We have moved our Blackhawk gift card stand and placed it facing shoppers as they enter our store. We check the stand regularly to ensure that the iTunes cards are facing out. They are the most popular cards we have available.
I’d encourage all newsagents with a Blackhawk stand to ensure that it is in an excellent high-traffic location for the next ten days. The gift cards can be an ideal purchase for last minute shoppers.
even though i do sell these i would prefer to sell other gift items that have already been paid for . Gift cards just do not make enough money to give them high traffic areas
What margin do you make on theses gift cards
for a 105.95 card you make $1.60 it is not worth giving prime space
at that return is it worth giving it any space at all?
Shaun I think your number is wrong. On a $100 gift card I make $5.00. With no stock cost and minimal space required, I’m happy with this.
I think shaun is referring the the $100 prepaid visa cards which cost the customer $105.95 and give us $1.60 commission
There is also a share in the $5.95 card fee too.
yes i am refering to the visa card . all i can see on the statement is $1.60 i cannot see anything about a share of the 5.95
?
on a $50 mitre10 card i make $1.00 if you are getting more than that i am getting ripped off by someone .
Mitre 10 commissions are the lowest. Sell an E Fragrance $50 gift card and you would get $4.00.
We were going to look into selling gift cards in the new year and hile i understand some margins are lower with certain products while higher on others and every bit adds up, after seeing those paltry margins i don’t think we’ll bother.
I know we have to have things that appeal to all and compete with other retailers but i could think of several things with much higher margins that would be a great deal more financially benificial to us than those. Fair enough it doesn’t take up much space but i’d guarantee if i was to put the same size spinner stand with a cheap range of cards or even kids stickers which have worked well for us we’d make a hell of a lot more money than those which.
We gift cards in the week before Fathers day and sold $900.00 worth in one day. The footprint for the cards is about a third of thas for the Herald Sun. Cards aren’t paid for until sold and are of no value if stolen unless you can have them actived somewhere. To my way of thinking any product that I am not out of pocket for until I sell it and takes up so little space is a no brainer. I’ll be getting out of the standard confectionery lines soon because for me they do take prime space for low turnover and allowing for stock beyond its use by date, low margin. Gift card, MYKI when it happens or any other product or service I can make a little money on for no upfront costs and little shop space are winners in my book.
After reading the previous posts again, just a point re prime space and profits that reinforces my decision to get out of confectionery.
I bet we all have gum at ou counters that we are out of pocket for until sol;d and gives us 40 cents profit once sold. Gice me the $1.60 any day.
the profit from $900 in sales is probally somewhere between $20 and $30 dollars depending on what you have sold ,that is rediculous . and with $900 in gift sales (that have been already purchased for xmas ) you could make an easy $500+ profit . As i said i do sell these but would definantly sell a gift line rather than a gift card anyday .
Brendan,
i would rather sell confectionary than gift cards