Why Your Small Local Business Needs a Gift Card Program
Many small businesses don’t feel the need to offer gift cards for a handful of reasons. Maybe they consider themselves too small, already offer gift certificates or just don’t know where to start. But if you don’t sell gift cards yet, you’re ultimately missing out. You take pride in your business and products, which means that they’re as good if not better than those of larger companies. So why should you offer less options than they do? Here are four reasons why small or one-location businesses should sell gift cards.
Increase Your Revenue
Gift cards are a lucrative business: every year, billions of dollars’ worth of gift cards aren’t redeemed for goods or services. If you sold gift cards, you could inject those unclaimed card balances right into your business without having to worry about delivering large quantities of goods or services all at once, since gift cards are usually redeemed one at a time over a longer period. This can lessen the pressure on your staff and inventory during peak seasons and even bring in traffic during slower periods. But the best part? When people who receive gift cards do spend them, 72% of them spend 60% more on average than the value of their gift card. Money that makes money? Yes, please!
Give Your Business an Edge Over the Big Guys
Small businesses are different from large companies in one major way: they have fewer resources to accomplish the same job, and — as if that wasn’t enough — they don’t have a bulk price advantage. But being “too small” is no excuse to not meet consumer demand. Small businesses should therefore design a product offering that can compete with that of large businesses, many of which offer gift cards. When consumers are looking for a quick and easy gift (especially over the holidays), whoever sells gift cards will have the advantage (and a quicker turnaround at the cash register!)
Sell a Card, Get Free Publicity
No matter how long you’ve been in business or how good your offering is, you’ll almost always need to market your brand and attract new customers (or remind old ones that you’re still around). Gift cards are free publicity: customers who love your business and are happy to share it with others will essentially be paying you to circulate cards with your business name and logo on them. And for each card you sell, you can be sure to gain at least one new customer. Gift cards can really expand your reach!
Put in Less Effort for Better Results
If you already sell gift certificates, you might be wondering why you would replace them with gift cards. That’s easy. First, consumers prefer giving and receiving gift cards, as gift certificates are outdated, fragile and bulky and don’t have much aesthetic appeal. Second, employees prefer selling gift cards, which they can swipe like a credit or debit card, since printing, logging and signing gift certificates is time consuming. Third, you can swipe gift cards directly from your payment terminal, so you can easily keep track of how many are in circulation at all times. Fourth, gift cards are less prone to fraud, since anyone with a good printer can easily forge a paper gift certificate.
Launching your own gift card program can be quick and easy as long as you choose the right partner. With Paystone, you could be swiping gift cards in as little as 10 business days for as little as $30 a month. Sell only one or two gift cards, and you’ve already made your money back. The rest is profit.