Topic: 1st Bitcoin Gift card :) - page 4. (Read 25681 times)

Allright!

if I may ask, what kind of experience in online business do you have?

Here is your idea of doing business if I got it correct.

We should sell $100 card to reseller for $90

Reseller sells it for $100 to end user, from those $100 processing bank takes $4 plus 10% rolling reserve for 6 months, leaving reseller paying cards $90 and getting $86 back plus risk of fraud that online business brings...

oh let;s get back to us for a bit, we got $90 for $100 and when users redeem card they would get bitcoins for $100 becuse this is how much they paid...

good plan...

All this is possible if we were selling something worthless, for example subscription to some stupid over paid service

If he is not connected with Giftcoins, then his attitude have nothing to do with the product, and you may disregard last sentence.
However, other things I said still stands.

I agree on this and it will be displayed with site update this week

by specifying a retail price printed on the gift card carboard.. but the customer not able to buy it at that amount is a failure.

by the supplying them bitcoins without pre-informing them of the amount they will get is a failure.

this is where retail vs forex fails.

trying to run a retail business plan using forex strategies wont work.

you HAVE to build up a reserve and to trade behind the scenes away from the gift cards to make your profit to ensure that when retailers and customer get is what is correct and lawful. you have to be legally accountable for your actions.. saying "total nonsense" makes me know 100% you have never been in business before.

i am sorry that it seems like hard work. but welcome to the real world.

and i bought bitcoin via wire transfer in under 10 minutes, the price i seen is the price i paid, and the amount of coins i seen was the amount i received.

it is possible. so please re-evaluate your business plan before thinking you have a hope in hells chance of taking your product to retailers. (this coming from someone with great experience in these matters)

Edit: great news a before redemption value being shown.. great thank you, one step in the right direction.. now to ensure that customer only pay $100 and retailers buy off you at whole sale under $100 so they can make a profitt. and you'll be ready to go to retailers with a superb offering

I wont even bother going into deep discussion here

1. if you dont like it don't buy it, , wire them money wait 5 days for transfer to settle...in meantime bitcoin price went up 50%, nice saving you made. then they will ask you to provide all kinds of documents and make you wait 2 weeks to get your account verified.

2. You business plan as how retail works is total nonsense, gambling on bitcoin price rise and make a profit on this, very smart...what if it goes down and this does and will happen.

Ah, I misunderstood what you were trying to say.  Yes, I completely agree that the exchange rate should be stated just prior to redemption.

oh, FRGA, SgtSpike isn't the guy selling the gift cards. as such, why does his attitude have any bearing on the product at hand?

Well, I'm not after anything. I'm just stating my opinion as a potential customer of (your) product.


This is irrelevant. I can buy a git card and hold it for a while.
But when I want to redeem it, I want to know the exchange rate. Don't we all?
Nobody said "it has to be fixed rate", but MtGox rate + 10 % must be stated on the site, so I (or any buyer) can see it. And then you can write: *due to lag, exchange rate could be slighty different

Furthermore, after buyer clicks Redeem, the website can check latest price at MtGox and Alert:
You are about to exchange 100$ for 0.91217 BTC. Proceed? Yes/No
This should not present any technical problem...


Last but not least, if you continue with that attitude I asure you that I'm not the only one who will "look elsewhere"...

The exchange rate is something I would like to see somewhere, at least on the page you go to redeem your code(s).

Not necessarily.  There's still the time lag between when you buy the gift card and when you receive the code, and then when you receive the code and when you redeem it.  Giving a guaranteed exchange rate isn't the goal of these gift cards at all.  If that's what you're after, then you might want to look elsewhere...

Well, this is something. That should write on the site.
That, and MtGox exchange value:

MtGox:78.82 +10%

or even better, calculated price:

Our exchange rate is: 86.702

With those writing on the site, you are covered and users will know exactly how much BTC will get when redeem...

Horrible idea.  You cannot bank your business on the price of BTC going up.  If it does go up, then it is more profitable to hold anyway.

This is a fantastic way to buy Bitcoins... I wish people were complaining about it less, because this is a way to buy Bitcoins that we previously haven't had before.

And there really is a simple solution for it to prevent people from feeling like they are getting ripped off:

$100*

*To be redeemed at price equivalent to MtGox + 10%

lol $100 costing $109 but giving the customer under $100 of value...

hmmmmmmmmmmmmmmmmm.....

that is a business model sure to fail in the retailers meeting room

you have the price tag showing $100 so that is the retailers price (the price customers pay).
the retailer needs to make a profit, so they would need to buy the cards off you for under $100 to make a profit. this is called whole sale price.

you also need to make a profit so you need to ensure the amount of bitcoin covers your profits but also meets world governments price advertising laws.

the most suitable solution is to pre buy Bitcoin whilst it is low and to hold it. so when someone in a month or 2 redeems their $100 card. the bitcoin you buy now will (hopefully be at $100 each) to cover the costs.

basically working using a reserve.

EG

cards display $100, retailer paid $90 whole sale.
you bought 1.1538BTC today using the $90. then when bitcoin reaches $100 you can give the customer 1BTC. netting you some profit.(0.1538btc)

with a great idea such as gift cards, you cannot be lazy and over charge the customer by showing one price. the retailer charges them another price and you redeem the customer an amount of bitcoin that does not relate at all to the current market price of bitcoin.

that is not how retail works.

Yes, you need to post any fees that come up when redeeming the cards. I understand that resellers decide at what price to sell the cards. BitInstant got heat for not warning people about the ZipZap fees.

You need to absolutely up-front with your customers about any fees or differences from public exchange rates on the card, the card description on partner sites, as well as on your website. "Hidden fees" will get regulators and class action lawsuits crawling up your backside faster than you can spit.

When I buy a gift card for $50 I expect to be giving $50 of value, not "about $45."

I highly recommend fixing this immediately, and I will not be recommending or buying these cards until users of them (who have not read this unreferenced forum thread) know what they are getting. I really like the concept, but this issue has to be fixed.

0.9 something, we use bitstamp though

Allright, thats great! I try to buy but was sold out...

and what about this?


Or to rephrase:
If I have 100$ card, and Mtox BTC value is 100, will I got 1 BTC or 0.9something?

yes, they sold out all cards in a day and they bought a lot of them!

Owner sent me email that new wire transfer for new codes is on the way and as soon as we receive it new codes will be on jagoo again.

Probably later today or tomorrow

Sold on Jagoo?