Math Problem Who's Right The Wife Or I?

[arakboss]

I have felt bad about some purchases in the past because I could not find well discounted gift cards to make the purchases with. Then a lightbulb came on. I thought if I got the previous purchase with a 20% percent gift card and then sold that item for what I paid for it, then the discount will be passed along to my next purchase. The wife who does accounting type stuff at work disagrees. She thinks the discount only worked on the first purchase and won't work on future purchases unless I can find new 20% off discount gift cards.

So here is hypothetical scenario:

I start off with $100. I use that $100 to buy gift cards that were disounted 20%. So now I have $120 of buying power at the store. I buy an item at the store for $120 and admire it for a month. Then I sell the item to private party for $120. I take that $120 and go back to store to buy another item for $120. Rinse and repeat for the entire year.

In my mind I retained the extra $20 of buying power with each purchase all year long, am I wrong?

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[The Heretic]

Remind me to not send my accounting to your wife.

 

[powersbj]

Your wife is always right no matter how bad the math is. There are soooo many jokes about to hit this thread.

 

[Certaindeaf]

Yea, you spent $20 "less" once, not every time you bought something.

 

[kmk1012]

I've always been told to pick my battles, on that note I agree with your math until the overall price changes. All things are equal until you have to reach for your wallet again.

 

[The Heretic]

Yea, you spent $20 "less" once, not every time you bought something.

As long as he continues to get $120 for the purchase each time he sells, he retains that $120. He paid $100 for $120 of purchasing power and he retains that.

Think about it this way; if he sells the last item he purchased for $120 and pockets the cash, he still retains that extra $20.

 

[Certaindeaf]

It's like the gal that goes out shopping, comes home and brags about all the money's she's "saved".. spending x$.
It's brilliant, really.

 

[albin25]

You spent $100 on a $120 item that you then sold for $120, so you actually made $20 on the first transaction. Then, if you re-purchase it and if (a big "if") you can find other suckers to pay $120 for a secondhand item, you make another $0 each time you do it (not $20). You'd need to use a discounted gift-card for each transaction to make money.....
.... unless you want a job as Biden's Treasury Secretary, then you'll make millions!

But.... your "buying power" is in theory being retained, but to what end?

 

[arakboss]

You spent $100 on a $120 item that you then sold for $120, so you actually made $20 on the first transaction. Then, if you re-purchase it and if (a big "if") you can find other suckers to pay $120 for a secondhand item, you make another $0 each time you do it (not $20). You'd need to use a discounted gift-card for each transaction to make money.....
.... unless you want a job as Biden's Treasury Secretary, then you'll make millions!

The disagreement was whether I would retain the savings ($20) I made by buying the discount gift cards before the first purchase was made. It seems open and shut to me, I win

 

[clearconscience]

You are right and are saving (or making) money.

Your Wife's is wrong.


But she will also win this argument.

It's like Dems. You don't need facts to supplement your argument. Just your feelings and prejudged biases:

 

[TTSX]

If you could buy discounted cards all year long and found a healthy supply of suckers, you could get a compounding 20% return. I like this theoretical store

 

[Ura-Ki]

You can be right or you can be happy, choose wisely!

Is this the hill you want to die on?

 

[BBQ Guy]

So how many nights of sleeping on the couch has it been?....

 

[Tarawa86]

the real question is: 50% off, or buy one/get one free?

 

[Meridian7750]

2 things jump out at me...
First, you actually will have $125 of purchasing power, if you buy $100 worth of gift cards that have been discounted 20% ($125 discounted 20% equals $100).
Second, I think your goal of selling something/everything for what you paid for it is faulty.
So, you have one gain, and one (or several) losses.
Net Net...a loss.
You wife is correct, but for the wrong reasons.

 

[DeanfromOregon]

I have felt bad about some purchases in the past because I could not find well discounted gift cards to make the purchases with. Then a lightbulb came on. I thought if I got the previous purchase with a 20% percent gift card and then sold that item for what I paid for it, then the discount will be passed along to my next purchase. The wife who does accounting type stuff at work disagrees. She thinks the discount only worked on the first purchase and won't work on future purchases unless I can find new 20% off discount gift cards.

So here is hypothetical scenario:

I start off with $100. I use that $100 to buy gift cards that were disounted 20%. So now I have $120 of buying power at the store. I buy an item at the store for $120 and admire it for a month. Then I sell the item to private party for $120. I take that $120 and go back to store to buy another item for $120. Rinse and repeat for the entire year.

In my mind I retained the extra $20 of buying power with each purchase all year long, am I wrong?

So you start off with $100 and buy $120 worth of gift cards with it. You buy $120 worth of merchandise, and sell it for $120. You made $20, you're cost basis is $100. the flaw in your statement is " I take that $120 and go back to store to buy another item for $120. " Actual scenario should be I take that $120 go back to the store and get another discounted gift card and buy an item for $144. Each time you get more, and your cost basis is still $100. Rinse and repeat for the entire year.

Meridian7750 is right on the actual amounts too.

Basically you're wife is right, you need gift cards every time.

 

[Unicykle]

Just stop telling your wife when you buy stuff, problem solved, next question.

 

[BBQ Guy]

Just stop telling your wife when you buy stuff, problem solved, next question.

We have a clear and concise winner.

 

[awshoot]

...
I start off with $100. I use that $100 to buy gift cards that were disounted 20%. So now I have $120 of buying power at the store. ...

Let me throw in some confusion here. You can pay $80 for a $100 card which works out to a 0.8 proportion. To get $120 in value, you'd have to pay $120*0.8=$96.

So if you start with $100, spend $96 on 80%ers, you have $120 in gift cards plus $4 in your pocket.

As for reselling what you paid retail for at retail -- that much sounds like a pipe dream.

 

[powersbj]

You can be right or you can be happy, choose wisely!

Is this the hill you want to die on?

As I told my wife, "I'm happy because I'm right".