Fuel point markets, gift card markets, and buyers group spot prices obviously change as supply and demand change. Practically speaking, what this means is:
- When there’s a big deal that’s widely accessible, resale rates drop
- When it’s been a while since there’s been a big deal, resale rates climb
Hard hitting stuff, I know. But really, there’s a point for churners other than remedial economics: Volatility in most of churning resale activities is really high. Over the course of a week, rates may change by 1%-3% on bulk gift card brands, or by 5% over the period of a month. Fuel points and buyer’s groups see similar pronounced behavior.
The takeaway? Sometimes holding things for a week or two increases your profit, and keeping a mental tab on average volatility helps you optimize your game. Of course, don’t forget about the velocity of money either.
Have a nice scary weekend friends!
Kroger fuel points, but as a drink.