Gift Cards
I am offering Gift Cards for sale in my shop. A few points about them:
- Gift cards can be in any amount. The ones I have don’t have a dollar amount printed on them, so the value is determined at the time of initial purchase.
- You need to have a good tracking system for them. My POS system doesn’t know how to do this so I’ve found a little program called Gava that does the job.
- It also helps to have a barcode scanner or mag strip reader. Each gift card has a unique number printed on it, that the scanner can read. Having the scanner simplifies the process, and makes the card more “official”.
- Gift cards like this can ONLY be redeemed in YOUR store! (I also sell Visa Gift Cards which can be redeemed anywhere. On those I make a commission on the sale.)
- Be sure to print your conditions on the back.And most important:
- Check your local laws. In NY the value of any unredeemed gift cards reverts to the state after five years, MINUS the fees. I’ve set the following fees (which are printed on the back of the card) so that the state gets virtually nothing no matter how big the initial value of the card:”After 12 months of non-use, a dormant account fee of 10% or $3.00, whichever is greater, will be deducted from card balance until card is used or value depleted, unless prohibited by law.”
This will pretty much drain a gift card before the five years are up.
From a business perspective Gift Cards serve two purposes: They bring money into the business earlier, and they stimulate larger sales when they’re finally redeemed. The card sitting in someone’s wallet also serves as a bit of advertising, too!
P.S. Giving away your own Gift Cards is a great, CHEAP way to promote your business! They cost you nothing until they’re redeemed.
