Air Miles vs Co-op Cash Dividends

We often hear that the Air Miles (registered trademark) loyalty program gives consumers the best deal on consumer purchases. We think not!

Below is a comparison of Drumheller Co-op dividends and cash paid from the years 2000-02 for a family of three versus using the Air Miles program at another food store and gas bar.

A family of four purchases roughly $8,500 per year in groceries andgas. Our dividends for the years 2000-05 were as follows;

•Dividends $2,425
•Cash paid on those dividends $950*
•Tax credit paid in cash $275
•Total cash paid to member $1,225
•(Remaining dividends to be paid in cash in future $1,200)
*Note - Members also receive 2 cents per litre in
Co-op Cash

Now if you purchased your food at a store and gas at a service station where they give you Air Miles here is the same scenario;

• 1 air mile for $20 in purchases
• $8,500 per year x 5 years divided by $20 = 2125 air miles
• 2,125 air miles is about enough for a return trip to Toronto no tincluding airport fees, G.S.T., and security tax.
• The cost of the flight on Westjet is about $500
• So, our $2,425 in dividends ($1,225 in cash) versus $500 in a flight to Toronto.

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