Comments on: Gift Cards Are Ruining the Holidays! http://www.electronicretailerblog.com/era/gift-cards-are-ruining-the-holidays/ A place for interaction and debate on today's multichannel marketing and advertising issues Fri, 29 Aug 2008 03:39:06 +0000 http://wordpress.org/?v=2.3.1 By: Peter http://www.electronicretailerblog.com/era/gift-cards-are-ruining-the-holidays/#comment-33 Peter Thu, 20 Dec 2007 16:26:14 +0000 http://www.electronicretailerblog.com/era/gift-cards-are-ruining-the-holidays/#comment-33 Exactly! And how do our friends at the IRS count that? Another thing that came to me later is the impact gift cards will have on labor. That's $23.6 billionin sales that will have a much lower number of returns which should lower the cost of labor required for the post holiday shopping season. Exactly! And how do our friends at the IRS count that?

Another thing that came to me later is the impact gift cards will have on labor. That’s $23.6 billionin sales that will have a much lower number of returns which should lower the cost of labor required for the post holiday shopping season.

]]> By: Marty http://www.electronicretailerblog.com/era/gift-cards-are-ruining-the-holidays/#comment-25 Marty Wed, 19 Dec 2007 19:49:21 +0000 http://www.electronicretailerblog.com/era/gift-cards-are-ruining-the-holidays/#comment-25 You make a great point in your last paragraph. I have been wondering for a long time why it is that the revenue from gift cards "doesn't count". The retailer got the money, right? So the revenue should be counted from when the gift card was purchased. And what happens when a gift card is never redeemed? Or if the balance draws down over time of non-use, as many card to. The retailer has the money, but the consumer never actually uses the card. That's 100% pure profit. When is the revenue reported in this case? You make a great point in your last paragraph. I have been wondering for a long time why it is that the revenue from gift cards “doesn’t count”. The retailer got the money, right? So the revenue should be counted from when the gift card was purchased.

And what happens when a gift card is never redeemed? Or if the balance draws down over time of non-use, as many card to. The retailer has the money, but the consumer never actually uses the card. That’s 100% pure profit.

When is the revenue reported in this case?

]]>