TigerChef

Offering gift certificates with built-in bonuses is just one way local restaurants, bistros and diners can reap additional sales. Consumers are desparately seeking more bank for their buck, and with bonus offerings establishments may realize a spike in gift card/certificate sales as consumers purchase these "gifts" for themselves.

This holiday season shoppers sought  ways to save, from the most common to the very unique. For example, Discover Card customers could cash in rewards earnings for gift cards, and often for higher amounts at face. One could cash in $40 in rewards, yet obtain a $45 card valid for a particular store. With hundreds of deals like this, savvy shoppers were cashing in rewards to get higher valued gift cards - cards which were then used to purchase gifts at the appropriate stores.

By offering bonuses, such as an addtional 10% to the face value, you reap many sales benefits:

• Guaranteed money coming in - every gift certificate sale is guaranteed money. Despite the fact it's not an instant profit (depending on your bookkeeping, it may be filed under a liability), it does bring additional business in.
• Higher sales amounts. When people realize they can get $22 when spending just $20, they may purchase higher amounts, especially for establishments they frequent.

Keep in mind, though, that while gift certificates are paid for upon purchase, the monies are a liability - you have to honor them when presented. As with anything financial, we recommend you discuss plans like this with your accountant.

Filed under: General • Sales Boosting

Tags: gift certificates