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hashtagbonkers
5th November 2012, 13:00
Hi guys. Newbie alert ;)

I want to work out the cost of every Avios I acquire to see what the true cost per Avios is? Anyone use anything like a spreadsheet they want to share? ;)

John

Dominic
5th November 2012, 13:56
I guess you just have to set one up with a simple spent in one column, Avios in the next column and total each column at the bottom?

hashtagbonkers
5th November 2012, 14:10
I was looking at one that translated the real value when encashing them (ie what flight or upgrade would have cost if bought cash) as well as working out real cost of original purchase including resale value of item. Phew...I don't ask for much, do I ;-) I think there's probably an app in there as well...

PanGalactic
5th November 2012, 14:14
Sounds a bit obsessive to me :) (I can talk, lol)

I wouldn't bother with that personally, but rather look at what you could have got instead of Avios on a per transaction basis, eg: cashback.

For me if it's 1p per Avio or less I go for it, for example, if we're talking about credit cards, I think the best cashback card gives you 1.5%, therefore I'd rather use my BA Amex and get 1.5 Avios per

If it's comparing Avios eStore to quidco and I can get 10% cashback or 5 Avios per I'd go for the quidco instead.

You just have to work out the value you get for redeeming the Avios, figure out what they are worth to you and how much you are willing to "pay" for them, it's different for each person.

Dominic
5th November 2012, 17:08
I'd agree with this. I do the same with Clubcard points - have a target price of 1p a point and I know thats what they cost me to within a tenth of a penny just from ongoing sums in my head.

the only time I do a spreadsheet is when I'm buying and selling inks, for example, when they are on buy two get 500 points for example. It's very easy to let the costs of postage, fees etc run away from you and I need to know it is viable rather than stick my head in the sand and pretend it is. I can also put a few formulas in that so I know when I can reduce the selling price and what effect that will have on my points cost.

This also gives me a good working knowledge of what prices are viable to sell at. But once I've sold them all I know it's been worthwhile and the spreadsheet doesn't get touched again until next time the offer comes up.

It just means I know eg if HP301 are more than 9.50 each I need spend and saves to bring the cost down and at 11 or more it isn't viable for me. Otherwise I'd be buying them in haste and ending up paying far more than I want to for our points.

hashtagbonkers
5th November 2012, 20:15
Thanks Dominic

Thats what I'm talking about, as like you, I think it is very easy to lose the run of ourselves over offers that aren't the best use of our hard earned cash, after all factors are taken into account.

I'm also slightly perturbed that a lot of people I know IRL are quite happy to pay over the odds due to voucher exchange having a crazy multiplier. They must spend their lives in Pizza Express ;)

John

Dominic
5th November 2012, 21:10
Thanks Dominic

Thats what I'm talking about, as like you, I think it is very easy to lose the run of ourselves over offers that aren't the best use of our hard earned cash, after all factors are taken into account.

I'm also slightly perturbed that a lot of people I know IRL are quite happy to pay over the odds due to voucher exchange having a crazy multiplier. They must spend their lives in Pizza Express ;)

John

Most of the time I go to 1p a point but I could be persuaded to go to 1.5p. We currently spend ours on Marriott or Hilton weekends. 3 nights at around 100 a night, 300 for a Friday night to Monday break, costs 100 in Clubcard vouchers, 33 a night inc unlimited breakfast buffet for two. When points are scarce I'd go to near to 150 cost to get that 300 break. The 4x offer currently would also mean I could spend more to get the same value if I had bought points in the last few days of the last quarter. Lots of things to consider. Others use for Avios like yourself.

Raffles
6th November 2012, 09:25
I wrote this on my blog yesterday to justify my 0.75p per Avios cost threshold / valuation, in response to a similar question:

"In this blog I always say I value an Avios at 0.75p - so SUBSTANTIALLY less than BA sells them at! However, that is very much the bottom end of the value range. I will not do anything to get Avios which involves paying more than 0.75p for them, though.

As you have seen, redeeming for Economy long-haul is a waste. Forget about it. The only exception is if you redeem on airberlin or Aer Lingus and start your journey outside the UK to avoid Air Passenger Duty - this will keep taxes on most routes down to 50-60 return.

Let's look at economy short-haul. We fly to Hamburg a lot as my parents-in-law live there. Reward Saver Economy is 9,000 Avios plus 30. A cash ticket would be 125+, so I am getting 1p per Avios of value. More importantly, my Avios tickets are fully flexible. Last weekend, when we were in Stuttgart, we decided at the last minute to come home on an earlier flight. With a cash ticket I couldn't do that, but with an Avios ticket it was no problem (albeit you have the change fee if you are not BA Gold).

A typical long-haul redemption might by New York. in Business, that is 80,000 Avios plus c 500 of taxes. Now, in a BA sale or if you don't mind flying indirectly (eg change in Paris), you could buy a ticket to NYC for around 1,300 I guess. So, again, you are getting 1p per Avios of value plus ticket flexibility. On the downside, a cash ticket would earn you some miles back and, of course, you can get a cash ticket for whatever day you want - you are not restricted by Avios availability.

If you use a BA Amex 2-4-1 voucher, you are getting double the value of your Avios, so 2p per Avios in these cases.

Of course, there are other factors to consider. We live close to Heathrow so we would fly from there anyway. If you lived in Sheffield, flying to Hamburg would involve a drive to Manchester Airport and changing planes in London. You might decide that a Ryanair flight from Doncaster to the middle of nowhere, 2 hours from Hamburg, was more convenient!

We also travel with a lot of luggage, having two kids, so BA's free luggage allowance and access to the airport lounges is valuable to us. If you are a hand baggage only person, one of the benefits of flying BA disappears. And so on. You need to decide what works best for you."

mutley muppet
6th November 2012, 10:15
I'm dithering wether to buy some GTA preorders. I get confused by avios, and not sure they would be good value for me? :confused:
I would probably only use them for hotels or a package deal to Egypt.
I've looked up a hotel I like and it is saying it costs 90,000 avios points for the week? How do I calculate what that'll cost me? :confused:
Sorry for being so dim & thanks in advance.
MM x

Raffles
6th November 2012, 10:42
250 Tesco is 600 Avios, unless there is a conversion promo on.

500 is therefore 1,200, so via GTA you are paying 5 for 1,200 Avios or 0.4p each.

You then need to look at the price of the hotel for cash versus the Avios price. If you are getting a lot more than 0.4p of value then it is worth thinking about.

Caveat is that you won't get your Avios until after the next batch of Clubcard statements appear in late January. Who knows if the hotel will still be available or if the price will have changed?

Buying large quantities of GTA also puts your Tesco account at risk of being audited and some GTA sales being removed if you are accused of bulk buying, which is against the rules.

On the upside, if there was another 50 per cent bonus on Tesco to Avios conversions next year, your cost per Avios would fall to 0.27p. If you could redeem for 0.75p, you would be tripling your money spent on GTA packs.

Dominic
6th November 2012, 12:02
Buying GTA is a no brainer. At very worst you've meant Tesco some money which you get back in a few months. So what? If you can afford to, do it.

Georgie
6th November 2012, 12:09
Buying GTA is a no brainer. At very worst you've meant Tesco some money which you get back in a few months. So what? If you can afford to, do it.

But many people on here say Tesco food is over priced compared to Asda, morrisons, Aldi etc so at face value ie a fiver for a fiver you are still committing your money to buying (alledgedly)overpriced food.

I know you can do double up but it is sporadic and on limited goods that you often need to need to buy like I need a microwave now.

You could still end up doing it because it seems like a good deal especially if you go into it thinking 'oh well if there is nothing I want I can buy Tesco food with me fiver' if you aren't really a Tesco shopper.

Georgie
6th November 2012, 12:43
I'm dithering wether to buy some GTA preorders. I get confused by avios, and not sure they would be good value for me? :confused:
I would probably only use them for hotels or a package deal to Egypt.
I've looked up a hotel I like and it is saying it costs 90,000 avios points for the week? How do I calculate what that'll cost me? :confused:
Sorry for being so dim & thanks in advance.
MM x

I think BA fly to Cairo so if you could put up with a change in aircraft and the cost of a local flight to any of the Red Sea resorts you could maybe use AVIOS for flights as they are the expensive part of a Red Sea resort holiday. Not looked into it myself as I always do package holidays there, but if you DIY it might be worth you investigating, providing travelling from heathrow isn't a problem for you.

Dominic
6th November 2012, 13:22
But many people on here say Tesco food is over priced compared to Asda, morrisons, Aldi etc so at face value ie a fiver for a fiver you are still committing your money to buying (alledgedly)overpriced food.

I know you can do double up but it is sporadic and on limited goods that you often need to need to buy like I need a microwave now.

You could still end up doing it because it seems like a good deal especially if you go into it thinking 'oh well if there is nothing I want I can buy Tesco food with me fiver' if you aren't really a Tesco shopper.

Fair point, but for me it's the very last resort (safety net) and so worth the gamble. I've never yet had to do it as there has always been an Avios offer or we've changed up to 3x on Marriott or Hilton etc. We enjoy our weekends away 2-3 times a year so it's always worth it for us. We have the occasional meal at Ask or Pizza Express which also works out good value at 1p per point or less.

You can also change up for meals or other deals (eg Merlin passes) and sell on eBay for at least double what they cost you, so in reality the chances of you spending them in Tesco is next to nil. But what I meant was that even at worst case last resort (no job no money and starving) there is a 'safe' option which would minimise your losses and put food in your tummy.

That's why to me it's a no brainer (assuming you can afford it) because the potential gains are balanced by almost zero risk, so if in doubt then do it and think about what you are going to do with them later.

Georgie
6th November 2012, 13:46
Fair point, but for me it's the very last resort (safety net) and so worth the gamble. I've never yet had to do it as there has always been an Avios offer or we've changed up to 3x on Marriott or Hilton etc. We enjoy our weekends away 2-3 times a year so it's always worth it for us. We have the occasional meal at Ask or Pizza Express which also works out good value at 1p per point or less.

You can also change up for meals or other deals (eg Merlin passes) and sell on eBay for at least double what they cost you, so in reality the chances of you spending them in Tesco is next to nil. But what I meant was that even at worst case last resort (no job no money and starving) there is a 'safe' option which would minimise your losses and put food in your tummy.

That's why to me it's a no brainer (assuming you can afford it) because the potential gains are balanced by almost zero risk, so if in doubt then do it and think about what you are going to do with them later.

I agree, I was thinking more about folks that might be tempted to do it with marginal cash rather than disposable income like presumably you will be.

Also offers on deals change or are withdrawn (motorpoint being the best example) the drop to x 3 from x 4, folk talk about the odd deal going back to x 4 but never mention them maybe dropping to x 2 :eek: which they once were. Cruises could start to be capped etc

Dominic
6th November 2012, 13:54
Yes, the potential for Deals/Rewards to devalue is all part of the 'gamble'. That said, it would be ridiculously stupid to spend non-disposable income on this as if you can't pay the mortgage or rent, or can't put afford to put food in mouths if you use money for this then you shouldn't be doing it!

I think it's obvious this is only worth doing if you have a way of funding it that will not leave you short for essentials.

mutley muppet
6th November 2012, 20:22
250 Tesco is 600 Avios, unless there is a conversion promo on.

500 is therefore 1,200, so via GTA you are paying 5 for 1,200 Avios or 0.4p each.

You then need to look at the price of the hotel for cash versus the Avios price. If you are getting a lot more than 0.4p of value then it is worth thinking about.

Caveat is that you won't get your Avios until after the next batch of Clubcard statements appear in late January. Who knows if the hotel will still be available or if the price will have changed?

Buying large quantities of GTA also puts your Tesco account at risk of being audited and some GTA sales being removed if you are accused of bulk buying, which is against the rules.

On the upside, if there was another 50 per cent bonus on Tesco to Avios conversions next year, your cost per Avios would fall to 0.27p. If you could redeem for 0.75p, you would be tripling your money spent on GTA packs.

Thanks Raffles. So my hotel costing 90,000 Avois points would cost 375?

My math is a bit dodgy but I *think* that's correct?:behindsofa:

I can book the same hotel for the same week for 290 hard cash via travel republic?

As you say though, maybe its best just to sit on the vouchers until Avios do a special deal?



I think BA fly to Cairo so if you could put up with a change in aircraft and the cost of a local flight to any of the Red Sea resorts you could maybe use AVIOS for flights as they are the expensive part of a Red Sea resort holiday. Not looked into it myself as I always do package holidays there, but if you DIY it might be worth you investigating, providing travelling from heathrow isn't a problem for you.

Thanks Georgie, I can do Heathrow and I wouldn't mind a stop off in Cairo but my OH is a bit of a nervous flyer so think he will be happier with direct flights only. :o

I always do DIY and I think that's what's bothering me being tied to Avios instead of having freedom to shop around.

Georgie
6th November 2012, 21:41
I am the same I would consider flying to Cairo and changing but my OH wont :( I am sure I could pick up cheap Egyptair flights to Sharm, Hurghada etc. and would imagine a reward saver plus an Egyptair flight would still be half the price of others as I normally can't book much in advance of travel but can go off peak.

joaniemerc
7th November 2012, 16:26
At very worst you've meant Tesco some money which you get back in a few months.

How so, pls?

Raffles
7th November 2012, 18:26
How so, pls?

Because your 5 spend will get you a 5 Clubcard voucher in January which you can use (at very worse) for 5 off instore ....

joaniemerc
8th November 2012, 10:54
Thanks, Hun.