….Gift Cards Are a Bad Deal
1. A lot of gift cards are never used - 25%, according to Consumer Reports. People get them as gifts, and then forget to use them, lose them or let them expire. Meanwhile, retailers rack up millions of dollars in interest from cards that are never used. Seth Godin suggests $8-billion was “wasted” on gift cards last year that went unused.
2. When people actually take advantage of a gift card, they usually spend more at the store than the gift card is worth. So, the retailer really scores twice: one, when someone buys a gift card, and two, when it’s cashed in.
3. Giving someone a gift card is like giving someone cash, so why not just give them cash so they can spend it where they want.
4. Gift cards mean you either have no imagination/creativity, or you’re just going through the motions so perhaps you should not even bother giving a gift. Yes, it’s a harsh assessment but it is what it is. Then again, giving someone a gift card from Starbucks is a fine idea because everyone could use a good cup of coffee.
For more, check out the NPR News Blog, which suggests U.S. consumers will purchase $26.3-billion worth of cards during this holiday season. If you have unused gift cards, Unused Gifts Cards offers a service where you can sell or trade gift cards that have been lying around. You can also donate an unused gift card to charity using Donate a Gift Card.
Update: Is this a coincidence or what - Ticketmaster has launched a new gift card program in Canada and the U.S. in denominations ranging from $25 to $250. Bet you can’t go to too many shows for $25. For more, check out Consumer Reports, which provides some useful information on how to buy and use gift cards. TechCrunch also puts the spotlight on a start-up called Leverage that will help you track the gift cards you have, including how much is left on each one. You’ll also be able to buy gifts cards and trade them.
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