Partial refunds on gift certificates?

[Alibi Ike]

So? What are you thinking? Any adjustment to how you sell GC's? We all do it differently, for what works most of the time for us..

So? What are you thinking? Any adjustment to how you sell GC's? We all do it differently, for what works most of the time for us.

Probably no changes. It works 95% of the time. The other 5% isn't worth the worry.

 

[MTLLodge]

No way! Our GCs say "This certificates reduces your bill for your stay by $xxxx." That way, they can only use the GC to reduce their bill, no cash value. If there is left over, they can use the remainder to purchase items from our gift pantry. At the very least, the certificate should say "no cash value".
The guests who checked-out this morning had a certificate that was expiring in December. Yes, we can have expiration dates in my state. There was $25 left unused on their certificate and they wanted to hold that over onto another certificate they have that expires sometime next year. They were told they would have to purchase $25 worth of items from our gift area and could not transfer the balance to their other GC. Different tax years, different accounting. They left very happy, with stocking stuffers from our gift pantry..

No way! Our GCs say "This certificates reduces your bill for your stay by $xxxx." That way, they can only use the GC to reduce their bill, no cash value. If there is left over, they can use the remainder to purchase items from our gift pantry. At the very least, the certificate should say "no cash value".
The guests who checked-out this morning had a certificate that was expiring in December. Yes, we can have expiration dates in my state. There was $25 left unused on their certificate and they wanted to hold that over onto another certificate they have that expires sometime next year. They were told they would have to purchase $25 worth of items from our gift area and could not transfer the balance to their other GC. Different tax years, different accounting. They left very happy, with stocking stuffers from our gift pantry.

Would you mind sharing what you have in your gift pantry?

 

[Breakfast Diva]

No way! Our GCs say "This certificates reduces your bill for your stay by $xxxx." That way, they can only use the GC to reduce their bill, no cash value. If there is left over, they can use the remainder to purchase items from our gift pantry. At the very least, the certificate should say "no cash value".
The guests who checked-out this morning had a certificate that was expiring in December. Yes, we can have expiration dates in my state. There was $25 left unused on their certificate and they wanted to hold that over onto another certificate they have that expires sometime next year. They were told they would have to purchase $25 worth of items from our gift area and could not transfer the balance to their other GC. Different tax years, different accounting. They left very happy, with stocking stuffers from our gift pantry..

No way! Our GCs say "This certificates reduces your bill for your stay by $xxxx." That way, they can only use the GC to reduce their bill, no cash value. If there is left over, they can use the remainder to purchase items from our gift pantry. At the very least, the certificate should say "no cash value".
The guests who checked-out this morning had a certificate that was expiring in December. Yes, we can have expiration dates in my state. There was $25 left unused on their certificate and they wanted to hold that over onto another certificate they have that expires sometime next year. They were told they would have to purchase $25 worth of items from our gift area and could not transfer the balance to their other GC. Different tax years, different accounting. They left very happy, with stocking stuffers from our gift pantry.

Would you mind sharing what you have in your gift pantry?
.

"Would you mind sharing what you have in your gift pantry?"
We have T-shirts & Sweatshirts with the illustration of our inn silk screen on them, Robe with our logo embroidered on the breast, Wine & Champagne glasses with our logo etched, lotions & bubble baths, shampoo & rose water that we purchase in bulk and offer free in our guest rooms are bottled & labeled by us and sold (these are BIG sellers), Fuller soaps with our label (2 fragrences), my cookbook which we hand make (another big seller), our mugs, wine, champagne & sparkling apple cider (our state has a very liberal alcohol law which allows us to sell to our guests if the b&b has 6 or less rooms), postcards, men's baseball style cap.
Another think I'll do is when they make a reservation and there is money left over from the GC, I'll suggest they purchase one of our add-ons such as our picnic basket, fondue package or romantic package. These range from $35-$110. Often, they will add something on to use the balance of their GC.

 

[Alibi Ike]

No way! Our GCs say "This certificates reduces your bill for your stay by $xxxx." That way, they can only use the GC to reduce their bill, no cash value. If there is left over, they can use the remainder to purchase items from our gift pantry. At the very least, the certificate should say "no cash value".
The guests who checked-out this morning had a certificate that was expiring in December. Yes, we can have expiration dates in my state. There was $25 left unused on their certificate and they wanted to hold that over onto another certificate they have that expires sometime next year. They were told they would have to purchase $25 worth of items from our gift area and could not transfer the balance to their other GC. Different tax years, different accounting. They left very happy, with stocking stuffers from our gift pantry..

No way! Our GCs say "This certificates reduces your bill for your stay by $xxxx." That way, they can only use the GC to reduce their bill, no cash value. If there is left over, they can use the remainder to purchase items from our gift pantry. At the very least, the certificate should say "no cash value".
The guests who checked-out this morning had a certificate that was expiring in December. Yes, we can have expiration dates in my state. There was $25 left unused on their certificate and they wanted to hold that over onto another certificate they have that expires sometime next year. They were told they would have to purchase $25 worth of items from our gift area and could not transfer the balance to their other GC. Different tax years, different accounting. They left very happy, with stocking stuffers from our gift pantry.

Would you mind sharing what you have in your gift pantry?
.

"Would you mind sharing what you have in your gift pantry?"
We have T-shirts & Sweatshirts with the illustration of our inn silk screen on them, Robe with our logo embroidered on the breast, Wine & Champagne glasses with our logo etched, lotions & bubble baths, shampoo & rose water that we purchase in bulk and offer free in our guest rooms are bottled & labeled by us and sold (these are BIG sellers), Fuller soaps with our label (2 fragrences), my cookbook which we hand make (another big seller), our mugs, wine, champagne & sparkling apple cider (our state has a very liberal alcohol law which allows us to sell to our guests if the b&b has 6 or less rooms), postcards, men's baseball style cap.
Another think I'll do is when they make a reservation and there is money left over from the GC, I'll suggest they purchase one of our add-ons such as our picnic basket, fondue package or romantic package. These range from $35-$110. Often, they will add something on to use the balance of their GC.
.

That is a remarkable amount of merchandise. We've had no luck at all with any kind of items for sale.
Wish this state was relaxed about alcohol. Guests are not thrilled with sparkling cider in a package. With an alcohol license I could sell a lot more packages, but then it puts me in a whole different category as far as guests providing their own wine, where they may consume it (only in their rooms) and what my liability is for any alcohol consumption whether they got it from me or on their own. Without a license, as long as I do not provide the alcohol, the responsibility is on the guest and they can imbibe anywhere on the property.

 

[MTLLodge]

Thanks for sharing.

 

[EmptyNest]

So what did you do? Give them the money back?
At times, when we talk door mat, I get frustrated as we have policies but basically let people do what ever they want to do, and that makes me mad.
I can imagine going to Macy's and spending $125 of the $150 and asking for cash back on it. Yeah right..

They haven't arrived yet. There is now dissension in the ranks as to exactly what was said by whom and what actually was transacted. It makes no sense at this point to keep the money, they won't be back and yet that money will sit there accruing stress.
I still have a GC for $83 hanging around. It was not a brilliant move on the part of the buyer to only pay half the fee. She was absolutely certain the guests would come during a sale we had in March where rooms were half off for a 2-week time frame. Of course they didn't come then. And now they have to come up with the other half of the room on their own.
.

Sounds like you need to rework and reword your GC policy. GC has no cash value, cannot be redeemed for cash. Only good for stay at B & B...or whatever..but I would never mess around with balances or refunds with GC. You are just asking for more problems. They have to use it or just lose it. That is it!

 

[Alibi Ike]

So what did you do? Give them the money back?
At times, when we talk door mat, I get frustrated as we have policies but basically let people do what ever they want to do, and that makes me mad.
I can imagine going to Macy's and spending $125 of the $150 and asking for cash back on it. Yeah right..

They haven't arrived yet. There is now dissension in the ranks as to exactly what was said by whom and what actually was transacted. It makes no sense at this point to keep the money, they won't be back and yet that money will sit there accruing stress.
I still have a GC for $83 hanging around. It was not a brilliant move on the part of the buyer to only pay half the fee. She was absolutely certain the guests would come during a sale we had in March where rooms were half off for a 2-week time frame. Of course they didn't come then. And now they have to come up with the other half of the room on their own.
.

Sounds like you need to rework and reword your GC policy. GC has no cash value, cannot be redeemed for cash. Only good for stay at B & B...or whatever..but I would never mess around with balances or refunds with GC. You are just asking for more problems. They have to use it or just lose it. That is it!
.

I could add 'May be used for room or add-on packages only. No cash refunds.' That might work. It's rare that there is this much left on a GC. Guests usually max them out.
Like JB said, they don't want to spend any of their own money, so if there is a balance due to us they grumble about it. 'I thought the GC covered the room.' Not if there is a cash value stated on it. Then it is good for that value. Again similar to going into a shoe store with a GC and thinking it covered any shoes you want. No, it covers this dollar amount.
And try getting the tax out of them. GC is $150, room is $150, no way they want to part with another $10-15 to cover tax. Instead of seeing what they got for free, they focus on what they had to pay for.

 

[One Day]

Word the certificates to indicate..........does not cover taxes......or taxes additional

 

[JBloggs]

$150 is $150 s/b toward tax if it falls under that amount. Unless you state it is for a particular room or selection of rooms then let the pieces fall where they may...
I had someone try this and when they arrived they were very cordial about it and said they just didn't really understand how it worked, so no worries and were fine. If it were me, I would say "I will put a lovely vase of flowers in your room for the difference!" and be done with it.

 

[Don Draper]

It has been MUCH simpler for us to do straight dollar amounts, versus "one night's stay in the A Room"...because rates change seasonally, yearly, etc. This way they never expire, and the sooner you use it the more it's worth.

 

[Alibi Ike]

Word the certificates to indicate..........does not cover taxes......or taxes additional.

Word the certificates to indicate..........does not cover taxes......or taxes additional

The point is they had a GC for $x. They chose a room for $x. The tax has to be paid, and not by me. But they don't see it that way. They think the GC covers the $150 charge for the room, taxes be damned. If the room was less and the tax could be included, that's fine. But when the room is exactly the price of the GC, guests forget the tax part.
PS- adding anything else to the GC will mean it is 3 pages long!

 

[Alibi Ike]

It has been MUCH simpler for us to do straight dollar amounts, versus "one night's stay in the A Room"...because rates change seasonally, yearly, etc. This way they never expire, and the sooner you use it the more it's worth..

We did get away from 'for a stay in x room' on the GC. We tell the buyer the amount is on the GC. I think there are a couple of outstanding ones that have 'for a stay in x room' on them. We have had guests stay in the off season with an in season GC. We toss in something to make up the difference. The guest doesn't know how much the GC is for and it's a nice touch. In one case we could give them a GC for dinner.

 

[user 26]

as a former innkeeper, i always tried not to refund money. i understand. and i've dealt with lots of folks trying to get more for less and feeling very shrewd.
but, as a former young (often broke) mom, i am able to see the (imaginary) guest side.
i see myself years ago being given a gc to a place in maine (i was in massachusetts). the person KNEW how hard up i was, raising three children alone, but she wanted me to get away and enjoy myself. said that giving money was tacky and showed no imagination and that i'd just use it to pay bills. yes, i sure would have! told me i needed to get away on a mini vacation. then she harrassed me until i made a reservation to stay at this lovely place before it expired. (at least that is how i remember it)
i had to arrange child care since the reservation was just for me. the gift giver did not offer nor was she available when i asked. three children is a lot to ask someone to watch for three days and two nights and i owed (big time) in babysitting someone else's children in return. it cost me a lot of money in gasoline and tolls, i ate two 'dinners' at a fast food place while i was there ... the burger one nite, the fish sandwhich the next. squirreling away what i was served at breakfast and did not eat. both mornings. i kept hoping the innkeepers didn't notice what i pushed into my shoulder bag, but i'm sure they did. especially the fresh fruit that i wrapped up in my socks and brought home to the kids. i'm really sure they knew ... now that i've been an innkeeper.
i felt stressed and uncomfortable driving for hours alone each way, and, i missed my children, the 'vacation' cost me more than i could really afford.
the relative bragged on many occasions about how she had given me a wonderful time away. it would have been nice to go there under different circumstances.
the same relative tried to give me a gc the following christmas which i declined. she would not and could not hear my explanation but i heard loud and long about my ingratitude and lack of class. never received a gift of any kind from her again.
okay ... climbing down off my soapbox ...
it is possible that whoever received the gc is facing a similar financial hardship and this is why they are trying to stretch the gift. just saying ... it's possible. so, just in case that's what's happening here, you're doing a nice thing.

 

[muirford]

So what did you do? Give them the money back?
At times, when we talk door mat, I get frustrated as we have policies but basically let people do what ever they want to do, and that makes me mad.
I can imagine going to Macy's and spending $125 of the $150 and asking for cash back on it. Yeah right..

They haven't arrived yet. There is now dissension in the ranks as to exactly what was said by whom and what actually was transacted. It makes no sense at this point to keep the money, they won't be back and yet that money will sit there accruing stress.
I still have a GC for $83 hanging around. It was not a brilliant move on the part of the buyer to only pay half the fee. She was absolutely certain the guests would come during a sale we had in March where rooms were half off for a 2-week time frame. Of course they didn't come then. And now they have to come up with the other half of the room on their own.
.

Sounds like you need to rework and reword your GC policy. GC has no cash value, cannot be redeemed for cash. Only good for stay at B & B...or whatever..but I would never mess around with balances or refunds with GC. You are just asking for more problems. They have to use it or just lose it. That is it!
.

I could add 'May be used for room or add-on packages only. No cash refunds.' That might work. It's rare that there is this much left on a GC. Guests usually max them out.
Like JB said, they don't want to spend any of their own money, so if there is a balance due to us they grumble about it. 'I thought the GC covered the room.' Not if there is a cash value stated on it. Then it is good for that value. Again similar to going into a shoe store with a GC and thinking it covered any shoes you want. No, it covers this dollar amount.
And try getting the tax out of them. GC is $150, room is $150, no way they want to part with another $10-15 to cover tax. Instead of seeing what they got for free, they focus on what they had to pay for.
.

And try getting the tax out of them. GC is $150, room is $150, no way they want to part with another $10-15 to cover tax.

When we first bought our inn, the PO was selling GC for rooms - any weekend night, or any weeknight. We did that for awhile, and charged the sales tax at the time of the gift certificate sale. So that there wasn't anything extra. But - as our prices went up, and taxes increased - that wasn't really a good way to go anymore. First we changed to strictly a dollar amount, then we changed to not selling them. We had one guest who said she was told that the GC covered tax and a gratuity - she left a note for our housekeeper saying that. Needless to say, it didn't.
You could consider charging the tax when you sell the GC - it makes your bookkeeping easier.

 

[Alibi Ike]

So what did you do? Give them the money back?
At times, when we talk door mat, I get frustrated as we have policies but basically let people do what ever they want to do, and that makes me mad.
I can imagine going to Macy's and spending $125 of the $150 and asking for cash back on it. Yeah right..

They haven't arrived yet. There is now dissension in the ranks as to exactly what was said by whom and what actually was transacted. It makes no sense at this point to keep the money, they won't be back and yet that money will sit there accruing stress.
I still have a GC for $83 hanging around. It was not a brilliant move on the part of the buyer to only pay half the fee. She was absolutely certain the guests would come during a sale we had in March where rooms were half off for a 2-week time frame. Of course they didn't come then. And now they have to come up with the other half of the room on their own.
.

Sounds like you need to rework and reword your GC policy. GC has no cash value, cannot be redeemed for cash. Only good for stay at B & B...or whatever..but I would never mess around with balances or refunds with GC. You are just asking for more problems. They have to use it or just lose it. That is it!
.

I could add 'May be used for room or add-on packages only. No cash refunds.' That might work. It's rare that there is this much left on a GC. Guests usually max them out.
Like JB said, they don't want to spend any of their own money, so if there is a balance due to us they grumble about it. 'I thought the GC covered the room.' Not if there is a cash value stated on it. Then it is good for that value. Again similar to going into a shoe store with a GC and thinking it covered any shoes you want. No, it covers this dollar amount.
And try getting the tax out of them. GC is $150, room is $150, no way they want to part with another $10-15 to cover tax. Instead of seeing what they got for free, they focus on what they had to pay for.
.

And try getting the tax out of them. GC is $150, room is $150, no way they want to part with another $10-15 to cover tax.

When we first bought our inn, the PO was selling GC for rooms - any weekend night, or any weeknight. We did that for awhile, and charged the sales tax at the time of the gift certificate sale. So that there wasn't anything extra. But - as our prices went up, and taxes increased - that wasn't really a good way to go anymore. First we changed to strictly a dollar amount, then we changed to not selling them. We had one guest who said she was told that the GC covered tax and a gratuity - she left a note for our housekeeper saying that. Needless to say, it didn't.
You could consider charging the tax when you sell the GC - it makes your bookkeeping easier.
.

I have asked, 'Would you like to cover the tax as well, to make it easier on your friend/mother/sister?' 'No, they can handle that part.' Amazing how many don't want to take the extra step! Now I could just charge it, but most of the time the caller has a set amount in mind regardless what the rooms sell for. Maybe it's a group gift and they raised $180. That's it. That's what the GC is for, no more no less.
I've had callers ask if I would give the giftee the difference if there was one. Depends on what the total amount is. If it's going to be a lot I won't.
All of this has given me a lot to keep in mind when the buyer or the recipient calls in the future.

 

[Don Draper]

as a former innkeeper, i always tried not to refund money. i understand. and i've dealt with lots of folks trying to get more for less and feeling very shrewd.
but, as a former young (often broke) mom, i am able to see the (imaginary) guest side.
i see myself years ago being given a gc to a place in maine (i was in massachusetts). the person KNEW how hard up i was, raising three children alone, but she wanted me to get away and enjoy myself. said that giving money was tacky and showed no imagination and that i'd just use it to pay bills. yes, i sure would have! told me i needed to get away on a mini vacation. then she harrassed me until i made a reservation to stay at this lovely place before it expired. (at least that is how i remember it)
i had to arrange child care since the reservation was just for me. the gift giver did not offer nor was she available when i asked. three children is a lot to ask someone to watch for three days and two nights and i owed (big time) in babysitting someone else's children in return. it cost me a lot of money in gasoline and tolls, i ate two 'dinners' at a fast food place while i was there ... the burger one nite, the fish sandwhich the next. squirreling away what i was served at breakfast and did not eat. both mornings. i kept hoping the innkeepers didn't notice what i pushed into my shoulder bag, but i'm sure they did. especially the fresh fruit that i wrapped up in my socks and brought home to the kids. i'm really sure they knew ... now that i've been an innkeeper.
i felt stressed and uncomfortable driving for hours alone each way, and, i missed my children, the 'vacation' cost me more than i could really afford.
the relative bragged on many occasions about how she had given me a wonderful time away. it would have been nice to go there under different circumstances.
the same relative tried to give me a gc the following christmas which i declined. she would not and could not hear my explanation but i heard loud and long about my ingratitude and lack of class. never received a gift of any kind from her again.
okay ... climbing down off my soapbox ...
it is possible that whoever received the gc is facing a similar financial hardship and this is why they are trying to stretch the gift. just saying ... it's possible. so, just in case that's what's happening here, you're doing a nice thing..

Well...good points. We never know what's going on with people, so we should just put up and shut up which most of us do quite gracefully.
It's odd, how someone who cares about you can insist on you doing something that THEY would like, but which really isn't for you at all. That wasn't very nice, and then to speak badly of you when you wouldn't take the second gc...sounds like it was a lose/lose situation for you.

 

[JBloggs]

Well let's see if we sell many this year. I have taken it off the website and was not planning on selling any then ended up selling a few.
Does anyone do it any different way, besides either:
a) dollar amount $200 gc, or b) room or their choice in a range or a specific range, ie one night stay for two in the Garden Room.

 

[gillumhouse]

I sell more package GCs than room night. I have really not had anyone who did not like it and never had any who wanted cash. Because of this Forum I do have no cash value on all GCs. I do not put cash value on them because they are gifts. I had one in September that was a wedding gift from her sister. When I sell a GC, it is in exchange for a check which will be in my hot little hands before I sent the GC - and the check includes the tax.
We have had birthday presents for spouses, anniversary presents for parents (one was for a 40th and the GC & our brochure were the last pages of an album the kids put together), Christmas presents for parents... Yes, sometimes there is a rate change but I do not do drastic changes and I look at it as having been given a loan when I needed it and the rate difference is the vigorish on the loan. Each GC spells out exactly what is in the package - A ROOM with breakfast (not which room) and whatever else is in it, packed lunch and.or dinner. daytrip routing, roasted coffee.....

 

[EmptyNest]

So what did you do? Give them the money back?
At times, when we talk door mat, I get frustrated as we have policies but basically let people do what ever they want to do, and that makes me mad.
I can imagine going to Macy's and spending $125 of the $150 and asking for cash back on it. Yeah right..

They haven't arrived yet. There is now dissension in the ranks as to exactly what was said by whom and what actually was transacted. It makes no sense at this point to keep the money, they won't be back and yet that money will sit there accruing stress.
I still have a GC for $83 hanging around. It was not a brilliant move on the part of the buyer to only pay half the fee. She was absolutely certain the guests would come during a sale we had in March where rooms were half off for a 2-week time frame. Of course they didn't come then. And now they have to come up with the other half of the room on their own.
.

Sounds like you need to rework and reword your GC policy. GC has no cash value, cannot be redeemed for cash. Only good for stay at B & B...or whatever..but I would never mess around with balances or refunds with GC. You are just asking for more problems. They have to use it or just lose it. That is it!
.

I could add 'May be used for room or add-on packages only. No cash refunds.' That might work. It's rare that there is this much left on a GC. Guests usually max them out.
Like JB said, they don't want to spend any of their own money, so if there is a balance due to us they grumble about it. 'I thought the GC covered the room.' Not if there is a cash value stated on it. Then it is good for that value. Again similar to going into a shoe store with a GC and thinking it covered any shoes you want. No, it covers this dollar amount.
And try getting the tax out of them. GC is $150, room is $150, no way they want to part with another $10-15 to cover tax. Instead of seeing what they got for free, they focus on what they had to pay for.
.

When we sold a GC it was for the room and whatever else someone ordered ie. Flowers. The person was billed the full amount including tax.
So when the recipient got the certificate it said
"Good for 2 night stay in the XXX room and a dozen roses." Also send no cash value, not redeemable for cash refund.
We couldn't put an expiration date on ours because of the state law. But if you can...I would put "valid for one year only...no transferable." Or if you prefer, you could say transferable..that way someone could give it to someone else to use. Nothing out of your pocket because you have already pocketed the cash.