If you’re an avid skin care fan, you’ve probably heard that you can buy your favorite brands’ products in bulk, which lets you save up to 40% on their products and get free shipping on your purchases.
Now, a new report suggests you could be getting an unfair deal.
From The Wall Street Journal:The report says a $25 gift card will net you more than $300 per share in the next two years, or $3,000 per share, for brands including Clinique and Physicians Formula.
The report doesn’t say how much these brands earn from the cards, or how many of the $3 million in revenue each brand makes will be spent on advertising.
The Wall Street, Bloomberg and CNBC reports that the cards are being sold on exchanges.
Some analysts believe that the practice is not entirely illegal.
According to Bloomberg:The card offers a way to buy a product, and that could have a direct impact on how the products are marketed.
A $25 discount, for example, could lead consumers to buy fewer products and instead focus on getting their favorite brands on offer.
“We can’t speak to how many brands are buying them, but it does make the market less appealing for the competitors, who have more cash,” said Jana Kuznekowska, a spokeswoman for the New York Stock Exchange.
Kuznekska said the card is likely a marketing ploy, but said that there are other ways to make money off the cards.
She said that it is “very likely” that the companies will try to get around the exchange rules by selling the cards on other sites.
For instance, the Wall Street report says that the Lucky Charms cards from the Kiwi and Bengal are currently on the sale on exchanges and have been for a couple of months.
Bloomberg notes that Lucky Charms are not actually brand new.
Earlier this month, the company also announced that it would be releasing a $100 gift card with a $5 coupon code to give to customers.