How profitable are gift cards? In a word, very! With an estimated $87 billion in 2009 sales, it’s easy to see why so many merchants have flocked to gift card printing over the last 5 to 10 years. Profitability comes in several forms to merchants who opt for gift card printing from suppliers like My1Stop.com .
For the merchant, gift cards are a no-lose proposition. Why? Because either the full card value is never fully used – or purchases made with the gift card exceed the value of the card. As an example, the recipient of a $25 gift card rarely makes a purchase that exactly equals $25. So, if the recipient uses less than $25, the merchant has no cost against the unused value. If the recipient uses more than the gift card value, the merchant enjoys the $25 sale plus the additional sale value. That’s a very profitable scheme.
Yet, it’s because of this win-win scenario for the merchant that some predict the pre-valued gift card will begin to be replaced by the debit gift card. Many merchants and gift card printing suppliers see a trend toward “branded” debit cards as the next new thing in plastic card printing.
Because the gift card landscape is changing rapidly, we suggest that you work with a knowledgeable supplier, like My1Stop.com to get the best vale from your plastic card printing budget.