$100

$30.00

$30. Until he redeems the $70 gift card.

Assuming the gift card didn’t come from the same store the money was originally stolen from, which seems to be the case (intentionally worded that way?) and logical.

1st store is out 100$
2nd store is out nothing

quote:

Originally posted by kx90:

quote:

Originally posted by gpbst3:
I say $100

The original $100 was given back and he stole the $70 plus $30

You need to consider the $100 he originally stole paid for goods that are already sold.

So the original $100 plus the $70 gift card = $170. That leftover $30 is still part of the original $100.

The store got back $70 in cash.

It's $100.

After thinking about it deeply for quite some time, it seems the answer is

forty-two.

The $100 bill stolen from the cash register wound up back in the register. No effect there. But from the store's perspective, at the end, there are three differences:

1) Reduction in cash: $30 handed to perp.
Pretty clear.

2) Cost of goods sold: $70 - X (X = sales discount)
Not sure what the business model is for retailers handling gift cards. They obviously aren't charged face value; they'd get a fee and/or a discount off of face. But, they do owe the card-issuer the remainder of the face value, when a card is activated. So that's the cost of goods sold.

3) Inventory reduction effect: Lost future profit = X (sales discount)
Inventory is down one $70-face-value card. Store inventory now has one fewer card, meaning one fewer potential sales transaction, so they are out whatever they would have profited on that no-longer-possible sale. That profit would have been the discount (X) above.

#2 and #3 add to $70 (70 -X + X). Throw in the cash handed to perp in #1, and the store is $100 worse off.

Check the work:
Perp walks off with $70 card and $30 cash: $100 to be found

Card issuer gets $70 - X from retailer, pays perp $70 when card used

Store pays issuer $70 - X, paid perp $30, loses opportunity to make X profit.

Numbers check.

The loss is the $100.00 he stole. What he did with the money afterwards makes no difference.

I'm going with $130. 100 laundered back an additional $30 in change. Duh. $70 gift means it's just the cleaned $100 not 130.

The original $100 is a wash. He stole it, then gave it back. We're starting at $0.

Store gives him $30 cash and $70 worth of credit.

Store is out $30...until he uses that $70 credit. Max amount they're out is $100.

What do I win?

quote:

Originally posted by Gustofer:
Store is out $30...until he uses that $70 credit.

Do you think stores get a windfall of cash when they sell gift cards?

quote:

Originally posted by sigmonkey: $0.

This. Every cent will be passed on to the consumer.

$100, that's what was stolen. Everything after that doesn't matter

quote:

Originally posted by Keystoner:

quote:

Originally posted by Gustofer:
Store is out $30...until he uses that $70 credit.

Do you think stores get a windfall of cash when they sell gift cards?

They didn't sell him the gift card. They gave it to him. It's imaginary money now...until he uses it. Then they lose it.

quote:

Originally posted by Gustofer:
They didn't sell him the gift card. They gave it to him. It's imaginary money now...until he uses it. Then they lose it.

No, he paid $70 for that gift card, and in exchange, he basically received a voucher (the gift card) that he could use any way he wants. He doesn't have to use that card at that same store.

I'm assuming that the gift card is for that store. If so, then I'm correct. If he can use it anywhere, then the correct answer is $100.

The gift card is a red herring.

The store lost $100.

quote:

Originally posted by gpbst3:
A guy steals a $100 bill from a grocery store.

The guy then buys a $70 gift card with the stolen money and gets $30 back in change.

How much did the store lose?

More definition needed on the store. If it is the grocery store the answer is $100.


I can't assume he is purchasing the gift card from the same location the $100 was stolen from.

If the card was purchased at a different store then that store received stolen property (the $100 from the grocery store). We'll assume he is caught while trying to use the gift card at yet another store, so this store loses the $100, $30, and the profit from the card sale.

The store the gift card is from loses nothing.

So which store are you asking about?

And why isn't there sales tax?

quote:

Originally posted by trapper189:
The gift card is a red herring.

The store lost $100.

It’s not the intent.

I originally had he purchased $70 in groceries but we were going down a rabbit hole of the stores mark up on products, retail vs wholesale pricing.

I wanted to just keep it simple.

The gift card is for the grocery store. No tricks, no sales tax, no gift card user fees, etc

$100.

The store lost the hundred bucks. The next transaction doesn't matter. Someone came in, bought card and received proper charge. The source of that purchase is irrelevant.