exceladdict
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- Mar 26, 2014
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These types of offers are becoming a bit too regular. Surely they can't be seen as a legitimate way of improving your profit margins.
Why would I make a purchase at these businesses if I knew I could wait to receive these types of offerings - especially thinking of the frequent Myer or David Jones gift card deals.
With the "Kids" gift card anyway, I believe it is not issued by any of the businesses listed, but by a third party. The third party may be paying a licensing agreement with those brands, and then effectively selling you an eftpos card, assuming they will make money on either attrition/expiry, commission, using your money on the stock market between purchase and redemption, or more. The third party is the one that deals with woolworths etc to set commissions.
I would love some inside information here - how many gift cards (and I mean eftpos-type cards as certificates will almost always be in house), especially for smaller retailers, are actually issued by the retailers vs issued by third parties with the retailers just making a small commission?
From a core business perspective it would make sense to outsource financial services.