Merchant Account Blog - Straight Pass Through » Gift Cards http://www.straightpassthrough.biz Merchant Accounts Made Simple Wed, 17 Mar 2010 23:40:26 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Merchant Account Gift Card Program = Increased Revenue http://www.straightpassthrough.biz/2009/01/22/merchant-account-gift-card-program-increased-revenue/ http://www.straightpassthrough.biz/2009/01/22/merchant-account-gift-card-program-increased-revenue/#comments Fri, 23 Jan 2009 01:42:15 +0000 Craig Peterson http://www.straightpassthrough.biz/?p=682 Written by Craig Peterson, Vice President of Business Development for TenderCard

The gift card industry continues to grow at very fast pace, more than doubling in less than 3 years. Gift cards have replaced the old paper gift certificate. Gift card companies are now creating programs that cater to the small to medium size businesses with specialized programs with smaller card order minimums and lower pricing. 

Gift cards have many uses and advantages to business today.  The following are a few way that they can help:

Advantages/Benefits:

  • Brings in repeat and referral business
  • Retention of existing customers (each card has an average of 3 transactions)
  • Helps with cash flow and float (93 days on average)
  • Performed electronically – report available on-line, no more paper tracking
  • Great for refunds and returns – Keeps cash in the draw
  • Gives the customer what they want – 46% of the consumers surveyed would rather receive a gift card that anything else
  • Great Return on Investment (ROI) up to 400%

Uses for Gift Cards – Marketing for the Merchants
Gift cards are little billboards in the customer’s wallet and they help the merchant build name recognition and gain repeat/referral customers.

The following are some uses for giftcard, that can help you think outside the box! Promotional marketing tool

  • Ad space costs more than promotional gift cards
  • Discount cards mailed to targeted customer group
  • Used as a gift with purchase

Corporate incentives

  • Sell to companies to use as employee incentives/rewards

Prepaid vehicle for recurring sales

  • Coffee Shops, Dry Cleaners, Auto Detail, Oil Change Programs, etc.

Store credits, returns & refunds

  • Keeps cash in the drawer

Customer appreciation and retention

  • Reward loyal customers
  • Turn customer disputes into retention opportunities

Fund raisers

  • Sell cards at a discount to schools & non-profits, helps create traffic and goodwill in the community.

This article was written by Craig Peterson, Vice President of Business Development for TenderCard, a national gift and loyalty card solution.  Craig is a Board of Trustee for the Ohio Restaurant Association. For additional information for resellers or questions you can reach Craig at 800-383-8280 ext 277 or cpeterson@tendercard.net

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]]> http://www.straightpassthrough.biz/2009/01/22/merchant-account-gift-card-program-increased-revenue/feed/ 3 Use Your Merchant Account to Increase Your Revenue http://www.straightpassthrough.biz/2007/10/04/use-your-merchant-account-to-increase-your-revenue/ http://www.straightpassthrough.biz/2007/10/04/use-your-merchant-account-to-increase-your-revenue/#comments Thu, 04 Oct 2007 18:20:50 +0000 Robb Lejuwaan http://www.straightpassthrough.biz/2007/10/04/use-your-merchant-account-to-increase-your-revenue/ Giftcards_2
My focus is usually on saving
my clients money instead of helping them increase their revenue.  Today
that changes; I have a method that for an average business creates an
additional $19,000 in the first year of use.  Wondering what this method
is?  It is a gift card and/or loyalty program. 

My sixth grade son had a birthday party to attend a few weeks ago and I asked
him what gift he would like to purchase for his friend.  The answer?
A gift card.  After the party I asked what the other kids brought as gifts
to the party.  The answer? Gift cards, everyone of them!

That got me thinking, when I receive a gift card what happens?  For me it
is one of two things; I either lose the card or I go into the store and
purchase an item worth more than the gift card amount.  Either way the
company that sold the gift card wins. 

Here is how it a gift card program might break down for a small retail
business:

Revenue

Average Gift Card Value  $25
x  500 cards sold  =  $12,500
Customer spends more that
value of
card                             $10  x   500  =
$5,000

               
          
               
TOTAL SALES  =
$17,500

Cost of Goods Sold @ 50%          
                  =  $8,750
Gross
Profit                                                 =  $6,250
10% cards never redeemed 
                          =  $1,250

                                          NET
REVENUE   =  $7,500

Program Costs

Materials(cards, card holders, etc.)         
        =  $500
Transaction Processing
      $41/month x
12                                     
=  $492

                                          TOTAL
ANNUAL COST =  $992

                                                         
NET PROFIT  =  $6508

Have I peaked your interest?  I imagine for many of you reading this post
a program like this has long been on your to do list. So how do you get set up?  Just fill out the form here and when I contact
you let me know you would like a gift card program.

If you would like some more
information here are some links that will provide more information:

My favorite gift card program

Project
your own gift card program ROI

 

 

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