Sales Tools That Provide Pre-Paid Cash Flow

What other sales tools do you know of that will allow you to Write Yourself a Loan?

Aside from the cost of the card, which is around $1 for a full color custom design, that is your TOTAL cost, no matter what the face value.

If you sell a gift card with $500.00 loaded on it, it has only cost you a buck at the point of sale. You have gotten $500.00 in your register and it is yours and your COGS (cost of good sold) for that card was 1/5th of 1 percent.

Do you begin to see the POWER of gift cards?

Granted, on the surface, what you have done is taken in $500.00 as, an accountant would phrase it, “a short term contingent liability”, however this does not take into account:

1.) Breakage

2.) Uplift, customers usually spend more than the face value of the card

3.) COGS. If your COGS is 35%, that $500 card, assuming NO breakage, actually cost you $175.00. This leaves a Net Profit of $325.00 before the cost of the gift card program, which is minimal.

Therefore, the “Contingent Liability” mentioned above is $175.00.

Need short term capital? The quickest and easiest way to raise it is with a gift card promotion. With the COGS being 35%, you just closed a no interest loan of 65% of the total face value of all the cards sold before breakage & uplift are even taken into account…

Oh, did I mention the loan doesn’t have to be paid back?

Think about it…

No. There is nothing to think about. Get those cards on the street now!

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