yes, technically they can: http://jmtame.posterous.com/cardpool-the-real-deal
Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
11–20 of 28 posts
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#12Gift cards are bought and sold on eBay in high volumes already.
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#13I know the cool way to pitch a startup is "solving a problem", but ... is the Unused Gift Card Problem an actual thing? I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it. Yet somehow, there are five funded companies in this space?!
Unused Gift Cards is a real thing, although not so much a problem. At one of the places I work, we are about to introduce gift cards, and from a business standpoint they are awesome.
Anyone who has a business that could use gift cards should offer them. On average, gift cards will leave anywhere from 10% to 30% of the original total unused (depending on products the card can purchase and the total cost of the card).
These companies that are trying to solve the 'problem' (they are definitely not a problem if you are the one selling them) of unused gift cards may run into problems of their own. Read the back of most gift cards and you find that just like concert tickets, they are non-transferable, non salable, and have no cash value. While it would be incredible difficult to prove a certain gift card was transfered or sold, upset card sellers may be able to go after the companies facilitating the selling (pure speculation).
Personally, I don't think that unused card trading companies will take away much of the profitability of gift cards, but it also may make consumers feel more comfortable buying gift cards.
Either way, unused gift cards are very real, and if you can, you should look into selling them.
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#14I know the cool way to pitch a startup is "solving a problem", but ... is the Unused Gift Card Problem an actual thing? I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it. Yet somehow, there are five funded companies in this space?!
I don't think it is. I always just re-gift (or simply give away) my unwanted gift cards. I think the bigger problem is people simply forget they even got them to begin with... and they become hidden in their wallet or drawer. The big box stores love this because the gift cards are already an interest-free loan...but this way they are just free money plain and simple. So the idea that these startups are going to work…
> they become hidden in their wallet or drawer. The big box stores love this because the gift cards are already an interest-free loan
Gift cards are often better than an interest-free loan.
In some/many states (not CA), the issuer can impose "inactivity" charges. Yup - while it's sitting in your drawer, they get to bleed the card's value down to $0.
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#15I know the cool way to pitch a startup is "solving a problem", but ... is the Unused Gift Card Problem an actual thing? I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it. Yet somehow, there are five funded companies in this space?!
You clearly don't have anyone who insists on giving you, for example, $20 gift cards to Crate and Barrel: the gift that actually costs you money. You want to be able to tell them what you spent it on (to be nice), but there's nothing at Crate and Barrel that you can buy for $20.
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#16I know the cool way to pitch a startup is "solving a problem", but ... is the Unused Gift Card Problem an actual thing? I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it. Yet somehow, there are five funded companies in this space?!
You clearly don't have anyone who insists on giving you, for example, $20 gift cards to Crate and Barrel: the gift that actually costs you money. You want to be able to tell them what you spent it on (to be nice), but there's nothing at Crate and Barrel that you can buy for $20.
Some stores calculate the the value of gift cards very carefully to be below or above the mean/mode (depending on stores and price distribution) to ensure that either money is left on the card, or more money must be spent to make the purchase.
As a consumer, gift cards are never a very good idea.
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#17wow, why didn't someone come up with this idea sooner?
i had a linens n things gift card that i hung on to for about a year bc i couldn't use it. then they went bankrupt and...well, then i just had a card, and no gift.
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#18I know the cool way to pitch a startup is "solving a problem", but ... is the Unused Gift Card Problem an actual thing? I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it. Yet somehow, there are five funded companies in this space?!
I use the previous year's Christmas gift cards to buy gifts the following Christmas. :)
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#19The ultimate solution to this problem is getting rid of gift cards altogether. Just give cash. People complain that giving money is not thoughtful. Like going to the nearest CVS and paying $105.95 for $100 American Express card any more thoughtful. Gift cards only give the illusion of being thoughtful. I'm not sure why people are offended when receiving cash. There's really no up side compared to cash. It's less conv…
I think there is also the point of trying to restrict what the card receiver can buy. Most people when giving a gift card do it so hopefully the person buys something that is a gift like a dvd rather than food/rent/alcohol ect
Re: Can Cardpool (YC W10) Solve the Unused Gift Card Problem?
#20I know the cool way to pitch a startup is "solving a problem", but ... is the Unused Gift Card Problem an actual thing? I have never in my life had to deal with an unused gift card. I.. don't know anyone who has this problem, I've never heard anyone reference it. Yet somehow, there are five funded companies in this space?!
It is not a problem if you are the company selling the gift cards. Here is an old article showing how Best Buy profits from unused cards.
http://www.foxnews.com/story/0,2933,237278,00.html
I generally try to spend the full value of the card at once otherwise I end up with cards with random amounts, lose track, and eventually forget about them.