Use Those Gift Cards

BarTopDancer · 03-07-2008, 12:06 PM

$75M in gift cards could become worthless

Gemini Cricket · 03-07-2008, 12:10 PM

Why does it feel like that was the plan all along?

Alex · 03-07-2008, 12:12 PM

Sharper Image offered gift cards because they planned to go into bankruptcy?

It is, though, an another argument for why you should just give Euros instead of gift cards. Europe isn't going to go bankrupt but it still creates a bit of a hassle for the recipient.

Gemini Cricket · 03-07-2008, 12:27 PM

No, I think some businesses make money off of the fact that these cards go unused/expire.
I think in California, they can't expire. Or is that just for gift certificates?

BarTopDancer · 03-07-2008, 12:28 PM

Quote:

Originally Posted by Gemini Cricket

No, I think some businesses make money off of the fact that these cards go unused/expire.
I think in California, they can't expire. Or is that just for gift certificates?

Gift cards and gift certificates. I don't think they can charge the "maintenance fee" either.

Alex · 03-07-2008, 12:40 PM

Absolutely they're doing it to make money off people who don't use it. That's also the idea behind mail in rebates. They also make money off the fact that the gift card purchaser is making an interest free loan to the merchant (this is why by accounting rules these are considered debts and get wiped out in bankruptcy) which they can invest and earn returns while the real value of the debt gets eaten away by inflation.

This transfer of risk of loss from the merchant to the consumer is the original reason for why you should give cash rather than gift cards.

But I don't think the plan all along was to go into bankruptcy to avoid honoring them.

Gemini Cricket · 03-07-2008, 12:42 PM

Quote:

Originally Posted by Alex

But I don't think the plan all along was to go into bankruptcy to avoid honoring them.

That's your interpretation of what I meant.

Alex · 03-07-2008, 12:44 PM

Yes, but the story is about bankruptcy meaning stores don't have to pay off on gift cards. You replied that you thought this the plan all along.

What other reasonable interpretation was there?

Gemini Cricket · 03-07-2008, 12:45 PM

Oh, don't be intimidated by my opinion. It's just an opinion.

innerSpaceman · 03-07-2008, 01:16 PM

In any event, I hope you like Jamba Juice, Gemini Cricket. Let's use my $20 in gift cards at the DTD location for your birthday. Heck, we can give some juices away as a token of your love for mankind.

(and we can give them to the juiciest hunks of mankind we can find)

03-07-2008, 12:06 PM	#1
BarTopDancer Prepping... Join Date: Jan 2005 Location: Here, there, everywhere Posts: 11,405	Use Those Gift Cards $75M in gift cards could become worthless __________________ Spork is the new MacGyver Postcards From My Edge
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03-07-2008, 12:10 PM	#2
Gemini Cricket ... Join Date: Jan 2005 Posts: 13,244	Why does it feel like that was the plan all along?
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03-07-2008, 12:12 PM	#3
Alex . Join Date: Feb 2005 Posts: 13,354	Sharper Image offered gift cards because they planned to go into bankruptcy? It is, though, an another argument for why you should just give Euros instead of gift cards. Europe isn't going to go bankrupt but it still creates a bit of a hassle for the recipient.
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03-07-2008, 12:27 PM	#4
Gemini Cricket ... Join Date: Jan 2005 Posts: 13,244	No, I think some businesses make money off of the fact that these cards go unused/expire. I think in California, they can't expire. Or is that just for gift certificates?
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03-07-2008, 12:40 PM	#6
Alex . Join Date: Feb 2005 Posts: 13,354	Absolutely they're doing it to make money off people who don't use it. That's also the idea behind mail in rebates. They also make money off the fact that the gift card purchaser is making an interest free loan to the merchant (this is why by accounting rules these are considered debts and get wiped out in bankruptcy) which they can invest and earn returns while the real value of the debt gets eaten away by inflation. This transfer of risk of loss from the merchant to the consumer is the original reason for why you should give cash rather than gift cards. But I don't think the plan all along was to go into bankruptcy to avoid honoring them.
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03-07-2008, 12:44 PM	#8
Alex . Join Date: Feb 2005 Posts: 13,354	Yes, but the story is about bankruptcy meaning stores don't have to pay off on gift cards. You replied that you thought this the plan all along. What other reasonable interpretation was there?
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03-07-2008, 12:45 PM	#9
Gemini Cricket ... Join Date: Jan 2005 Posts: 13,244	Oh, don't be intimidated by my opinion. It's just an opinion.
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03-07-2008, 01:16 PM	#10
innerSpaceman Kink of Swank Join Date: Jan 2005 Location: Inner Space Posts: 13,075	In any event, I hope you like Jamba Juice, Gemini Cricket. Let's use my $20 in gift cards at the DTD location for your birthday. Heck, we can give some juices away as a token of your love for mankind. (and we can give them to the juiciest hunks of mankind we can find)
	Submit to Quotes