The answer to the question of what is the best gift card to sell in your shop is your own giftcard and no matter what shop you have big or small you most likely will benefit from carrying them in your shop.Here are some facts, Australians love these giftcards astheir recipients can pick their own gift. I know from personal experience. I could not figure out what tobuy mynephew recently soI brought him a $50 gift voucher and gave it to him. Then I thought that "Its nolonger myproblem what he wants its his problem." We buy giftcards in Australia about 2 billion dollars a year. The person who gets a giftcard when they redeem it typically spend 38 percent over the face value of their card.
Plus if they have one of your giftcards, they are much more likely to come into your shop. On top of that, about 8% of giftcards that are sold are not redeemed which if you think about it, is to the retailer a 100% margin.
If you add it up, say you sold a $100 gift voucher with a typical margin of 30% for items purchased with your giftcards. Your profit would be
Not redeemed (8%) = $8.00
Goods purchased = $92 x (1+38% that people pay over the face value redeemed) = $126.96
The margin on these goods is 30% here so that is $126.96 x 30%= $38.09
So your profit is $8 (not redeemed) + $38.09 (item profit) = $46.09
Here is a table which I created based on a range of margins for you to review based on a $100 gift voucher.
|Margin||Gross profit in $|
As you can see its quite impressive.
Now another use is that if you are giving a gift, donation or reward in your VIP club instead of discount which is cash, consider giving them a giftcard beside gaining a customer it costs less.
Say your margin on items purchased on a giftcard again is 30%, you gave a giftcard say of $25.
Not redeemed (8%) = $2.00
Goods purchased with the giftcard = -$23
Cost to retailer = -$23 x (1-30%)= -$16.10
Extra good purchased = $23.00 x 38% = $8.74
The margin on these goods is 30% here so that is $8.74 x 30%= 3.3212
So your cost here is -$16.10 + $3.3212 (profit on extra items) = -$12.78
Almost half of the gift.
Here is a table which I created based on a range of margins for you to review based on a $100 reward card
|Margin||Gross profit in $|
As you can see its also quite impressive.
If you aren’t offering giftcards in your shop, you could be missing out on a lot of sales and costs.
With our point of sale system, its easy for you to sell your own gift cards. There is a function on the main menu "Gift Vouchers", press a few buttons and out it prints a gift voucher.
Nor is it hard to advertise, simply put in the shelf that are other peoples giftcards, a big sign for your own.
The most popular gift card amounts are $25 followed by $50.