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Old 01-03-2012, 08:47 PM
 
Location: SoCal
502 posts, read 1,202,727 times
Reputation: 244
Default How to Start Selling Gift Cards

Does anyone know if it's possible for an individual to start selling gift cards ... legally?

Many local shops sells gift cards for many merchants (besides their own), including visa and mastercard cash cards ... I'm just wondering if there is a way for me to start selling these things myself as I know gift cards are becoming a lot more popular form of gifting.

Thanks for any advice, resources you guys can point me to.
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Old 01-03-2012, 10:57 PM
 
Location: In my view finder.....
8,525 posts, read 7,984,530 times
Reputation: 8079
How To Start A Gift Card Business | Made Manual
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Old 01-04-2012, 08:33 AM
 
Location: Wartrace,TN
2,342 posts, read 2,443,699 times
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I personally can't see it as being profitable for an individual for the following reasons;
1) It is most likely a very low margin business. (I may be wrong) If I am correct in the ASSumption then you would have to do a LOT of volume to be profitable.
2) You would have to find a location with a very high volume of traffic. The most obvious would be a mall. You would have to cover kiosk rental and staff the location the entire day.
3) You will be competing with a lot of the "Big Box" retailers who have gift card displays in their stores. I have seen them set up in Lowes, Wal-Mart, Walgreens and numerous other stores. You have to answer the question "why would people buy from me when they can just add the gift card while checking out at the big box store".
4) The link provided by Ron mentions that you could manufacture/supply gift cards to smaller businesses. Most merchant card services companies have an optional "gift card service" available to customers already in place. It would be hard to compete with these services.
5) It is a highly seasonal business. I do not think you would see the volume you need to be profitable at any other time than during the Christmas season.

It comes down to what your break even point is. I would certainly complete a very thorough business plan before pursuing this.

Disclaimer- I don't know what I am talking about. This is a matter of opinion pulled out of thin air and dangerous assumptions. The value of this opinion is worth exactly what you paid for it. Mileage may vary. Taking this advice may result in stomach craps, intestinal bleeding, and heart failure. If your condition worsens while taking this advice please consult with someone who knows what they are talking about.....
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Old 01-04-2012, 08:40 AM
 
18,612 posts, read 14,204,171 times
Reputation: 15319
Quote:
Originally Posted by Wartrace View Post
I personally can't see it as being profitable for an individual for the following reasons;
1) It is most likely a very low margin business. (I may be wrong) If I am correct in the ASSumption then you would have to do a LOT of volume to be profitable.
2) You would have to find a location with a very high volume of traffic. The most obvious would be a mall. You would have to cover kiosk rental and staff the location the entire day.
3) You will be competing with a lot of the "Big Box" retailers who have gift card displays in their stores. I have seen them set up in Lowes, Wal-Mart, Walgreens and numerous other stores. You have to answer the question "why would people buy from me when they can just add the gift card while checking out at the big box store".
4) The link provided by Ron mentions that you could manufacture/supply gift cards to smaller businesses. Most merchant card services companies have an optional "gift card service" available to customers already in place. It would be hard to compete with these services.
5) It is a highly seasonal business. I do not think you would see the volume you need to be profitable at any other time than during the Christmas season.

It comes down to what your break even point is. I would certainly complete a very thorough business plan before pursuing this.

Disclaimer- I don't know what I am talking about. This is a matter of opinion pulled out of thin air and dangerous assumptions. The value of this opinion is worth exactly what you paid for it. Mileage may vary. Taking this advice may result in stomach craps, intestinal bleeding, and heart failure. If your condition worsens while taking this advice please consult with someone who knows what they are talking about.....
I would tend to agree. I wouldn't see it as a great money maker.
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Old 01-04-2012, 06:25 PM
 
Location: SoCal
502 posts, read 1,202,727 times
Reputation: 244
I agree that volume is the only way to make money on the gift cards. I'm not planning on having a physical store, it will be strictly online and through my home.

However, I believe I have stumbled upon a unique marketing idea that no one currently has or is doing. This idea came out of frustration as the service I plan on offering was not being offered when I looked for it for myself and I know from preliminary survey's that there this idea has huge potential and a potential worldwide customer base. That's all I'll say about that for now :-)
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