Gift Vouchers seem to be primarily generated by the market as freebies for competitions and the like. They are designed, at least in part, to generate extra business throughout the market. One of our traders has suggested that the market is not making the most out of Gift Vouchers.
At one end of the equation, a recipient will attempt to exchange a voucher for cash. Obviously that generates no extra business for the market. At the other end of the scale the voucher is exchanged wholly for goods purchased from traders. In between the two extremes there are obviously various contributions to market business depending on how much money is returned to the customer as change. Are you still with me?
Our trader is suggesting that gift vouchers should be restricted to 50% of the sale. So, if a customer wants to purchase a $20- item he or she can only present a voucher up to $10 and the balance must be in cash or on card.
To put it another way - if the market distributes $50,000 of vouchers and they are all exchanged for cash, there is no benefit to the market. If the $50,000 is exchanged solely for goods, the market benefits from a $50,000 money flow. If our traders suggestion is taken up the original $50,000 becomes $100,000 worth of business.
What do you think?
A Website for All Traders at Melbourne's Queen Victoria Market.
