Gift Cards-The hidden revenue

Gift cards to some are as synonymous with last minute gifts as the fruitcake during this time of the year. Gift cards to retailers though, should be viewed as the golden-goose of the retail world. When a customer purchases a gift card they have just increased your cash flow and possibly brought you a new customer as well. Other than the initial setup and creation of the gift card, everything after that should be viewed as pure profit by a fishing tackle retailer. There really is very little downside from the retailer’s perspective when it comes to gift cards. Here are five great reasons you should include gift cards in your retail space.

1. Instant Revenue
Having spent a few years of my life working for a large box store retailer, I saw how popular gift cards were every holiday season. The company loved gift cards, they even stressed to employees that we should push gift cards whenever a customer wasn’t sure what to purchase. Why gift cards? They are almost always pure profit for the company, instantly infusing cash flow into the business. Gift cards also help with the post holiday slump. Many consumers feel the pinch when the credit card bills start rolling in and will cut back on their spending. Gift cards offer them a chance to shop without guilt or feeling as though they are spending their own money.

2. Spending More
How often have you made a purchase for exactly $25 or $10 or any even dollar amount? It is very rare, especially when taxes are being applied to a sale. The same is true for shoppers with gift cards. Studies prove that shoppers tend to spend 20% more than the value of their gift cards.

3. No Sales Needed
Consumers who shop with gift cards tend to worry less about whether an item is on sale or not at the time of the purchase. Studies show that they are actually two-and-a-half more likely to pay full-price for their items than a customer who isn’t shopping with a gift card. This fact alone can create a nice spike in revenue post holidays for any retailer.

4. New Shoppers
We all have received gift cards to stores that we rarely if ever enter, but after receiving the gift card we feel inclined to at least go in. This is a great opportunity for you to gain new customers. Many anglers have their favorite shops and are very loyal to them. Gift cards give them a guilt-free excuse to visit your store and shop.

5. Unused Cards
Gift cards have one caveat for the receiver; they are easily lost or forgotten about. We all have lost a gift card or found one in our wallet with money remaining on it that has expired. For the retailer, that is pure revenue, though not as much as it could have been if the consumer had used their card, but still it is revenue. The federal government and many state governments have stepped in to regulate gift cards and how quickly they can expire, but still they do expire eventually.

The bottom line is gift cards are a great revenue stream for your fishing tackle business and can help all year long. Gift cards are not only for the holidays; they can be given all year long. When you design your gift cards, please make sure that your business information is well represented on it. Nothing could be worse than someone receiving one and not knowing where to go to spend it.