Credits

When you visit one of the casinos on Las Vegas Boulevard these days you’re not going to find many machines that you can slip a quarter into. Rather, you’ll find that you need to buy a card loaded with credits. This reality does many things. It keeps your hands cleaner. It makes it easier to track your comps. It also makes you forget that those “credits” on your card are dollars.

Excuse the Yogi Berra style quote but, when you don’t feel like you’re spending money, you’re not afraid to spend it.

We’ve seen hybrids of this model with iTunes and Sony’s PS3 marketplace, but many of these successful implementations have happened around non-tangible goods. And when they have been tied to tangible goods they’ve come in the form of gift cards.

But…

-Most stores market gift cards for you to give to someone else.

-Stores that offer Gift Cards also accept other forms of payment such as cash or credit.

-Items that can be obtained through gift cards are still listed in “dollars.”

If stores were to switch to credit loaded cards only, my question is:

-What tangible goods could be sold under this principle?

-What price points would be too high where consumers would become uncomfortable with not being able to compare goods?

-Would the lack of accepting cash or credit ultimately destroy a business?

-Would this be seen as being deceptive? Or would a “comps” program make it worth it?

-If competitors started to copy this format would it become irrelevant?