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