HOLIDAY GIFT CERTIFICATE PROMOS

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As a sole proprietor, I need my business to be as profitable as possible. It's about taking advaneforum.xxxe of the holiday seasons and getting as much cash flowing into my business as possible. Offering holiday specials on gift certificates does this for me. I don't see it as being any different than offering a new client rate. Its about wanting to get new clients into my business. So, while I understand the theory of not discounting, and it may work for a spa, its actually profitable for me to discount at this time of year.

Every business needs to be as profitable as possible - spa, SP or S-Corp.

GCs do improve cash flow - a very worthy goal. But do not confuse cash flow with profitability, they often work in an inverse relationship.

The true profitability of discounting at the holidays comes down to two factors

1 - what % of your GC sales WOULD NOT happen at full price
2- what is the average # of visits in a year of a new client

 

[orlenda]

Not trying to hi-jack the thread here but:

Just curious, for those selling GC:

What has been your % of people actually using their GC ?

And what has been your % of repeat visits from those folks ?


I have found that about 3/4 of the people who recieve a
GC actually have used them. However I'm lucky if 1 or 2
out of 10 becomes a repeat client.

Also, one of the reasons I personally haven't pushed my
gift certificate sales is because I'm a one woman show & when people want to redeem them it becomes a major juggling act on my part to manage my schedule.

My regular clients get first dibs on their appointment times, but then the GC folks also want to get their sessions when they want them. I always do my best to fit them in at their preferred times, but then I am adding on extra hours to my work week in order to do the GC sessions. Between the duties as wife, & mother, and not getting any younger, etc. plus running the business, I only have just so much time & energy for adding on any additional hours to my week ! t015

 

[Kailey R]

I personally don't concern my self with whether or not a GC becomes a regular. I like having new people to break up the boredom of the regulars. Not that they are boring.... lol. Its just nice to have a new body. Plus my schudule is full, ect......

I don't really sell many though. My regulars will buy, most the time for another regular. I did set up that instant GC selling thing for the holidays, so I will be interested to see how that goes.

 

[Exodiafinder]

Like I said before I view GC's as a necessary evil. It's not the buyers, it's the redeemers that can be a pain in the behind. Especially when it comes to Xmas certificates.
1) I wish they came in throughtout the year, and did not wait until December 20th to get in b/c that's when their GC expires. As of this moment I have 32 GC's from last Xmas that haven't been used yet.
2) I also wish they would make their appointment in advance instead of calling the same day or the day before. I just got a call from a guy with a GC who wanted to come in "tomorrow" at 5:30. My 5:30 appointments are booked until a week after Thanksgiving. Then they get mad b/c they think I am treating them poorly b/c I "already have their money".
3) I also wish they woudl tell me upfront they have a GC. I have some new coworkers who are still starting out and I don't mind referring overflow to them. However I don't want to send GC's their way b/c it's money out of my pocket. It has happened a few times. People would just NOT tell me they have a GC and 1 or 2 even lied about it. I treat everybody the same.
4) I also noticed that a lot of GC's do not tip. Even people who normally do. I know, I know...we should not judge people based on their tipping habits but still... We are making slightly less money on GC's: time expenditure to sell it, the cost of the certificate itself, mailing if applicable. I get charged a higher rate on my credit card transaction when I punch it in manually (GC's sold over the phone or online)
5) I personally don't like dealing with people who have received a gift certificate (free massage) and they try to get a yet better bang for their buck. Like trying to split 1 hour into 2 1/2 hours. Or they would see a current special on my web site (usually added value) and they want to use their GC for that.

Sorry about the rant! I know it doesn't sound very positive! :twisted:

That being said I still view GC's as an important part of my business. I gained quite a few clients this way. I also have clients who ALWAYS ask for my GC's for Xmas and other occasions. And GC's help with cash flow in December since January is usually slower. We are going to Ireland this New Year's Eve so I would feel better about spending money on the trip after having a good month (fingers crossed)

 

[Pompal 09.]

My experience pretty much echoes Anastasia's.

I'd say about 50% are not redeemed by the time they are meant to expire, a bit over half of those will ring up fairly soon after it expires and I will still honour the expired gift certificate.

The main way gift certificate recipients become regulars is if they get more gift certificates. I've got a few people that have been given 3 gift certificates a year for the last 3-4 years - Christmas, Mother's Day, birthday. they are the only 3 times I see them, but ever Christmas, Mother's Day or birthday, their daughter will buy one. I've got a few that are twice a year, Christmas and birthday. I don't think I've got any regular paying clients out of gift certificates.