Gift Card Profits !!!!
Thursday, July 10th, 2008If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Selling Gift Cards = Profits
Selling gift cards can increase your bottom line by, adding new customers, putting advance cash into your business, and profiting from un-redeemed values. Lets take a look at each, strating with new customers. Gift card purchasers must think highly of your products or services to consider giving them as a gift. This is kind of like a recomendation to their freinds and family. As these gift cards are redeemed you will introduce your business to these new customers.
Secondly, a gift card sale is a “Cash Advance” for the possiblity of a future sale. You can use this cash advance as you like. For example to re-invest in inventory, advertising for your business, overhead expenses, ect. The greatest bennefit is that it is interest free money.
Thirdly, is the profit you will receive from “Breakage”. Breakage is value of the gift cards which are never redeemed. Most times the full-value of the gift card is not redeemed and many times the gift card will neverr be redeemed at all. A conservative estimate would be 15% of all gift card sales are never redeemed. Keep in mind, that is pure profit.
Many gift card programs vary in cost including statement fees, transaction fees, and discount rates. We offer the Valutec Jumpstart Program, which highlights a Flat Fee of $39 with includes 100 Free Crads, no transaction fees, and no discount rate. We feel our giftcard program is the most cost effective on the market today. We also offer programs for larger businesses doing high volume gift card sales.
Call us today to discuss your gift card needs.
MARK SANDS
http://www.usa-merchantaccount.com
If you enjoyed this post, make sure you subscribe to my RSS feed!
