Gift Card JV’s

Have you ever noticed that almost ever single major Canadian grocery store or Drug store has 3-4 rotating stands of Gift Cards? It’s obvious these gift cards make money and improve bottoms lines.

Now your small business may not fit into the realm of a Shoppers Drug Mart, but there is no reason why you can’t partner with a few local businesses in your area and you all trade off on your gift cards.

This is commonly known as a JV (Joint Venture Partnership).  How you want to structure your JV’s is up to you, but I would recommend giving away small Gift or Loyalty Cards that are loaded up with $5 or $10 so that your neighboring businesses can give away these cards to their customers when they make a purchase.

Why give these away…? Because you are taking their traffic and will redirect into your local business.  People will come into your business when they have free money.  Do they ever just spend $5 or $10 – never!   The numbers are in your favor that they will spend more than they normally would.  From seeing this first hand, this can be one of the best ROI’s on marketing a small business can do.  Besides, think about what it can cost you to acquire a new customer via traditional marketing? Think about the life time value of your new customer and so on.   For most SMB this is a no brainer.

It’s a win-win.  You neighbor businesses get to seem like nice folks by giving away gift cards and you get to capture their customers.  You neighbor’s might want to the same thing with their Gift Cards.

More small businesses need to be creative and start working together to survive in todays economic times.  Start your own Gift Card Marketing Program today.

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Matthew Hunt has been helping small businesses get set-up with Canadian Merchant Account Services since 2007 and helped 1000's do so. Join Matthew on Google+.

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