06 February 2009

How about another business idea?

I saw the writing on the wall at Walmart and other places like 7-11, Target, Home Depot, etc. What did I see years ago and now? Cards, lots of cards. Cards at the registers and cards in the departments. What kind of cards? Gift cards of course, but you already guessed that by now. Why do companies go ga-ga over gift cards? That's easy and somewhat complex all at the same time. From an accounting/sales point of view when you purchase (load) a card the company recognizes an immediate sale for that amount. Great for the retailer! It's win win for the retailer but maybe not so dreamy for the consumer. There are some important things to keep in mind when buying them. First, always keep the receipt, you'll need this in case you happen to lose the card. Get to the store right away to suspend the misplaced card and get a new one issued. Secondly, if you wait too long to go back to the store ANYONE who picks up the card can use it, ANYONE! A no balance card cannot be suspended, your loss. Third, convenience. Most gift cards can be reloaded indefinitely so you always have access to shopping or if you have a child who's a student living away from home you can load an allowance for them into it remotely from a different store with the card number. Small shops and big corporations are now relying more and more on the gift card to provide a renewable source of sales for them all the while utilizing many unique and trendy card designs with lots of eye appeal. The last thing I want to mention is the 'I forgot' factor. Companies are realizing sales beyond actual sales due to consumers losing or forgetting about cards they posses which leaves the company with extra revenue due to non-utilized cards. So remember to keep the cards handy, when used just jot down the new balance on the back of the card, and make sure you use it all up. After all, it's already paid for so get your money's worth!

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