American Express Membership Rewards - Best Value for MR Points?

View Full Version : Best Value for MR Points?

MBS PremExec

Mar 16, 04, 1:27 pm

I'm in the process of buying a new home, and there are a ton of things I'm going to be needing...Electronics, furniture, accessories, etc. I'm hoping to maximize my points as much as possible...

Sitting on 250,000 points, not necessarily burning a hole in my pocket, but as finances are going to be tight with this impending move, I'm going to want to use points for things where possible--most likely on 'extravagant' things I wouldn't necessarily shell out cash for.

I'm looking at a few new TV's (or other home entertainment electronics)...I'm pretty sure I want a big screen, but I'm price-shopping them as well. To me, it seems as if using MR points are NOT the best way to go. Any way to find out specifically which model numbers of things they're offering? Because it seems as if redeeming for a TV, points are worth well under $0.01 each.

Specifically, I've also looked at the Bose 3-2-1 speaker system. 110,000 points. This retails for $999.00. I can get it from a Sharper Image store for that price, and if I get $1000 worth of S.I. gift cards, I, in essence, save 10,000 points. (Well, there is tax, sure...But in theory, shouldn't a product offered be a better value than a cash-style bearer instrument?)

All that being said, it seems as if gift cards/certs are definitely the way to go to maximize the value of the points. Is there somewhere selling electronics besides S.I. where I could redeem points for certs? I'm cancelling my Diners Club and just cashed in for Best Buy gift cards (got a 'deck' of 18 $25 certs)...Which I'm going to put towards something...

Boy do I wish BB was a partner. I could get the Toshiba big-screen they have for $1800 that takes 250,000 MR points. It just doesn't add up.

NickW

Mar 16, 04, 2:09 pm

Originally posted by MBS PremExec:
Boy do I wish BB was a partner. I could get the Toshiba big-screen they have for $1800 that takes 250,000 MR points. It just doesn't add up.

Allegedly, every 20K points you transfer to Southwest Rapid Rewards will get you a reward ticket. These tickets are, allegedly, highly negotiable and apparently sell in the $250-300 range on eBay. I haven't ever done this, or even researched it (not much point as I have a UK based Amex) but ... I read about it on FlyerTalk http://www.flyertalk.com/forum/tongue.gif

So, absolutely no reason why 120-150K points shouldn't get you that TV, which is quite the saving on 250K. And, naturally, if you pay with your Amex, you can make nearly 2K of those points straight back http://www.flyertalk.com/forum/smile.gif

lewinr

Mar 17, 04, 2:27 am

Beware! many of the gift cards are limited in terms of how many you can redeem per year. I fell into this trap a few years ago, thinking I could get $500 of sharper image gift cards and pay for an item on the sharper image auction site. (with auctions, they charge your card and then you send in the gift cards and they refund the amount back to your credit card). I wont the auction, paid with my credit card, and then tried to get the gift cards and was told by amex that you are limited to one $50 card per year, which of course was not mentioned on the site. http://www.flyertalk.com/forum/frown.gif

MBS PremExec

Mar 17, 04, 9:09 am

Originally posted by lewinr:
...and was told by amex that you are limited to one $50 card per year, which of course was not mentioned on the site. http://www.flyertalk.com/forum/frown.gif



This was a legitimate concern of mine...But I called both Amex and S.I. and specifically asked. First Amex told me there is no limit on the number of S.I. cards I can order. I called S.I. and the c/s rep told me there is no limit on the number I can redeem on a purchase (but it does have to be done over the phone). Matter of fact, when I brought this up to her, she told me, "Funny you mention that. I had a call yesterday where a lady redeemed 25 certificates, which she told me she got from American Express."

On a related note, I don't know why they can't offer larger-denomination certs from their 'partners'. I can only imagine the looks I'm going to get when I go to check out at Best Buy with 18 cards @ $25 each from Diners Club.

flamboyant 1

Mar 17, 04, 1:56 pm

wait for a transfer bonus to airline partners, then transfer and redeem for FC tickets (international).

NickW

Mar 17, 04, 3:48 pm

Originally posted by flamboyant 1:
wait for a transfer bonus to airline partners, then transfer and redeem for FC tickets (international).

Uh yeah, only I don't think that helps the guy out, he's after electronics, furniture, accessories, etc. ...

lewinr

Mar 18, 04, 8:46 am

aaronma

Mar 18, 04, 9:41 am

Originally posted by NickW:
Allegedly, every 20K points you transfer to Southwest Rapid Rewards will get you a reward ticket. 

Forgive my cluelessness, but how can one transfer points to Rapid Rewards? I'm looking on membershiprewards.com, and I'm not showing Southwest as a partner.

UpgradeMe

Mar 18, 04, 9:56 am

Originally posted by aaronma:
Forgive my cluelessness, but how can one transfer points to Rapid Rewards? I'm looking on membershiprewards.com, and I'm not showing Southwest as a partner.

Could've fooled me:
http://www.membershiprewards.com/CategoryN.aspx?clgid=1&catid=103&pid=4082

aaronma

Mar 18, 04, 10:01 am

Yeah, just found it -- question #2 -- 20,000 MR points for a free ticket? It says 16 RR credits x 2,000 points/credit = 40,000 points?

UpgradeMe

Mar 18, 04, 10:33 am

Originally posted by aaronma:
Yeah, just found it -- question #2 -- 20,000 MR points for a free ticket? It says 16 RR credits x 2,000 points/credit = 40,000 points?

1250 per RR credit x 16 = 20,000.

MBS PremExec

Mar 19, 04, 9:32 am

Originally posted by NickW:
Uh yeah, only I don't think that helps the guy out, he's after electronics, furniture, accessories, etc. ...

Yeah, I've got airline miles...I wish more airlines allowed transfers into MR.

For the Southwest deal...I checked on eBay, and it appears if certs are all electronic now or something like that--not just a matter of sending someone a cert. Does SW require in-person for transferring tix like this? This is important to me because the nearest SW ticket counter is a 2-hour each way drive to DTW for me, and not really an option.

rkp

Mar 19, 04, 6:39 pm

Originally posted by MBS PremExec:
Does SW require in-person for transferring tix like this? This is important to me because the nearest SW ticket counter is a 2-hour each way drive to DTW for me, and not really an option.


The e-tickets are very easy to work with. You can do everything online. Check out http://www.southwest.com/rapid_rewards/rr_program_faq.html#award_tickets for more info.

As far as selling them, save yourself the trouble and use Mr. Mileage http://www.mrmileage.com/southwest-airline-rapid-reward-electronic.html . They give you $270 per ticket. I have used them several times and have never had a problem with them.

With 240,000 points, you can make $3,240 plus have a Southwest Companian Pass for a year which will allow you to take a designated companion for free on any southwest flight regardless of ticket price.

Stefan Daystrom

Mar 19, 04, 7:02 pm

Originally posted by MBS PremExec:
shouldn't a product offered be a better value than a cash-style bearer instrument?)
If you found a product wher you lost 10% by getting it direct through points, that's actually good. In my experience most catalogs which let you redeem points directly for branded physical products offer a lousy value compared to ANY other means of using the points.

AMEX (or similar catalogs) are not in the business of retailing. I think they partner with someone with a huge markup who handles it for them, and they don't care because any one product has a very low redeem rate and the catalog is more of an eye-grabber for them than an actual "purchase" item for most people. In fact, I often wonder if the purpose of the products in such point catalogs isn't simply to show math-doers how little they get for their points compared to using them for anything but premium travel. http://www.flyertalk.com/forum/smile.gif

If you're looking for ultimate in flexibility, you can turns every 20k points into $100 cash. That's half the rate of gift certificates, but you can use the cash obviously for absolutely anything!

To see what's available in cards/certificates, try a search. For example, if you go to the AMEX online rewards catalog and from there do a search on "gift" in just shopping and browse the three pages of results, you'll see that you can get gift certificates or cards for Saks, Linens & Things, and Home Depot, but no electronic retailers other than Sharper Image.

But why should you be surprised? MR is a lousy redemption program compared to Diners Club in ALL sorts of ways (in airlines, for example, no AA, no UA, no NW, no BA). It's only in earning (in the US at least) that Amex MR has an edge over Diners. (Most people who want REAL redemption flexibility -- tho perhaps only travel redemption? -- tend to move from MR Amex to the Starwood Amex if they can.)

MBS PremExec

Apr 14, 04, 11:38 am

As far as selling them, save yourself the trouble and use Mr. Mileage http://www.mrmileage.com/southwest-airline-rapid-reward-electronic.html . They give you $270 per ticket. I have used them several times and have never had a problem with them.

THANK YOU THANK YOU, rkp! I opened a SWA Rapid Rewards account (with 2 bonus credits upon enrollment!), transferred 2 tickets worth of AMEX points online to SWA, and I could not believe that the very next day the credits were posted to my SWA account! Good times!

Mr. Mileage has used the awards, and I've received the check already. Going to do plenty more of these! A GREAT way to maximize my AMEX points. At their price, I get CASH at 1.4 cents/point. Far better than any gift card, TV or anything else they offer. And it wasn't a lot of work, a few clicks online, a phone call to Mr. M, and voila! I get a check a week and a half later.