Two Concepts I Don't Understand

FROM: Chris [E-Mail]
DATE: Tuesday October 29, 2002 -- 9:32:11 am

Monday night I was digging through a kitchen drawer looking for something and I came upon a rebate check for $30 that expired a couple of months ago. I think the purpose of the expiration date is simple - to screw the consumer. Accounting 101 - the co had to account for the rebate when I mailed in the form, it became a liability for them at that point. So there is no good reason they should be able to put a 30 or 60 day limit on the check.

FROM: jk
DATE: Tuesday October 29, 2002 -- 11:19:02 am

As your retailing guru, I can tell you that it's nothing but pure greed. They want the customers in the store as soon as possible. The sale of a gift certificate does not impact my sales. It does not count toward our business until someone redeems it for actual merchandise in the store. Sure, revenue accounting already got the money for it, but until you buy something with it, it is not a "sale."

Same thing with grocery coupons. They're not going to stop carrying Cheerios on 12/31/02, but they sure want you to buy them before then!

My company's store credits and gift cards do not however expire. We're nice like that, and it's a good selling tool for me: "This can be used in any of our stores, and it never expires as long as it carries a balance :o)."

By they way, make sure you all get gift receipts where they are offered. Don't assume that your sister who lives 800 miles away will love the sweater you chose for her. Put a gift receipt in the box so she can more easily exchange it on 12/26, otherwise she might be stuck with it and raise a ruckus at the store over her limited options.

FROM: Paul
DATE: Tuesday October 29, 2002 -- 11:20:21 am

I think with rebates, the expiry dates are just one obstacle. The fact of the matter is that most people don't jump through the myriad hoops necessary to get a rebate... or don't realize the things involved (ie, contracts.)

Expiry dates on gift certificates, though, are just dumb. Dumb.

FROM: Greg
DATE: Tuesday October 29, 2002 -- 11:50:02 am

What I can't stand is when you purchase something with a "gift card" and the store will not give you back your change in cash. You have to come back and buy more. This concept is just as dumb as an expiration date.

FROM: Chris [E-Mail]
DATE: Tuesday October 29, 2002 -- 3:13:55 pm

Good point Paul. Its got to be $10 or $20 before I will bother with a rebate form, scanning a copy of the receipt, etc. I've bought a few things (particularly software) that was $50 with a $50 mail in rebate. Anybody know what the redemption rate is in general? The only way they can make it "free" is if they know a huge percentage of consumers will forget to apply. I'm betting its at least 50%

FROM: Ryan
DATE: Tuesday October 29, 2002 -- 3:40:48 pm

I'd be right along with you, Chris. I know that I forget to send in about 1/4 of the rebate forms I pick up, and I've gotten a lot better about it.

Rebates are such a scam, but if you, as a consumer, are diligent, you can really make out well.

I get all my CD-Rs now from Circuit City since they almost always have a rebate deal that allows you to get 100 for $10. Last time, I got two spindles and had to send back three rebate forms!

FROM: aharris
DATE: Tuesday October 29, 2002 -- 4:05:02 pm

I shop at fry's and EVERYTHING has a rebate. I try to be good about it but I've lost literally hundreds of dollars in rebate money. It's like Chris (who I don't know but feel it's ok to quote :) says...by the time you scan in the receipts and everything...you start to wonder if it's really worth it.

FROM: Red ;)
DATE: Wednesday October 30, 2002 -- 9:28:58 pm

I have always thought of rebates as a way of rewarding people who follow the directions: "Copy this" "Send original reciept with item circled" "print name and address on a 3x5 card",etc. Whew! they probably figure if a poor soul does all that, they DESERVE a rebate!
My worst was the time I sent a rebate ONE DAY before the expiration and got back the entire bible of forms that I had to send in returned to me several weeks later telling me that the offer had expired.
As far as gift certificate expiration dates, it IS pure greed-nothing more. And that's the same reason why if you don't spend your entire certificate in one visit, you will get issued a credit or another certificate for the balance-not cash. Or I have worked for stores where I have had people come in all upset because they don't even shop there and they have no use for a gift certificate they got. Our "trained answer"? "Well-use it to buy a gift for someone"! Ahh-retail.

FROM: Chach
DATE: Monday November 17, 2003 -- 10:03:21 pm

I'm looking for information along this line. I just found my "store credit voucher" for almost $1000 has expired!! I returned a bunch PURCHASED MERCHANDISE and had a huge credit for the store, only to find it has expired. Is that even legal????????

FROM: Marcus Mackey
DATE: Tuesday November 18, 2003 -- 7:43:32 am

"As far as gift certificate expiration dates, it IS pure greed-nothing more. And that's the same reason why if you don't spend your entire certificate in one visit, you will get issued a credit or another certificate for the balance-not cash."

Well, most stores that gave out gift cards a few years ago used to give back change. I think what changed it though was that people were giving others $20-50 gift cards and the people who received the gift card would go to the store... buy some small $2 item (as an example), and get $18-48 in cash in return. Granted, you could say "Well that's how it should be" but when you have that happen enough... big businesses will resort back to some system to assure that the $ on the card stays spent in their stores. It's like a gift certificate for Applebee's... more than likely if you give someone a $20 gift certificate, most people will spend as close to the $20 as possible. In this instance, Applebee's get's their money's worth, and the consumer gets a product. I don't see it as a major problem or malfunction to the system... although I do reckon that if you give someone $20 and they spend $18 of it, the extra $2 becomes sort of a vaccuous unused element. Most of us are not inclined to keep something around when it only pertains to a small fragment of the worth and effort to keep it around. Sort of like Ryan and other's on this thread with rebates... time is money, and if you have to jump through hoops to get $10 back, the hassle is not worth the time. I still feel though businesses are there to make money... granted the more ethical they are, the better they are, and the happier their customers will be, but in the end... being a good samaritan doesn't assure profit. In a nutshell, I think there should be some sort of purchase agreement on the cards... one to protect the reseller, the other to protect the consumer. If 75% of the value of the card or more is used, change should be issued. If under 75% is used, another gift card/certificate for the balance should be issued.

Expiry is just plain stupid though, I will totally agree there. If it is not illegal, it should be. Although I guess you can take it in stride as if it's like ::store name here:: wrote you a check that affects their balance, and is outstanding. Checks expire... so I guess a gift certificate/card could expire. I still think it's a grey area though and am not keen on the idea to say the least. I could understand if I wrote Paul a check, and he didn't cash it... because it could screw up my balance and cause me financial harm. It's different though when it's my $, it has been cashed and is usable by the business, and isn't going to affect their balance because it works more like a savings account on principle than a checking system. The $ is figuratively yours, it's just a matter of when you come to claim it. Until that point, it's for the business to use and reuse and disperse to produce profits and/or use to generate interest to keep the business alive and well. Like a loan if you will, that collects interest for the lessee, rather than the lender (opposite of the way it typically works).

The best solution in the gift card/certificate arena is to hunt around when purchasing one, and suggesting such to anyone who is looking into buying one for someone, especially with Christmas fast upon us. A friend of mine was given a gift card last Christmas, that basically was like a debit card with a set limit (i.e. let's say $50). The premise was you used it just like a debit card, or credit card, but it was good 'til the set value was eaten up, and then it was just a hunk of plastic to be cut up and thrown out, or potentially recharged/refilled and given to someone else. Simple and to the point... it's a non-restrictive gift card that could be used anywhere a Visa card is accepted (most everywhere). It was pretty clever, and I think I myself prefer it to a proprietary store card. It's like giving cash in a sense... rather than saying "I'm giving you this card, but you can only buy at ::store name here::". Be like me giving a non-Mac person a gift card to the Apple store... he'd probably be like "Grrr, what do I use it for?" In a nutshell... it pigeonholes the person you give the card to into purchasing a product at a place they may not necessarily shop at.

The other card is more open... and thereby a better more usable gift.

It's just a little bit more hassle though, as I have no certainty where you get them or if they're widely available everywhere. Perhaps a bank, but that's a weird place to buy a gift by traditional convention. It's still a very clever idea though.

FROM: smithny
DATE: Friday May 14, 2004 -- 3:29:52 am

visa credit card generate and chek

FROM: Wobbert
DATE: Friday May 14, 2004 -- 7:10:21 am

YOU SUCK! Experation dates should be printed on everything!

FROM: Paul
DATE: Friday May 14, 2004 -- 7:59:02 am

YOU SUCK! Experation [sic] dates should be printed on everything!

Then yours would be dated 1997.

FROM: D
DATE: Monday November 22, 2004 -- 9:14:21 pm

time value of money?