Attention Shoppers, what's the value of a gift card?

[justinsain]

I'm having a discussion in a gaming forum as people search for the best xmas deals. It's me against the rest and the argument is to the value of a gift card that is given when purchasing a product.

Let's say walmart is selling an xbox 360 for $200.00 and you get a $100 gift card but cannot use it towards that purchase. They all think that means you are getting the xbox 360 for $100.

My stance is you still paid $200 for the xbox and will save $100 on your next purchase at walmart. You can't save $100 on a future purchase AND save $100 off the price of the xbox.

They can't see my logic and I don't see theirs.

How do you see the value of a gift card that comes with a product purchase?

[woj]

they are right, it requires some creativity though:

step 1. buy an xbox, get a gift card
step 2. buy a 2nd xbox, use the gift card from step 1, get another gift card
step 3. return the first xbox

when all is done, you will pay $100 for that xbox

[justinsain]

Originally Posted by woj

they are right, it requires some creativity though:

step 1. buy an xbox, get a gift card
step 2. buy a 2nd xbox, use the gift card from step 1, get another gift card
step 3. return the first xbox

when all is done, you will pay $100 for that xbox

One person gave this scenario. He and a friend go to walmart. He wants to buy the xbox 360 and his friend wants to get $100 in groceries. He buys the xbox and then gives the gift card to his friend in exchange for $100 cash. He nets the xbox for $100 and his friend still got $100 in groceries.

I don't have a problem with your example or theirs but those are ways of wheeling and dealing your gift card into ANOTHER deal of some kind.

My point has always been and directed at those that think getting a gift card DIRECTLY reduces the money spent on the product with no other action taken. The people that think they got the xbox for $100 and got something else worth $100 at the store by redeeming the gift card.

[k0nr4d]

Originally Posted by woj

they are right, it requires some creativity though:

step 1. buy an xbox, get a gift card
step 2. buy a 2nd xbox, use the gift card from step 1, get another gift card
step 3. return the first xbox

when all is done, you will pay $100 for that xbox

The problem with that scenario is you will have to give the gift card back to return the first xbox. By that reasoning, you can go buy 10 consoles, return them all sans gift card and get 5 free consoles.

[woj]

Originally Posted by k0nr4d

The problem with that scenario is you will have to give the gift card back to return the first xbox. By that reasoning, you can go buy 10 consoles, return them all sans gift card and get 5 free consoles.

there is no problem with that scenario... you get a 2nd gift card when you buy that 2nd xbox...when you return the first xbox, you give back the giftcard from the 2nd xbox...

[bl4h]

Why do they call it the Xbox 360?

[Kiopa_Matt]

You're right, generally, they're not getting $100 off their xBox. I don't know, you'd have to Google it to get the statistics, but $100 gift card generally only costs Walmart around $70 - $80. Lots of people never use them, just throw them in a drawer and let them expire. Loads of others with use them once, then let the remaining say $18 balance expire, etc.

That's why companies love letting us know what wonderful holiday gifts they make.

[woj]

Originally Posted by justinsain

My point has always been and directed at those that think getting a gift card DIRECTLY reduces the money spent on the product with no other action taken. The people that think they got the xbox for $100 and got something else worth $100 at the store by redeeming the gift card.

It's pretty close to getting a $100 discount directly, especially at a store like walmart... even if you don't want to do any additional shady deals or involve friends... you can just buy the xbox, get the gift card, and use it next week to buy groceries at walmart instead of your usual grocery store...
a setup like that is probably slightly less convenient, so have to figure some convenience cost, perhaps 20%, so figure the xbox is really costing you $120...

[justinsain]

Originally Posted by woj

It's pretty close to getting a $100 discount directly, especially at a store like walmart... even if you don't want to do any additional deals... you can just buy the xbox, get the gift card, and use it next week to buy groceries at walmart instead of your usual grocery store...
a setup like that is probably slightly less convenient, so have to figure some convenience cost, perhaps 20%, so figure the xbox is really costing you $120...

Let's say you have $300 cash in your pocket and you go to walmart and buy an xbox for $200 and receive a $100 walmart gift card that can only be used on a future purchase ay walmart.

As you walk out of walmart you have $100 cash left in your pocket.

The next day you go back to walmart to buy $100 of groceries.

Instead of pulling your last $100 of cash out of your pocket you use your $100 gift card to purchase your groceries.

You started with $300 and now have $100 in your pocket. $200 went to purchase the 360 and you got $100 of groceries for free with the gift card. Getting the groceries for free DID NOT put $100 back in your pocket. You still have spent $200 on the xbox.

People think a gift card works like a rebate and I say they don't. A rebate puts money back in your pocket and a gift card prevents you from pulling more out.

[woj]

Originally Posted by justinsain

Let's say you have $300 cash in your pocket and you go to walmart and buy an xbox for $200 and receive a $100 walmart gift card that can only be used on a future purchase ay walmart.

As you walk out of walmart you have $100 cash left in your pocket.

The next day you go back to walmart to buy $100 of groceries.

Instead of pulling your last $100 of cash out of your pocket you use your $100 gift card to purchase your groceries.

You started with $300 and now have $100 in your pocket. $200 went to purchase the 360 and you got $100 of groceries for free with the gift card. Getting the groceries for free DID NOT put $100 back in your pocket. You still have spent $200 on the xbox.

People think a gift card works like a rebate and I say they don't. A rebate puts money back in your pocket and a gift card prevents you from pulling more out.

You want 2 things:
1. an xbox
2. some groceries (for $100)

You start with $300, buy xbox for $100, then buy $100 groceries at your favorite store for $100, you are left with $100...

Or buy xbox for $200 + $100 gift card, then buy $100 groceries at walmart, you are left with $100...

either way you end up with $100 in your pocket (minus some inconvenience cost of going to walmart for groceries)

so
$200 xbox + $100 gift card = $100 xbox

[Si]

Are you think what I'm thinking?

If you are, then you are thinking the excact same thing as me at the excact same time which is you are thinking what I am thinking and I am thinking what you are thinking.

The main thing here is the only thing we could possibly be thinking, is the exact same thing to be thinking what each of us is thinking.

So if you are thinking what I am thinking, then you are thinking what I am and thinking that I am thinking what you are thinking.

This could go on for years.............

[u-Bob]

A $100 gift card is not a direct discount (even if you can turn it into a direct discount using woj's scenario).

If you pay $200 for 1 item, you pay $200.
If you pay $200 for 2 items, you pay $200.
It doesn't mater if those 2 items were an xbox and a giftcard or an xbox and a playstation or a spoon and a knife or shirt and a sweater....
You paid x amount of money and received 2 items.

Let's say someone steals or destroys your xbox (price: $200). That person, if caught, should replace your xbox or pay you the value of the xbox (market price). If he repays you, that money must be sufficient to buy that exact same product.

Now let's say, he only repays you $100... Will you be able to enter a store and buy an xbox (priced $200) with just that $100? No, you won't.

[ottopottomouse]

It's only a discount if you NORMALLY buy stuff at the same shop and won't buy anything additional that you would never have spent money on without the card as a reason for shopping there.

[justinsain]

Originally Posted by u-Bob

A $100 gift card is not a direct discount (even if you can turn it into a direct discount using woj's scenario).

If you pay $200 for 1 item, you pay $200.
If you pay $200 for 2 items, you pay $200.
It doesn't mater if those 2 items were an xbox and a giftcard or an xbox and a playstation or a spoon and a knife or shirt and a sweater....
You paid x amount of money and received 2 items.

Let's say someone steals or destroys your xbox (price: $200). That person, if caught, should replace your xbox or pay you the value of the xbox (market price). If he repays you, that money must be sufficient to buy that exact same product.

Now let's say, he only repays you $100... Will you be able to enter a store and buy an xbox (priced $200) with just that $100? No, you won't.

You pay $200 for an xbox and receive a $100 gift card which only has value when redeemed. You go home and throw the gift card in the trash and then play your xbox.
How much did you pay for the xbox. ANSWER: $200

Instead of throwing away the gift card you choose to use it and get an additional item worth $100.

You now have TWO items. One cost you $200 out of pocket and the other you got with the gift card which prevented you from spending another hundred dollars. Your savings was that $100 on the second item.

I do not see how you can get something for free with a gift card and also deduct that savings off your original purchase. That logic means you saved $200 by getting a $100 gift card. That does not compute in my head

[Deputy Chief Command]

hmm if you get a $100 gift card , you got just that a $100 gift card ;; you buy your xbox, and get one ,great ! now you have an xbox and a gift card

woohooo!

[CurrentlySober]

Just steal the fucking xbox and keep all your money in your pocket. FUCK the giftcard

[MIS]

There is no right or wrong in this. It is what it is.

You buy Xbox360 for $200, in exchange you get a piece of plastic that has $100 in walmart credits and you cannot use it immediately.

At this point, you have paid $200 for the Xbox360. If you lose the gift card, walmart burns down, computers fail, anything of that sort then you paid $200 for the Xbox360 plain and simple.

If none of the above happens and you get to use the $100 gift card, then you have paid $100 for the Xbox360. You gave walmart a $100 extra loan when you bought the xbox360, and you can go back tomorrow and take $100 worth of items from their store in exchange for the loan.