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670 sats \ 4 replies \ @Undisciplined 25 Jan \ parent \ on: Applebees offers subscription service - have we reached peak fiat? econ

I was thinking about the recent conversation about gift cards. Part of why they work is the company gets paid in advance, so it's basically a zero interest loan from the customer. Then as a bonus, as with gym memberships, the customer usually doesn't use it all.

What's in it for the consumer is harder to pin down, but it's probably a (misguided) belief that they will come out ahead by using it regularly.

519 sats \ 3 replies \ @k00b 25 Jan

I bet it depends on the product/service somewhat too. If a product is nearly identical to a competitor's offering and the customer would otherwise switch between them frictionlessly and frequently (eg Door Dash vs Uber Eats), I can imagine a company offering a subscription with real benefits. Otherwise, it seems like a company only benefits by making me spend money I wouldn't otherwise.

558 sats \ 2 replies \ @Undisciplined 26 Jan

it seems like a company only benefits by making me spend money I wouldn't otherwise

This is gift cards, though, and consumers love them for some reason. In every respect (unless I'm missing something), it's better to just have more cash than a gift card.

519 sats \ 1 reply \ @k00b 26 Jan

True. I’ve never understood it, but the only thing that makes sense is they’re using it like a savings account, like preallocating consumption to limit their consumption type. Layaway confuses me the same way but the motivation is similar I think.

536 sats \ 0 replies \ @Undisciplined 26 Jan

That's where my mind was going as well, but a lot of gift cards are for luxuries, like fancy coffee. Maybe that's because the gifter wants them to treat themselves, though.