May the Gift Card Die Already!
In light of the holiday shopping season and seemingly endless advertisements for "Gift Cards", I give you my thoughs on gift cards. (All who care raise their hands!)
First, Gift Cards are a huge cash cow for retailers. It may cost than a regular transaction, as there's the material, processing involved and the cost of building the validation/acceptance system. This is how they really make their money on them:
- Over a third of cards purchased never make it to the point of being used in a transaction. Basically free money to the store
- Often cards are used, but a balance is left on the card. Then this isn't used. Once again, free money.
- The user of the card tends to overspend from what they would if it was coming directly out of his/her pocket. Win again for the store.
- It locks the user into the a brand/store, so competition is eliminated.
Giving a gift card sometimes leaves a feeling of thoughtlessness. Gifts are a way to express your perception of the recipient. Although a gift card is kind, it's really a cop out.
Why not just give cash? It's KING and can be used anywhere. I'm not certain when giving cash became tasteless, but that needs to stop. Nothing makes anyone more happy than having complete freewill with the gift. I do like the new Visa or American Express gift cards, although not as much as cash. Since they're accepted at almost all retailers, they're good. But in the same respect, they're locked into retailers :)There's only one good exception to all the above that I've found: giving it as part of an experience. For instance, last year, I gave my sister and brother-in-law movie tickets gift card, gift card for dinner and free baby sitting services. This was an all around experience and planned by me. It was thoughtful and used completely. Those gift cards didn't go wasted.
Merry Christmas all! Enjoy opening your gift cards on Christmas morning. May they not be lost or misused.
Del.icio.us
1 comment:
And how are gift cards any different than other presents that the recipient doens't want? If I get an ugly sweater from my aunt and I never wear it, how is that any different from buying a gift card that is never used? I still get something that I won't use, the giver still gets to falsely feel like they gave me something even though they haven't, and the store still gets money that they shouldn't get based on the garbage they are selling.
Granted that the cost to the store for a sweater is more than the cost of a gift card (unless the sweater is made in one of Kathy Lee Gifford's sweat shops), but the fact is they are selling something that will never be used as intended. And they know it.
The real problem is that this shopping season is meant to enforce the message that we need to buy something for everyone we know or are even remotely related to. Because we either don't want to or don't have the ability to spend the time that is needed to find out what a person actually wants, we are forced into a situation where we have to buy a gift card or ugly sweater.
Here's the answer: if you feel like you have to get something for a person and you don't know what to give, ask. If you don't feel comfortable asking, and you don't know on your own, then maybe that person isn't as important to you as you want them to be. Just don't buy that person a present. Use that money (if you have to) to improve the gifts you are giving to the people who are close enough for you to know what they want. If you have some left over, give it to charity.
Oh, and if you do receive an ugly sweater or a gift card that you know you won't use, there are people that do need it. Most charities will accept either as a donation, and it might even get you a tax write-off.
Happy Festivus!
Post a Comment