Originally Posted by phanbuey
man, they make a killing off those trade-up programs... they get to re-sell the card that you gave back, and you buy a higher-margin product.
Er, no. Need to look closer at the math.
1./ You only pay the PRICE DIFFERENCE.
2./ The RETAILER makes the biggest margin, BFG ends up giving you a bigger credit than the money they ever received.
3./ They now have a USED card they must try to sell, or its big money down the toilet.
I'm sure they dont really make money on it. The reason to do it is pure marketing.
A./ You choose BFG over another brand.
B./ It sounds GREAT but most people (they hope) wont actually go for it.
I'm sure that if EVERYBODY that owned a BFG card took it back tomorrow to pay only the "upgrade" price for a brand new card, they would go bust.