When I don't know what to get somebody I sometimes get gift cards. No more.
I was told tonight by a store clerk that her store loved it when people bought them because it was "free money." She said that since nobody ever hit the amount of the card exactly, one of two things happened.
1) People spent more than the value of the card. Extra money for the store.
2) People just left the remainder on there unspent. Even more free money.
Think about this. Target sells more gift cards than anybody else. Just for figuring's sake let's say they sell 100 million cards a year. (They sell way more than that). Then let's say that just 50% of the people don't use the whole amount on the card. And let's say they leave an average of just 50 cents on each card. That's $25 million Target made for doing absolutely nothing. The actual numbers are substantially higher.
According to the little research I just did, the average household has about $300 in unused gift cards sitting around at any time. There's at least that much here at my house. My girls still have gift cards from last Christmas in their purses.
More than 60% of users spend more than the card with 75% of those more than doubling the value of the card. Can vouch for that too. Take a $50 card in, spend $130. Happens time after time.
Estimates are that there is somewhere between 30 and 45 BILLION in unused gift cards sitting out there.
I'm not doing that any more.