Buying Gift Cards for Gift Baskets
Posted on October 16, 2008
Filed Under Products and Supplies
Heidi asks:
“I’m staring my business and I’m currently developing a reasonable number of fun gift baskets to offer. I’m looking to add gift cards from major, national companies.
Is there anything I need to be aware of when looking to purchase? Or is it as simple as purchasing the card myself and reselling it at the same price?
Thanks for ALL your help!”
I believe you’re referring to gift cards that include a prepaid amount redeemable at stores that issue or accept such cards, the ones that have become very popular to buy at holiday times when the giver doesn’t know what to purchase for the receiver.
Buying gift cards are a straight-forward process. They are only discounted when you buy hundreds at a time, and the discount only amounts to about five percent, if that.
So, the buying process is as you state – as simple as purchasing the card yourself and reselling it at the same price – or perhaps the card’s price is a bit more than face value for a customer due to the entire gift basket cost.
This is one reason why most designers do not include gift cards in gift baskets, but that is not said to deter you if gift cards are or will become a popular item within your baskets.
We tend to spend our inventory money on items with higher profit potential. Since gift cards don’t offer that, we select tried-and-true food and gift items with better margins.
