec. 24, 2004

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