In a struggling economy, many companies are looking for ways to create new streams of revenue. One thing that can certainly do that for a business is the printing of gift cards. Below are just some of the reasons you should order gift certificate printing from a professional printing company.
1. Gift Certificates Are Cheap to Produce
One of the greatest benefits of selling gift certificates is that they are incredibly cheap to obtain. For example, let’s contrast a restaurant’s gift cards against certain food products they must sell. A piece of meat, for example, will be far more expensive to purchase from a supplier. It will also expire after a certain point if not sold, eliminating the possible revenue from its sale. Other expenses will have to be incurred due to the fact that the meat has to stay at a certain temperature in a freezer.
This is not the case for gift certificates at all. Ordering a large stack of gift certificates from a professional printing company will cost peanuts by comparison. There are also basically no overhead expenses. The certificates will never wear out, and they can literally be stored anywhere.
2. A Good Portion of Certificates Are Never Used
Better yet, a huge portion of gift certificates sold are never actually used. This percentage can be as high as ten percent. For those certificates that are never actually redeemed, it means almost pure profit for the business in question. No goods or services, that cost money for the business to produce or sell, are exchanged for the certificates. The only expense that is incurred is the tiny amount it cost for printing services. This can lead to incredibly high profit margins. These margins will almost always be higher than the profit margins for other products a business may offer.
3. They Act as Referrals for New Customers
Another great thing about gift certificates is they act to quickly increase your customer base. This is due to how they are used. They are gifts of course. This means that a customer you already have will purchase a certificate and give it to someone else. While this person may sometimes be a customer you already have, chances are much higher that person is not a regular customer or a completely new customer entirely.
This means you will suddenly receive new sales from an entirely new customer. If he or she likes your products or services, this can also mean continued business from that person in the future. This is why the sales of gift certificates can quickly increase your customer base and the revenue you receive from sales.
4. They Can Increase Existing Customer Loyalty
Another thing you can use certificates ordered from printing companies for is increasing the loyalty of your existing customers. As most businesses know, customers can be fickle. While you may receive business from a person a few different times, chances are that customer will be lured away by the cheap prices or promotions of a competing business.
Gift certificates can help curve this and increase customer loyalty. For example, you can give customers a card where each of their visits is marked off. After the fifth or so visit, they may receive a $10 gift certificate that they can use on their next purchase. Not only does this mean those customers will come in for a sixth visit, but it also means they will feel appreciated by that company. This could lead to years of future business from those customers.
5. They Can Be Used for Customer Service
Another great use for gift certificates is they can be used as a tool for your customer service department. For example, a mistake may have been made at some point by your company or some of your employees. If a customer is dissatisfied, more could be at risk than that customer’s hurt feelings. You may lose his or her business forever and all the revenue over the years produced by those sales that would be lost.
One way to easily smooth things over is giving a customer a gift certificate. It could be for as little as $10. Even that much may be enough to make that customer happy with your company again.