Discounted or FREE Gear Certificates....

[GraficO 0]

OK folks...

I recently had the discussion with a few different gear manufacturers about Gift Certificates, Discount coupons and event sponsorship with gear and services.

One of the main headaches that I repeatedly heard was "why on Earth do people sell a gift certificate for a free XXXXXX for the exact amount of the XXXXXX when they can just buy it from a dealer for the same price?"

I thought about it for awhile and thought I'd poke around the classifieds for people selling gear certificates... and I was actually surprised to find a few.... and some were selling the certificates for the retail price of the item.

What drives people to do this? From a marketing standpoint and such does it help or hinder the marketing process? Is it greed?

I've heard about someone getting a free XXXXX and attempting selling it to a buddy because they already had a new XXXXX and didn't need 2 of them.

Frequently, accessory manufacturers and primary item manufacturers give out 50% OFF, FREE or discount percentage coupons on their products to sponsor events, boogies, competitions, etc... This brings up a lot of questions:

- How many of them are actually turned in?
- How many are turned in by the original person who received the coupon in the first place?
- How many were just trashed or forgotten?
- What costs are incurred by the manufacturers if any?
- Is there a marketing advantage to giving a certificate as opposed to an actual product?
- Is it better for the company or does the consumer or recipient of the certificate have the aadvantage?
- What would happen if manufacturers put the words "non-transferrable" on the coupon making it worthless to anyone except the person whose name is on the paper?

With all due respect to gear manufacturers and consumers alike, in my own opinion, why in the hell would I want to screw my skydiving buddy for $XXXX for something that I didn't have in the first place? Or am I just ranting?

It must be my inner-scientist.... the puzzles of marketing/human nature fascinate me

GraficO

GraficO

"A Mind is a terrible thing to taste."

[mr2mk1g 10]

I happily dropped $200 on a 50% off voucher that saved me arround $800. They are a comodity that has an easily quantifiable value, thus little different from any other type of goods that we trade.

They are usually (AFAIK) obtained through raffles at boogies - obtaining them is random chance and its a prize. I don't see an inssue with the recipiant of that random chance prize benefiting from it either through using the voucher themselves or selling it on. By custom they are sold at a price that allows both the buyer to benifit (I saved about $800) and the seller (he made $200). I think this is great and is simply spreading the wealth. Both parties benefit.

Now if people are starting to sell these for actual retail value... then thats a bit mean spirited. The person who wins the voucher in that scenario gets all the benefit. If they sell it at a fraction of the actual cost they get some benefit and the buyer gets some benefit - everyone's happy, the wealth is spread, its one big skydiving brotherhood. If the winner just gives it away, then again - only one person benefits.

[pds 0]

what bugs me about the 30% off retail canopy coupons is that you can get about the same percent off retail in a lot of places without coupon. so why buy the coupon?

namaste, motherfucker.

[nbblood 0]

Quote

what bugs me about the 30% off retail canopy coupons is that you can get about the same percent off retail in a lot of places without coupon. so why buy the coupon?

Exactly. I saw a 35% of XXXX coupon for $200 and was thinking about it, but you have to go through the manufacturer and pay their price, instead of the always-lower dealer price. After the 35% off, I'm roughly down to what I would pay the dealer, but I would have to pay $200 for the "privilege" of that. In the long run it's more expensive.

Blues,
Nathan

Blues,
Nathan

If you wait 'til the last minute, it'll only take a minute.

[sdctlc 0]

I think you have to look at the % off and the value of the savings. It was noted that they are a commodity and they will sell for what someone is willing to pay. That said you have to think about what you can get from a dealer upfront and see if its worth buying teh cert. I paid $30 for a PD 35% off and it saved me well over 100 on a new reserve. For me it made sense to make the purchase... Now when they start going for $100 or more it may be worth something but you are starting to get away from the value...

As with anything you have to know the market and decide if you can get value out of the cert

Scott C.

"He who Hesitates Shall Inherit the Earth!"

[GraficO 0]

Some certificates really are a good deal for both the manufacturer and the consumer. If a manufacturer can get their promotion out of their certificates and someone can benefit from getting XXXX gear... I'm all for it. There are good deals for both parties out there.

One of the things that got me thinking of this was receiving an inheritance from my grandfather's passing. It was not mine in the first place... I never expected anything. So my choice is to donate a significant chunk of it to charity before I do anything for me... again it wasn't mine in the first place.

So taking this thought pattern and translating it to skydiving gear and certificates, my thought was... the certificate isn't really the consumers in the first place... why try to make substantial money off of it retail price or otherwise? If you can sell it for enough for a couple jump tickets... GREAT! Everyone benefits.

I guess I'm just trying to get my arms around a system that is beneficial for all parties.

GraficO

GraficO

"A Mind is a terrible thing to taste."