In our last blog, we revisited the topic of gift cards – and with good reason. With the start of October just a few days away, the fourth quarter of the year is about to begin. As we pointed out, it’s an important time of year for all retailers. Plans will soon be put into place to maximize sales during the soon-to-be-here holiday season. And, at Canadian POS Corporation, our experience has shown us that selling gift cards should always be part of that plan.
Here are three reasons to start selling gift cards before the holidays get here:
1. You will easily generate greater profits.
Isn’t the entire point of your business to generate profits? To increase profits, sell gift cards! Yes, it literally is that cut and dry. Having gift cards in your store will not only attract more customers, but boost your sales. Consider the fact that you will be earning money for sales that haven’t even been made yet. In addition, statistics show that gift card recipients end up spending more than the amounts on their cards. That’s just more money for you!
“Customers using gift cards typically spend 20% – 50% more than the average purchase amount,” informs Sarah Kannenberg on PlasticPrinters.com. She goes on to point out that “plastic gift cards have been shown to increase sales by 50% to 100% over paper gift certificates” and “the most profitable square foot of selling space is your gift card display.”
2. They help your shoppers stick to their budgets.
For many consumers, holiday shopping can get a bit out of hand. The costs for all those gifts can add up quickly, leaving many a shopper overwhelmed with debt in the new year. Savvy shoppers have learned that with the even denominations that most gift cards are available in, gift card shopping makes it easy to stick within a budget. Not to mention, it takes away the guesswork that comes with trying to figure out what loved ones like.
“If you — like many others (every) holiday season — are feeling like the Grinch stole your bank account, gift cards can be a simple way to stay on budget,” Mandi Woodruff points out to shoppers on Yahoo.com, “By picking up gift cards, you can breeze through stores without being tempted to make impulse purchases, and you can plan your budget down to the penny.\”
3. They are dreams come true for last minute shoppers.
Yes, it is possible that once October begins, you will be welcoming early holiday shoppers into your store. But holiday shopping is something that is predominantly done in November and December – with an emphasis on late December. Your gift cards will make it so much easier for last minute shoppers to get their shopping in before the big days at the end of December arrive. Take advantage of their procrastinating ways!
“Nearly 90% of holiday shoppers said they still had gifts to buy in early December, according to a recent RetailMeNot survey,” reveals Woodruff, “Contrary to what Super Saturday fans will tell you, we see no point in trying to dig through the picked-over aisles at your local mall for last-minute gifts. Go easy on yourself and scoop up a handful of gift cards. There’s no rush delivery fee to worry about and at least you can be sure your gift will be put to good use.”