Return On Investment - Gift Card
The short-run return on investment is high and once the initial costs are paid, you only pay for new cards when you need them so long-run returns are much higher, even, than those shown below.
Based on experience and accepted industry data, average load on each gift card is £25. The average gift card value which is never spent is between 10% and 25%.
| No. cards | 100 | 250 | 500 | 1000 | 2000 |
|---|---|---|---|---|---|
| TeleGiftCard Package | £750.00 | £875.00 | £1025.00 | £1300.00 | £1750.00 |
| Card sales @ £25 | £2500.00 | £6250.00 | £12500.00 | £25000.00 | £50000.00 |
| Unredeemed @ 10% | £250.00 | £625.00 | £1250.00 | £2500.00 | £5000.00 |
| £10 overspend | £1000.00 | £2500.00 | £5000.00 | £10000.00 | £20000.00 |
| Total Income | £3500.00 | £8750.00 | £17500.00 | £35000.00 | £70000.00 |
| Unredeemed @ 10% | (£250.00) | (£620.00) | (£1250.00) | (£2500.00) | (£5000.00) |
| Sales Revenue | £3250.00 | £8125.00 | £16250.00 | £32500.00 | £65000.00 |
| COGS @ 50% | (£1625.00) | (£4062.50) | (£8125.00) | (£16250.00) | (£32500.00) |
| Unredeemed | £250.00 | £625.00 | £1250.00 | £2500.00 | £5000.00 |
| Gross Profit | £1875.00 | £4687.50 | £9375.00 | £18750.00 | £37500.00 |
| Giftcard Setup Cost | (£750.00) | (£875.00) | (£1025.00) | (£1300.00) | (£1750.00) |
| Giftcard Net Profit | £1125.00 | £3812.50 | £8350.00 | £17450.00 | £35750.00 |
| RoI | 150% | 436% | 815% | 1342% | 2043% |
| Cards to sell to recover costs | 40 | 47 | 55 | 71 | 94 |