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Pricing and Taxes with GC's

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seashanty

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'tis the season.
gc's to your place make a nice gift. i see lots of postings about gc's lately.
some issues were a hot topic when i was talking to some local innkeepers the other nite. i hope they will come in here and post! i don't think they've been disussed to death .... anyway,
let's say:
1. purchaser wants to spend $100. .... none of your rooms are $100 you issue the gift certificate for $100 and when the recipient gets in touch you request the ccinfo for the balance of the room ... THIS will be the deposit on the room, the gc will pay the balance for the room at check in. (assuming it's for one night's stay) does this seem reasonable to you? did not seem reasonable to recipient who said 'but i have a GIFT CERTIFICATE! oaky ... if you take the GC as the deposit, guest must be informed at time of reservation, again by follow up email and/or paper mail, that the gift certficate being used as deposit now is subject to your policy regarding deposits. insufficient notice to cancel and they forfeit the gc deposit. yikes!
2. purchaswer wants to gc one night's stay in a particular room. you include the tax becasue when the recipient checks in, they don't understand why they are being asked for money. Money?! $ ? but i;m using a GIFT CERTFICATE ... fine fine, they'll pay the tax ... but then you have to be aggressive to get the money. jeez!
curious to know how you handle these scenario's
in my place, i started saying a GC for one of two rooms could be purchased for xyz plus tax. because those are the two nicest rooms that the guest usually ended up wanting anyway.
 

Morticia

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We stopped doing 'for this room' GC's. I will (under duress) write the GC for the dollar amount of the room the buyer wants to 'give' plus tax. That way the person can use it in whatever room they want. I just checked and I have a GC 'out there' for 'this room' at that room's 2005 price. Not what I want to deal with now that those prices are more than the GC is worth. Learning experience on that one.
Altho perfectly reasonable people know how to use a GC at a STORE, ie- tax must be paid or whatever extra you spend must be paid by you, they don't get it here. We've had guests book a room that was $50 + tax MORE than their GC was worth. 'How come we owe you money? Isn't the GC for the ROOM?'
No, it's for $100, just like it says.
When I talk to the buyer I ask, 'What dollar amount would you like this for?' I do not mention room prices unless they ask. If the question is, 'How much is a room?' then I have to ask when do they think the recipient will be using the GC? I may say, '$200 will cover any room, in season, if there is anything left they can use it toward a second night or a return visit at another time.' (That statement should hold for another couple of years.)
We have been reasonably (95%) successful at getting the cc number 'to hold the room, you use the GC when you get here'. Most of the time it does not take too much explaining. But there are some who outright refuse because they don't want to be charged and they don't trust anyone. OK. So they get the schpiel...'Your GC is holding the room for you. If you cancel, you forfeit the GC instead of us charging your cc for the cancellation.' Into the email it goes.
 

agoodman

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If I am selling for a particular room, I would always make the purchaser pay the taxes however God bless the IRS this may be illegal to charge tax prior to the delivery of goods and services.
If they are purchasing just a specific amount, I would state on the GC that the face value of the GC may not cover current room charges and taxes, and that any additional amounts muct be paid on arrival / on res.
we can have a list of 1000 policies and someone will always have an issue .....
 

JunieBJones (JBJ)

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I put the tax in the gc amount - so it is "One night in any of the following rooms...". You can't give a gift and expect the recipient to have to pay on it. Or I sell a $100 GC good toward any night stay - then they pay the tax and addtl for the room.
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap.
 

JunieBJones (JBJ)

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Altho perfectly reasonable people know how to use a GC at a STORE, ie- tax must be paid or whatever extra you spend must be paid by you, they don't get it here. We've had guests book a room that was $50 + tax MORE than their GC was worth. 'How come we owe you money? Isn't the GC for the ROOM?'
So say a dinner gift certificate Olive Garden. The GC is $50 you spend $45+tax and pay more for the tip or you can include the tip on th GC if there is room.
 

Morticia

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I put the tax in the gc amount - so it is "One night in any of the following rooms...". You can't give a gift and expect the recipient to have to pay on it. Or I sell a $100 GC good toward any night stay - then they pay the tax and addtl for the room.
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap..
JunieBJones (JBJ) said:
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap.
Will the GC cover everything or not? Including a tip (or tips if multiple procedures have multiple operators)? If not, bring extra for tips(s). I would rather tip individually in this case so all the operators get a tip. Otherwise, you don't know if the person at the desk actually hands over the tips.
And was there a question in the 'Olive Garden' post?
 

JunieBJones (JBJ)

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I put the tax in the gc amount - so it is "One night in any of the following rooms...". You can't give a gift and expect the recipient to have to pay on it. Or I sell a $100 GC good toward any night stay - then they pay the tax and addtl for the room.
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap..
JunieBJones (JBJ) said:
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap.
Will the GC cover everything or not? Including a tip (or tips if multiple procedures have multiple operators)? If not, bring extra for tips(s). I would rather tip individually in this case so all the operators get a tip. Otherwise, you don't know if the person at the desk actually hands over the tips.
And was there a question in the 'Olive Garden' post?
.
Bree said:
JunieBJones (JBJ) said:
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap.
Will the GC cover everything or not? Including a tip (or tips if multiple procedures have multiple operators)? If not, bring extra for tips(s). I would rather tip individually in this case so all the operators get a tip. Otherwise, you don't know if the person at the desk actually hands over the tips.
And was there a question in the 'Olive Garden' post?
There is not tip, the GC just lists the services. Like you would give me "1 hr Deep Tissue Massage" - they bought the massage.
The Olive Garden one you have a dollar amt so you can either pay up for the tip, or eat less than teh $is for and use it for the tip as well.
 

Morticia

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I put the tax in the gc amount - so it is "One night in any of the following rooms...". You can't give a gift and expect the recipient to have to pay on it. Or I sell a $100 GC good toward any night stay - then they pay the tax and addtl for the room.
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap..
JunieBJones (JBJ) said:
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap.
Will the GC cover everything or not? Including a tip (or tips if multiple procedures have multiple operators)? If not, bring extra for tips(s). I would rather tip individually in this case so all the operators get a tip. Otherwise, you don't know if the person at the desk actually hands over the tips.
And was there a question in the 'Olive Garden' post?
.
Bree said:
JunieBJones (JBJ) said:
Similar question sorta - if you received a GC as a gift for a spa treatment, do you need to bring extra for a tip? Massage, facial, seaweed wrap.
Will the GC cover everything or not? Including a tip (or tips if multiple procedures have multiple operators)? If not, bring extra for tips(s). I would rather tip individually in this case so all the operators get a tip. Otherwise, you don't know if the person at the desk actually hands over the tips.
And was there a question in the 'Olive Garden' post?
There is not tip, the GC just lists the services. Like you would give me "1 hr Deep Tissue Massage" - they bought the massage.
The Olive Garden one you have a dollar amt so you can either pay up for the tip, or eat less than teh $is for and use it for the tip as well.
.
I like to pay cash for the tip anywhere I go. Server gets the whole thing, no 'processing fees' taken out, etc. Out with son the other night and he would not leave tip on table. Apparently in Vegas they get stolen off the table. He walked right over to the server, handed the tip to her and said, 'Thank you.' You want to see surprised? That was surprised!
 

seashanty

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yes, bree, my friend in florida ... insists on giving the tip to the waitress or waiter. it feels odd to me but he insists. he does this up here in maine as well.
 
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