All about Gift Cards & Gift Vouchers

All about Gift Cards and Gift Vouchers


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Edition 1 - FIRSTTUE 16 MAR 2010, Page 035 
New life for unwanted gift cards 
By John Beveridge 

IT HAS taken a while for an official secondary market in gift cards to emerge in Australia.
But judging by some of the prices on offer on the new Cardlimbo website yesterday, there is already a strict hierarchy about which cards are most desirable.
Obviously the expiration date of the cards plays a part, with the value of cards falling dramatically as the end draws near.
Even allowing for that, the cards you could buy for the relatively skinny discount of just 5 per cent below face value included Myer, JB Hi-Fi, Bunnings and David Jones.
Trading at a 10 per cent discount were cards from retailers including Red Balloon, Dymocks, Hoyts, Borders and Country Road while the larger 15 per cent cut applied to Sportsgirl, Sanity, Sunglass Hut, EB Games and iTunes.
Obviously as the market develops, those premiums will change as switched-on web users try to trade granny's birthday gift card for some cash or a more desirable card.
Founding chief executive and former Jetstar executive Tom Smith will be hoping that the whole idea takes off like similar websites in the US because his business model depends on grabbing a margin between what cards are bought for and sold.
At the moment, the website is paying between 65 and 85 in the dollar for gift cards with a one-year expiry, depending on which retailer the card is with. 
Column: Fully Frank 
Business Daily
Section: BUSINES

 

 


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