The holiday season is looming before us. This is a perfect time to implement use of gift cards in your Point of Sale business. How can this help your bottom line? Below are some of the ways in which gift cards can increase sales and eliminate losses.
When gift card recipients come to your store to redeem cards, this attracts new customers. If the purchase was for less than the amount of the gift card, a repeat visit will usually occur. If the purchase was for more than the amount of the gift card, your sale has increased.
As gift card users tend to pay full price more often (they see gift cards as a "discount"), your profit margin is increased. They also tend to make larger purchases (to "use the card up"), or buy something that costs more than the card amount, which also increases your profit.
When you sell a gift card, your cash flow is improved. You keep the cash until the card is used.
If refunds are issued to a gift card rather than to a credit card or for cash, you can be sure that the funds will be spent in your store.
Often gift cards are not fully redeemed. This is a profit value for you.
Electronic gift cards eliminate the possibility of counterfeiting or pilferage from employees or customers since the cards have no value until activated.
Gift cards can become a great marketing tool. Your company name on the gift card keeps your business on customers' minds!
CCS can help you incorporate the use of gift cards in your business. Call us at 425-672-4806 or email us for more information.
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