Gift Cards are a growing market Gift card sales in 2005 were estimated at approximately $65 billion – up an estimated 24% from the previous year The average consumer spent $233 on gift cards with an average value of $48 92% of adults have gift card awareness - up from 76% in 2002 59% of the American shopping public, 131 million people, has used or reveived a gift card in the past twelve months. Benefits of using Gift Cards for your Business Plastic gift cards outsell paper gift certificates 10 to 1 Card circulation helps build brand awareness Declining balance keeps full cash value in store 56% of customers spend more than card value Powerful promotional tool for marketing campaigns Electronic audit trail minimized losses Merchant billboard in customers wallet Return On Investment - Profit Potential (When Purchasing 500-2500 Custom Printed Gift Cards) Card Services & Costs 500 Cards 1000 Cards 2500 Cards Number of Cards Sold 500 1000 2500 Cost Per Card $ 1.51 x 500 $ 1.40 x 1000 $ .65 x 2500 Total Card Costs $755.00 $1,400.00 $1,625.00 Transaction Costs (Includes 4,000/Yr) $40/Mo. $40/Mo. $40/Mo. Annual Transaction Cost $480.00 $480.00 $480.00 Merchandising Tools Included Included $500.00 Program Set-Up Fee $500.00 $750.00 $1,000.00 Total Cost $1,735.00 $2,630.00 $3,605.00 Profit On Gift Card Sales (Selling 500, 1000, 2500 Gift Cards) Profit Item 500 Cards 1000 Cards 2500 Cards Average Activation Amount $ 50 Per Card $ 50 Per Card $50 Per Card Total Value Stored on Card $25,000.00 $50,000.00 $125,000.00 Customer Spends 33% $8,250.00 $16,665.00 $41,250.00 More Than Value On Card Total Revenue $33,250.00 $66,665.00 $166,250.00 50% Profit Margin $16,625.00 $33,325.50 $83,125.00 12% Un-Redeemed $3,000.00 $6,000.00 $15,000.00 Program Profitability $19,625.00 $39,325.50 $98,125.00 Total Cost (From Above) ($1,735.00) ($2,630.00) ($3,605.00) Net Profitability $17,890.00 $36,695.50 $94,520.00 Electronic Commerce International • 7670 W. Lake Mead Blvd, Suite 140, Las Vegas, NV 89128 Toll Free (888) 404-7500 • Email: sales@ecina.com • Sales Partner Login www.ecina.net ECI is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, CA. American Express requires separate approval. © Copyright 2009. Electronic Commerce International. All Rights Reserved.