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Calling gift card sales 'basically an interest free loan' is a bad comparison as well. Aside from overhead costs associated with the logistics of running a gift
by sithadmin 11y ago
Calling gift card sales 'basically an interest free loan' is a bad comparison as well. Aside from overhead costs associated with the logistics of running a gift card system, gift card sales are historically a source of confusion and headaches when it comes to financial reporting (due to rules about how revenue can be recognized on paper), which adds another layer of complexity and cost.
- intopieces 11y agoYou claim they are a massive headache, yet companies issued $124B of them in 2014. The companies seem to find something good in them. http://www.prnewswire.com/news-releases/2014-gift-card-sales-to-top-124-billion-but-growth-slowing-300007306.html http://www.prnewswire.com/news-releases/2014-gift-card-sales...
- sithadmin 11y agoThe good is in the fact that they're a reliable driver of sales. The bad is that this particular method of revenue generation entails a lot of financial gymnastics 'on the books' that other revenue drivers don't typically require.