Another MI B&B on Groupon

[Generic]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash.

 

[Alibi Ike]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.

 

[Tom]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

 

[JBloggs]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash.

GB you are quite correct. It may say one the promo one year to redeem, but by law they can have it redeemable forever, until the business closes it doors. That is in the small print. So if someone said "We have this can we redeem it 1 year AFTER it was to expire?" then you have to accept it.
And as a buyer of a B&B, you certainly wouldn't want to have to accept all those outstanding "deals" or "Gift certificates" later on without proper compensation.

 

[JBloggs]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

It DOES WORK for other than B&B's. This is not an ideal sell for a B&B. At a deli, for example, the group' is for a discount on a sandwich, then they buy OTHER ITEMS to go along with it. Or one group' per party, so one person uses the group' and the rest pay full fare. The group' holder is the one who encourages the other to dine at "said deli'
So for a B&B, unless we have MANY OTHER UPSELL ITEMS, like you get a facial and might want a massage too, then it is not a win win.

 

[Alibi Ike]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.

 

[JBloggs]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.

The policy is no questions asked on those sites, you want a refund they give it (to the buyer). To which I do appreciate. But remember you DO NOT Have a guest cc as a back up for a booking. It is LIKE a GC someone else has purchased.

 

[Alibi Ike]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.

The policy is no questions asked on those sites, you want a refund they give it (to the buyer). To which I do appreciate. But remember you DO NOT Have a guest cc as a back up for a booking. It is LIKE a GC someone else has purchased.
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.

The policy is no questions asked on those sites, you want a refund they give it (to the buyer). To which I do appreciate. But remember you DO NOT Have a guest cc as a back up for a booking. It is LIKE a GC someone else has purchased.

They would refund an expired coupon? Or would you have to say, 'They said they had no rooms left...'

 

[Alibi Ike]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

It DOES WORK for other than B&B's. This is not an ideal sell for a B&B. At a deli, for example, the group' is for a discount on a sandwich, then they buy OTHER ITEMS to go along with it. Or one group' per party, so one person uses the group' and the rest pay full fare. The group' holder is the one who encourages the other to dine at "said deli'
So for a B&B, unless we have MANY OTHER UPSELL ITEMS, like you get a facial and might want a massage too, then it is not a win win.
.

It DOES WORK for other than B&B's. This is not an ideal sell for a B&B. At a deli, for example, the group' is for a discount on a sandwich, then they buy OTHER ITEMS to go along with it. Or one group' per party, so one person uses the group' and the rest pay full fare. The group' holder is the one who encourages the other to dine at "said deli'
So for a B&B, unless we have MANY OTHER UPSELL ITEMS, like you get a facial and might want a massage too, then it is not a win win.

And this is where we (I) sometimes get sucked in. NOT everything that comes down the pike will be good for me to participate in no matter how many others are doing it and 'making' tons of money.

 

[Bigbid]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash.

GB you are quite correct. It may say one the promo one year to redeem, but by law they can have it redeemable forever, until the business closes it doors. That is in the small print. So if someone said "We have this can we redeem it 1 year AFTER it was to expire?" then you have to accept it.
And as a buyer of a B&B, you certainly wouldn't want to have to accept all those outstanding "deals" or "Gift certificates" later on without proper compensation.
.

I was told by groupon that if someone bought a discounted room for $50.00, that after the date on my room special expired, it would convert to a $50.00 certificate that was good for as long as my state said it would be. If they used it, it would just entitle them to $50.00 off of my normal rate. I know that being told something is different than what the state might actually say, but it makes sense.

 

[Copperhead]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

correct. A coupon where an item is acquired with a face value greater than the purchase price is not the same as a gift card - it can expire. I think Group' and LS would have figured it out.
25 cents on the dollar is not attractive to us as a business proposition - it could only be a benefit if it brought regular paying customers. But having got it for half price the fiorst time, I'd be surprised the coupon customers will be willing to go full price.
I will be very interested to see how this rolls out. It is making money for Group', but will it make money for the small business? Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.

The policy is no questions asked on those sites, you want a refund they give it (to the buyer). To which I do appreciate. But remember you DO NOT Have a guest cc as a back up for a booking. It is LIKE a GC someone else has purchased.
.

Once people have paid out for now expired coupons, who will they take it out on - Group' or the B&B?

My guess is a fair number of them will call and beg or call and get angry. But it won't be to Groupon or LS. It will be the property. No matter what that is- restaurant, B&B, sailing trip, whatever.

The policy is no questions asked on those sites, you want a refund they give it (to the buyer). To which I do appreciate. But remember you DO NOT Have a guest cc as a back up for a booking. It is LIKE a GC someone else has purchased.

You still can have your policy to ask for a CC at the time of booking. I have not done Gourp' or LS but have done something like them. I have always asked for their CC and for those that do not want to provide it, sorry! Those are my booking policies, it helps to hold people to their commitment, I also would get their GC number.
As for people letting them expire - this is not anyone's fault but their own! Yes we all are aware of having to point a finger at someone else. They get the policies and they procrastinate. I had several call me near the end of the year saying they didn't have time to use it or since I can't I use it on NYE, would I extend it... NO they had ALL YEAR! (They should have called me in August when I was empty!) Of the 60 that were auctioned off, less than 1/2 were used, only a handful called for an extention. Too early for facts, but I would bet my last nickel I will never see any of these people again. BUT, for the ones that did use them, it helped me get though a very tough year. (the gc was a bogo)

 

[Generic]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

It's been asked before and essentially the reality is that they are buying TWO different items. Let us use the example of a $100 groupon that they buy for $50 (and you get $25). What the consumer is buying is essentially a $50 gift certificate and a $50 discount coupon. The coupon has a value of $0, an expiration date and a value on condition that you use the gift card value, first. So, if they use it before expiration and it's for a charge of $95, the $50 GC is used first and then $45 from the free one and the $5 can expire because it holds no value.
The problem comes with the expiration of the freebie. The cards $50 remains and doesn't expire (unless your state, province or country allow them to expire... mine doesn't). So that's a liability on your company books for $50. But in my case, by law, if they leave a value of under $5, I have to give it to them in cash. So, I can get rid of the liability by providing services, but I can also have to pay out up to $5 in cash, on a liability of $50 that I accepted for $25 because it had a publicity value.
I've asked and essentially under our laws here, that is how it is seen. And in fact, that is basically how most of these sites explain it. And while Groupon and LivingSocial are the biggest players, around here, I have at least a half dozen more, including the local newspaper who is selling their own deal as swarmdeals or something like that.
By law, the only way to diminish a cards value, is if the card is usuable in multiple businesses... in other words, a Visa/MC gift card can legally charge fees that diminish it's value. One of our national banks charges $1.50 a month until there is no value... but if the card expires before they have bilked you out of the value at $1.50 a month, they donate the money to their Olympic charity of choice and of course, take the donation receipt for themselves (except of course, that they don't ever mention that they get the donation receipt, they just make it seem like they are completely altruistic.... when they aren't. Heck, they may be donating it to the Make Curling An Olympic Sport charity for all we know, since it basically says a charity supported by us. Oh yes, the $1.50 a month starts after 6 months, even if there is activity.
BTW, GC here are untaxed, so they can be used to pay taxes.... but I have to collect all the taxes on the $100... so basically, if they have to pay me $100 and use the deal, then I have to send the government $15.19. Which is why most of the deals around here all say that the coupon cannot be used to pay taxes. Could you imagine me having to give the government $15.19 of the $25 that I got for a $100 value card? I'd end up with $9.81 in my pocket.

 

[Generic]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash.

GB you are quite correct. It may say one the promo one year to redeem, but by law they can have it redeemable forever, until the business closes it doors. That is in the small print. So if someone said "We have this can we redeem it 1 year AFTER it was to expire?" then you have to accept it.
And as a buyer of a B&B, you certainly wouldn't want to have to accept all those outstanding "deals" or "Gift certificates" later on without proper compensation.
.

I was told by groupon that if someone bought a discounted room for $50.00, that after the date on my room special expired, it would convert to a $50.00 certificate that was good for as long as my state said it would be. If they used it, it would just entitle them to $50.00 off of my normal rate. I know that being told something is different than what the state might actually say, but it makes sense.
.

Correct. So you got $25 in your pocket, but on your accounting books, you have a $50 liability until it expires by your state law. In my province, by law... it never expires, until the liquidation of the company... or if you are not incorporated, you! (ie death).

 

[Alibi Ike]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash.

GB you are quite correct. It may say one the promo one year to redeem, but by law they can have it redeemable forever, until the business closes it doors. That is in the small print. So if someone said "We have this can we redeem it 1 year AFTER it was to expire?" then you have to accept it.
And as a buyer of a B&B, you certainly wouldn't want to have to accept all those outstanding "deals" or "Gift certificates" later on without proper compensation.
.

I was told by groupon that if someone bought a discounted room for $50.00, that after the date on my room special expired, it would convert to a $50.00 certificate that was good for as long as my state said it would be. If they used it, it would just entitle them to $50.00 off of my normal rate. I know that being told something is different than what the state might actually say, but it makes sense.
.

I was told by groupon that if someone bought a discounted room for $50.00, that after the date on my room special expired, it would convert to a $50.00 certificate that was good for as long as my state said it would be. If they used it, it would just entitle them to $50.00 off of my normal rate. I know that being told something is different than what the state might actually say, but it makes sense.

Thank you for that info. For anyone who sold a LOT of these in a 'forever' GC state, it would be a big burden.

 

[Alibi Ike]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

It's been asked before and essentially the reality is that they are buying TWO different items. Let us use the example of a $100 groupon that they buy for $50 (and you get $25). What the consumer is buying is essentially a $50 gift certificate and a $50 discount coupon. The coupon has a value of $0, an expiration date and a value on condition that you use the gift card value, first. So, if they use it before expiration and it's for a charge of $95, the $50 GC is used first and then $45 from the free one and the $5 can expire because it holds no value.
The problem comes with the expiration of the freebie. The cards $50 remains and doesn't expire (unless your state, province or country allow them to expire... mine doesn't). So that's a liability on your company books for $50. But in my case, by law, if they leave a value of under $5, I have to give it to them in cash. So, I can get rid of the liability by providing services, but I can also have to pay out up to $5 in cash, on a liability of $50 that I accepted for $25 because it had a publicity value.
I've asked and essentially under our laws here, that is how it is seen. And in fact, that is basically how most of these sites explain it. And while Groupon and LivingSocial are the biggest players, around here, I have at least a half dozen more, including the local newspaper who is selling their own deal as swarmdeals or something like that.
By law, the only way to diminish a cards value, is if the card is usuable in multiple businesses... in other words, a Visa/MC gift card can legally charge fees that diminish it's value. One of our national banks charges $1.50 a month until there is no value... but if the card expires before they have bilked you out of the value at $1.50 a month, they donate the money to their Olympic charity of choice and of course, take the donation receipt for themselves (except of course, that they don't ever mention that they get the donation receipt, they just make it seem like they are completely altruistic.... when they aren't. Heck, they may be donating it to the Make Curling An Olympic Sport charity for all we know, since it basically says a charity supported by us. Oh yes, the $1.50 a month starts after 6 months, even if there is activity.
BTW, GC here are untaxed, so they can be used to pay taxes.... but I have to collect all the taxes on the $100... so basically, if they have to pay me $100 and use the deal, then I have to send the government $15.19. Which is why most of the deals around here all say that the coupon cannot be used to pay taxes. Could you imagine me having to give the government $15.19 of the $25 that I got for a $100 value card? I'd end up with $9.81 in my pocket.
.

I thought curling WAS an Olympic sport.

Thanks for the clear description. My big city newspaper just contacted me to do this as well. And Groupon has called. I was just really needing someone in the same situation (non-expirable GC area) to lay it all out.

 

[Generic]

Let's see, getting 25c on the dollar for people who likely won't come back because they are super cheap and hold a liability on my books for 50c on the dollar, forever... does this sound like a good idea?
I don't know about other places, but by law here, a gift cards original value never expires. So if they paid $50 for a $100 value (and I got $25), even after the "deal" expires, I am still liable, until the end of time, to give them $50 off. I would certainly hope that Groupon or LivingSocial would pay me upfront, because that liability.... is something that I have to sell to the next owner, if I sell the B&B. It's perpetual! Heck, I might have to put it into my will and set up a trust in perpetuity just to cover the original value at twice what I got paid for it.
Oh and if that wasn't bad enough.... If after cashing the GC the value is under $5 but over $0... I have to hand them change, in cash..

I get everything you're saying but I think they are buying a coupon, not a gift card. Yes, semantics, but that is what a law career is built or lost on. Unless coupons are also covered under the GC law, you may be in the clear as far as the expiry date. However, you've raised a valid point for those of us living in areas that say GC's never expire. IS a groupon a gift card?
If you sold way more than you could honor in the amount of time you posted, I would say you are morally obligated to honor them for those guests who called during the period they were valid. But, if they bought them and then never called? Your money.
But, that would need to be run by an expert in what the GC law covers.
.

It's been asked before and essentially the reality is that they are buying TWO different items. Let us use the example of a $100 groupon that they buy for $50 (and you get $25). What the consumer is buying is essentially a $50 gift certificate and a $50 discount coupon. The coupon has a value of $0, an expiration date and a value on condition that you use the gift card value, first. So, if they use it before expiration and it's for a charge of $95, the $50 GC is used first and then $45 from the free one and the $5 can expire because it holds no value.
The problem comes with the expiration of the freebie. The cards $50 remains and doesn't expire (unless your state, province or country allow them to expire... mine doesn't). So that's a liability on your company books for $50. But in my case, by law, if they leave a value of under $5, I have to give it to them in cash. So, I can get rid of the liability by providing services, but I can also have to pay out up to $5 in cash, on a liability of $50 that I accepted for $25 because it had a publicity value.
I've asked and essentially under our laws here, that is how it is seen. And in fact, that is basically how most of these sites explain it. And while Groupon and LivingSocial are the biggest players, around here, I have at least a half dozen more, including the local newspaper who is selling their own deal as swarmdeals or something like that.
By law, the only way to diminish a cards value, is if the card is usuable in multiple businesses... in other words, a Visa/MC gift card can legally charge fees that diminish it's value. One of our national banks charges $1.50 a month until there is no value... but if the card expires before they have bilked you out of the value at $1.50 a month, they donate the money to their Olympic charity of choice and of course, take the donation receipt for themselves (except of course, that they don't ever mention that they get the donation receipt, they just make it seem like they are completely altruistic.... when they aren't. Heck, they may be donating it to the Make Curling An Olympic Sport charity for all we know, since it basically says a charity supported by us. Oh yes, the $1.50 a month starts after 6 months, even if there is activity.
BTW, GC here are untaxed, so they can be used to pay taxes.... but I have to collect all the taxes on the $100... so basically, if they have to pay me $100 and use the deal, then I have to send the government $15.19. Which is why most of the deals around here all say that the coupon cannot be used to pay taxes. Could you imagine me having to give the government $15.19 of the $25 that I got for a $100 value card? I'd end up with $9.81 in my pocket.
.

I thought curling WAS an Olympic sport.

Thanks for the clear description. My big city newspaper just contacted me to do this as well. And Groupon has called. I was just really needing someone in the same situation (non-expirable GC area) to lay it all out.
.

I thought curling WAS an Olympic sport.

Thanks for the clear description. My big city newspaper just contacted me to do this as well. And Groupon has called. I was just really needing someone in the same situation (non-expirable GC area) to lay it all out.

Okay, it's been an Olympic sport since 1998.

I thought about doing it, but I'm so careful with anything regards gift cards. I issue some GC at $0 cost and I can expire them.... but if they have a value, I have to keep them on the books and can't expire them.
But all of these deals here specify that taxes are not covered. So if it's a $100 and the bill comes to $85 plus tax, they still have to pull out $15.23 in taxes, even though they are leaving $15 of value on their discount.
If I would EVER consider doing this, it would have to be strictly during my low season, exclude all holidays and must follow my minimum stay requirements. For the weekend, I have a minimum stay, always! But let's be realistic, it's more work for me and a lot less income. They may dispalace a customer paying me full price. I would need to sell 4 rooms for a night to make up for one full paying customer and I have 1/4 of the work. How is that a good deal for me? How many of them are going to take 2 or 3 days, so I can make back the money? How many of them will EVER return? That's where the value is...