In a bad PR move for Speedway, they’ve decided to eliminate instant discounts for all of Speedway Chase Mastercard members and raise the points needed for redemption of the best benefits for all of the chain’s Speedy Reward customers.
If you aren’t already aware, Speedway had decided back in March that it was going to eliminate the instant discount that its credit card users received purchasing gas at the pump. While this discount was small, it was the premise for many individuals signing up for Speedway’s Chase Mastercard. The program had been going for years. Initially, Speedway was doing it month-to-month, but that change became permanent as gas prices climbed. Now that prices have come down, Speedway has eliminated the instant discount, perhaps alienating many of it’s best customers (including yours truly if you didn’t know)
While that baffled me, what irked me even more was the letter I got just a week or two ago from Speedway. Again, this letter was in regards to the additional benefits millions receive. Again, it was a negative move, requiring it’s Speedy Rewards members to save more points for similar items. Starting May 1, the Speedy Rewards program is ELIMINATING the $100 Speedway Gas Card that had previously required 66,000 points. They are replacing it with a $100 gas card that has a whopping 3-cent discount per gallon (of regular gas- for midgrade it’s 5-cents, and for premium, 7-cents) of gas purchased using the card. This 3-cent “price rollback” is essentially a new feature that will cost users 30,000 more points. This new $100 card “with 3-cent rollback” will cost Rewards members 96,000 points. Here are some numbers showing the difference and providing the REAL COST:
At today’s price of $2.059 per gallon, the current $100 gas card will get you:
48.57 gallons of regular
At today’s price of $2.059 per gallon, the FUTURE $100 gas card “WITH ROLLBACK” will get you:
49.29 gallons of regular
So basically with the new system starting May 1, you will get 0.72 gallons more for a near identical item. HOWEVER, the new gas card will cost 96,000 points compared to the old 66,000 points.
66000pts= $100 gas card = 48.57 @ 2.059
96000pts= $100 gas card = 49.29 @ 2.059
Using 2.059 per gallon, if you used the Speedway Chase Credit Card, you get 40 points per dollar at Speedway. The amount of time it would take under the old program and new program to get the $100 card:
WITHOUT USING SPEEDY REWARDS:
PRE-CHANGES $1650 (801.36gals @ 2.059) on Chase card = free 48.75gals
POST-CHANGES $2400 (1165.61gals @ 2.059) on Chase card = free 49.29gals
USING SPEEDY REWARDS AND SPEEDWAY CHASE MASTERCARD:
PRE-CHANGES $1471 (714.6 gallons @ 2.059) on Chase card AND Speedy Rewards card = free 48.75 gals
POST-CHANGES $2140 (1039.41 gallons @ 2.059) on Chase card AND Speedy Rewards card = free 49.29 gals
When the new “Rewards” system is active on May 1, it will now take you roughly 45% more time to save to a near identical item. Sure Speedway isn’t changing the points needed for their in store food, they wouldn’t want to hurt their profit loaded in-store business, right? Ha. Back to using my BP card? Let’s do the math:
Here’s the math on comparing the two:
Speedway’s old system of points meant every $1650 gives you roughly $100 of free gas which means it was roughly 6.1% off purchases/gasoline there if you always saved for a $100 gas card.
Speedway’s new system of points means every $2400 gives you roughly $100 of free gas which means it’s roughly 4.17% off purchases/gasoline there if you always saved for a $100 gas card.
BP’s system is easy- 5% off all BP purchases which means every $100 gives you $5 of free gas, meaning it’s exactly 5% off purchases/gasoline there without having to keep track of points.
With Speedway, I’ve gotten probably $250 in “rewards” since 2006. With BP, I’ve gotten exactly $800 in rewards since 2002 (although I put many more everyday purchases on the BP card).
After doing all that math, I can only say one thing:
Goodbye Speedway and your fountain drinks!
Speedway- let me know when you’ve raised rewards. I should add for those curious, BP has ONLY raised rewards, never lowered them. In this economy when every dollar counts, I’ll not only save my money on not buying fountain and frozen drinks at Speedway, but I’ll be getting a better deal at BP.