Forums: Discussions for entrepreneurs and small business.

A recent StartupNation visitor named Karel emailed me this idea and I think it`s really cool:

karel goes on to say,


She complains about how each of her gift cards have a remaining balance and she ends up wasting those small amounts.



Do I ever! And not just one entrepreneur, but THOUSANDS. RIGHT HERE.

So the question is, do any of you like this idea? And does someone want to step up and make this happen in a collaborative mode with other SUN community members?





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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

This would be a very difficult task to accomplish.  Gift cards aren`t as simple as Visa/MC, Amex, Discover, etc.  Each gift card program is run by one of a multitude of gift card providers i.e. Valutec, Tendercard, JT Loyalty, etc. totally separate from Visa/MC, Amex or Discover.  These gift card providers do not interact with one another.  So if I had a gift card from ABC Gift Shop and one from XYZ Boutique and another from AAA Salon, they could all be from different gift card providers and run completely independent of each other.

It would seem to be a nearly impossible task, unless you were consolidating like gift cards from the same company only.

Hope this makes sense.

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Oliver Mupas
United Bank Card
866-207-6007 ext 303
omupas@ubcnetworkonline.com

I think it`s a great idea.  As far as a total collaboration with all vendors, and banking entities. It`s only a matter of time before ALL MUST get on board to survive. It`s not unlike paypal, or any other business that pioneers a winner. Either get with the PROGRAM (paypal, Music downloads...etc), or lose sales opportunities.

Aside from the logistics of launching - It`s a winner! Not to forget a big hit against THE MAN! Yeah! Gift-card anarchy... Revolt!...Revolt!

Isn`t the idea not to make all of the gift card companies work with each
other, but to have them work with the proposed consolidation company?

Example, someone has figured out a system where one can earn airline
miles from purchases and use those miles with various competing
airlines. Those airlines have a deal with the credit card, not with each
other.

you`re right on, campsteve! i smell exactly that opportunity - the site that brings those providers together AND salvages consumers` remaining dollars leftover on multiple gift cards


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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

That was my point! For ALL to HONOR the NEW "Good to the last drop" gift cards. No matter what company it came from.

"Giving it to the MAN referred to no longer "throwing away your money"- purely out of inconvenience.  I.e., a Border`s books card can be "drained" (accepted) anywhere. Afterall, no one has to buy "gesture cards" (Border`s, etc). All banks offer debit "gift cards", which can be used anywhere!

Simply have a "universal mark" on the new cards. Which would indicate it`s compliance with the PROGRAM.

Trust me! Many of these companies do not want you to tap this industry because they will lose money due to the cards releases funds to them after the expiration date. However, you could get around this by starting a site called Gift Card Consolidation. This would be another community that people pay to a part of. People swap gift card balances on what they need the most; either at equal or greater value. The website gets paid on an one year membership and advertising dollars from google or advertisers for gift cards. This way, it stays in the consumers hands. They all will save on their next purchases where ever they love to shop. For stay at home moms, this could be heaven for them to negotiate balances off their old cards with other moms. The web company is responsible for receiving cards and checking balances, and then mailing them to its members. This would be like an eBay style site, but with gift cards.

Yeah, but if something like this were implemented, they would not have any "gift card" business - period!  (If they don`t comply). Never mind what`s left-over, and who gets it! 

If this were implemented. Who would buy a gift card ("gesture" debit card) that doesn`t offer the "accepted anywhere symbol". Remember, the "gesture cards" are only differentiated from "universal" debit cards in two ways: 1. They are not "universally accepted" by other vendors. 2. They are "inconvenient". Where are the positives?  A pretty logo only goes so far.

Where is CraigL (beef up the servers).

Lets say I have 5 different gift cards with small amounts on them totaling
$10. What if I could redeem them all at the consolidation company for
$10 credit in a new gift card of my choice?

I`m not sure how the company would make money. Or why retailers
would give up dollars to someone else, but there has to be some sort of
incentive. Let`s think here people!

My first instinct was,  If all you are looking for is to use the unused credit on your gift card, then

why not simply donate it to your local non profit organization?

Now if that isnt the case, and we are trying to create a business venture,  there are many factors to take inconsideration. Most have been mentioned  already.

To say if a firm doesn`t participate, they are not going to have any Gift card business... I don`t think that is realistic.

My company sells  gift cards,  when they sell this card, that is almost as good as  cash in hand, well it is cash in hand  , it is almost a sure thing as  dollars  in sales.  Now if they participate within this universal program and someone does purchase  a money card from us  , and the person they give it to can go anywhere to spend it??? what are the chances  that it is going to be spent at my company???  Not as good  as if I didn`t participate

Yes  I ( as a business) will get some dollars that were purchased elsewhere  and I will have some that were purchased  from me  go  to other businesses.  It will not be an even trade,   dollar for dollar  and I guess that if a particular business was in possition to  get more than it lost  it would probably  want to participate, if not  I don`t see it happening.

As far as a universal card,  I think it is called a  visa card  that can be spent  anywhere.  so tecnically it is already being done to a certain extent.

Now back to the original idea of taking unspent  gift cards and somehow consolidating them in a  way that would make them useful.  I can somewhat see potential,,, but it you look at the whole picture I have my doubts. 

Ok you have a gift card with $2.34 reaining on it,  How much time and effort are you going to make  to capitalize on the 2 bucks.. time  , effort,  gas  wear and tear on you car.....most people here think that their time is  worth more than  10 bucks an hour.

Ok you set up a program where people can send their card in to a firm, postage, envelope, time... maybe do it on line so we are only  talking a couple of minutes...  hopefully....  maybe..

It would cost a few pennies to get it started Im sure.  But I still think that you will need to get the participation of the retailers to be able to tap into their program,, all for what....

So a potential customer will not be required to come back to their store, (loss of sales), to spend the small amount that would become theirs  after time,  no  waite,,  it is  already their  money.

I see some potential  in the idea ,  actually the idea  is a nice  one ,  but I can`t the the practicality in it.

Something like it already exists, I can not see retailers wanting to participate and the expense factor to get the job  done is in question...

the concept is a good one,  if it can be implemented in the right manner.  I just can`t see it at the moment.

Mike