Categories
Guest Post

Thinking About Selling Gift Cards To Get Through The Crisis? Be Careful!

Thinking about selling gift cards to get through the crisis? Be careful! Selling a gift card to fund current operations can be a huge mistake. First, you must account for a gift card as a liability on your books (like a loan). So if you’re looking for a loan, having outstanding liabilities reduces the amount you can get and increases the cost of money.

Second, if you use the cash from gift cars to fund current operations, when you re-open in some form of normalcy, you will need to have the funds to re-start your business (this is especially true for food service businesses!).

So, a pizza shop that sells $5,000 worth of gift cards and spends that $5,000 before re-opening is now faced with the daunting prospect of having no cash, owing $5,000 and needing $5,000 worth of materials to start up. Bad news.

Worse news – you manage to find the $5,000 to get the shop re-opened and everyone shows up with their gift cards and buys $5,000 worth of food – but this leaves no cash in the register.

A better model for a food service shop might be to sell “memberships” to your business – a Pizza Shop membership entitles you to 2 free slices and a drink, once a week, for a year. It’s sold as an annual membership and it costs – amazingly – the same as a $50 gift card!

READ MORE ABOUT GIFT CARD ACCOUNTING HERE: https://www.accountingtools.com/articles/2017/5/17/accounting-for-gift-cards-gift-certificates

Categories
General

Cookies Make You Fat, Slow and Dumb As A Marketer

Editors Note: This is the first of the Monday guest posts. Martin, aka “Marty,” is a jack of all trades. Having been in the technology space for 35 years, Marty has seen it all when it comes to tech. Martin is the VP of Advisory Services at Ness Digital Engineering and the studio manager at Stacks Media Space an audio/visual recording space located in the heart of Doylestown Borough in historic Bucks County, PA.


The Digital Cookies As We Know It Is Going Away.

3rd Party Cookies are not going to be supported in future versions of Chrome.  

It’s the end of the automated, fraud-ridden, creepy stalking, society-destroying junk-space that is programmatic AdTech, right? Well, yes, to a degree. But what about “legitimate marketers?” I hear people say.  “We are a <insert sympathetic adjective> company and we rely on digital advertising for our revenue!”   

That’s OK, you didn’t say you rely on (digital) cookies for your revenue. So, you’re OK. Take a different view. 

Cookies were aptly named – having some is good but making them the main part of your diet will leave you bloated, slow and sick.  

Get back to the basics.  

Are you selling a good product or service? Are you keeping your customers happy? Are you spending on a good mix of “classic” and social media marketing? Are you investing in creating and publishing great digital content? Are you keeping track of what’s going on in your industry and sector?  

These are all basics, and for the most part, you don’t need cookies to do them.  

Yes, 3rd party cookies helped with some of the ad placement and tracking for automated programmatic advertising, but remember – the programmatic digital ad world is full of fraud so relying on that cookie-dependent model may not be the best way to spend your money anyway.  

Put the cookies on the shelf. Start working harder for your clicks and sales. It’s worth the effort.