Did anyone else make good use of the Rockler Visa card that earned
points toward purchases at Rockler? For some reason they ended the
program this month. Thanx to buying a college education for my son
with the card, I cashed in for a 'free' Leigh jig, Delta mortiser,
Oneway Talon chuck, Vega Fence, and an assortment of other items.
Could be a good gloat. I wonder why they ended the program.
With college costs of $20K a year, if Steve spent $80,000 using his
Rockler-branded card, and got all that "free" material, it's not his
fault that Rockler didn't make a profit. They're the ones who came up
with the business model.
If they expected that people with a Rockler card would ONLY use the
card at Rockler's, that was a bad assumption to on Rockler's part.
Sending unsolicited commercial e-mail to this account incurs a fee of
$500 per message, and acknowledges the legality of this contract.
Which is exactly what I meant when I suggested that guys like him killed it:
that such usage forced them to realize that they had build their business
model around some bad assumptions, and so they terminated the program before
it could do them any more damage than it already had.
Doug Miller (alphageek at milmac dot com)
No disrespect Doug, I enjoy your posts. Don't take this personally, but
I worked for a credit card
issuer for quite a while. Trust me, they are thrilled if someone
charges 80k or whatever the OP
charged. The rewards system is set up so they can't possibly lose
money. I'm not familiar
with the Rockler system, but I can guarantee you the business model was
set up so they didn't
lose money when people cashed in their bonuses.
Most likely, the program was changed because some MBA at top figured it
wasn't profitable enough or
there wasn't enough customer participation to justify keeping it going.
(Probably the latter). I can
guarantee you that Rocker and Mastercard made a profit off the OP, even
if he paid all his bills on
time. That's the way credit cards work, they make money everytime you
charge something. The
store pays MasterCard a little bit of money for the privilledge of
letting customers use the card at
O.K., they made money. Then why do I read elsewhere that CC issuers
don't particularly like people that pay off each month (avoiding
interest charges) and refer to those people as "deadbeats?"
There was a recent story in the Milwaukee Journal-Sentinel where in
the writer was looking to get an account with a very low interest
rate, but was turned down when she revealed that she didn't have at
least $2,500 to do a balance transfer to the new account.
Sometimes I don't "get" the games they play.
Yes, We were deadbeats. We applied for a card issued by 'Shoprite', a not
too bad market in NY/NJ. We were refused the card for the reason that we
didn't maintain a high enough unpaid balance. Prior to that we had a
General Motors sponsored card. I forget the exact percentage that would
go towards the purchase of a GM car, but it was substantial. We charged
every thing we possibly could on that card; food, medical, two beers at a
time, etc. We even tried to charge our mortgage (didn't work). Being
deadbeats, we paid the full balance each month. We bought a '96
Bonneville and when after all the dikering was over, we presented the
dealer with the the $4800 credit we had from the card. He didn't blink an
eye, but said it was limited to $3500. He was correct so I used the
remainder for my truck a bit later.
The next year the credit card sponsor required a hefty fee for the card
and placed a fairly small limit on how much could go towards a car. Never
used the card after that.
These folks are not in business to help us. Their business is to make
money, pure and simple. Our business is to make our money buy as much as
it can, pure and simple. Do it to them if you can, if not they will do it
Somebody was losing money (ROI as not expected).
No, it wasn't because guys like the OP killed the program. Rockler and
Mastercard get a percentage of every sale he charges. So they want him
to use the card for everything.
Naturally, Rockler and Mastercard are going to give him back less than
they are getting when he charges stuff. That's the point, to make a
profit off the program.. The rewards are just an incentive to get the
customer to use the card as much as possible.
In fact, the program was probably discontinued because there wasn't
enough people like the OP that charged everything. They need a certain
number of customers in order to pay the overhead, etc. I'm guessing the
card wasn't as popular as they hoped.
The card companies want you to charge everything on their card. Even if
you pay the balance off fully every month, they still make money.
You bought your son a college education on a credit card? Why?
If you went with a different financing scheme, you probably could have
got yourself the college, those tools, and a new car. Unless you've
got something really nice worked out with the credit card company,
Or even better, let the boy pay student loan bills like most folks.
Even if you made the payments for him, they're only 1-2% interest.
I just checked. 0% for a year on purchases and balance transfers for
the first 12 billing cycles, 1% back on non Woodcraft purchases, 4% on
purchases made at Woodcraft with it. And a $20 Woodcraft coupon sent
to you with your approved credit card.
Hey, I might be paraphrasing this a bit, I'm just reporting (mostly)
the information I found.
HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.