The problem
Class passes make good presents, but a studio that only sells paper vouchers at the desk misses buyers shopping online in the evening. A studio selling 10 vouchers each Christmas, when 25 could have sold at $80£60€71A$115C$113 misses $1,197£900€1,071A$1,728C$1,692 of takings a year.
What the AI does
Square Gift Cards has no monthly fee and costs nothing to set up for digital cards. Square's page lists an eGift card ordering page that buyers pay on by card, at 1.4% + 25p for UK cards, and says cards can be redeemed in person at your Square point of sale with no fee to redeem, and that they don't expire. Create eGift cards in amounts that match a 5-class pass or a workshop, link the ordering page from your website and booking page, and take the card at the desk when the recipient buys their pass. If your booking system takes payment online, the recipient buys the pass at the desk with the gift card instead.
A worked example
A Pilates studio in Bath sells most passes through its booking system but only paper vouchers at the desk. Before Christmas it adds a Square eGift card ordering page with $40£30€36A$58C$56 $80£60€71A$115C$113 and $160£120€143A$230C$226 cards, linked from its website.
Before
About 10 paper vouchers sold at the desk each Christmas
After
About 25 eGift cards sold at $80£60€71A$115C$113 15 more than before, worth $1,197£900€1,071A$1,728C$1,692 a year
What it's worth
About $80£60€71A$115C$113 a month in profit, averaged over the year, at an assumed 80% margin on $1,197£900€1,071A$1,728C$1,692 a year of extra voucher sales (15 more $80£60€71A$115C$113 vouchers), which is $958£720€857A$1,382C$1,354 a year. Card fees on 25 online sales come to about $36£27€32A$52C$51 a year (1.4% of $80£60€71A$115C$113 plus 25p each), about $3£2€2A$4C$4 a month.
How to set it up
- Set up Square Gift Cards from a Square account and create eGift cards in amounts that match your passes.
- Link the ordering page from your website, booking page and Christmas posts.
- Install Square's point of sale app on the desk tablet or phone so staff can redeem cards and check balances.
- Write what the card can be used for on the ordering page, and how recipients book.
- Keep a note of unredeemed cards and remind your team how to take them.
What goes wrong
- Square's page says the cards don't expire, so plan for vouchers used after your prices rise.
- If your booking system can't take a Square gift card, recipients must buy their pass at the desk; explain this on the page so it doesn't feel like a catch.
- Card fees apply when the card is sold, not when it's redeemed, so the money arrives before the classes are taken.