Pudding Guy Wannabe
 

Tomorrow I will go to Costco to purchase enough NutriGrain product to redeem 100K through the AAdvantage/Kelloggs promotion. I think I have covered all my bases:
-2 calls to AAdvantage to insure there is no cap on mileage earned in this promo
-Another call to AAdvantage reserving award travel later this year
-calculated the cost of these miles at .0173 cents per mile
-discussed the donation of all of the food product with my CPA and was assured the entire purchase amount is deductible, thereby lowering my cost per mile to approx. .012 cents per mile

I have consciously not counted the value of my time cutting and filling out 1000 cardboard certificates - I guess a custom sticker would help.

I've been bitten by the FT bug!

You know, many people (including myself) have been throwing this idea around, calculating the costs per mile, etc... but I think you are the first person here to actually do it (I may be wrong). I tell friends about this idea and they think I'm whacko. So will the girl at the check out line at Costco. But, no matter how crazy people think you are, donating the food to a shelter or such is certainly a fantastic thing to do... not crazy at all. http://www.flyertalk.com/forum/smile.gif

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preez mine da pratform gahp.

oops.


[This message has been edited by LIH Prem (edited 02-18-2001).]

flytoeat (or should you call yourself 'eattofly'), be sure you make photocopies of all certificates, coupons, etc. just in case AA misfiles your redemptions.

Make us proud!

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He who dies with the most miles ... is dead.

Flytoeat,

Sounds great... but a question. If you take a deduction for your charity contribution, wont you also have to declare the "retail" value of the 100K miles?

According to my accountant - when I thought about this - that was his quick response. I did not follow-up.

Just wondering.

William

WHARVEY:

My CPA told me I do not have any liability for FF miles. The acid test is that the boxes containing the certificates are no more expensive than the ones without them. I am purchasing one box without the certificates to document. This CPA is aggressive but has not steered me wrong yet.

Where do you live? I might see you at the local Costco !! Make sure they are open on Presidents Day (the Costco near me is often closed on Memorial Day and 4th of July). Also make sure that Kelloggs would accept the order forms with a pre-made label (use an old address sticker label) if you decide to go that way.
Last year, I did a similar promo, not quite as lucrative, but got Delta points for buying Diet Coke products at my local supermarket. Needed 6,700 points for 25,000 Delta miles. Each 2 liter bottle of Diet Coke was 50 points. There were some multiple purchase bonuses. Anyway, the total cost for my 25,000 Delta points was around $180, plus I got all that soda. Cashiers let me sneak through some Cokes, Sprite and Orange so I wouldn't be stuck with all Diet. Did end up donating lots to the local schools every time they had a Bingo Night or fundraiser. But you should have seen the piles of soda in my basement !!!
GOOD LUCK !!!

I have been sending in about 2000 a month since this started and I use an address stamp. I only have to write in my AA acount number. So far they have posted all my miles. By the way I take the nutrigrain bars to work and they guys love me. They are looking forward to the pop tarts next week. One of them promiced to bring a toaster. Good luck on the 1K

Flytoeat, sounds like a winning idea to me. If your net cost for the 100,000 miles is about $1200.00 and you get a First Class ticket to an international destination (worth in the neighborhood of $10,000 or more), you have gotten a great deal!
(I would send those certificates FEDEX or certified).

Does the cost per mile equal out to 1.73 cents or .0173 cents per mile?

You do not have to "declare" (in IRS terminology, declare generally means to include as income) the retail value of the miles since you have in effect paid for them when you purchased the Nutrigrain.

The correct procedure the IRS would want you to follow is you must assign a "cost basis" to the miles and subtract this amount from your Nutrigrain purchase price to arrive at the amount of your charitable deduction.

Generally, you determine how much of the total purchase price to assign to each item (miles certificates or Nutrigrain bars) as its respective cost basis by multiplying the total purchase price by a ratio, with the the combined fair market values of the items as the denominator, and each item's specific fair market value as the numerator. This is the theory.

But in reality, we would of course use the fair market value of the miles not in their high value as being redeemed for high value awards (F/J tickets or upgrades), or for that matter, not valued as an award at all since the value of an award ticket fluctuates depending on thecircumstances.

We would instead value them by how much it costs us to aquire them via other methods. And we all know that when we perform our super duper bonus miles mileage runs, after we subtract the value of actually having gone somewhere, the cost per mile is really really low.

http://www.flyertalk.com/forum/smile.gif

[This message has been edited by onedog (edited 02-18-2001).]

Good point John, my decimal was wrong. The cost per mile is 1.73 cents, or 1.20 cents after tax.

Pudding Guy Wannabee,

You still have some work to do. I believe that the orignal Pudding Guy spent something like 1/7th the cost per mile as you did (give or take)? You did very well, but this is not a screaming deal. I'd rather spend a little more money per mile and go on a mileage run and visit a new city. Though with some of the current internet fares you can potentially pay less per mile on a mileage run.

Despite that, your generosity to local charities is heartening, and I hope that more people follow your example.

Trying to figure this out...

Even if you pay $2.00 a box for 100 miles, that's $20 for 1000 miles.

And $200 for 10000.

So at the 2 cents a mile conversion rate, you broke even.
I figure that $500 = 25,000 miles. Now if you use those miles to upgrade... http://www.flyertalk.com/forum/biggrin.gif

Dan

The "Pudding Guy Wannabe" header is made in jest, although with some truth. My motivation in doing this is to fly my family together in first class to Hawaii around the holidays. For less than the outlay for coach tickets, I can achieve this and donate at the same time. I do not fly enough to accomplish this otherwise (am only elite in one program). I'm taking a break from tearing open 1000 boxes and cutting out the coupons. This must be a hobby because I couldn't justify my effective hourly rate.

Now you have gotten me thinking about this flytoeat....

Does the COSTCO package contain one cert for 500 miles? or 5-100 mile certs? (Not as much clipping with a single 500 miler).

I am assuming this is the 5 pack for $6.99 deal you are referring to for this 'hobby' project.

Mile-wise.... So, 200 of these packs, at 500 miles each is the 100K miles.

Cost-wise.... $6.99 x 200 packs = $1398. (assuming no sales tax on food items).

So, 100K miles on AA for $1,398.00, (perhaps less any tax deductions allowable by law).

And if the 500 mile certs exists (vis a vis the 5-100 per pkg), the time to clip 200 certs and complete those certs, then mail them in certified mail or other trackable shipping system.


[This message has been edited by CaliforniasCentralCoast (edited 02-18-2001).]

The Costco NutriGrain Twists are packaged 4 boxes to a carton. Thus, 400 miles in a carton that costs $6.89. Each carton requires cutting out (4) 100 mile certificates. I purchased 250 cartons for $1722.50, thus 1.723 cents per mile before considering the charitable deduction.

I had heard of 500 mile cartons on this board but could not prove their existence anywhere.

Back to cutting out certificates. My goal is get them all done today. It will be a long day.

[This message has been edited by flytoeat (edited 02-18-2001).]

Flt,

I would have loved to see the look on the checkout persons face when you showed up at the cash register with all those boxes.....unless of course that person is, "One of us". http://www.flyertalk.com/forum/biggrin.gif

Dan

flytoeat, I used a computer to print stickers that have all the information on them in the format and size needed for cereal coupons. I use full-page label paper (Avery 5165) and cut it apart with scissors after printing.

So far I've sent in about 150 of these, 84 of which (six cases) went to a local food bank. Never a problem getting them posted promptly and correctly!

Where are the resident grinches wailing, whining and teeth gnashing for this thread to be moved to 'SPAM'???? http://www.flyertalk.com/forum/smile.gif

This one cracks me up. More power to all those FlyerTalkers with scissors. http://www.flyertalk.com/forum/biggrin.gif

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~ Glen ~

Is it wise to send all the coupons together, or in several big groups? Don't put all your eggs, etc.

While not on the magnitude of flytoeat's recent purchase, I took advantage of a great offer at Sam's club today: They have been giving out coupons at the door during the month of February - the coupon which is valid today through Sunday is Buy One, Get One Free for the three pack box of NutriGrain Bars. These boxes have 300 miles per box.

Thus, spend $6.99 and receive 6 boxes, or 600 miles. Works out to 1.165 cents per miles. And that's before any tax deduction.

Was able to talk my wife into going back into the store so that we could each use two coupons - for a total of 2400 miles for $27.96. The back of the coupon says one coupon per transaction, so I don't think you can combine them - so you would have to keep getting on line again if you really wanted to rack up the miles.

So, i have to wonder.

I can't send in fewer than five, but if i have, say, 100, can i send all those in together?

I'd like to use tracked delivery, so i wonder.

Yes, gwendolynaoife, you can send in as many as you want at a time (so long as they are in multiples of 5). I've sent in 100 once before - sent them Priority Mail with a tracking number (and return receipt!). They don't speed up the process of crediting the miles based on how you send it (so there is no advantage to overnight mail) - but at least I felt comfortable that they had been received once I got the tracking confirmation.

I don't make copies or send certified mail. I do keep a list of dates mailed and amount. I've never had any problem with the envelope getting lost. I've even had them send back an extra certificate when I miss counted.

Remember that you can decrease the cost of these miles by paying for your Nutrigrain bars with your Delta SkyMiles AMEX. http://www.flyertalk.com/forum/smile.gif

[This message has been edited by cactuspete (edited 02-19-2001).]

One's Citibank AAdvantage Visa may be more topical for AA miles. http://www.flyertalk.com/forum/wink.gif

Can anyone point me to the specifics of this offer? The only info I find via searching is related to an offer that apparently expired on 1/3/01. That is what I found at the Kellogg's website as well. Any info would be very appreciated.

Paying by AMEX is a better choice.. If costco is considered a grocery store.. That makes it two miles a dollar...

Also think about this one.. I know Clickrewards gives you miles for every dollar donated. How about goods donated? Any offers there?

Today through the end of the week Costco is offering the Nurti-grain bars and the Twists as two for the price of one. It's supposed to be with the coupons they mailed out to members last month, but my store (and I assume all Costcos) is giving the deal to everyone. Unfortunately, the limit is one of each free per household. Still it's 1400 miles for $14.

I did 380 boxes of corn flakes for 38,000 miles. Cost $1.25 per box. + chartible deduction.

Tips:

1. Go to the ordering supervisor and order case lots. Let them know if it is a donation to the food bank as they might give you a price break.

2. Buy address labels and print them from your computer with your AA # on them.

3. Mail them all together to save postage and the possibility of confusion with multi posts of miles. Mine posted within 3 weeks of sending them.

4. For me, using a sharp adjustable razor knife and leaving the cereal in the box worked best.

Dingo: Details of the Kellogg's cereal promotion are on the website. Go here:
http://www.kelloggs.com/

And there is a link on the middle-right hand of the page for AAdvantage miles. That takes you to the cereal promotion - there is a stated expiration date of November 2001. For the other promotions - just buy a box and the rules are included.

On the spam board there was a post re kmart last week selling the pastry swirls at 33% off--but just checked my mailbox and my kmart here in az has an ad for the kelloggs pastry swirls 2 for $3 thru the end of week.Now hopefully they have the certs on the back.This would be so much easier if we could only send in upc's

I volunteer in a soup kitchen some days and have noticed NutriGrain bars offered now for breakfast. These are great as some of them even put them in their pocket for later. Oddly enough, I haven't seen any empty boxes lying around, just individually wrapped bars. http://www.flyertalk.com/forum/biggrin.gif

Regarding drtravel's suggestion to order by the case: When I did this at my local Market Basket they said they couldn't tell from the outside of the carton if the boxes inside had airplanes on them or not. I explained what it was all about, and that it was "no airplanes, no deal." They understood & agreed to open my cases to check when they came in. Fortunately, they all had airplanes! If you do this, be sure you reach the same understanding with your store.

FYI - the Costco stores in Arizona only take AMEX, no Visa or other credit cards. I assume this is true throughout the USA.

http://www.flyertalk.com/forum/eek.gif
http://www.boston.com/dailynews/055/...y_steal:.shtml

Attention Massachusetts FlyerTalkers! We are now going to have to have a headcount (nosecount?) to see which one of youse is missing...

http://www.flyertalk.com/forum/biggrin.gif

Still here, about to head for the store to get some more cereal ...
http://www.boston.com/dailynews/055/...y_steal:.shtml

[This message has been edited by Efrem (edited 02-25-2001).]