But I Wanted a Pony!

[NOIRTRASH]

Santa came to my house today. The kids and grandkids know Grumpy Gramps likes Amazon gift cards.

In case you don't know, the price you pay almost doubles after you redeem a gift card. Beware. But prices stay the same when you send samples to your computer. I sample every book I plan to buy. No one pays the same price at BIG RIVER. The gift card signals I GOT MONEY.

 

[TxRad]

There was a piece on the local news about how gift cards can be a ripoff. Some lose value over time and some charge extra if don't use the card immediately. Then others are worth more in store than on the internet.

It pays to read the fine print on the cards.

 

[SamScribble]

For a recent birthday (another which I didn’t expect to reach; they are mounting up), a couple of my lady friends gave me iTunes gift cards. As far as I can tell, the cards redeemed at face value, and, while I have made a couple of purchases, my iTunes account is now in credit. Although I still get grumpy with Apple and how they keep messing with everything. Bastards.

 

[Jay321]

added a little more info

I have done many a turn in retail. Gift cards are a high profit business, even without the shady practices that some places now employ. It was explained to me (I didn't buy into the explanation) that it wasn't to screw the customer over, it was to get them to go ahead and use it. "They are an accounting nightmare."

Now how are they high profit? several reasons actually.

1. I believe the average gift card is in the $20-$30 range, items in that price range tend to have the highest percentage mark up. Higher ticket items tend to be loss leaders. Lower ticket items have to be cut tight for competition. **There are definitely exceptions to this! the $100-$200 range on items seems to be a loss leader zone. Home improvement stores, power tools are almost all loss leaders, the stick it to you on items like drill bits and saw blades. Office stores, computers will have 5ish% IMU, but mouses (yes, that is correct) will be in the 400% range. Printers are loss leaders but you would not believe the mark up on the ink cartridges.

2. Card loss. Have you ever lost a gift card? I have. The company spent very little on the card, now I accidentally tossed $20 in the trash. $19+ pure profit.

3. that last dollar. You take a $20 gift card in the store and spend $18.60. A large portion of people will not deal with the card again to get the $1.40 left on it.

 

[NotWise]

I have done many a turn in retail. Gift cards are a high profit business, even without the shady practices that some places now employ.

A lot of the gift cards that have ever been given to me have been gifts for the retailer. Shopping isn't entertainments for me and unless the card is for the right store at the right time then it won't be used. Even if they don't expire, they can sit around on my dresser for a couple years then get shuffled away.

My wife cleaned off our dresser top last year and presented me with a handful of unused gift cards. They were worth hundreds. Some were more than five years old. Some of them were still good. Some of them were for retailers that shut down, and some were a waste of money when they were bought.

 

[cfuhrer]

Coinstar now has machines where you can redeem your gift cards for the cash that's on them.

http://www.coinstar.com/coinstarexchange

Obviously it's fraught with restrictions and loopholes that benefit coinstar but for some it might be worth looking into.

 

[_Lynn_]

Coinstar now has machines where you can redeem your gift cards for the cash that's on them.

http://www.coinstar.com/coinstarexchange

Obviously it's fraught with restrictions and loopholes that benefit coinstar but for some it might be worth looking into.

I sold several cards to an online company that's listed as the best site for gift card exchanges. They were simple to use.

 

[NOIRTRASH]

I always wondered howcome BIG RIVER prices rise just when I get gift cards.

 

[oggbashan]

Two years ago the UK government said that £300 million is wasted on gift cards that aren't spent:

https://www.gov.uk/government/news/millions-wasted-as-people-dont-spend-gift-vouchers

 

[NOIRTRASH]

I give money or give morsels of my talents. I get packs of 50s from the bank and fill paper currency holders.

My talent for historical research is amazing. I could prolly find Jimmy Hoffa. But you cant afford me. Ditto veggies. I'm harvesting tomatoes this week. Each daughter takes home a laundry basket of them. Check tomato prices at the store....in Winter!

 

[HandsInTheDark]

I have done many a turn in retail. Gift cards are a high profit business, even without the shady practices that some places now employ. It was explained to me (I didn't buy into the explanation) that it wasn't to screw the customer over, it was to get them to go ahead and use it. "They are an accounting nightmare."

Now how are they high profit? several reasons actually.

1. I believe the average gift card is in the $20-$30 range, items in that price range tend to have the highest percentage mark up. Higher ticket items tend to be loss leaders. Lower ticket items have to be cut tight for competition. **There are definitely exceptions to this! the $100-$200 range on items seems to be a loss leader zone. Home improvement stores, power tools are almost all loss leaders, the stick it to you on items like drill bits and saw blades. Office stores, computers will have 5ish% IMU, but mouses (yes, that is correct) will be in the 400% range. Printers are loss leaders but you would not believe the mark up on the ink cartridges.

2. Card loss. Have you ever lost a gift card? I have. The company spent very little on the card, now I accidentally tossed $20 in the trash. $19+ pure profit.

3. that last dollar. You take a $20 gift card in the store and spend $18.60. A large portion of people will not deal with the card again to get the $1.40 left on it.

Solid info. Thanks.

 

[49greg]

My Gift Card experience

This experience has nothing to do with the quality or 'rip-off edness' of the gift card itself, just the giver of said card.

I did a favor for a slight acquaintance who worded for the same place my wife did - but not in the same department. It involved hauling a bunch of trash in my old and thrashed pickup. I didn't expect or ask for any reward, I was just being neighborly.

To my surprise he gave me a gift card for a local pizza place. I was excited and a month or so later I went there to pick up a pizza for dinner. To my surprise the card had been used. There was only 25cents left on it! He must have known that at the time. When I asked the clerk said that it had not lost any money due to time.

Very disappointed but didn't make a big fuss since he worked at same place my wife did. Six or eight months later I did run across him and mentioned it. He looked puzzled and said, "Oh well," and left it at that.

Bastard, if he didn't want to give me squat I would have been happy, wasn't expecting it and when he gave me that card I was all chirked up. Basically I felt like he had given me a 'fuck you'.

I didn't haul anything for the dick again. Well, he never asked me.

 

[Bramblethorn]

Dick Smith Electronics (once-major retailer here) declared bankruptcy at the start of this year, just after everybody had bought gift cards as Christmas presents but before they could be spent.

The recipients were very unhappy to discover what "unsecured creditor" means.

My partner's mother says: tell me what you want, and I'll give you money for it. Sensible woman.

 

[RjThoughts]

Thankfully as a bibliophile, Amazon and Barnes and Noble gift cards are used quickly.