Gift Certificates? Use 'Em Locally!

We've heard of grocery stores accepting rivals' coupons, but this is a first for us: Waterloo Records takes chain competitors' gift certificates and cards! From their email sent out earlier today:

Have you received a gift certificate or card* from a national chain store that carries music or video (Walmart, Best Buy, Target, Circuit City, Borders, Barnes & Noble, FYE, etc.)? Do you prefer to shop locally, or maybe you'd like something out of the ordinary that those stores just don't carry? Do you expect to encounter friendly, knowledgeable sales people? Then bring that music or video national chain gift card* or certificate to Waterloo Records & Video. We'll gladly exchange it for its full amount on any merchandise we sell: CDs, DVDs, gift items or anything else in the store excluding concert tickets. Support an independent, locally owned business and let Waterloo Records & Video help you get what you really want this year!
If you bring in one of our national chain competitors' gift cards* to exchange, PLEASE bring it up to the counter before you begin shopping. We'll have a Waterloo store credit waiting for you when you're ready to check out.

* The gift card's value must be able to be verified by Waterloo via phone or internet.

Contact the author of this article or email tips@austinist.com with further questions, comments or tips.

By Allen Y Chen in Arts & Entertainment on January 3, 2006 9:50 AM 0 Comments

Comments [rss]

Caty Tota

You guys are the 37732 best, thanks so much for the help.

Kat

AAaaa, Aauugh! I'm crazy! I'm sooo crazy! Augh!

;)

angryrobot

Don't be crazy. Waterloo is not eating the cost of this offer; they are most likely using one of the many gift card exchange services/sites. Google "gift card exchange" and you will find a few.

Declan McManus

Jesus.

josh

they do! they do!

http://www.bestbuy.com/site/olspage.jsp?skuId=7544892&type=product&id=1486770

Declan McManus

I don't think Best Buy stocks the Clap Your Hands And Say Blah CD. (yet)

Charlie

Maybe they go to Best Buy and spend the money to replace the stuff you bought in their store!

Declan McManus

I bet Waterloo donates them to charity

Imagine you exchange a $25 BestBuy card.

Waterloo gives you $25 in credit.

You buy $28 in CDs.

Waterloo gets $3 cash.

Waterloo moves $15 (max) in CD cost.

Waterloo writes off $25 in charity.

Waterloo only really lost $12 cash in giving you $25 in free stuff -- plus, they get a tax break which makes that $12 loss more like $9 at most.

That's just my hunch as to how all of this works.

And thats if people only spend a couple bucks more than the $25 card -- if people buy $50 instead of $28, that helped draw people into the store.

Finally, this is great unpaid advertising/word of mouth stuff (they did it last year too, if I remember correctly).

A

Um, I don't understand how we would be supporting local business by doing this. Wouldn't they be losing money? I guess maybe they figure everyone will buy something more than the gift card amount. But even so, won't they still lose money? Cool of them to do it, I'm just sayin'...