Target Circle 360 vs. Free Circle: When the $99 Upgrade Pays Off
No one ever goes to Target looking to buy one item and comes out with only that solitary purchase. That’s because Target has so many ways to save, including its free upgrade of Target Circle, as well as its Circle 360 membership for $99 annually or $10.99 per month.
Perks include same-day delivery threshold, two-day shipping access, return window extension and stacking potential with the RedCard 5% back, but is the upgrade worth it?
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Rachid Wehbi, founder and CEO of Sell The Trend, modeled a realistic monthly spend scenario showing the crossover point where Circle 360 pays for itself depending on if you are a online-heavy shopper or lite in-store-only customer. Find out below if Target Circle 360 is worth the $99.
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Best Discounts and Savings
For bargain hunters, Wehbi found that Target Circle offers are the way to go.
“It covers discounts, offers, rewards, birthday gifts and shopping promotions-free. Target Circle 360 is offered at $99 a year or $10.99 a month, is more of an [easy] subscription,” Wehbi added.
Combining Offers
According to Wehbi, Target Circle deals and discounts — both of which are offered to Target Circle Card Holders — can be combined. However, Wehbi pointed out that this should be kept separate from the Circle 360 value.
“The Circle 360 paid subscription, unlike the Target Circle Card, is only a savings on delivery fees,” Wehbi highlighted.
Break-Even Point
Without a membership, Wehbi pointed out that same-day delivery is $9.99, meaning that after 10 same-day orders in a year, the subscription is paid for.
“This means, one same-day order a month and Target Circle 360 is a savings,” Wehbi explained, using the example of a shopper that has same-day delivery of two $75 orders in a month. “[T]his shopper would save $239.76 on delivery for the year, meaning the subscription would cost $99 and be worth $140. For Target Circle Card holders, it is [an] even better value, as the subscription is only $49, making the break even for same day orders five.”
Conclusion
In Wehbi’s calculation, Free Target Circle Rewards allows bargain hunters to save more while Circle 360 appeals to convenience shoppers.
“If a customer books same-day delivery at least once a month, the membership begins to pay for itself,” Wehbi said, adding that the best fit is for “online-target customers with large families, busy parents, busy pet owners, professionals and those who frequently place $35 or more Target delivery orders.”
On the other hand, customers who shop in-store only and those who use delivery, pick-up and Drive Up services exclusively should not spend money on the upgrade in Wehbi’s opinion: “For Target shoppers that do frequent deliveries, Target Circle 360 makes sense. For those that do only casual shopping trips, it does not."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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