Originally Posted by
bryanwallace
isnt it better to calculate like this?
buying miles cost 14,7$ for 1000miles.
at this buying rate from hits 12-24 ,a hit is worth 37$/1000miles.
after that 24-28 is worth 56.25$/mile and 28-36 is worth 75$/mile.
this is of course based on assumption that you would buy miles anyway if no GS,
and that you will get 4 hits to take into next mileage band..
(point above regarding marginal value of one hit to push into next band is correct,but i think better to plan to get 4 hits before buying just one of them)
True, I see what you're getting at although I do not understand the numbers (shouldn't it be $29.56 for 1000 miles?).
I'm actually making a document right now planning out my guaranteed/free hits (already planned hotel stays, free things like the Toolbar searches/e-miles transfers, things I would buy anyway [like Biscoff ... yum]) and I will reach 14 hits. That means the next 2 hits would be worth $100 to me (15K > 25K miles) -- buying 1K would cost $19.56 (after subtracting the value of the miles), leaving me with ~$80 for the 16th hit (which can be easily done).
I guess what I'm trying to say is that the price of the hit goes way up the more miles you buy (like 10K + 10K) because of the 7% tax. Unless you're already in the market for that many miles, I don't think a big mileage purchase is a smart move just for a hit. Also, given that the T&C state that miles from the promotion will post until March, it might be a while until you get all the miles deserved.