The problem
Garden gifts are hard to choose, so people buy vouchers, and those who can't get to you buy something else online. If a garden center misses 25 gift buyers a month at $33£25€30A$48C$47 each before Mother's Day and Christmas, that's $831£625€744A$1,200C$1,175 a month going elsewhere.
What the AI does
Square Gift Cards lets you sell eGift cards on an online ordering page and in person, and redeem them through Square's tills or online. Digital cards cost $0£0€0A$0C$0 to set up with no monthly fee; you pay the normal processing fee when a card is bought, 1.4% + 25p for a UK card online. Physical cards are from $0.69£0.52€0.62A$1C$0.98 each for the till. Square says cards don't expire and redemption is free. Link to the gift card page from your website and social posts from February and November.
A worked example
A family-run garden center near Evesham already uses Square for its tills. It sells eGift cards online and expects about 25 extra a month at $33£25€30A$48C$47 in the weeks before Mother's Day and Christmas.
Before
No online gift cards: about 25 gift buyers a month in peak weeks buy elsewhere
After
25 extra eGift cards at $33£25€30A$48C$47 = $831£625€744A$1,200C$1,175; card fees 25 x ($0.47£0.35€0.42A$0.67C$0.66 + $0.33£0.25€0.30A$0.48C$0.47) = $20£15€18A$29C$28
What it's worth
About $333£250€298A$480C$470 a month in profit in the run-up to Mother's Day and Christmas, at an assumed 40% margin on $831£625€744A$1,200C$1,175 of extra gift card sales once they're spent ($831£625€744A$1,200C$1,175 x 0.4). The 25 extra cards is an assumption, not a promise. There is no monthly fee; card fees are about $20£15€18A$29C$28 a month in the example.
How to set it up
- Turn on eGift cards in your Square account and choose the amounts to offer.
- Check the café and every till can redeem them before you advertise.
- Add the link to your website and social pages from early February and early November.
- Stock physical cards at the till for people who want something to hand over.
- Each quarter, check how many cards are sold and how many have been spent.
What goes wrong
- Gift card money is owed to customers until spent; ask your accountant how to record it and how VAT applies to your type of voucher.
- Cards can only be redeemed through Square, so a café or concession on a different till system can't take them.
- Say clearly what the card can be spent on if concessions in your building are separate businesses.
- Low-value cards cost proportionally more in fees; set a minimum amount such as $13£10€12A$19C$19.