<The Oil of Christmas Future....The Oil DrumA useful series on energy, and a Wish>
<DrumBeat: December 25, 2007DrumBeatDrumBeat: December 27, 2007>

266 comments on DrumBeat: December 26, 2007

Comments can no longer be added to this story.

ozonehole on December 26, 2007 - 4:04pm Permalink | Subthread | Parent | Comments top

Here's a news article touting the big spending increase expected due to gift cards:

Post-Christmas bounty: $60 billion

Santa wasn't so nice to retailers this year. But stores could now haul in $60 billion over the next 7 days.

By Parija B. Kavilanz, CNNMoney.com senior writer
December 26 2007: 2:43 PM EST

NEW YORK (CNNMoney.com) -- Retailers shouldn't write off the 2007 holiday shopping season just yet. Consumers are set to bag $60 billion worth of merchandise over the next seven days, experts say.

Much of that spending - nearly half, according to one estimate - is expected to come when consumers cash in gift cards...

0
Comments can no longer be added to this story.
Dragonfly41 on December 26, 2007 - 4:16pm Permalink | Subthread | Parent | Comments top

Ya...saw that article. Another thing about gift cards that's becoming more commonplace is expiration dates and limitations on their use.

0
Comments can no longer be added to this story.
hardhat on December 26, 2007 - 5:53pm Permalink | Subthread | Parent | Comments top

Yes, I have personally been the recipient of some of those "gift" cards. There were so many conditions of redemption ( expiration dates, and what store it could be used at, and I didn't get any change back ) that the card went unused.

By the time the store had something I wanted, I found my "gift" card was no longer valid and they were going to charge me an "activation fee" right at what the card itself was valued at.

My "benefactor" credited the merchant on my behalf. Geez, I am supposed to be thankful? Well, its the thought that counts, but I sure would have rather had either the cash or spent the money on a shared enjoyment.

I view "gift" cards as yet another construction of the retail industry to relieve people of the frustration of selecting a gift, so they provide something that looks valuable to the gift giver. Its another one of those "think outside of the box" boardroom brainstorms that enrich the merchant by getting those dollars from the gift giver's wallet and into the cash register before some one else does, while burdening the giftee with the responsibility of meeting the conditions of doing business.

No one sells dog food to the dog. He eats what he gets.

Steve

0
Comments can no longer be added to this story.
Leanan on December 26, 2007 - 6:02pm Permalink | Subthread | Parent | Comments top

Yeah, I really don't understand why gift cards are so popular. I guess it's the general American feeling that giving cash is tacky. A gift card can at least signal that you know the person and gave it some thought. (I considered giving my sister a Home Depot gift card as a housewarming gift when she bought her house...until sanity returned.)

But now there are bank gift cards (which are the worst of all). If you're going to give someone a bank gift card, why not just give cash?

I really don't get it. Why not do like they do in Asia, and give cash, wrapped in red paper or in a pretty red envelope?

0
Comments can no longer be added to this story.
hardhat on December 26, 2007 - 7:17pm Permalink | Subthread | Parent | Comments top

I guess this is something that separates engineering types from marketers. Businessmen maximize profit, engineers maximize utility.

That little episode in my life, where I lost my cool in public trying to explain how I thought it was so absurd that the business was penalizing me with such fees - for my failure to redeem my gift card in a timely manner as per their requirements - brought to a head my hatred for how profit-centered and greedy the Christmas season has become for business.

Some little twerp thought this whole scheme up and some executive businessman, looking beyond millions of screwed giftees like myself, actually paid a salary for that kind of thinking. Its amazing the things executives will pay for when they are making far far far more than what they are worth.

Believe me, that little episode cost me far more than the $25 the damned card was worth - in pure hatred for the business institutions that foster such foolishness.

Forgive me for ranting like a madman on TOD, but just recalling the whole sordid affair gives me another irrestible urge to vent venom.

Steve

0
Comments can no longer be added to this story.
Leanan on December 26, 2007 - 7:52pm Permalink | Subthread | Parent | Comments top

Another "benefit" of gift cards has occurred to me: you can pay for them with credit cards. While you can get a cash advance with a credit card, there are fees, and also some cards have very strict cash advance limits. So gift cards may be preferable, to those who are spending beyond their means.

0
Comments can no longer be added to this story.
fleam on December 26, 2007 - 8:12pm Permalink | Subthread | Parent | Comments top

Very very good point Leanan!

Really, I've been wondering for quite a while why we americans don't just give cash in a little red envelope like the Chinese do. Hallmark etc could even come up with a new line of little envelopes to put cash gifts in....

But of course your mental laser beam cuts right down to the truth.... many Americans are not using cash. They flat-out don't have the cash to put into the little envelopes. Their paycheck is deposited electronically, CC bills paid that way, some of it gets transferred over to their last HELOC, and the HELOC grows, and no cash is involved.

For many, the only way to get their hands on cash is through a cash advance at 30% or higher interest.

0
Comments can no longer be added to this story.
NZSanctuary on December 26, 2007 - 8:55pm Permalink | Subthread | Parent | Comments top

Hey, hey... all that "foolishness" as you put it, is counted as part of the GDP. It must be good! It helps prove the economy is robust.

/sarconol

0
Comments can no longer be added to this story.
Aniya on December 26, 2007 - 9:51pm Permalink | Subthread | Parent | Comments top

Dear Steve,

Aww, this brings back memories of my dear, departed father. The engineer/farmer loses his cool and can't understand why no one else seems to understand.

re: "Forgive me for ranting like a madman on TOD..."

We seem to be pretty forgiving here - or, try to be, anyway.

Happy New Year.

0
Comments can no longer be added to this story.
slinky on December 27, 2007 - 2:18am Permalink | Subthread | Parent | Comments top

Steve,

No forgiveness...just a big thank you for saying (in print) excactly how I feel. Rants like that are appreciated, by me at least. I know how you feel. I refuse to participate in the whole sordid affair. Corporatism is killing us. We'll have nothing to give our children, because of a few sociopathic egomaniacle little $ junkies who can't control themselves enough to see to it that a little bit of the wealth gets circulated to the prolls...(done).

Jeff

0
Comments can no longer be added to this story.
ThatsItImout on December 27, 2007 - 6:01am Permalink | Subthread | Parent | Comments top

I saw a business report the other night that said the retail industry as a whole gets about a $1 billion dollar gain per year in unused redemptions.

I can't source that number because I saw it on a broadcast TV report....it seems like an astonishing number to me.

But then, I am astonished by most numbers I see nowadays! :-)

Either way, that alone would make the whole gift card thing worth doing for the retailers....

RC

0
Comments can no longer be added to this story.