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 | 200 | 500 | 1000 | 2000 |
|---|---|---|---|---|
| TeleGiftCard Package | £800.00 | £900.00 | £1070.00 | £1300.00 |
| Card sales @ £25 | £5000.00 | £12500.00 | £25000.00 | £50000.00 |
| Unredeemed @ 10% | £500.00 | £1250.00 | £2500.00 | £5000.00 |
| £10 overspend | £2000.00 | £5000.00 | £10000.00 | £20000.00 |
| Total Income | £7000.00 | £17500.00 | £35000.00 | £70000.00 |
| Unredeemed @ 10% | (£500.00) | (£1250.00) | (£2500.00) | (£5000.00) |
| Sales Revenue | £6500.00 | £16250.00 | £32500.00 | £65000.00 |
| COGS @ 50% | (£3250.00) | (£8125.00) | (£16250.00) | (£32500.00) |
| Unredeemed | £500.00 | £1250.00 | £2500.00 | £5000.00 |
| Gross Profit | £3750.00 | £9375.00 | £18750.00 | £37500.00 |
| Giftcard Setup Cost | (£800.00) | (£900.00) | (£1070.00) | (£1300.00) |
| Giftcard Net Profit | £2950.00 | £8475.00 | £17680.00 | £36200.00 |
| RoI | 369% | 942% | 1652% | 2785% |
| Cards to sell to recover costs | 54 | 53 | 60 | 71 |