A Business Fix

www.abusinessfix.com

Expiration dates on gift certificates increases costs
by Duncan Alexander
http://www.fogmarketing.com

If you put an expiration date on gift certificates
purchased from your business you are throwing money away.

If you do and the date is less than 6 months away, you are
adding to the cost of your fulfilling that obligation and
here's why.

A gift certificate that is purchased today can buy 100% of
the goods and services that your business offers today. So
if a gift certificate is redeemed soon after it was
purchased, your cost to fulfil that obligation is the same
as it would be if the person just paid with cash.

But, if that gift certificate is not redeemed for 6 months,
12 months or longer, the value of goods that can be had for
the original purchase amount is less.

For example, $20 today will most likely buy more than $20
will three years from now, because of inflation, and other
factors.

So the longer the time between the original purchase and
when the certificate is redeemed, the more profit you will
make.

Now before you say that you have no control over when a
gift certificate is redeemed, let me address a proven fact
when it comes to deadlines or expiration dates. The further
out the date, the lower the sense of urgency to take action
before the date.

Longer expiration dates in A-B Split tests have proven to
result in lower requests for refunds and fewer redemption
of gift certificates for all types of products.

Direct response marketers know that the longer the time
before the guarantee expires, the less likely people will
ask for vendor to honor their guarantee.

The mindset is, "I have time to wait, its a whole year
before my decision is final and I can't return it." And as
you know, the customer gets busy and before they know it,
the year has past and they no longer think about asking
for a refund because the product has become a part of their
routine.

You can ethically increase your profits by extending or
removing expiration dates from your gift certificates and
guarantees. You'll see fewer refund requests, higher return
on investment, happier customers and higher profits.

Submit An Article

Get Exposure For Your Site! Advertise with us.
Click Here For Details on a Great Deal!

Would you like more information on business?
Sign up here for our mailing list. You will get great information before it becomes available on our website!