The popularity of gift card has grown exponentially over the past several years as they have become extremely popular gifts and a great way to say “thanks.” It is estimated that of all the gift cards sold in 2010, about 10% went unused. Leaving about 10 billion dollars in gift cards just sitting around in people’s wallets and sock drawers being wasted. A new industry has emerged from this allowing consumers to be able to capitalize on the value of these unwanted gift cards.
The secondary gift card industry, composed of several gift card exchange companies mostly functioning online, has given birth to new profitable business models for any retail store front. Many pawn shops, check cashing locations, and cash for gold businesses are ahead of the game and already capitalizing on this new opportunity. If you’re an owner of any type of retail location and looking for new ways to create additional profits, then this article is for you.
The idea works like this: You purchase unwanted gift cards from your customers at 50% of the value remaining on them, then resell them to a bulk purchaser like GiftCardRescue.com for up to 90% of their value. Netting you a very nice profit. Since every gift card you buy is technically already sold to GiftCardRescue, you never have to worry about where you’re going to unload your inventory.
Selling gift cards in bulk is a great way to earn extra income for your location. GiftCardRescue even provides in store marketing materials such as signs and stickers to let your customers know that they can turn their unwanted gift cards into cash. And you can turn that gift card into profit.
Let’s take a look at some of the profits and margins that you could be earning with a business model like this.
Pawn 123 buys a $100 Best Buy gift card for $60 [60%] and re-sells it to Gift Card Rescue for $85 [85%]. Pawn 123 makes a $25 profit which is over a 40% gain!
This example uses purchasing the card at 60% of the value, not 50%. Keeping your purchasing at 50% would give you an even higher profit margin. With every gift card already resold, the business model is quick, easy, and profitable.
If you would like any additional information about how to get started feel free to contact our bulk sales department at 877-800-4413.
Tags: bulk, bulk gift cards, sell gift card in bulk, sell gift cards, selling gift cards