Actually, we believe the opposite will happen. Buyers will spend Loyalty points which will cover up to 30% of the price. Therefore the higher is the price the lower discount you will have to give away.
For example, if the buyer has 5 points:
- for $15 model, 5 points will cover almost 30% of the price, the final price will be $10.5
- for $100 model, 5 points will cover only 5% of the price, the final price will be $95
Therefore, it will give pressure to undercutters, they will have to increase prices in order to reduce the potential discount.