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AMEX user? Have reward points? Get your iPad for 40% off!

I just cashed in 250,000 points (I get points from my business Amex cards) for $2,500 in gift cards from Pottery Barn and Crate and Barrel (furnishing a new place).

If I were to buy items through the rewards program instead of gift cards I would have only been able to buy about 1500 worth of merchandise.

I just charged the iPad 2. Too big a mark up when you buy with points.
 
derekg said:
Hmm. Something fishy about the Rewards program... I get a different (and much worse) ratio:

$100 GC = 20,000 points (200 points per dollar)

I do have the 20% offer including the ability to order an iPad2
Click to expand...

I would imagine Rewards redemption rates are different depending on the program, etc you're on. Mine said 20000 for a $100 Apple Store gift card, and with discount it was 13000-something.
 
Sorry to break it to you - and you may not care as it was still "free" - but that's a terrible exchange rate for your points. The general rule of thumb is anything worse than a penny a point should be avoided. You spent the equivalent of $990 dollars or so (at a penny a point) for something that retails for $829. (the regular price in points is preposterous by the way).
 
derekg said:
Hmm. Something fishy about the Rewards program... I get a different (and much worse) ratio:

$100 GC = 20,000 points (200 points per dollar)

I do have the 20% offer including the ability to order an iPad2
Click to expand...

Keep in mind that the numbers I used are the discounted amounts. Normally a $100 GC = 20,000 points and a 64GB 3g iPad 2 = 165,800 points.

It sounds like the rewards discount varies either by your card or any kind of promotion you are registered for. I know that every time I get a reward card in the mail for some kind of promotion, I sign up for it even if I don't expect to use it. Maybe the 40% discount was something I signed up for.
 
anthonymoody said:
Sorry to break it to you - and you may not care as it was still "free" - but that's a terrible exchange rate for your points. The general rule of thumb is anything worse than a penny a point should be avoided. You spent the equivalent of $990 dollars or so (at a penny a point) for something that retails for $829. (the regular price in points is preposterous by the way).
Click to expand...

That's assuming he could get something else he'd actually want at a penny a point.

And seriously, folks, if you're paying off your card regularly, it's basically free money.
 
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A306 Safari/6531.22.7)

Where are you seeing the iPad 2 on the Amex site. All I see is the first generation.
 
md63 said:
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A306 Safari/6531.22.7)

Where are you seeing the iPad 2 on the Amex site. All I see is the first generation.
Click to expand...

me too. i see no gift card except for iphones and 1st gen iPads.
 
gloss said:
That's assuming he could get something else he'd actually want at a penny a point.

And seriously, folks, if you're paying off your card regularly, it's basically free money.
Click to expand...

WINNING!

Seriously, there is nothing in the AMEX store that I want or need right now, so the fact that it cost me more in points is irrelevant. Add to the fact that between my wife & I, we will have the balance back up in no time, it is really a non-issue.
 
gloss said:
That's assuming he could get something else he'd actually want at a penny a point.

And seriously, folks, if you're paying off your card regularly, it's basically free money.
Click to expand...

Umm, you can *always* use points for "pay with points travel" for which they charge a penny a point. And, if you're a platinum Amex card holder, they rebate 20% of those points, making the real worth 1.25 cents per point which is obviously even better.

So unless this person does not now and never intends to travel, ever, this is inarguably a very poor use of points (i.e. Money) While it may be "free money" that does not mean there aren't more and less wise ways to use it.

If someone gave you a suitcase with $1000 cash in it, would you trade it for an iPad 2 64GB ATT model just because someone gave you the suitcase full of money for free? Of course not.

Head to any travel focused board and mention this purchase and you'll get ripped and flamed worse than you would by coming here and touting the Xoom...
 
tigres said:
hey, what's the deal here. I am only getting 20% discount offered. Hmmmm.

So a 16GB is 84,630 pts. How much is that for you OP?
Click to expand...

OK...something is wonky. The bottom line is that the 16GB for me would cost 64,020 points. What is messed up is the original balance. On one area it says that it was originally 99,800, but on another area it says 106,786.

It seems that everyone needs to look at their own account & see if the deal they can get makes sense. For me, it worked. If you want a $1 to 100 point ratio, it may not.
 

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Thanks for the thread or.. damn you for the thread.. as the case may be.

Even with only the 20% off, I have had roughly the same amount of points sitting on my AMEX for about a year with nothing of interest to use them on. It more than pays for tax and had no plans to use them anyways. Its not like I am collecting interest on them. ~$80 discount isn't bad for something I was going to put on my AMEX anyways for the extended warranty.

And no.. I couldn't use them for travel. I lost 100 hours of vacation time last year due to a work project. I have 3 more projects this year, so at least I'll use them for something.
 
anthonymoody said:
Umm, you can *always* use points for "pay with points travel" for which they charge a penny a point. And, if you're a platinum Amex card holder, they rebate 20% of those points, making the real worth 1.25 cents per point which is obviously even better.

So unless this person does not now and never intends to travel, ever, this is inarguably a very poor use of points (i.e. Money) While it may be "free money" that does not mean there aren't more and less wise ways to use it.

If someone gave you a suitcase with $1000 cash in it, would you trade it for an iPad 2 64GB ATT model just because someone gave you the suitcase full of money for free? Of course not.

Head to any travel focused board and mention this purchase and you'll get ripped and flamed worse than you would by coming here and touting the Xoom...
Click to expand...

Well, it's a good thing I am not on a travel board & instead on an Apple board! :D

I travel, but it is infrequent & usually short distances meaning tickets are typically less than $250. I have gone to Europe twice & Seattle once all for free on points. With two small kids, those days are behind me now. May as well use the points for something I will get instant gratification from. Besides, we will have enough points to pay for another free trip by the end of the year.
 
anthonymoody said:
Umm, you can *always* use points for "pay with points travel" for which they charge a penny a point. And, if you're a platinum Amex card holder, they rebate 20% of those points, making the real worth 1.25 cents per point which is obviously even better.

So unless this person does not now and never intends to travel, ever, this is inarguably a very poor use of points (i.e. Money) While it may be "free money" that does not mean there aren't more and less wise ways to use it.

If someone gave you a suitcase with $1000 cash in it, would you trade it for an iPad 2 64GB ATT model just because someone gave you the suitcase full of money for free? Of course not.

Head to any travel focused board and mention this purchase and you'll get ripped and flamed worse than you would by coming here and touting the Xoom...
Click to expand...

Oh lighten up. You're looking at a 15% difference in redemption value for an intentionally abstract consumer fishhook. If you're going to be that exacting in your financial analysis I can't think of a good reason you wouldn't just get a Costco Amex with 1-3% percent cash back and be done with it.
 
Blackforge said:
Thanks for the thread or.. damn you for the thread.. as the case may be.

Even with only the 20% off, I have had roughly the same amount of points sitting on my AMEX for about a year with nothing of interest to use them on. It more than pays for tax and had no plans to use them anyways. Its not like I am collecting interest on them. ~$80 discount isn't bad for something I was going to put on my AMEX anyways for the extended warranty.

And no.. I couldn't use them for travel. I lost 100 hours of vacation time last year due to a work project. I have 3 more projects this year, so at least I'll use them for something.
Click to expand...

I'm right there with you. Even as a manager, my company only gives me 80 hours of vacation a year, and they don't let you carry it over. I spread that out over the year on 3-4 day weekends, so big travel is not in my immediate future either!
 
i have a personal platinum and im only getting 20 percent off. what card do u have?
 
anthonymoody said:
Umm, you can *always* use points for "pay with points travel" for which they charge a penny a point. And, if you're a platinum Amex card holder, they rebate 20% of those points, making the real worth 1.25 cents per point which is obviously even better.

So unless this person does not now and never intends to travel, ever, this is inarguably a very poor use of points (i.e. Money) While it may be "free money" that does not mean there aren't more and less wise ways to use it.

If someone gave you a suitcase with $1000 cash in it, would you trade it for an iPad 2 64GB ATT model just because someone gave you the suitcase full of money for free? Of course not.

Head to any travel focused board and mention this purchase and you'll get ripped and flamed worse than you would by coming here and touting the Xoom...
Click to expand...

100% correct.
 
CAWjr said:
Well, it's a good thing I am not on a travel board & instead on an Apple board! :D

I travel, but it is infrequent & usually short distances meaning tickets are typically less than $250. I have gone to Europe twice & Seattle once all for free on points. With two small kids, those days are behind me now. May as well use the points for something I will get instant gratification from. Besides, we will have enough points to pay for another free trip by the end of the year.
Click to expand...


gloss said:
Oh lighten up. You're looking at a 15% difference in redemption value for an intentionally abstract consumer fishhook. If you're going to be that exacting in your financial analysis I can't think of a good reason you wouldn't just get a Costco Amex with 1-3% percent cash back and be done with it.
Click to expand...

Actually there are huge reasons. First, I never shop at Costco, so I lose one of the primary benefits of that card. Second, I travel a ton, and run just about every expense I have through my Amex. When you use pay with points not only do I exchange them for 1.25 cents per point, I *also* earn mileage (since pay with points is different than exchanging miles for tickets), which I can also then use for free travel. It's a double+ benefit that more than swamps any other way to go about this.

Tell you both what: I will buy from each of you, and any and all other comers, as many points as you want to transfer to me, for .8 cents per point, in any amount over 50,000 points, from now and in perpetuity. I will send you a certified check or cash if in person, and I will pay the transfer fees. Just let me know.

acribb said:
100% correct.
Click to expand...

Thank you sir :)
 
anthonymoody said:
Actually there are huge reasons. First, I never shop at Costco, so I lose one of the primary benefits of that card. Second, I travel a ton, and run just about every expense I have through my Amex. When you use pay with points not only do I exchange them for 1.25 cents per point, I *also* earn mileage (since pay with points is different than exchanging miles for tickets), which I can also then use for free travel. It's a double+ benefit that more than swamps any other way to go about this.
Click to expand...

I can see the advantages are obvious if you're a frequent traveler, but when it comes down to it, most people aren't. And sometimes folks would rather trade at a slightly disadvantageous rate for something they want and can use right away than squirrel away points for theoretical travel expenses.

For example, if I were desperate for cash and had 50000 rewards points from habitual overspending, I might take you up on that. ;)
 
anthonymoody said:
Actually there are huge reasons.

~SNIP~
Click to expand...

I get it, there are huge reasons to you, but if you look at one of my earlier posts I made the statement that everyone should do what is in THEIR best interests. If someone doesn't travel at all, what good does $1.25 plus mileage do for them? I used to be a road warrior as was my wife. The movie Up In the Air was basically written about us. However, as we got older, had kids, and changed careers, we no longer live the lifestyle of Delta Platinum status, triple dipping for points, or maximizing our reward balances.

I get your passion and I think it is great that it is what is best for you, but if I want to pay 80 cents on the dollar for a free iPad, guess what, it's still a free iPad, and for me, that is more important than dropping $850 right now.
 
poloponies said:
I'm also Gold Rewards Plus, also have about 100K in points but am only seeing a 30% discount.
Click to expand...

I'm not sure what to tell you. Maybe a quick call to the rewards dept at AMEX could get you bumped up.

I will say that if the "deal" was not at 40% off, I probably would not have spent the points on it, but for me, just under 100k points was fine for a new iPad.
 
Just curious, when you buy with points does it count as being bought with your Amex? That is, does it qualify for the Amex extended warranty?

Personally I would not use points at this rate unless I had maybe a million points and more coming in. 100k is often over $1000 in gift cards (depending on promotions, usually they have one at a 4000 point/$50 gift card rate) -- I saw this for best buy fairly recently. If not, you can use them at 1 cent/point for airfare/travel with a 20% rebate or something. I like to use my points for international travel, where 100k can get you a business class ticket to Asia or Europe, and a little more will get you a seat in first.
 
I am a Gold Rewards since '07 with over 100,000 pts. I only see 20% off.
I contacted AmEx and they said the discounts were randomly generated each time.
He said he was allowed to give a 30% discount over the phone.
I'm sure if you were annoyed enough you could get 40%.
I will probably be calling back tonight to try and get 40% off a 64GB iPad 2.
Hoo-rah!
 
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