If you are an average American you are going to buy four gift cards this year. Initially stigmatized as an "impersonal gift", gift cards are now firmly entrenched as the gift of choice for Holiday giving. When originally introduced by the major credit card companies there were expiration dates, service fees, exceptions and a big hassle to use.
Because of a change in the law in 2009 mandating that gift cards have a minimum 5 year life along with limitations on fees and charges, the hockey stick growth curve since 2009 shows a market that has doubled in size since then.
Now you can walk into any major chain store and see racks and racks of differently branded gift cards - pick the one you want, pay the face value plus a small service fee at the cashier and you are all set for gifting. But now there is a new rub because physical gift card sales are growing at an annual rate of 6% but digital gift cards are growing at an astonishing rate of 200%
If you are a small local coffee shop or restaurant, you aren't able to participate in this new wave of gifting - you can't possibly afford the computer programing or the distribution network to get your gift cards into the marketplace. You are shut out from this hockey stick trend.
FEATURED IN THIS EPISODE
Tony Celia is a new entrepreneur who recently decided it was time to pursue his own ideas after working 17 years for large corporations and 10 years for small companies. With a graduate degree in Electrical Engineering, Tony's career spanned software, hardware and systems engineering disciplines laying the ground work and developing the technical skills he'd need to create AlottaJava.
Palm Beach SCORE
Palm Beach SCORE is a non-profit who's mission is helping local small businesses, startups and entrepreneurs grow and thrive by offering mentoring, workshops, business consulting and counseling services, networking opportunities, events and partnerships within the Palm Beach / South Florida business corridor.
SCORE-ing Your Business' host Penny Pompei serves as Chapter Chair for our local Palm Beach SCORE Chapter #224, located in beautiful downtown West Palm Beach.