MrConsumer was helping a friend buy a particular refrigerator recently at Sears:
One weekend last year, Sears was selling it for $1299, marked down from (a supposed) $2099. Scrolling down the page, there was this “payment options” section:
Huh? Which would I prefer to pay — the sale price of $1299 or the regular price of $2099?
*MOUSE PRINT:
Clicking the “see details” link didn’t really add any details beyond those stated.
The offer apparently, in a roundabout way, is trying to sell you a gift card along with the refrigerator, with the value of the gift card being the difference between the regular price and the sale price the refrigerator (in this case $800) plus a 10% bonus. In other words, for $2099, you will get an $880 Sears gift card plus a $1299 refrigerator.
For a lousy $80 extra, why would anyone buy an $800 gift card, unless they had an immediate use for it? We welcome your thoughts about this promotion in the comments section below.
MrConsumer, you answered your own question, sort of. That’s a 10% discount on a gift card purchase; not a bad deal if as you stated you’re going to use it soon. The problem I see is whether the buyer has to pay sales tax on the gift card as part of the fridge purchase. If that’s the case, walk away as sales tax will be paid when the gift card is redeemed for a purchase.
If the redemption process was more streamlined and I was already in the market for another appliance from Sears (e.g. washer/dryer), the gift card may not be a terrible idea. But having to send an email and then wait 30 days for “processing” defeats that purpose.
I wouldn’t want to walk around with an $800 Sears gift card so if I don’t plan on immediately using the gift card this offer isn’t worth the extra $80. I would feel obligated to shop at Sears again, and in reality, I’m not sure how much longer Sears is going to be around.
“Obligated to shop at Sears again” is the point. They’re praying for the day that they can dispense with the price discount altogether.
I agree with Tundey Akinsanya… The process to get a gift card is too much.
Ignoring the fact that this gift card promotion is shady, what will happen to that gift card when (not if) Sears files for bankruptcy. I’ll tell you — it will be an expensive $880 piece of plastic.
Hmmm, let’s see,you pay 2099.99 instead of 1299.99. You will have to pay sales tax on the larger figure. in my area that’s an extra $64. Then when I spend the gift certificate, most likely on other taxable items, that would be another $64 in sales taxes. Sears has crashed and burned, in my opinion, since it combined with K-mart to form Sears Holding Co. regarding customer service. This deal is bad.