There are probably a 1,000 books on how to succeed at business. Each author has her or his own take on where others have failed and what is required today to win. The problem with this is that the people who need this information are too busy trying to succeed to take the time to read even 2 or 3 of these books, let alone 1,000. It would be great if there was a primer, an Executive Summary that told us what we need to do.
At the risk of over simplifying and being too bold, here is what I believe is the basis behind all of the ideas and thoughts in each of these books: The Formula for Success is P times Q.
This is something we have been taught in business classes. R (Revenue) = P (Price) times Q (Quantity). The way for a Small Business to grow is to get more customers (Q) paying more per sale or visit (P). That’s it. Nothing more, nothing less.
So…how does a Small Business in today’s world get more Q and more P? The answer is right in front of our faces….or in our wallets or our purses. Gift Cards! Gift Cards positively drives both parts of the Revenue equation by increasing the number of Customers (Q) as well as increasing the revenue per visit (P).
When a Small Business sells Gift Cards, they make it possible for happy existing customers to easily convince someone else to join their experience. I give a Gift Card to someone I like so that they can experience a business I like. The more Gift Cards a Small Business sells, the more customers (Q) will walk in their store and buy their product or service.
When a Small Business sells Gift Cards, they not only increase the number of customers, they increase the revenue per sale (P). Data shows that when people walk into a store and use their Gift Card, they spend as much as 25% more than the face value of the card. Why? Because the Gift Card recipient feels that the value on the card is not really coming out of their budget or bank account. It is “free money”. Thus, if the normal night out at a restaurant is dinner and a glass of wine, a Gift Card night out is dinner, a bottle of wine and dessert. If the normal visit to a retailer is one pair of shoes, a Gift Card visit to a retailer is 2 pairs of shoes.
Thus the formula for success requires a Small Business owner to make their Gift Cards for sale everywhere they can: in their store, on their website, on their Facebook page and on as many Gift Card racks as possible. GiftCards.com is helping Small Businesses grow by making the math of P times Q very easy through its GiftLocal product. GiftLocal makes it possible for a Small Business to sell Gift Cards on their website, their Social Media pages and on the Gift Card rack at GiftCards.com
So if you don’t have time to read 1000 books…or even 1… how about reading one page at Partners.GiftCards.com and see how you can get an A on your next “Small Business Math Test”!
~~ Steve Dimmitt, former CRO at GiftCards.com