How to Use Gift Cards In Your Business
Summary
- You can turn your customers into a source of interest-free loans by selling them gift cards.
- When you sell a gift card, you get cash immediately that you can use to invest in your business.
- Consider placing the cash from gift cards into something that earns interest, like a Treasury, to make an extra 6% a year.
- The recipient of the gift card may not use it right away, allowing you to benefit from the cash in the meantime.
- When a customer redeems a gift card, it typically won't cost you the full face value, saving you money.
- For instance, a $100 gift card might only cost you $10 to fulfill when redeemed.
- This approach gives you a significant cash advance with a much smaller future liability.
- Major companies like Best Buy and Starbucks use this strategy effectively, and it's a great tool that any business, big or small, should consider using.
Video
How To Take Action
I would suggest starting to sell gift cards for your small business. Here's a simple plan to do it:
First, figure out what kind of gift cards you can offer. They could be for products, services, or a set dollar amount.
Next, tell your customers about the gift cards. You can use social media, emails, or signs in your store to let them know. Make sure they understand how gift cards can be great gifts for friends and family.
Now, when you sell a gift card, put that cash into a safe place. You can even put it somewhere to earn a little interest, like a savings account. This way, your money grows while you wait for the gift card to be used.
Remember, when someone spends their gift card, it usually costs you less than the card's value. If you have a $100 gift card, you might spend only $10 giving the customer what they want. This means you get a lot of cash now and only have to give a little back later.
It's like getting an interest-free loan from your customers, which you can use to help your business grow. Big companies do this and so can you.
Just make sure you are ready to give your customers what they asked for when they use their gift cards. This will keep them happy and coming back for more!
Selling gift cards is a smart and easy way to get cash now and pay less later. Give it a try and see how it helps your business!
Quotes
"you can get every one of your customers to give you a loan absolutely interest free that you can spend immediately"
– Alex Hormozi
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"you sell them gift cards because you can immediately accept the cash"
– Alex Hormozi
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"you can put it in a darn Treasury and get 6% a year on it"
– Alex Hormozi
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"all the while they're waiting to give it to somebody"
– Alex Hormozi
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"it's a huge cash Advance with a tiny liability that's way in the future"
– Alex Hormozi
