Use Magnetic Gift Cards To Skyrocket Restaurant Sales and Profits

Whoever created the idea of gift certificates was a marketing genius. The idea of taking someones money (which is valid anywhere) and giving them a certificate redeemable only at your restaurant was a pure stroke of brilliance. It made gift giving easy and guaranteed the restaurant profits either through redeemed or lost certificates.

The problem with paper gift certificates was that they took time to issue, track and redeem. Usually, the certificates were kept in a secure place and access was restricted to only a very few. If a certificate were sold, it took time to issue and interrupted the manager/owner to issue the certificate.

Tracking the certificates, which were usually sequentially numbered was critical as gift certificates could be stolen, forged and then redeemed thus creating a loss rather than additional profits. It was because of these problems that many restaurants stayed away from gift certificates and thus missed out on some huge marketing opportunities.

In recent years magnetic cards have taken the place of paper certificates. Balances were kept in a database, which were linked to the card via a number in the magnetic stripe. Some credit card companies have jumped onto this bandwagon offering gift card programs that act similar to a credit card. The balances are kept off site at the credit card processor. The processor then charges a transaction fee to add to/redeem the gift card. This fee can run between $.15 - $35 per swipe of the card. On small card transactions such as coffee houses these fees gouge deep into the profits of the sale.

A newer trend is to house the gift card balances at the store level. There is no transaction fee and virtually no time lost processing the transaction outside of the store. Any amount may be added to the balance of the card, thereby making the card reusable and not disposable. Your logo is on the card, making it a constant reminder of your restaurant every time the customer looks in their wallet.

The Need for Gift Cards

Restaurants need the ability to securely sell, track and redeem gift card transactions without transaction fees. Balances should be kept in-house. The customer should be able to add to their balance at any time, making the gift card like your own private debit card system.

The cards should be reusable and they should have your logo on them for a constant reminder of your restaurant.

The Solution To Manage Gift Cards

Many point of sale products now have optional gift card modules that tracks numbered paper certificates as well as issue, tracks, redeem and reports on magnetic gift cards. With the optional magnetic card reader and magnetic cards properly formatted for the software, you are able to take full advantage of this powerful marketing tool.

The gift cards should have your logo on them for advertising purposes. They also may be packaged for a nicer gift presentation. Some companies have even worked out reciprocal programs with other non-competitive companies to display gift cards at each others business.

The cards have no value until sold, thereby eliminating the problem of theft, forgery and redemption of stolen certificates.

The cards are reusable once fully redeemed. The customer may also add to the balance, thus creating your very own debit card system with frequent diners being able to continue to use/reuse their card on future visits. This have become huge in coffee shops where customers use their cards on a daily basis to make purchases.

Some point of sale products keeps the balances at the store level for single store operators. There is no need to process the gift card outside the store as balances are adjusted up or down at the end of the transaction. There are no transaction fees with this type of data storage.

For multiple store operators a few point of sale products have the ability to house gift card balances at a central location with every store accessing and updating gift card balances through high-speed internet connections. Even though the balances are being kept off-site there are still no transaction fees with our system.

The Benefit of Gift Cards To You

The potential for huge profits, additional sales and repeat customers are the overwhelming reasons to sell gift cards. Being able to private label the cards, add to balances and create your own debit card system make using magnetic cards for gift cards essential to a profitable restaurant operation.

Abandoned cards are also a huge area of realized profits. When balances get below $1.00 the system still recognizes them as active. However, customers tend to abandon their cards if the balances get below a certain amount. For some larger companies these abandoned balances along with lost cards equal millions of dollars per year in profits.

DirecTouch Point of Sale also allows you to set expiration dates on the cards issued. This helps create a sense of urgency for your customers to come back to redeem the cards.

Some restaurateurs will use gift cards as enticements to get people to try their restaurant. Instead of writing on the back of their business card the owner will put small balances ($5 or so) on cards and then distribute them to certain people to get them to try their restaurant. This is a great way to get people to come to your restaurant and much more secure than writing on the back of a business card.

A Look at Some of the Benefits of the Best Buy Gift Card

Best Buy is the largest retailer of consumer electronic in North America and it is also known as the big blue box. It has very many subsidiaries including in Europe, Asia and South America. The headquarters of the company are in Richfield, Minnesota. The company has huge plans to operate around 1,800 stores worldwide and 1,400 Best Buy stores in the United States. In 2000 the company received a lawsuit against them for misrepresenting warranties in an aim to sell more. The company settled with the 2 Florida consumers and never admitted to any fault. The business has been in existence since 1966 and, they have come a long way. They engage in many marketing tools and one of them is the use of Best Buy gift card.

Some of the benefits of Best Buy gift cards are that you will get to choose from a variety of different styles and therefore there is no monotony. The second benefit is that the cards can be redeemed in U.S stores or online. Your card can be reloaded at the stores in the U.S. Checking the balance of your gift card is easy and convenient because you can check this information online. When you buy online you can enjoy free shipping of your purchases and this is very helpful to a consumer who has a Best Buy gift card. You do not have to worry about safety because your product is protected from theft. Another thing you do not have to worry about is the expiry date or the maintenance fee making the Best Buy gift card is very convenient to have.

There are various categories of Best Buy gift cards and they include dad's day and any occasion, grads and congratulations, thank you, birthdays and many more. You will view every gift card on the Best Buy site and make a decision on what card is suitable for you. You will also see the new cards and get an opportunity to check your balance as well as redeem your gift card. You will enjoy great products from Best Buy and at an affordable and convenient way. Some people have expressed their dissatisfaction accusing the retail for giving in one hand and taking in the other. You can find the products they offer on their site and choose which deal is best for you.

You do not have to worry about a card not suiting your specific occasion because the cards will make it simple for you to choose for any occasion. For example, if you have a birthday, the cards are there to meet your need. Best Buy gift cars have a similarity with gift certificates and they perform the same role. There are many cards and certificates to choose from on their website and you therefore need to know what you want in a Best Buy card then purchase it. Making online purchases will help you save the cost of shipping and you need to consider such offers. However, make sure you have information on the product you are about to purchase because you might be tempted to purchase in so much haste. The certificates will go a long way to make your shopping experience easy and convenient.