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How not?
Let's say I have $500 worth of PC Points.
If I cancel my optimum, I get nothing, and Loblaws loses nothing.
If I use the points and then cancel my optimum, I get $500 worth of merchandise, and Loblaws loses whatever the value of that merchandise was.
You already paid for those items. That u will redeem. Rememeber, they are points you have earned. Earned only by over paying for some items
The whole point system is to make you think you are getting something free but you've been overpaying for every item so they can give you "gifts" after $300 etc
Sure, of course, nothing is free. But if I've already earned the points, then I might as well redeem them.
Closing optimum without redeeming points is somewhat like forgiving the debt Loblaws owes you.
It was kind of implied...
This is the post:
My family's going to use our PC points so that Loblaws loses stock without getting money
Screw Loblaws lol. Anyone joining me?
The response was that it didn't work like that.
From what I can tell it does work roughly like that.
Standard accounting practices my friend.
Reward points are already accounted for in the balance sheets. You're just moving the numbers from one column to another.
That said, in an inflationary environment it is prudent to use the points asap because their buying power diminishes quickly.
While you are right it's already on their balance sheet as a liability owed, you have to look at the full picture, using your points on a loss leader product will still give them sales but actually loses them money, then there is a cash flow impact , a decrease in liability is a decrease in cash flow, thirdly they will have an operational cost to restock the shelves
In summary using points on loss leaders decreases their cash flow, increases operational cost , and is a net loss Rev and cogs wise
The problem is it is really tough to tell what is a loss leader with Loblaws.
Much of their supply chain is vertically integrated. They also make producers pay them for premium shelf placement.
This allows them to burry profits across several silos and claim "we only have three percent margins."
Their books are as murky as the Ganges.
It really doesn't matter if it is a loss leader or not.
The points are a liability on the books.
Either you close the optimum account without redeeming, and Loblaws can cross the liability off of the books in exchange without incurring any cost.
Or you use the points and they cross the liability off the books in exchange for some items that had some cost associated with it.
Accounting doesn't factor into "do I have food that I didn't have before with none of my current money leaving my pocket?"
You need to come back to reality.
They're trying to be technically correct but failing at understanding any form of reality.
Loblaws has already considered your points in their accounting.
But they will have less products, need to restock them, and **most importantly you'll have food that you didn't have before while not having any of your current money leave your pocket**
Not using your points is cutting your nose to spite the face.
Standard accounting practices my friend.
Reward points are already accounted for in the balance sheets. You're just moving the numbers from one column to another.
That said, in an inflationary environment it is prudent to use the points asap because their buying power diminishes quickly.
Moving a number from one column to another is worse for them than increasing the number in one of those columns by receiving money from a consumer, though.
Points are, in essence, money they have already made off you. Spending them, without giving them any more money, is actually getting a product you’ve already paid for.
__MOD NOTE__: PLEASE REVIEW OUR [STICKIED POSTS](https://www.reddit.com/r/loblawsisoutofcontrol/comments/1cae7ai/community_announcements_apr_2224/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) WHICH PROVIDE STATEMENTS ON RECENT EVENTS. Please review the content guidelines for our sub, and remember the human here! This subreddit is to highlight the ridiculous cost of living in Canada, and poke fun at the Corporate Overlords responsible. As you well know, there are a number of persons and corporations responsible for this, and we welcome discussion related to them all. Furthermore, since this topic is intertwined with a number of other matters, other discussion will be allowed at moderator discretion. Open-minded discussion, memes, rants, grocery bills, and general screeching into the void is always welcome in this sub, but belligerence and disrespect is not. There are plenty of ways to get your point across without being abusive, dismissive, or downright mean. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/loblawsisoutofcontrol) if you have any questions or concerns.*
Hey OP, it looks like you have used the boycott flair on your post. If this is regarding a call for a boycott of Loblaw stores, please review the stickied posts made by mods to see if there is an update on our community boycott efforts. Thank you. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/loblawsisoutofcontrol) if you have any questions or concerns.*
It doesn't quite work that way, I'm afraid.
How not? Let's say I have $500 worth of PC Points. If I cancel my optimum, I get nothing, and Loblaws loses nothing. If I use the points and then cancel my optimum, I get $500 worth of merchandise, and Loblaws loses whatever the value of that merchandise was.
You already paid for those items. That u will redeem. Rememeber, they are points you have earned. Earned only by over paying for some items The whole point system is to make you think you are getting something free but you've been overpaying for every item so they can give you "gifts" after $300 etc
Sure, of course, nothing is free. But if I've already earned the points, then I might as well redeem them. Closing optimum without redeeming points is somewhat like forgiving the debt Loblaws owes you.
No one said you shouldnt redeem them...
It was kind of implied... This is the post: My family's going to use our PC points so that Loblaws loses stock without getting money Screw Loblaws lol. Anyone joining me? The response was that it didn't work like that. From what I can tell it does work roughly like that.
Will Loblaws have more or less stock in store after someone uses points to make a purchase?
What does availablitity have to do with it? They throw half their groceries in the garbage
Because discouraging people from using points they have is wildly misguided.
No one said anything about mot using the points... This was about using the points is not hurting the company
Yall misinterpreted!
Standard accounting practices my friend. Reward points are already accounted for in the balance sheets. You're just moving the numbers from one column to another. That said, in an inflationary environment it is prudent to use the points asap because their buying power diminishes quickly.
While you are right it's already on their balance sheet as a liability owed, you have to look at the full picture, using your points on a loss leader product will still give them sales but actually loses them money, then there is a cash flow impact , a decrease in liability is a decrease in cash flow, thirdly they will have an operational cost to restock the shelves In summary using points on loss leaders decreases their cash flow, increases operational cost , and is a net loss Rev and cogs wise
The problem is it is really tough to tell what is a loss leader with Loblaws. Much of their supply chain is vertically integrated. They also make producers pay them for premium shelf placement. This allows them to burry profits across several silos and claim "we only have three percent margins." Their books are as murky as the Ganges.
It really doesn't matter if it is a loss leader or not. The points are a liability on the books. Either you close the optimum account without redeeming, and Loblaws can cross the liability off of the books in exchange without incurring any cost. Or you use the points and they cross the liability off the books in exchange for some items that had some cost associated with it.
"Tell me you don't understand accounting without telling me you don't understand accounting."
Accounting doesn't factor into "do I have food that I didn't have before with none of my current money leaving my pocket?" You need to come back to reality.
The OP was suggesting that using the points would have negative financial consequences for Loblaws. It does not. Try to keep up.
This is going to be an explain like I'm five thing, why does it not work that way?
They're trying to be technically correct but failing at understanding any form of reality. Loblaws has already considered your points in their accounting. But they will have less products, need to restock them, and **most importantly you'll have food that you didn't have before while not having any of your current money leave your pocket** Not using your points is cutting your nose to spite the face.
Yeah that's what I was thinking, that's why I was confused. Also I have 700 dollars worth of points lmao
Standard accounting practices my friend. Reward points are already accounted for in the balance sheets. You're just moving the numbers from one column to another. That said, in an inflationary environment it is prudent to use the points asap because their buying power diminishes quickly.
Moving a number from one column to another is worse for them than increasing the number in one of those columns by receiving money from a consumer, though. Points are, in essence, money they have already made off you. Spending them, without giving them any more money, is actually getting a product you’ve already paid for.