Ten Reasons Why A Merchant Should Offer Gift Cards

Since gift cards were discovered by consumers more than two-thirds have purchased at least one. The popularity is increasing each and every day...and is only going to continue. Here are 10 reasons why a merchant should initiate a gift card program into their business:

1 - When a business offers gift cards there is a knowing increase in their bottom line. The consumer is pre-paying a business with this purchase which represents an improvement in cash flow.

2 - Upon receiving cash up front, the merchant not only earns interest on this cash from the point of purchase to the time of use but it gives a business owner the opportunity to invest in their business as soon as the purchase is made.

3 - This type of card is the most requested type of gift by consumers. They would rather purchase for themselves than take time to return an unwanted gift, only to purchase what they would rather have anyway. And having the opportunity for the gift giver can be very stress-relieving due to the uncertainty of the perfect gift.

4 - Cards also offer an alternative to shoppers when they would otherwise opt for cash in a card. When a business offers these cards they are adhering to their customers' needs and desires which in turn causes repeat business.

5 - On average, three out of four consumers spend 25% to 50% more than the initial value of the card - adding an unexpected amount of money to the bottom line of a business. It's like free money to consumers so they're willing to splurge.

6 - On the other hand, an average of 10% to 15% of consumers never redeems the full value of the card. This means that a business that offers gift cards keeps the difference which means - 100% profit!

7 - Sales increase not only during holiday season but year round. Cards are purchased for birthdays, anniversaries, graduations, baby showers...the list goes on. And, since a gift card shopper can use their card at any time a business owner has more steady sales - unlike cash shoppers that have to wait until payday or just before holidays to spend money.

8 - Instead of giving cash back on refunds a business can give gift cards - eliminating any money coming straight out of their business account thus allowing money spent in the business to stay in the business.

9 - If the availability of these cards is by a business owners' cash register it makes it convenient and easy for customers. Having them ready and in sight for your customers can also cause impulse buying - another additional income added to the bottom line of a business unexpectedly.

10 - Some customers that receive a card as a gift like to show them off to others - such as relatives and friends. What happens FOR a business when others see a company name on the gift card? FREE advertising!

Many small business owners assume that gift cards are only for large national retailers which is far from the truth. Any business...large or small...would profit from a program such as this. Offering gift cards is truly a win-win situation for both the consumer and the seller.