Pricing Rewards for a Budget

Have a budget in mind for your reward spend? Here are two approaches to help you set up your store accordingly. Keep in mind that your rewards store is completely customizable, so you can always adjust as your pilot gets going.

Approach 1: Determine the Monetary Value of a Mahalo

Monetary Value of a Mahalo =                       Desired Monthly Spend                    

                                                           # of User x Utilization Rate x Monthly Allowance

  • Utilization rate: 65% on average
  • Recommended Monthly Allowance: 100 Mahalos

Example: desired spend of $500 a month & 100 users on your team

  • $500 desired spend / (100 users x 65% x 100 allowance) = $0.08 monetary value of Mahalo
  • A $10 gift card in your store, would be priced at $10/ $0.08 = 130 Mahalos


  • For items that don’t have a direct cost such as VIP parking or half day off, price them to make it reasonable given the other items in the store or price them more cheaply to encourage a higher take rate.
  • For raffle tickets, redemption rate is unique to the company and specific reward being offered. If you use a lot of raffle items your overall reward cost will be lower.


Approach 2: Limit Inventory

When setting up your store you have the option to limit the # of times any item can be purchase. So, you could for example put a few gift cards in the store for $25 and have the rest of the rewards be cultural perks like prime parking, lunch with leadership etc. that don’t have an immediate financial outlay.

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