Worth paying on credit card when there's an extra fee?

[UP4014]

Does your gym membership include two pilates reformer classes? Because this one does, and they're normally over $30 EACH so this is actually a bargain. I could get an ordinary gym membership far cheaper, I know that, but it's not what I want.

Remember, it's only a bargain if you use them. I get wary about getting locked into things.

 

[trippin_the_rift]

IMO the points are too small to care about.
Just like the ~50 days of interest you would accumulate on that money is too small.

Putting it on credit card gives you protection against the gym withdrawing money that is not authorized, and that alone (for me) is enough value to pay more for the services.

 

[Paddy55]

It's a long time since I've been to a gym... What's a "Pilates reformer" class? Is it for people giving up Pilates?

 

[AVC]

Well, being that flight costs vary, and points per flight vary (on ASA) it's sometime difficult to work out.

Lets look at at SYD-LAX Classic award, return. Leaving out taxes.

Airfare (Y)$2282, Points 96,000 - 1 pt value is then 2.4c

If we go to J; Airfare $7400, Points 192,000 - 1 point value is now 4.7c

If you buy the same Y fare and use points to upgrade, the points are worth about 4c each.

That said, your 18 points are worth between $0.43 and $0.84.

I personally wouldn't pay a 4.4% fee for Amex. I don't beleive that their MSF for Amex is 2.2% higher than that for VISA/MC

My limit for AMEX surcharge is 2%, and that's only a break even.

 

[Moopere]

I value my points at 3c each against J redemptions. Try _really_ hard not to pay more than 1c each for them which gives me profit and wiggle room. I do get slugged by hotels at 1.5% and I just wear it, despite being annoyed. At 2% I'll let the proprietor know they've lost my business and why.

 

[Rebekkap]

Remember, it's only a bargain if you use them. I get wary about getting locked into things.

It's a week by week, so no worries about getting locked in. However, the previous gym membership I had (until my gym was bought out by the evil empire aka Fitness First, who stopped offering pilates) got used at least three times a week so I'm not actually particularly worried about whether I'll use it - I have a fair track record.

I can't believe how concerned everyone is about me getting value for my gym membership!!!

 

[Rebekkap]

It's a long time since I've been to a gym... What's a "Pilates reformer" class? Is it for people giving up Pilates?

Pilates - Wikipedia, the free encyclopedia

Essentially it's a machine, that provides resistance, using springs so the resistance increases as you move.

 

[amaroo]

I wonder how many members would line up for an offer that touted.....spend $27.56 on some useless piece of nothing (that you will never use,drink,eat) and we'll give you 936 ff points!

 

[A330]

I personally wouldn't pay a 4.4% fee for Amex. I don't beleive that their MSF for Amex is 2.2% higher than that for VISA/MC

If you ever think a business wants you to pay a surcharge that is excessive, you can call Amex and they will speak to the merchant.

In this case, not only would their merchant fee be less than 4.4% for Amex/Diners, almost no business pays a merchant fee of 2.2% on Visa/Mastercard. This is just profiteering. I refuse to pay a surcharge unless I have no option - QF & DJ I'm looking at you.

 

[AVC]

In this case, not only would their merchant fee be less than 4.4% for Amex/Diners, almost no business pays a merchant fee of 2.2% on Visa/Mastercard. .

Yep when we had our shop our MSF was 1.4% for VISA/MC and 2.8% for AMEX. And we didn't surcharge for it either. 4.4% is blatant.

 

[JohnK]

Gym membership sounds expensive but what would I know as I am obese and do not go to the gym.

I value Amex MR points at ~1c-1.5c each and now you can buy 1000 Amex MR Points for $25 so spending ~$27 to get those 1000 MR points sounds expensive.

 

[beardoc]

Putting aside the issue of whether to have the gym membership is of value or not (and the OP already mentions that they are going to get a lot of value out of it with the Reformer classes - Reformer is usually pretty expensive!):

What it comes down to is whether you think that the extra points you get are going to be useful. Sure, we can all obtain points for various things, but when it comes to redeeming, have you had much luck getting what you want? I see that you're WP, so I assume that you have at least a bank of points already - what are you aiming to do with your points and do you need a lot more that you're willing to pay 3c/point for them? I generally pick up points for a maximum of 2c/point on Amex (I regard Amex points as more valuable, because they can go to Asia Miles at 1:1 now) - but baulk at paying more than that.

But as people say, YMMV. I think it depends on what you're aiming for with your points - what are you planning to do with them?

 

[cove]

Good on you for doing the gym thingy. Your body will appreciate it over the years.
We limit surcharges to a cent a point maximum then try to redeem at 4 cents or more for flights.
That means a 1.5 points per dollar Amex can carry a 1.5% surcharge and our family sticks to this arithmetic.

 

[Rebekkap]

I see that you're WP, so I assume that you have at least a bank of points already - what are you aiming to do with your points and do you need a lot more that you're willing to pay 3c/point for them?
...

But as people say, YMMV. I think it depends on what you're aiming for with your points - what are you planning to do with them?

Yes, I'm platinum but sadly we don't get points for work flights, only status, so I'm always eager to maximise points earn. I use them for upgrades on holiday flights - with great success so far (knock on wood it continues!)

 

[burmans]

Well, being that flight costs vary, and points per flight vary (on ASA) it's sometime difficult to work out.

Lets look at at SYD-LAX Classic award, return. Leaving out taxes.

Airfare (Y)$2282, Points 96,000 - 1 pt value is then 2.4c

If we go to J; Airfare $7400, Points 192,000 - 1 point value is now 4.7c

If you buy the same Y fare and use points to upgrade, the points are worth about 4c each.

That said, your 18 points are worth between $0.43 and $0.84.

I personally wouldn't pay a 4.4% fee for Amex. I don't beleive that their MSF for Amex is 2.2% higher than that for VISA/MC

My limit for AMEX surcharge is 2%, and that's only a break even.

My problem with this type of analysis (and not saying the analysis itself is wrong) is that it confuses cost with value. It may well cost $7400 to do SYD-LAX but I would never pay that, i.e. it's value to me is less, I'm getting a US dividend point J return to EWR from SYD (110K points) where I actually bought the points so flight was about $1800 all up. How high would I go, well I have already bought points at the new 20% higher rate but even then I vacillated a bit. Everyone values differently and haven't had to make the decision yet but suspect I'd baulk if price got close to $3K.

So for me value must be slightly under $3K not $7200. If I were to define value its what you are prepared to pay for it, not what someone wants to sell it for.

 

[smit0847]

I dont know what a pilates former class is.

My gym does have a twice weekly 'pregnant bellies' class which unfortunately I havent been able to attend as I am a guy.

 

[Rebekkap]

I dont know what a pilates former class is.

Pilates - Wikipedia, the free encyclopedia

Essentially reformers are machines, that provides resistance, using springs so the resistance increases as you move.

 

[AVC]

True burmans, the value varies from person to person. which is why the "value" of points is almost impossible to determine accurately. My analysis was based on an airfare cost example of one day. Pick another day and the airfares would be different, and therefore the points' value.

I guess the same as the "value" of having pilates classes thrown in to your gym membership. To me, pilates or aerobics classes are worth zero, but to 'bek worth about $30 a pop. I only ever use the weight gear at the gym. My one-time-ever attempt at aerobics was fail

 

[beardoc]

My one-time-ever attempt at aerobics was fail

Whereas I pick gyms purely based on the quality of the group fitness room and the range and diversity of Les Mills Classes (particularly BodyCombat, BodyAttack and BodyPump and CXWorx) - that's the interesting thing about this. I'm interested to know how the OP values their points, doing their sums.

 

[rechoboam]

I assume any surcharge is potentially tax deductible if the purchase is for work purposes (not here though)