Why do people overpay for giftcards?
So I was perusing eBay today and noticed something that's bothered me for quite some time now. I saw people bidding $6.00 on a $5 giftcard to Amazon/Home Depot/Target/iTunes/etc. Why? I've never understood that. If you have the money, why wouldn't you just put the money towards the purchase you've obviously got your eye on and not pay more for less?
Since I know everyone here at Woot would never fall for such trickery I decided to ask since we're clearly intellectually superior! (said in fancy pants voice.)
by
rubberduckythug
asked 7 months ago
this has bothered me for some time as well. I don't understand it. Please, can someone enlighten us?
The answer is simple...they're idiots.
@mtm2 See, that's what I thought originally too. But then I thought there is no way that ALL of these people could be that idiotic. I feel like there is some sort of secret that I'm not privy to and it drives me nuts.
It's the same thing that happens when I go to Walmart anytime before 1 AM, I can't imagine that so many people can be that dumb so it makes me second guess myself and maybe I'M the dumb one and everyone else laughs at me. Look at that girl, she steers her cart around people rather than smashing into their cart at high speed, what a tool bag
There's a sucker born every minute? Yeah, I never understood that either, but I guess it's no different than folks overpaying for other obvious items on eBay ...
Sold for $20, buy-it-now ...
http://www.ebay.com/itm/Brand-New-Mens-Large-The-Binge-WOOT-T-Shirt-Free-Shipping-/260862469210#ht_500wt_1202
Sells for $15, direct from the source, and you even get to pick your size ...
http://shirt.woot.com/friends.aspx?k=9649
@narfcake: But the eBay auction had free shipping! Yea, people are dumb.
Depending on any cashback they might get via special ebay promotions, search engine cashback (used to be Bing searches that had crazy high percentages off), and credit card cash back you could actually overspend on a gift card and still come out with a better deal than than buying at retail.
@rubberduckythug: Paranoia been a problem for long? Take a couple of deep breaths....breath in, breath out....breath in, breath out...now doesn't that feel better?
No, they really don't know something you aren't aware of. While there could be a promotion, my experience is that they really are that idiotic and this can be proved. Look at how may payday loan places there are. That alone proves how clueless people are where money is concerned.
@mtm2: ughh... don't get me started on that. Locally, I have seen more and more "cash for gold", pay-day loans, and title loans places in the past 2-3 years than I can stomach. I can't believe those places are even allowed to be in business
@yrguide: Exactly. Especially now that eBay has the "eBay Bucks" program. Someone may have $100+ of eBay bucks to use up before the end of the month.
As far as iTunes cards go, many of them are probably being sold to foreign buyers.
A US iTunes card gives you access to the US iTunes Store, which contains a lot of music, movies, and apps that aren't available to many other stores (or aren't available yet).
@rubberduckythug: haha...I wonder the same thing, so don't feel bad..
I don't get the Wal*Mart thing though..what's the difference before/after 1am?
This is one case where the obvious answer is the right one though..
People are stupid.
People that pay more than face value are often not US residents and it can be easier to buy and use the gift card (US currency vs whatever their's is).
It's definitely because of Ebay Bucks and similar promtional funds. They can cash out Ebay credit for store credit at other retailers that way.
I'm disappointed that the answer seems to be "they're morons"... I was hoping for some ultra cool vaguely disreputable way to use gift cards to get more than they're worth...
@capguncowboy: Those places are in business because we have an economy that is dependent on their existence. This economy requires a lower economic class to take advantage of; places like payday loans and the like ensure they stay there. It isn't so much as these people are stupid with money as they have nowhere else to go. They don't have the credit to get money any other way, nor do they have a way to improve their credit rating. It becomes a mechanism that feeds back upon itself to hold down a chunk of the population.
You didn't think there were that many idiots?
How many idiots do you drive behind on the way to and from work? Those are the same people spending 6 dollars to get 5. Sort of like how they get in the 70 mph lane to go 60.
@drchops - My local Walmart becomes a ghost town at 1 AM on the dot. When I worked 3 PM - Midnight I would go home, let out the dog and feed the devil cat and the dog then go back out shopping. I'd get there about 12:45ish and it would be fairly busy but after 1 I was usually one of only 3-4 people in the whole store.
cashback and rewards programs make that $6 sale price less than "REAL" $6.
ebay bucks earned on a big purchase can be cashed out that way. California and some other states have laws requiring that gift cards under $10 must be redeemed for cash at the customer's request.
so, if you have $6 in ebay bucks, but nothing you want to spend them on, the $5 gift card can be turned into $5 cash. A few years ago coke rewards was offering $2 subway gift cards, and I ordered around 40 of them that I then redeemed for cash.
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