Free (More Expensive) vs. Not Free (Less Expensive)
Posted on February 11, 2008 by Him and tagged afford, computer
This year we've resolved to be a little more organized in life. These days much of our lives is on our computer, whether it be financial data, photos, music, or old emails. In the last 10 or so years we've been using computers on a (near) daily basis, we've managed to accumulate gigabytes worth of stuff that we'd rather not put into the recycle bin. Regular old CD's aren't cutting it anymore for large-volume long-term storage solutions, therefore we decided that we would like to have a DVD burner for our storage and backup needs.
This past Christmas I was given a $100 Best Buy gift card, so I decided to look for a DVD burner there.
Last week's Best Buy sales ad listed this Samsung DVD burner at $49.99. The same Samsung DVD burner at Amazon
Best Buy. I found a coupon online for 10% off, which brought the total to $49.09, all of which was subtracted from the balance on my gift card. No money out of my pocket, plus if something goes wrong with it I can always return it to the store.
The question I have for you, readers: Would you "pay more" for something if you had gift card to pay for it, even if you knew you could get it for cheaper if the money came out of your own pocket?
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Gigi | Feb 11, 2008
Definately, I'd pay more. I figure card already is paid for and could get lost. Even if it's a couple bucks more, and I don't necessarily need it, then I'll buy it in store with a gift card.
Anne | Feb 11, 2008
I would have sold the gift card on eBay for maybe $90 after fees, bought the burner at Newegg, and saved the difference.
Him | Feb 11, 2008 | Reply to Anne
...and this is exactly what I should have done. Next time I'll post BEFORE I make a purchase...
That depends. If the gift card was for some place where I would definitely use the money soon anyway, I'd go for the cheaper option. But if it was for a store that isn't in my town and I don't visit often, I'd buy the more expensive one. My logic being that if it's someplace I spend money often, a gift card is equivalent to cash, but if its someplace that would be hard to remember/visit, then it also has a bit of "nuisance cost" attached.
If I didn't think I could sell the gift card, I'd be willing to pay more. Because if that's what I want to spend my money on and I've been given the money in a restricted form, then I'd rather save my own money and spend this on something I want instead of using it to buy something I wanted less. And not saving my own money.
Selling the card would be optimal, of course.
Or people not giving gift cards...
Clean Clutterfree Simple | Feb 11, 2008
This is an area where I do the oppposite of what you did, and it's a bad habit. I go with the lower price, even if I have to pay out of pocket. It's left me holding gift cards, store credits, and gift certificates longer than I should. Good on you for using up that gift card!
tejl | Feb 12, 2008
Yes, because it's still free to me! Unfortunately, I've also been known to waste gift cards on stuff I don't even like :( I am trying to break that habit . . .
Yeah. For some reason, holding a gift card in my hot little hand always leads me to play it a little more fast and loose in the frugality department. It's almost like spending Monopoly money or something. Telling me that I have to spend MY money is pretty good insurance for getting me back to my senses...
Jerry
www.leads4insurance.com
thehungrydollar.com | Feb 15, 2008
Being honest with myself... yes I would. I would love to say that I wouldn't, but sometimes your time is worth something. Especially when it's not your money to begin with.
Pete @ biblemoneymatters | Feb 28, 2008
As some have said here, it depends. If the price difference is substantial I'd probably sell the gift card on ebay, and then buy it at the cheaper place. Of course, if the gift card is for a store where i shop regularly and i could buy something else I need there as well, i may just use it for that other purchase. Your options are endless!
Becky@FamilyandFinances | Feb 11, 2008
It depends. If it is a store that I'm likely to need other items from, I'd buy the cheaper item elsewhere and pay cash. If it was someplace like Best Buy, where I don't really shop much, I would have done the same thing as you and used the gift card.
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