Hot Topic
Punchcard is a Worthless Gimmick

I would like to take a moment to convey to you a less than satisfying experience that I had in a Hot Topic store located in the Northwest Arkansas Mall in Fayetteville, Arkansas.

I shop in Hot Topic fairly often and as such I decided to take advantage of the punch card that offers a 15% discount on a single purchase once the card is full. After several visits I had finally filled a card with ten punches at ten dollars per punch. I also had two additional cards because, on occasion I would forget my card and start a new one.

With my full punch card in hand, I made a purchase of approximately $36.00. My punchcard discount was $5.25, which left my total purchase at approximately $31.00. As I had two additional punchcards, I asked to have 3 punches for the $31.00 that I had just spent. The sales clerk told me that I could not have punches on a transaction upon which I received a discount. I asked, Why not? And stated that I had still spent over $30.00 with or without the discount. He replied that it was the policy. As this policy is not indicated on the card, I asked to see the policy. Needless to say he could not provide a copy.

Now I realize that this is more or less a non-issue and the majority of the Hot Topic target demographic, which I would guess to be 16-24, and they would probably never analyze this. However, as a 30-year-old male who opens his wallet to enable the target customer to shop, I decided to dig a bit deeper.

As I figure it, each punch is worth 1.5%. 10 punches or $100 = 15% discount. I spent $30 dollars when I received my 15% discount and saved $5.25. However, since I did not get credit for my $30.00 purchase, they effectively added back 1.5% for every $10 spent.in my case this was a 4.5% reduction to the overall value to me as a consumer. Therefore my net discount was 11.5% or $3.45. That means I spent $130.00 to save $3.45. I would hardly consider this gimmick to be of any value to the consumer if indeed this policy does exist.

I would be willing to bet money that the margin in their retail outlets exceeds 30%. So even if they had given me the credit towards my next 15% discount, they would have still made a profit off of me.

To take it one step further, had I spent $120 when I used my punchcard, I would have received an $18.00 discount. Not to bad until I realized that I wouldn't get punch credit for my purchase, which in itself would fill up one punch card. I would essentially give you back every bit of the 15% discount I had just received. Give me a break! This wallet is now closed.

Dave
Fayetteville, Arkansas

Company: Hot Topic
Country: USA
State: Arkansas
City: Fayetteville
Address: 18305 East San Jose Ave. CITY OF INDUSTRY, CALIFORNIA 91748
Phone: 4795825928

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