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From the publisher: March 2005 |
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Written by Sue Fredericks
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Gift cards keep on giving
As I write this column, many of you will be at the gift shows, buying merchandise to sell next Christmas. That makes this the perfect time to work on your sales plan for Christmas ’05.
The most recent edition of The Graff Retail Report, published by the Graff Retail Group of Oakville, Ontario, stated that households in the U.S. received an average of 2.5 gift cards or certificates for the Christmas 2004 season. They estimate that the average total dollar value of these gift cards was $142.00.
This new trend has the potential to change the way you do business for the holiday season.
Selling gift cards instead of merchandise during December extends the holiday shopping season.
The Graff report says that you can expect up to 45 days of extra holiday shopping as customers come in to redeem their cards. The report goes on to suggest you could plan to have less inventory in December and bring in new stock for January. This way you have a selection of fresh, full- priced merchandise for customers to peruse. No point in only offering your mark down items.
The Power Of Gift Cards
The gift card market is set to grow by more than 55% by 2006. – JC Williams Group, “Gift Cards Are Here to Stay – Why retailers should take them more seriously”, 2004
• 31% of customers are motivated to shop where gift cards are offered.
• 47% spend more than the initial face value of the card.
• 19% never spend the full value on the card and any remaining balances go straight to your bottom line.
(source: OmniCan National Telephone Survey, May 2004.) |
The report also points to evidence that customers typically spend more than the value of their gift cards, and the flip side is that some customers leave unspent dollars on the table. It’s a potential win-win situation for florists.
The secret to success lies in how well you plan to sell to your captive audience. Be sure to spend time with your staff reviewing the ABC’s of sales. A warm friendly greeting when they enter the store, ask questions to determine their needs, present a variety of goods for them to choose from, and of course close the sale. Research shows that people buy more when they are shown multiple items, so be sure to present complimentary items that you can build a sale on.
You don’t have to wait for Christmas to start your gift card sales. In fact you should start now so your customers know you’re in the game. To learn more, watch for the next issue of Canadian Florist, or do an on-line search for: gift cards.
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