Postcards from Perkistan

From the previous blog post I mentioned that the NAB Gold Rewards program has turned into two different cards (linked to the one account), the NAB Qantas Gold Visa (or MasterCard), and the NAB Qantas Gold American Express.

David Jones has just released (2/3/2009) a David Jones American Express card where you can redeem points earned for ANY travel (anything that a travel agent can book can be purchased with their voucher. Booked through AmEx), including Qantas flights.

Here we’ll compare the earning and burning options of the NAB Qantas Gold American Express ($145.50 annual fee) and the David Jones American Express ($99 annual fee) cards.

Shopping In-Store:

DJs: 2 points per dollar, don’t expire, no cap
NAB (in-store means Qantas): 3 points per 2 dollars for the first $3,000 per month; 2 points per 2 dollars for $3,001 to $10,000; Nothing over $10,000.

We’ll assume that you always earn 3 points per 2 dollars for the NAB card as that is it’s highest points-earning capability.

DJs $100 Gift Card: 13,300 points. At 2 points per dollar that is $6,500 to get $100 back.
NAB $100 Myer Card: 13,500 points. At 3 points per 2 dollars that is $9,000 to get $100 back.

DJs $100 Travel Voucher (includes Qantas): 15,000 points. At 2 points per dollar that is $7,500 to get $100 of travel.
For NAB they don’t have a specific dollar amount to redeem on travel, so let’s take a domestic flight from Sydney to Coffs Harbour. 1 “zone”, 275 miles, from $104 economy class.
Sydney - Coffs ($104): 8,000 points + 3,000 points for taxes = 11,000 points. At 3 points per 2 dollars that is $7,334 to get $104 of travel.

In-Store Conclusion: DJs has a HUGE advantage if you plan on redeeming your points for a shopping voucher. NAB Qantas Gold has a slight (2.26%) advantage if you plan on redeeming your points for travel with Qantas.

Shopping Everywhere Else

DJs: 1.5 points per dollar, don’t expire, no cap
NAB: 2 points per 2 dollars for the first $3,000 each month; 1 point per 2 dollars for $3,001 to $10,000; Nothing over $10,000.

We’ll assume you always earn 2 points per 2 dollars with the NAB card as that is it’s highest points-earning capability.

DJs $100 Gift Card: 13,300 points. At 1.5 points per dollar that is $8,867 to get $100 back.
NAB $100 Myer Card: 13,500 points. At 2 points per 2 dollars that is $13,500 to get $100 back.

DJs $100 Travel Voucher (Includes Qantas): 15,000 points. At 1.5 points per dollar that is $10,000 to get $100 of travel.
Using the same Qantas flight from Sydney to Coffs:
Sydney - Coffs ($104): 11,000 points. At 2 points per 2 dollars that is $11,000 to get $104 of travel.

Everywhere else conclusion: DJs extends it’s advantage over the NAB card when redeeming your points for a shopping voucher. NAB Qantas Gold loses it’s slight advantage and DJs gains the slight advantage (10% now though! 12.26% change…) when redeeming your points for travel with Qantas.

Of course you may need to consider your shopping habits and your financial needs when choosing a credit card that is right for you and this is a mere glimpse of what both programs have to offer.

Just did a bit of an overhaul of all our credit card programs due to some big changes happening with the Qantas Frequent Flyer (QFF) program. A lot of banks have had to re-organise their rewards programs to create QFF specific cards and non-QFF cards. A lot of cards have been axed and there is a whole breed of new QFF specific rewards programs. One of the more interesting outcomes is with the NAB. NAB Gold Rewards card holders previously had one card, but with the new QFF program NAB Gold Rewards members will have two cards: Either a Visa or MasterCard and an American Express card. The Visa/MasterCard is so card holders can still use their credit card and earn QFF points where AmEx is not accepted. The AmEx card is provided so that card holders can gain maximum QFF points-earning potential wherever AmEx is accepted. Don’t we all have enough cards in our wallets already? And who wants to deal with another decision to be made at the checkout?

Also having a bit of a look at all the programs I’ve noticed some really sweet deals. Top programs include the ANZ eDine Add On and the David Jones Store/AmEx Cards.

eDine has thousands of participating restaurants, hotels, cafes, and entertainment locations across Australia and NZ where the discounts are often 20% or greater. The annual fee weighs in at a low $35 per year, so using the card just twice will often result in a discount that is more than what the program costs you each year. They are updating and finding new partners all the time, with their last update having in excess of 100 additions to the program. Pretty sweet!

DJ Cards are awesome! Every month they release a catalog that includes 25-30 exclusive offers, the smallest of which is a neat 20% discount and the largest is normally 30% (sometimes greater). The discounts come off a wide range of products including men’s, women’s and children’s fashion, manchester, and crockery. The discounts are always off leading brands, some of which are only available at DJs.

Ok so I’ve written already about my foray into the DJ’s Amex card. I now own one and am a big fan of their simple program. 

I have to however now tell you just how much punch their perks possess. I was just comparing DJ’s perks against my other credit card - National Australia Bank’s Gold Rewards Visa and the perk value could not be more marked:

NAB has a $100 David Jones Voucher so the comparison is straight down the line. 

NAB:
Points needed for voucher: 15,000
$1 = 1 NAB point
Therefore need to spend $15,000 to earn the voucher

DJ’s AMEX 
Points needed for voucher: 13,300
1st 6 months: $1 = 3 DJs points
After 6 months: $1 = 1.5 DJs points
Therefore need to spend *$4,433* to earn the voucher or $3,325 if you spend it in an actual DJs store in the first 6 months. After 6 months you need to spend $8,866 or $6,650 respectively.

That analysis highlights what commonly is called a no-brainer. Even under normal perk earning conditions it takes half the spend to earn a $100 voucher! in the first 6 months its up to 5 times as quick. Now you may say that if you add in interest rate differentials and differences in interest free periods it changes but not in this case…rates are line ball and the Amex has up to 56 days interest free…NAB can only muster 44. To top it off annual fees are the same.

Did I mention that I have received $150 in vouchers for just signing up?

Nice work DJ’s…easily the perk program of the month.

Ok so I was out shopping at David Jones last night. Yes yes, my preferred tuesday night activity. Thats what I told my wife Jo as we were walking around doing our Christmas shopping during a special David Jones Cardholder night.

What I loved about it though was the perks on offer. Pretty much 30% of everything in the store. This is what Perkler is about and when we are fully up and running all perklers who love DJ’s would know of these nights and be kept up to date on the details right here at perkler.com.

The bonus plan from last night was the introduction of David Jones’ association with American Express and I have to say, I am a believer…from a perks perspective anyway.

Here’s the skinny on the deal offered last night…Sign up to the new DJ’s Amex and convert over from your standard DJ’s card, spend a little money on the night and a little when you get the new card…and $150 in vouchers are yours. Pretty easy, interest free period is better than the old card, and to boot, if you love DJ’s every $ spent on the new Amex earns you points towards DJ’s gift vouchers…and its a generous earn rate, at least initially.

Suffice to say we indulged in a lot of purchasing, or should I say I followed the seasoned veteran around and helped.

I’ll be updating DJ’s listing here in perkler soon to account for the new card and program, and when we are fully live these are the sort of perk updates that you can expect from perkler…ones that really add value, are timely, and highlight extra perks you can get from the brands you love.