Topic: 1st Bitcoin Gift card :) - page 3. (Read 25684 times)

few questions for you.

How much you pay for money gram transfer? There must be some fees involved both with them and bitinstant?

While you have to go to your post office, wait in the line, maybe spend few $ on a gas, parking, probably total waste 1h of your time...some other person will just use their credit card, be done in 5min and spend the rest 55 doing something they like doing

yes, this makes sense and it would be cool if BTC price doesn't have so big fluctuations.

There is no sain reseller that would take the rist of selling BTC denominated cards, makes no sense.

All cool when BTC price is going up

What if reseller buys 1BTC Giftcoins card and pays us $100 for it, he needs to sell it to end user to make profit...BTC price goes down to $80 and he can sell it for $85 maybe, pure loss. It's just gambling and not business

yes but still stipulating ON YOUR SITE that resellers may add on fee's protects you.

secondly when you want to go to walmart or 7-11 if you dont have that stipulation then they would want to sell a $100 card to customers at $100 and then buy the card wholesale from yourselves under $100.

by having terms in YOUR SITE you can protect yourself from resellers demanding a under $100 wholesale price.

although i find the reseller additional fee a flawed business model, i have tried to atleast compensate my thought process to aid your current model and get to a middle ground that atleast removes future headaches you may come across sticking with your business model.

but as i said last week buying at the mid $70's holding it as a reserve to then sell a week later would net you profit without having to have silly +10% gox prices or giving the customer less bitcoin then they expect.

i do agree though that a simple you will receive 1BTC for $100 is better then lots of % and + symbols spawled across the pre-redemption page.

the only issue i still have is that in england i can still go to my local post office visit a moneygram cashier desk hand over the money, be given a code. type that into bitinstant.com and get bitcoin at 6% of the ACTUAL money i have put in.

so a $109.99 customer payment for a product that has a $100 tag but ends up as a under $100 allotment of bitcoin, still seems excessive.

but hey.. baby steps, you'll get there

CYA .. put an * next to that rate and put _someplace_ on your site how that rate is derived.. even if it is in real tiny teeny small print....

Sigg

Finally someone noticed master Yoda!!!

This looks like a pretty solid idea.

Plus you have the force behind you.

franky1, thank you for those terms suggestion

Terms and conditions
Some retailers may charge an activation fee,delivery fee or service charge fee ontop of the advertised price, to cover the costs outside of giftcoins.me control.
Please be aware that the redemption rate is based on MTGox +10%, the actual redemption value you receive will be able to be seen prior to redeeming your card.
Due to the nature of these products a refund is not possible after a redemption has occured.
for more details of our policies please contact us at:

What else you and others users would like to see in those terms?

Please contribute with your ideas what would be fair to display


One note on redemption rate though, we will have current rate displayed in header, no mtgox or any other exchange rate, it will be our exact rate so you dont have to calculate anything, no adding 10% on mtgox etc.

franky1 - This is regarding jagoo.net and their card pricing, they clearly state that extra cost is "Service fee" and card still has it's price as displayed on it...Service fee, Activation fee who cares what it is as all is the same. pcgamesupply.com is using term "Activation fee", they dont activate anything, they just send you the code they already have as there is no activation. They can call it Happy fee and it would not make a difference, it's a fee they are charging.

I would also like to see something like this.

the itunes $50 CLEARLY  states why its $59.99 on that website.

"activation fee"

its not just showing on one page $50 and at the checkout $59.99 without giving a good reason.

so please do the legal bits...

its called terms and conditions, descriptions, transparency, crossing the T and dotting the i's..

you wont expand your great product into bricks and mortar retailers in your current form.

you think i say all of this because i am trying to tell people not to use your service .. no i am not.

i am telling you in as plain english as possible to UP your game, as you can make alot more money long term by changing the back end of your business model and atleast looking beyond your daily profits, to think about monthly/yearly profits you could make. aswell as expanding your brand name.

if your not going to do a "reserve" business model where you buy while cheap to then profit later, but instead copy the business model where retailers add on a "activation fee" that will lose you some browning points when going into meetings with retailers, as they love a cut of the retailer advertised price.

but not having and T&C to be transparent also will hurt you, as the retailers will see lots of pitfalls that customers can use and abuse.

having a "if you don't like it, don't buy from us" mentality instead of a functional business brain that is searching for idea's suggestions and criticisms to improve your brand. or if you simply cannot handle criticism which is actually beneficial to your product. makes you not a wise business man.

i will make it simple in laymans terms so you can tart it up into the proper legal terminology

Terms and conditions
Some retailers may charge an activation fee,delivery fee or service charge fee ontop of the advertised price, to cover the costs outside of giftcoins.me control.
Please be aware that the redemption rate is based on MTGox +10%, the actual redemption value you receive will be able to be seen prior to redeeming your card.
Due to the nature of these products a refund is not possible after a redemption has occured.
for more details of our policies please contact us at:

feel free to add more terms and conditions to cover your back if you can't be arsed to change your business model.

i am glad you have moved one step forward by promising a pre-redemption valuation. thanks. now a few more steps forward and your brand name will have no issues expanding.

P.S my first post mentioning the reserve model the bitcoin was at $75 and at one point dropped to $68. it is right nw $88. you could have bought 100 coins and held them for one week and then given people redeeming their coins at $88 a more accurate $ vs BTC and still had BTC left over for personal profit.

a profit of between 15%-23% giving the customer a proper at mtgox value or even more profit by keeping your % above spot. but hey you know whats best.. lol

great

NO!

Is there an expiry date on a card?

cards are in stock on https://www.jagoo.net/card/7

I'm fine with your business as long as it is clear to the consumer how many bitcoins they will get for redeeming their x$ card.

---

If understand correctly...

   You sell a card valued at x$ to a reseller for x$+y$* (where y is >= 0).

   A consumer then pays a reseller x$+z$* (where z is >= 0) to a reseller to receive the x$ card.

  * or %

Then one of the following happens...

   The consumer redeems his x$ card for x$-n$ (where n >=0 which is a fee for performing the currency conversion) leaving m$.
   The consumer then receives m$ worth of BTC at the last trading price**  of your chosen exchange.
   
   OR

   The consumer redeems his x$ card.
   The consumer receives x$ worth of BTC at the last trading price** +b% (where b >= 0 which is a modifier to the last/average trading price) of your chosen exchange.

   **or chosen hour-average

---

I hope I didn't give anyone a variable-overload. I'm just wondering if the consumers are "paying extra" twice to receive their bitcoins and if upon receiving their bitcoins they are paying a flat fee or are buying coins at an increased trading price.

i was just about to point out that, having recently bought a prepaid giftcard (generic visa) at walmart valued at $50, i had to pay about 54 for it. so the stores charging more then the value of the card is EXACTLY what happens, frequently. i assume this is partly justified by "gift" card. as in, i'm buying this $50 visa card as a gift for someone else, and the fee to GET the card is 4 bucks, or what have you.

http://www.pcgamesupply.com/ - bigest online gift card reseller

$50 iTunes card will cost you $59.99, 20% more

US company doing business 10 years now. I bet everything costs 20% more because they have to pay lawsuits all the time

BTW Apple is making 30%+ on every product you buy from them, this includes music and apps. Your comparison iTunes-Giftcoins is pure nonsense.

No one is forcing anyone to buy Giftcoins. People simply do not want to wait or hassle with stupid and complicated exchangers. They have a choice, plenty of choices but still they choose cards.

Anyway instead of talking nonsense here you should spend your time trading forex, seems you are expert in this field.

 

You cannot do iTunes style because there is no profit margin on trading $100 for $100 worth of BTC.  You either have to give the person less BTC, or charge more than $100 for the $100 card.  And again, attempting to game the market by pre-buying coins is a ridiculous notion.  Anyone who can make a profit on the market isn't going to give it away in the form of gift cards.

I agree that they need to make it more clear how much BTC you will be receiving with a $100 card (i.e., MtGox - 10% or something).

imagine itunes selling their $50 gift cards advertised at $50 in walmart but the walmart checkout operator says to the customer that it will cost $54. then being told "if you dont like it, dont buy it"
imagine the customer got home and found out that music tracks at normally 50c, where the customer thinks he can redeem 100 songs. is surprised to see only able to redeem 45 songs.

now ill give you 3 options to try.
1. build up a reserve, to pre-buy coin on the cheap(during a dump)and hold it for the later redemptions that are higher value.
or
2. raise your "spot price" to an amount to both cover your profits and the profit margin a bricks and mortar retailer would want to receive. thus not requiring a reserve.
or
3. carry on as you are and wait for complaints at advertising standards agencies to begin, then watch what happens to your legit business when all your funds are frozen and you are stand infront of a courtroom.

now to put the 3 options into the itunes scenarios legally.
1. itunes does a deal behind the scenes with recording companies to reduce the songs wholesale cost to under 40c so that itunes makes a profit, where they sell it online (10c a song profit). also the cost price is low enough that itunes can produce cards and sell the cards to retailers so that customers can purchase them for $50 knowing they will get 100 songs.(5c profit to retailer 5c profit to itunes per song)
hang on..... wow thats exactly how itunes does it.. wow that must be a shocker to you.

2. dont do deals behind the scene but have advertised on the card that the $50 card would not give them 100 songs, but would give them 10-20% less songs to cover the convenience of buying locally.

3. ignore words such as honest pricing, transparency, retail law, contracts of sales. and wait and see what happens

also to note this is a statement on apples own website

hmm lets see what walmart says, and 7-11,, oh look they have fair prcing policies too...

wow.. i wonder why

haha, and yet he got us into discussion

 

You are out of your mind.  If a company can make a profit forex trading in the background, they wouldn't sell their profits off in the form of giftcards.  That would make zero sense from any perspective.