tanTALK - View Single Post

gripmarketing · 08-29-2005, 11:08 AM

Paper or Plastic?

Please allow a marketing pro to offer a dissenting vote....I differ on some of the statements made....and reject some of the contentions made. The same benefits listed for plastic gift cards apply to paper gift certificates…such as...

“4. Prepayment advantage. A $100 gift certificate sale means $100 cash for your business today.” Same for paper or plastic.
”5. Products or services are delivered by you - well after payment is received.” Same for paper or plastic.
”6. Reduced labor and administrative costs.” Same for paper or plastic.
”7. Paper gift certificates are more difficult to handle, process, and reconcile than plastic gift cards.” No, they are not. Gift cards cost more money. Period.
”8. Gift cards are easily stored, issued, and tracked.” Same for paper or plastic.
”9. Transaction times are faster than any other exchange medium; just swipe the card to complete the purchase.” Not exactly. You have to check to make sure payment has been made whether it is a gift card or gift certificate. Or you’ll have to pay an outside processor more money than you can do it yourself; either way, it costs you and speed isn't any different.
”10. Reduced loss from theft and fraud.” Same for paper or plastic.
“11. Paper certificates are easily copied or altered.” I differ on this issue vehemently. We’ve never heard of a single case of a paper certificate, out of millions, printed by Grip, that was copied. “They are susceptible to theft, and must be kept secured, like cash.” They aren’t susceptible to theft because paper gift certificates have no value, just like gift cards, until they are ‘activated’ through a purchase on your computer software or file card system. They are tracked with a serial number just the same.
”12. Gift cards have no value until they are activated, have a unique ID number, and are not susceptible to duplication.” The same is true of gift certificates!

At Grip, we print both paper gift certs, and plastic gift cards and have no axe to grind either way.

You don't need an external processing company as you can track gift certs or gift cards with your own computer software or you can just keep a handwritten log.

You can get customized full color plastic gift cards for $.14-$.49 each and paper gift certs for $.06 each. Paper or plastic? The added marketing that gift cards provide is definitely worth the added investment for many salon owners as gift sales increase dramatically. Breakage is the same for certs or cards.

Mostly what we have observed, but don't have any stats on, is the salons that bought cards that didn't boost sales with them...we feel was directly attributable to being unable to take advantage of the more powerful display aspect that cards provide - which is WHY they increase sales. You must have a stellar, eye-popping POP (Point of Purchase) display for them. Or don't do them.

If you did have an eye-popping display and it still didn't do the job...then as Homer Simpson once said, "Son, you tried your best... and you failed miserably. The moral is: never, never try again." Make sure your POP display is professionally designed and attractive.

08-29-2005, 11:08 AM	#6 (permalink)
gripmarketing Join Date: May 25 2002 Posts: 1,257 Rep Power: 7	Paper or Plastic? Please allow a marketing pro to offer a dissenting vote....I differ on some of the statements made....and reject some of the contentions made. The same benefits listed for plastic gift cards apply to paper gift certificates…such as... “4. Prepayment advantage. A $100 gift certificate sale means $100 cash for your business today.” Same for paper or plastic. ”5. Products or services are delivered by you - well after payment is received.” Same for paper or plastic. ”6. Reduced labor and administrative costs.” Same for paper or plastic. ”7. Paper gift certificates are more difficult to handle, process, and reconcile than plastic gift cards.” No, they are not. Gift cards cost more money. Period. ”8. Gift cards are easily stored, issued, and tracked.” Same for paper or plastic. ”9. Transaction times are faster than any other exchange medium; just swipe the card to complete the purchase.” Not exactly. You have to check to make sure payment has been made whether it is a gift card or gift certificate. Or you’ll have to pay an outside processor more money than you can do it yourself; either way, it costs you and speed isn't any different. ”10. Reduced loss from theft and fraud.” Same for paper or plastic. “11. Paper certificates are easily copied or altered.” I differ on this issue vehemently. We’ve never heard of a single case of a paper certificate, out of millions, printed by Grip, that was copied. “They are susceptible to theft, and must be kept secured, like cash.” They aren’t susceptible to theft because paper gift certificates have no value, just like gift cards, until they are ‘activated’ through a purchase on your computer software or file card system. They are tracked with a serial number just the same. ”12. Gift cards have no value until they are activated, have a unique ID number, and are not susceptible to duplication.” The same is true of gift certificates! At Grip, we print both paper gift certs, and plastic gift cards and have no axe to grind either way. You don't need an external processing company as you can track gift certs or gift cards with your own computer software or you can just keep a handwritten log. You can get customized full color plastic gift cards for $.14-$.49 each and paper gift certs for $.06 each. Paper or plastic? The added marketing that gift cards provide is definitely worth the added investment for many salon owners as gift sales increase dramatically. Breakage is the same for certs or cards. Mostly what we have observed, but don't have any stats on, is the salons that bought cards that didn't boost sales with them...we feel was directly attributable to being unable to take advantage of the more powerful display aspect that cards provide - which is WHY they increase sales. You must have a stellar, eye-popping POP (Point of Purchase) display for them. Or don't do them. If you did have an eye-popping display and it still didn't do the job...then as Homer Simpson once said, "Son, you tried your best... and you failed miserably. The moral is: never, never try again." Make sure your POP display is professionally designed and attractive.