Accept Gift Cards for FREE, via your POS! Too good to be true?
Accepting gift cards is a well documented way to drastically increase sales, customer loyalty, and profit margins despite the expense to redeem them. So what if I told you there is a simple way to accept customized gift cards for your restaurant or retail business and never have to pay a gift card processing fee again? To good to be true?.... Absolutely NOT. In the first part of this series we discussed just a few of the ways that a robust POS (point of sale) system can greatly increase the efficiency and profitability of your business. In today’s edition we are going to take a look at how offering gift cards can be big source of income for your business as well as show you how the Merchant Doctor’s POS system will process your gift card transactions 100% free of charge!
In our experience there are hundreds of benefits to offering gift cards in your place of business but there are 5 specific benefits to offering gift cards that every business owner appreciates
1. The first way Gift Cards benefit your business and pay for themselves is through Breakage.
Breakage or the unused amount left on gift cards that never gets spent is essentially pure profit to your business. The national average on how much is left on a card can be as high 19% (during the holiday season) according to Consumer Reports. In our experience the year round average varies from business to business in the 10-20% range.
Did you know that between 2005 and 2012 over $42 Billion dollars in gift cards went unused?!!!!
In addition to breakage, unlike issuing Gift Certificates customers will not expect to be able to get cash back, there are no clumsy log books that have to be kept for tracking balances, and you won’t have to take time to reissue a certificate for the balance saving you time and eliminating the possibility of costly mistakes.
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Does your business offer Gift Cards?
2. Gift Cards also offer great Marketing and consumer awareness opportunities.
Your custom gift card is like a walking billboard. Not only are your already loyal customers likely to purchase them for friends and family that may have never been to your business but you can use them in any number of ways to promote your business. From radio station giveaways, non-profit donations, customer contests, holiday thank you's the marketing opportunities are virtually limitless. All this makes gift card programs one of the least expensive ways to advertise your business.
3. Gift cards have been proven to Increase sales.
Not only do they make a great impulse buy at the register, but, many people spending their gift cards will spend more than the balance on the card. Gift card holders are also more likely to purchase a full priced items rather than wait for them to go on sale. As a matter of fact the dollar amount gift card purchased average 20-50% higher than cash/credit card purchases! So whether your customer spends less than is on the card and doesn’t redeem the remainder or they spend more than is on the card you win!
4. Create more return visits with your gift cards via Loyalty Programs.
Most gift cards have the ability to create and incorporate loyalty programs. Customer loyalty programs are a great way for you track and reward your loyal patrons which results in better word of mouth advertising, more frequent repeat visits, and great targeted marketing opportunities all of which lead to higher sales.
5. Gift Cards decrease returned merchandise.
According to the National Retail Federation, about 9% of holiday gifts are returned every year. Since gift card recipients are choosing their own gifts returned merchandise is greatly reduced. This helps you avoid the high cost of restocking items, incurring more credit card processing fees, and possibly having to try and sell the returned item at a deeply discounted rate.
So if gift cards are so great for business why don’t more businesses offer them let alone use a point of sale system? We find that there are 2 major reasons why merchants fail to begin a gift card program for their businesses.
1. Their service provider or gift card company has a difficult, limiting, or complicated start up process.
2. Expense. The start up cost for Gift Cards can be very expensive. Many times a business will have to pay a set up fee, pay for Artwork/design fees, and then purchase the cards usually with a high minimum amount. THEN to add insult to injury you have to pay to process each gift card transaction even though you most likely paid credit card processing fees when the gift card was purchased.
So can you accept gift cards for free?
That being said even after all that expense a gift card program will more than pay for itself but WHAT IF you could not only get free gift cards but NEVER pay for a gift card transaction again? How much money could your business save? How much MORE productive would your gift card program be?
Well the Merchant Doctor is excited to unveil 100% free gift card processing via their retail and restaurant POS systems. Not only will your business get the most cutting edge POS but the most affordable point of sale system on the market combined with the most competitive credit card processing rates in the industry. All this while processing all of your gift card transactions 100% Free and creating great - easy to manage customer loyalty programs.
If you have any questions regarding a point of sale system (pos) or your credit card processing the Merchant Doctor is acts as an advocate to make your credit card processing, marketing, and point of sale system work for your business as they are one of the few merchant service providers that understands your success is their success. So for no bull, no pressure answers to your questions feel free to contact them.
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