Originally Posted by
kaaria
I am just taking a survey of what other flyer talkers are doing. I have got 32 hits for about $500 out of pocket (some business that I got reimbursed for) for an average cost of $15.63 per hit. I have heard people saying it is worth spending another $200 for 20,000 miles. If I do that my cost will increase to $19.44 per hit.
Any thoughts? Feedback would be appreciated.
A more adequate analysis is to look at the cost of each tier, and not just the over all cost. As some have mentioned, the past cost is a "sunk" cost -- nothing will change that.
The correct analysis is that from 32-36 hits your will net 20,000 points. How much would it cost to buy 20,000 points? You want to spend less (hopefully much less) than that on the total cost of your next 4 hits. Your average cost at this point is simply a statistic.... if its going to cost you $200 for 4 hits, for 20,000 miles the only real question is to ask yourself if you just simply bought those 20,000 miles would it cost more than $200?