It’s a burning question we face every holiday season: the gift dilemma. What do we get for that seldom-seen relative who already has everything under the sun.
"Uncle Harvey is so hard to shop for."
Even if you do find something he might like, it’s the wrong size, the wrong color or the wrong brand. Uncle Harvey feigns surprise, smiles politely and thanks you. And you just know he either returns it or puts it away, never to be seen again.
So how do you spend money on Uncle Harvey and still find the perfect gift? The answer is: A gift certificate.
If you know your relative shops at a particular store, a gift certificate from that store allows him to buy exactly what he wants, rather than you taking your chances.
If you’re a retailer, gift certificates are a great way to add another service to your business. And a great way to create loyal customers in the process.
Whether you sell groceries or dry cleaning, gift certificates should be a part of your product mix.
It means your customer is more likely to make a purchase instead of just shaking his head and walking out your door.
Best of all, the gift certificate creates multiple visits, once by the buyer and at least once by the recipient.
Here’s an added bonus: Cash flow! As the seller, you get to use money received for the gift certificate until the recipient makes his purchase. Sometimes, the gift certificate isn’t redeemed for ages, allowing you to use the money indefinitely.
If there is a downside to gift certificates, it’s that some people will try to counterfeit them. Here are some ways to make sure you protect yourself from fraud when issuing a gift certificate.
1. Customize it. If you get generic gift certificates at your local stationery shop or office supply store, beware. If you can find them there, so can a thief. If you use generic certificates, be sure to emboss them with your corporate seal or logo (and limit access to the stamp). The more original, the less likely a thief is to duplicate it.
2. Record it. Whenever you issue a gift certificate, be sure to record it in a log. Record the certificate number, the buyer, the date, the amount and the recipient, if known. Then, when it is redeemed, match the transaction against the certificate.
3. Redeem it. Redeem gift certificates for merchandise only. If the recipient wants to buy a 39¢ item with a $50 gift certificate, issue a new certificate for the balance. The object is not to drain your cash register, but to get the customer back into your store. You may even wish to state on the certificate: "Redeemable For Merchandise Only."
4. Take it. Don’t forget to take the gift certificate from the shopper who redeems it. You would be surprised how often retailers check the gift certificate, but forget to keep it.
Those are just a few simple precautions you can take to make gift certificates safe for your business.
Gift certificates can be the "perfect" gift for everyone on your shopping list. And, if you own a store, they can make a lasting impression on your bottom line, too.
Best of all, gift certificates allow you to advertise that you have something for everyone. Even Uncle Harvey.
Robert Grede, author of Naked Marketing – The Bare Essentials (Prentice Hall), teaches marketing and entrepreneurial management at Marquette University and speaks to groups on marketing. He can be contacted via the Internet at www.thegredecompany.com
Nov. 8, 2002 Small Business Times, Milwaukee
