Gift Cards Increase Spa and Salon Holiday Business!

Next time you are in the grocery store, take a look around the checkout counter. You will see displays of gift cards. Recently we visited a Rite-Aid pharmacy in our area to obtain a gift card for a sick friend who lived out of town. They not only had gift cards available, but phone cards and even credit cards. Why do retail store take up valuable display space for these cards? Profit!

1. 20% of gift card value is never redeemed. *

2. 80% of those that use gift cards purchase services and merchandise for more than the value of the gift card.

3. Gift cards are a fool proof way to insure that the recipient spends the gift on what you wanted not on something soon forgotten.

In an average salon of 5 providers, working with 10 clients per day, you can easily sells 25 gift cards or more per week when properly merchandised and you have an incentive program for your employees to promote gift cards. That is about 1,200 cards per year. With an average card value is $20 or more, you make $24,000 per year in gift card sales. If 20% are never redeemed, that is $4,800 additional revenue.

Merchandizing gift cards in your shop:
Counter top and wall signs proclaiming the availability of "Gift Cards, the Perfect Holiday gift" suggest to clients a easy way to show you care. The small signs can also be displayed at each station for the silent salesman effect. Some of our clients have their front windows painted "Gift Cards available here", others have banners. Clients soon love them too. Gift cards can also insure that children spend the value on the card receiving intended services, and gift cards are rechargeable too !

* Not all states and local governments allow you to keep all of your gift card un-redeemed values. Check with your accountant or state for the exact regulations.