Are Woolworths’ Everyday Rewards member prices really a bargain?
We've analysed every special - plus how Woolies makes money from these deals.
Woolworths has begun offering "member prices" for customers in its Everyday Rewards loyalty scheme.
"We can help you spend less with Everyday Rewards," the catalogue proclaims.
Finder's Consumer Sentiment Tracker shows that groceries are the largest source of financial stress for Australians, with 39% of us listing the price of shopping as our biggest worry.
So options to spend less are welcome, but just how big are the savings here?
Here are all the member price specials Woolworths advertises in its latest catalogue.
|Product||Member||Regular||$ saving||% saving|
|3 x Greenseas Tuna 95g||$4.50||$7.80||$3.30||42.31%|
|2 x Woolworths Snack Pots 120-225g||$10.00||$14.00||$4.00||28.57%|
|2 x Coca-Cola 12 x 300ml||$16.80||$33.70||$16.90||50.15%|
|2 x COOK Beef Pepper Steak 300g||$15.00||$16.00||$1.00||6.25%|
|2 x BBQ Lamb Kebabs w/ Honey & Mint 450g||$15.00||$17.00||$2.00||11.76%|
|2 x BBQ Angus Beef Salt & Pepper Burger 450g||$15.00||$18.00||$3.00||16.67%|
|2 x Roasted Garlic Chicken Tenderloins 400g||$15.00||$19.00||$4.00||21.05%|
|2 x Chris' Homestyle Dips 200g||$7.50||$9.00||$1.50||16.67%|
|2 x BBQ Chicken Burgers w/ Zuchinni & Parmesan 450g||$15.00||$18.00||$3.00||16.67%|
|2 x BBQ Classic Beef Burger 500g||$15.00||$17.00||$2.00||11.76%|
In every single case, you only get a discount if you buy multiple items.
The best saving is for Coca Cola (over 50% off), while the weakest is for the COOK Beef Pepper Steak (just over 6%).
With so many meat specials, vegetarians like me aren't well catered for.
Why is Woolworths willing to cut those prices?
The answer is it wants to drive up usage of Everyday Rewards.
Around 56% of customers scan their Everyday Rewards cards when they shop, according to Woolworths' latest annual results, released yesterday.
Tellingly, that group of customers accounts for 69% of sales.
In other words, Everyday Rewards members spend more money at the checkout. These kinds of multi-buy bargains fit right into that strategy.
Everyday Rewards has 14.5 million members, which makes it larger than Flybuys which has 9 million (though the Woolworths figure includes inactive members, while Flybuys drops accounts that are inactive for more than 12 months).
While the percentage savings in the first batch of member price deals are decent, if times are really tight these aren't always the cheapest option.
For instance, 3 cans of Woolworths' own brand tuna will cost $3.30 - much less than the $4.50 member price advertised here.
Similarly, you could get the same quantity of cola by buying 6 1.25 litre bottles of Woolworths' own brand cola for just $6.60 - a lot lower than the $16.80 price for members.
You're paying a big premium for the Coca-Cola brand name and the individual cans.
You can also cut costs at Woolworths by subscribing to Everyday Extra, though the scheme has become less generous this year.
Saving money is always about making choices.