The slow months of summer are finally over and we are ready for the holidays. As you know, this is where retailers can thrive financially. Hopefully, you are stocking up on the latest trends and filling your store with things that only you can provide.
One of the best things you can do during holidays is to provide gift cards to your customers to share with friends and family. Did you know that 72% of people will spend MORE than the original value of the gift card? This means more revenue and more profits. But there are lots of other things you can do with gift cards that can help, here are some ideas:
- Charity Donations: Give gift cards to charities to “sell” at auctions or give as door prizes. This is a great way to bring in new customers and increase revenue. How to: Create a non-inventoried product called “Donation”, make sure it isn’t taxable and set the “sell price” to zero. When you donate the card, sell it at full value and add the donation product at a negative value, balancing the transaction to zero dollars. Make sure and give a report to your accountant of that product so you can get that tax write-off!
- Spend $XXX.XX and get a $XX.XX gift card: By getting customers to spend a few extra dollars to get a small gift card, you create an incentive to spend a little more AND make sure they personally come back. Follow the same steps as above, but create a “Holiday Promo” product to balance the transaction. You might want to put on the card that it’s only good after January 1.
If you have questions, don’t hesitate to reach out.