Clever ways to help families manage their budgets

*This content is brought to you by bsmart

By Marthinus Fourie*

In these difficult times, consumers are on the lookout for ways in which to save money. Retailers offer great deals, but is that enough?

Marthinus Fourie, MD of group-buying scheme and cash back rewards card, bsmart, says increased living costs have taken their toll on many households and although the consumer’s disposable income has increased marginally, most families have to look closely at their budgets to stay out of debt.

What is ‘bsmart’?

The bsmart cash-back card helps consumers manage their budgets. Because bsmart works for and on behalf of its members who benefit from their combined purchasing power, they receive significant cash-back savings at all participating retail outlets. Another advantage is that the cash-back card, not only allows for physical cash-backs, but does not affect savings that consumers might receive from any of their other store- or reward-cards.

Do members have a choice of where they can shop?

We have negotiated discounts with over 10 200 major retailers and service providers nationwide, some of which are PicknPay, Woolworths, DisChem, Game and Checkers.  These discounts are paid back to members in physical cash.

How does bsmart help card-holders keep track of their purchases?

The payment method uses a card or a mobile App. In addition, there is a GPS locater which directs them to the nearest store, and allows for easy access to their accounts to keep track of their transactions on-the-go.

What sets it apart from other loyalty cards in the market?

According to reports, there are over 100 loyalty or rewards programmes operating on a national basis in South Africa. However, unlike most other loyalty or rewards cards, the bsmart product has no tiers or purchasing frequency rules. The cash-back fluctuates between 3 and 5%, allowing members to benefit from equal loyalty. There are no ‘shareholders’ and the profits are shared among all the members.

How does the card work?

There’s a membership fee of R60 a month that is available to those who earn more than R10 000 a month. There are no transaction fees or interest charges. A monthly buying limit is allocated, which can increase or decrease, depending on the cardholder’s circumstances. Each month the buying limit is reset for those whose accounts are up to date.

How does the bonus work?

At year end, or quarterly, depending on the member’s preference, a bonus is shared among the cardholders. Members say that the annual bonus pay-outs do indeed make a difference to their household budgets. Last year the company paid over R33.7-million to our members, with some individuals receiving as much as R8,000. This kind of money can go a long way to pay off any debt and can come as a welcome surprise to those who want to treat their families to something special or go on holiday.

What are bsmart demographics?

63% of the target market is between the ages of 35 – 54

45% earn less than R20k a month.

How long has the company been operating?

The company was first launched in the Western Cape in 1947 under the name of Cape Consumers, as a buy-aid organisation (group-buying scheme). Seventy years later the company still operates using the same business model, but branded as ‘bsmart’.

In 2015, managing director Marthinus Fourie took over the company and transformed Cape Consumers into a dynamic and techno-savvy operation. At that time, the business was in negative growth with only 19 000 members. He soon turned the company around and currently the company has double-digit membership growth. This can be attributed to the implementation of a customer-value proposition that offers a techno- and user-friendly product adding value to consumers’ lifestyle.

Today the company has an annual turnover of R1-billion, with 10,200 partner stores and close to 40,000 cardholders. This number is expected grow to 100,000 within the next three to five years.

As more and more consumers are preferring to shop online, bsmart will be including this facility in its offering. It is just matter of time before the chip n pin technology is introduced to the cash-back card.

• Marthinus Fourie is MD of group-buying scheme and cash back rewards card, bsmart.