RETURN ON INVESTMENT
Below is an example of an average Return On Investment based on sales of 500 gift cards.
LaunchBox Sample R.O.I.
INVESTMENT |
 |
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|
| Custom Card Package Cost |
|
$750 |
| Flat Monthly Fee $35 x 12 |
|
420 |
| Terminal Equipment |
|
495 |
| Total First Year Cost |
|
$1,665 |
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| Average Sale of $35 x 500 |
|
$17,500 |
| Customer spends more than value of card: $10 x 500 |
|
5,000 |
| Total Revenue |
|
22,500 |
| Cost of Goods Sold @ 50% |
|
- 11,250 |
| 1st-year Program Cost |
|
- 1,665 |
| 10 - 12% Breakage** |
|
+ 2,250 |
| Total Profitability |
|
$11,835 |
Figures are for example only and are based on average retail gross margins & sales.
**Breakage = cards never redeemed.
**Based on 3.5 transactions per card. Monthly System Access fee is included in Flat Fee program.
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Download the MS Excel-based ROI Calculator and enter your own data to figure your program profitability. |
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