Merry Xmas: KB Toys Bankrupt!

[The Sushi Bandit]

Full Story at: http://current.com/items/89618883/merry_xmas_kb_toys_bankrupt.htm



P.S. If you have one of their Gift Cards, Your SCREWED!

[deadmessengers]

1. Gift cards are a SCAM

The only good gift card is the green one with the picture of a dead president. You're getting screwed no matter WHO's gift card you buy, because you're giving an interest-free unguaranteed loan to a company, and locking your recipient into buying something from them. It's a totally one-sided transaction, and you get hosed at every turn. I can't believe people are still stupid enough to fall for their little con game.

[uppityperson]

2. How do you feel about regular gift certificates?

[deadmessengers]

11. Scam.

It is not possible for the consumer to gain through the purchase of a gift certificate, and the absolute worst-case for the issuer is that they end up breaking even (which happens only 5% of the time).

In other words, with gift cards/gift certificates, there's no benefit whatsoever to the consumer, and no risk whatsoever for the issuer.

[uppityperson]

12. Some places a gift cert is refundable, must be refundable.

I like to sell them for my services since it is a instant source of income and perhaps a new client. However, they must be refundable here, perhaps it is a state thing? I like to put a "best by" date to remind people to make sure they use them rather than just letting them go. But then I am a very small business in a small town/rural area.

[deadmessengers]

15. The same thing applies.

With gift cards/certificates, you have absolutely no way of losing money on the deal, and the consumer has many ways. Even if they're fully refundable (and you're right - they do have to be in some states), the card/certificate issuer still has the benefit of earning interest on the "float" between the time the consumer handed over their money and the time the issuer gave them their money back.

Sorry, but I still believe that selling gift cards/certificates is a scam, and an ethically "grey" way of doing business. I'm going to leave this at this, lest this devolve into a personal attack - but please consider not selling those anymore.

[uppityperson]

16. I will continue but thanks anyway. I don't make enough to make interest and

follow up on everyone who buys them to make sure they are used. And yes, I declare them as income even if people pay cash. I'm an odd sort of ethical business person.

My father used to tell me to pay bills right before they were due so I could make the interest rather than the place I was paying, but again I don't make interest on the minimal amount of money I move through my life.

[The Sushi Bandit]

3. Yes, Gift Certificates can not be refunded!

but thay can be transfered

[Liberal_in_LA]

5. another disadvantage of gift cards... the small remaining balance. The holder walks away from $1.05

or pays out of pocket to purchase something costing more.

[K Gardner]

4. Its been known for awhile they were headed to BK.. yet one of our posters got grilled a

while back for posting about being leary of gift cards from certain companies who weren't on steady ground.

[The Sushi Bandit]

6. I never buy them!

I got a Travelocity card for xmas and had a hell of a time redeeming it!

[Greyhound]

7. You're screwed. n/t

[earth mom]

8. I've been wondering what will happen to Toys R Us after this Christmas.

:yoiks:

[LeftyMom]

10. I think you're right.

They've been on the edge for a while, and they're more vulnerable to one bad Christmas than most retailers.

Also, most of the popular expensive gifts this year, and for the last several years really, have been video games and those have a very low margin.

[Greyhound]

9. The perfect "gift card"...

[The Sushi Bandit]

13. Do those still work?

[Greyhound]

14. Accepted even more widely than Visa.

:rofl: