Quote Originally Posted by JC67 View Post
actually I was talking about the product. When someone redeems points (example on my site a camcorder $900)

They have enough points to buy a $900 camcorder. I need to pay for that product somewhere, but the reward points really have no money value. So i have to pay for the camcorder at my own expense (says my cost $600 for the camcorder). I was just looking for Idea's on how to offset this. my thought on how i would do this is:

customer earns 5000 reward points on an order, which translate to $50. I would just take $50 from my profit of that order and put in a high interest savings, until the customer actually used the points, plus I would be earning interest.

So just wondering how others are doing this. : )
If you think about it- if you are using the default values (1 point per $1 and 1 cent when redeeming) all you are really doing is giving them a 1% discount. In order for someone to buy $900 item using only reward points they would have had to have spent $90,000 at your store- And that's the kind of customer you want to keep