It’s official. Shoppers now have under a week to complete their Christmas shopping. And you know what most of them are going to resort to in the final days before Santa Claus comes? Gift cards! Now, that’s not only because gift cards are super easy go-to gifts that are perfect for last minute shopping – which they are. But, it’s because shoppers know that they can’t go wrong with gift cards. They make ideal gifts.
The most obvious reason is that gift cards give recipients exactly what they want. And more importantly, for you, they give you exactly what you want! But wait. Are you selling gift cards at your place of business? As Annie Mueller writes on Investopedia.com, there are several reasons why retailers love gift cards too. She lists six reasons you will love selling gifts cards in your store if you don’t already.
1. You still earn money from unused cards. Remember that when you sell a gift card, you are earning money for merchandise you haven’t sold yet. And from, time to time, some of those gift cards you sold won’t end up being used. That means that you make money for selling nothing! “Not all lucky recipients of gift cards remember to use them,” informs Mueller, “about 6% of gift cards end up unused. For retailers, nothing could be better.”
2. You’re more likely to sell your items at full price. Most gift card users aren’t necessarily looking for bargains because what they end up buying is “free” anyways. As Mueller points out, “people shopping with gift cards are 2.5 times more likely to pay full price for products. When buyers might hesitate if making a cash purchase, they often won\’t think twice when using a gift card. Obviously, for retailers, making full price on an item increases the profit.”
3. You’re bound to attract new customers. This is one of the top benefits of selling gift cards. They help to give your company more prestige and they encourage more customers to come to you for that “easy way out”. Not to mention, gift cards encourage recipients who may never have visited your store before to give it a try. “Some purchase and give gift cards to treat friends to a new experience, a new store or a new product,” says Mueller.
4. Most customers will spend more than the value of the card. The majority of purchases don’t equal the exact value of gift cards. People don’t generally mind spending more than the value of the cards since, to them, it’s a great deal no matter what. “About half of all consumers end up spending more than the face value of the gift card,” writes Mueller, “According to studies the majority of shoppers who walk in with a $50 gift card will spend 20% more on their purchase in store.”
5. They will boost your sales. “Holiday sales are the boon of the year for retailers,” she continues, “but the post-holiday slump can be painful when retailers are still trying to move overstocked inventory. Gift cards help bring people back into the store in that slow, post-holiday season.” January will never have been more successful for you if you sell gift cards throughout December. There aren’t many better ideas for encouraging post-holiday sales than gift cards.
6. They will gain you repeat business. Who’s to say that once a new customer visits your store that it will be his or her one and only time? “Gift cards may help guarantee repeat business,” offers Mueller, “a shopper who might not have returned, or might not have returned as quickly, will be pulled by the lure of a gift card to do repeat business. Every moment a consumer spends in-store is a chance for a retailer to increase brand loyalty.”
Order your gift cards from Canadian POS Corporation today by calling 1-877-748-2884!