Discounted iTunes Gift Cards - legit?

Discussion in 'Buying Tips and Advice' started by gwelmarten, Jul 28, 2012.

  1. gwelmarten macrumors 6502

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    #1
  2. brentsg macrumors 68040

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    #2
    People have had their iTunes accounts shut down for redeeming iTunes cards that had been purchased with a stolen credit card and then sold at a discount on Ebay.
     
  3. Penn Jennings macrumors 6502

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    #3

    I purchased two $100 gift cards at Best Buy for $80 each around Christmas last year. Discounted cards do happen, I have no idea if these are legit though nor do I have any idea how you would find out in advance.
     
  4. gwelmarten thread starter macrumors 6502

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    #4
    Is that what you think this is? Surely Apple would have clamped down on this? When did you hear this? Is there anything written about it? These accounts serm to have lots of good feedback.
     
  5. brentsg macrumors 68040

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    #5
    There were threads here about it, feel free to search.

    The point is that it's a risk. Are you willing to take it?

    There have also been Applecare scams on Ebay, with counterfeit codes. Many of them had good feedback.
     
  6. bniu macrumors 6502a

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    #6
    Why would Best Buy sell counterfeit iTunes gift cards? Granted, we've all heard of bad stories about Best Buy but there's no way Best Buy would intentionally partake in a crime.
     
  7. brentsg macrumors 68040

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    I think he was simply using Best Buy as an example to demonstrate that it IS possible to get legit discounted cards from time to time.
     
  8. Penn Jennings macrumors 6502

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    #8
    The cards were fine. My point was to show that valid cards DO get discounted.

    Discounted cards are great whenever you can them.
     
  9. snberk103 macrumors 603

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    It's called a loss-leader, and retail stores do this all the time. It's just usually quite so obvious because the gift cards have a value stamped on them so you can compare the purchase price to the value.

    Basically, a loss-leader is a product that a retail store sells at a loss in order to bring customers into the store where they will (hopefully) buy enough stuff (at a profit) to make up the loss. In the case of the gift cards - you come into the store and buy a $100 card for $80. Best Buy is out $20. However, in a number of cases you are going to turn around and buy an Apple product worth about $100 from Best Buy, which they are selling at a profit. I don't know the BB markup on Apple products, but it's probably not much. Say they come out even.

    However, since you have already started shopping you are (statistically) probably going to buy more non-Apple stuff. And that is where Best Buy makes their profit. It's not on the Apple stuff you bought with the gift card, it's on other stuff that likely would not have bought otherwise.

    Also keep in mind that Apple is probably also probably discounting the gift cards to Best Buy, so that $20 loss is going to be less than you might think.

    -----

    Supermarkets are the biggest users of loss-leaders. Once upon the time it was milk. All milk was sold at a break even or at a slight loss. Which is why traditionally milk is found at the back of store. Everybody needs milk, so you bring customers into your store with your great price on milk. And make them walk by all the other stuff that they had forgotten that they needed. That is where the profit was made.

    ------

    Once upon a time I worked at a MacDonalds restaurant. The basic burger was essentially the loss leader. But along with the burger, you ordered fries and a drink. The fries were highly marked up, but the fountain drinks were a license to print money. At that time it cost us something like 2 cents to put flavoured sugar syrup (Coke,etc) into a cup that we sold for 49 cents. I suspect that the scale of the markup hasn't changed much over time. That's the real profit centre at a fast food joint. That "supersize" value option you get? Sure you get 50% more pop for only 20 cents. But it costs them something like 1/2 a penny to "supersize" your drink (some of the cost is the labour to bring it to you and ring it in. Same labour cost regardless of the size).

    Wish I had a business with that kind of mark up, eh?
     
  10. Jim.R macrumors member

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    #10
    O/T - ISTR that, back when I worked there, the paper cup cost more than it's contents :eek:
     
  11. snberk103 macrumors 603

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    #11
    Yeah... that could be right.

    -------

    In the case of McDonalds, as a special promo they could "give away" a bag of fries with the purchase of a burger and drink. The fries are the loss leader, and the drink is the profit maker.

    Of course, I wouldn't buy my fries, burger, and drink from a sketchy eBay seller....:)
     
  12. ChadMSU07 macrumors newbie

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    #12
    I've also purchased discounted iTunes cards / codes from Best Buy and Radio Shack. Those are legit. I'd be cautious about them from ebay, craigslist, etc.

    Has anyone ever purchased discounted Apple Store Gift Cards?
     
  13. forentang macrumors newbie

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    #13
    I bought one from FlexibleDream dot com and their codes are those started with XX. Anyone thinks XX could be purchased with stolen credit card ? :confused:
     
  14. avaloncourt macrumors 65816

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    #14
    Absolutely! Earlier this year Walmart was doing $50 for $40 online. There were a couple other sites doing it as well but not as good of a price. I bought two and I'm finally getting down to the last $30 on them.
     
  15. JayMBP macrumors regular

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    #15
    It actually does happen.

    I can't remember the last time I bought iTunes cards at full price.

    I usually load them up during back-to-school promo. There are many people who simply don't use the iTunes card.

    I just got an $100 (from someone who bought a MBP) and a $50 (someone who bought iPad) at 50% and 40% off respectively.

    iTunes cards are often heavily discounted if you look up on your local CL/Kijiji.

    It's the Apple Store card that's less likely to be sold at heavy discount.
     
  16. cvaldes macrumors 68040

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    Buy the discounted cards from a legit source (Best Buy and Walmart are both major channel partners of Apple). I've bought the discounted Best Buy cards before and they work well. Note that they are not physical cards, but Best Buy will e-mail you the redemption code in about 15-30 minutes.

    This is really the best way to fund your iTunes/App Store account. You really don't want to pay full retail for an iTunes Card nor would you want to let iTunes/App Store charges hit a credit card.

    I bought Mountain Lion from the App Store, but instead of the $20 list price, my out of pocket cost was $16.

    You'd have to be a kook to let it hit your credit card.
     
  17. brentsg macrumors 68040

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    #17
    Another great way to get iTunes credit is to use your credit card reward points. They're pretty reasonable thru Citi this way.
     

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