Well we bought US coins on ebay and MSN's Cashback could be hoarding money until..
YaHa
Posts: 4,220 ✭
Ok I know there are some bright people on here and also lawyers.
Here is my question. If a business owes a client money and it is deemed to pay funds on a certain date, but in the meantime holds money for a monthly or quarterly dividend profit for the company, can there be a lawsuit for profits lost to a client?
I really think Msnlive is waiting for the 1st Quarter/March09 to come soon enough to seek out some profits of the money in their holdings acct owe to customers or other business aspects..
Then send out refunds to customers after a solid profit is made.. I was told by Paypal marketing office that many promotions are done this way. They also told me you are talking about a substantial amount of money that is owed but profits could be made off of the holdings for the companies benefit in the meantime if they wait.
Just wanted to hear some opinions on this theory.
Here is my question. If a business owes a client money and it is deemed to pay funds on a certain date, but in the meantime holds money for a monthly or quarterly dividend profit for the company, can there be a lawsuit for profits lost to a client?
I really think Msnlive is waiting for the 1st Quarter/March09 to come soon enough to seek out some profits of the money in their holdings acct owe to customers or other business aspects..
Then send out refunds to customers after a solid profit is made.. I was told by Paypal marketing office that many promotions are done this way. They also told me you are talking about a substantial amount of money that is owed but profits could be made off of the holdings for the companies benefit in the meantime if they wait.
Just wanted to hear some opinions on this theory.
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Comments
<< <i>Ok I know there are some bright people on here and also lawyers. >>
Hey Longacre ... I think he's taking a shot at folks like you and me.
Whoops. Wrong forum.
[edit] Wrong website, actually.
Many industries use the rebate to lure people, especially in on-line or in-store promotions, and rely on heavy "breakage" numbers. IOW: If 1000 people purchase a product under rebate, usually there is at least 20% to 50% breakage, meaning those who don't even try to fulfill the terms of the rebate.
For those who do choose, many roadblocks are often introduced, i.e. must mail actual UPC, must have original sales receipt, etc. again with the intent to increase the breakage numbers. Throw in the final towel that processing your rebate may take 6 to 12 weeks, and voila! You have a breakage of nearly 80% for most products, and huge inflows of rebate-related sales revenue (rebate revenue DOES NOT have to be offset by the rebate liability as it is not COGS and will not hit as an expense until an actual expenditure-i.e. rebate mailing-occurs) the company can place on its sales balance sheet in any way/when it wishes. Once the payments to fulfill the rebate is made, only then does a company have to list the expenditure. Naturally, the process is intended to grab cash from the customer as soon as possible, and give it back to them as far in the future as the market will bear.
All that to say: Rebates suck.
<< <i>Well, my 2 Lincolns...this is a classic example of rebates and cash flow, and why rebates are such an effective marketing gimmick and bottom line enhancer.
Many industries use the rebate to lure people, especially in on-line or in-store promotions, and rely on heavy "breakage" numbers. IOW: If 1000 people purchase a product under rebate, usually there is at least 20% to 50% breakage, meaning those who don't even try to fulfill the terms of the rebate.
For those who do choose, many roadblocks are often introduced, i.e. must mail actual UPC, must have original sales receipt, etc. again with the intent to increase the breakage numbers. Throw in the final towel that processing your rebate may take 6 to 12 weeks, and voila! You have a breakage of nearly 80% for most products, and huge inflows of rebate-related sales revenue (rebate revenue DOES NOT have to be offset by the rebate liability as it is not COGS and will not hit as an expense until an actual expenditure-i.e. rebate mailing-occurs) the company can place on its sales balance sheet in any way/when it wishes. Once the payments to fulfill the rebate is made, only then does a company have to list the expenditure. Naturally, the process is intended to grab cash from the customer as soon as possible, and give it back to them as far in the future as the market will bear.
All that to say: Rebates suck. >>
That's what I meant.
<< <i>Well, my 2 Lincolns...this is a classic example of rebates and cash flow, and why rebates are such an effective marketing gimmick and bottom line enhancer.
Many industries use the rebate to lure people, especially in on-line or in-store promotions, and rely on heavy "breakage" numbers. IOW: If 1000 people purchase a product under rebate, usually there is at least 20% to 50% breakage, meaning those who don't even try to fulfill the terms of the rebate.
For those who do choose, many roadblocks are often introduced, i.e. must mail actual UPC, must have original sales receipt, etc. again with the intent to increase the breakage numbers. Throw in the final towel that processing your rebate may take 6 to 12 weeks, and voila! You have a breakage of nearly 80% for most products, and huge inflows of rebate-related sales revenue (rebate revenue DOES NOT have to be offset by the rebate liability as it is not COGS and will not hit as an expense until an actual expenditure-i.e. rebate mailing-occurs) the company can place on its sales balance sheet in any way/when it wishes. Once the payments to fulfill the rebate is made, only then does a company have to list the expenditure. Naturally, the process is intended to grab cash from the customer as soon as possible, and give it back to them as far in the future as the market will bear.
All that to say: Rebates suck. >>
Depends on what accounting method they are using.
Generally, I would think they are using an accural method where money due from sales is reflected on the balance sheet as a receivable and on the income statement as revenue. On the same note, rebates would be reflected as a current payable on the Balance sheet and revenues would be reducted by the receivable.
If they are using a cash basis method, the rebates would not be reflected on the Fin Stmts but neither would any money owed by advertisers, etc.
Now, they can use either mothod but can't switch back and forth without full disclosure as to why.
"Everything is on its way to somewhere. Everything." - George Malley, Phenomenon
http://www.american-legacy-coins.com
It's as bad as your racetrack buddy welching on that $20 he owes you. You end up having to beg him for it. In this case, how much time and effort has Microsoft wasted responding to complaints and directing people towards PayPal for further obfuscation?
They've taken an opportunity and turned it into complete badwill.
<< <i>I'm probably not your peer, coindeuce, but I'm in complete agreement. The way Microshaft has handled this is a complete abomination. Unless they've run through many billions of $$$ they had lying around, this should have been paid on time. Your average methhead can engineer a PayPal payment.
It's as bad as your racetrack buddy welching on that $20 he owes you. You end up having to beg him for it. In this case, how much time and effort has Microsoft wasted responding to complaints and directing people towards PayPal for further obfuscation?
They've taken an opportunity and turned it into complete badwill. >>
Still searching for the President of MS or Bill Gates email to let them know how I feel.
"Everything is on its way to somewhere. Everything." - George Malley, Phenomenon
http://www.american-legacy-coins.com
<< <i>
<< <i>I'm probably not your peer, coindeuce, but I'm in complete agreement. The way Microshaft has handled this is a complete abomination. Unless they've run through many billions of $$$ they had lying around, this should have been paid on time. Your average methhead can engineer a PayPal payment.
It's as bad as your racetrack buddy welching on that $20 he owes you. You end up having to beg him for it. In this case, how much time and effort has Microsoft wasted responding to complaints and directing people towards PayPal for further obfuscation?
They've taken an opportunity and turned it into complete badwill. >>
Still searching for the President of MS or Bill Gates email to let them know how I feel.
Bill left the company last year. Very publicly commented on (was a multi-year transition). So, it wouldn't do any good to contact him. He, and his wife, have focused on their philanthropy around the world.
As for people who say they have "formed strong opinions about using MS and Ebay because of this", that statement made me laugh.....it seems to be from those that would only do things if there were a kickback to them to do so anyway.
Most of the people on these boards only used the search engine to go after the money...and most did it just for items to flip it seems. Many of them are the ones who whine about ebay in threads here as well.
Not all fit the above, but many do.
One way or another, with large corporations, I think most everyone will get their money, and even after they get it, they will still complain.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
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<< <i>Ok I know there are some bright people on here and also lawyers. >>
Hey Longacre ... I think he's taking a shot at folks like you and me.
Actually I don't think he realized he was being witty.
I miss the days when everything that happened wasn't analyzed for what it would look like in court.
For what it's worth, all my MSN cashbacks have been paid including one I forgot about. I didn't lift a finger. --Jerry
<< <i>
<< <i>
<< <i>Ok I know there are some bright people on here and also lawyers. >>
Hey Longacre ... I think he's taking a shot at folks like you and me.
Actually I don't think he realized he was being witty.
I miss the days when everything that happened wasn't analyzed for what it would look like in court.
For what it's worth, all my MSN cashbacks have been paid including one I forgot about. I didn't lift a finger. --Jerry >>
Go to prove there is more to the story than what they claim. What they are doing is close to being fraud. If there was a software glitch, as claimed, it would affect everyone, not a select group. There is some other reason for not paying and they won't disclose why. Maybe they didn't cut the program off soon enough and paid out to much. What ever the reason, they sold their service based upon a promise of a rebate and have not fulfilled their obligation. By sending phoney emails, they are just digging themselves a deeper hole.
Anyone know where to find where they are registered to do business?