Gift and Loyalty Cards

Gift Cards are a growing market

  • Gift card sales in 2005 were estimated at approximately $65 billion - up an estimated 24% from the previous year
  • The average consumer spent $233 on gift cards with an average value of $48
  • 92% of adults have gift card awareness - up from 76% in 2002
  • 59% of the American shopping public, 131 million people, has used or reveived a gift card in the past twelve months.

Benefits of using Gift Cards for your Business

  • Plastic gift cards outsell paper gift certificates 10 to 1
  • Card circulation helps build brand awareness
  • Declining balance keeps full cash value in store
  • 56% of customers spend more than card value
  • Powerful promotional tool for marketing campaigns
  • Electronic audit trail minimized losses
  • Merchant billboard in customers wallet
Return On Investment - Profit Potential
(When Purchasing 500-2500 Custom Printed Gift Cards)
Card Services & Costs 500 Cards 1000 Cards 2500 Cards
Number of Cards Sold 500 1000 2500
Cost Per Card $1.51 x 500 $1.40 x 1000 $.65 x 2500
Total Card Costs $755.00 $1,400.00 $1,625.00
Transaction Costs
(Includes 4,000/Yr)		 $40/Mo. $40/Mo. $40/Mo.
Annual Transaction Cost $480.00 $480.00 $480.00
Merchandising Tools Included Included $500.00
Program Set-Up Fee $500.00 $750.00 $1,000.00
Total Cost $1,735.00 $2,630.00 $3,605.00
Profit On Gift Card Sales (Selling 500, 1000, 2500 Gift Cards)
Profit Item 500 Cards 1000 Cards 2500 Cards
Average Activation Amount $50 per card $50 per card $50 per card
Total Value Stored on Card $25,000.00 $50,000.00 $125,000.00
Customer Spends 33% More Than Value On Card $8,250.00 $16,665.00 $41,250.00
Total Revenue $33,250.00 $66,665.00 $166,250.00
50% Profit Margin $16,625.00 $33,325.50 $83,125.00
12% Un-Redeemed $3,000.00 $6,000.00 $15,000.00
Program Profitability $19,625.00 $39,325.00 $98,125.00
Total Cost (From Above) ($1,735.00) ($2,630.00) ($3,605.00)
Net Profitability $17,890.00 $36,695.50 $94,520.00