Cardcash

CARDCASH Bob,wouldn’t they rather not have anyone actually redeem it? Bohm: “The dynamicon the financial statement of retailers is not exactlyas you described.It’s a liability for the retailer and theycan’t mark it as revenue until the gift card is actually spent.So,yes theyhave the cash, but it’s a liabilityon their balance sheet.Inmany states, after a certain point,it gets escheated,and getsmarked as unclaimed property,so the retailer would never ac- tuallyget it.Even in the states where there aren’t such laws passed,it can sit on the retailer’s balance sheet as a liability for many,manyyears,until they slowlycan chip awayat breakage. “So,the retailers aren’t really looking for gift cards not to be used.Gift cards are intended to bring custom- ers into the store and get them to shop.What retailers love is when somebodycomes inwith a $100 gift card and ends up spending $150,so they’re getting some lift on that.And if you bought the gift card for $90,you might even bemore aggressive to spendmoremoney at the retailer.That’s reallywhat the retailer’s focus is.” BVM: So theyactually love you? Bohm: “Exactly.Some of their finance peoplemight not ‘get’it,because theylookat it asa free load,albeit withsome restrictions,because theycanuse thecash.But theycan’tmarkit as revenue.Andtheirmarketingpeople definitelyloveusbecause theirwholegoalwithgift cards is toput it infrontof consumersandget consumers to increase thesizeof their shoppingbasket.” BVM: Howabout some nuts and bolts? What’s your company’s geographical footprint and howmanyemployees do you have? Bohm: “Our focus is on the entire U.S.; we ship gift cards across the countryandwe buy gift cards fromevery state.We have a teamof about 100 employees.” BVM: Howdo you reach out to your cus- tomers? Bohm: “Thewaywe reach our customers ismostlyonline-based,whether it’s Google Adwords,Facebookads,or social media cam- paigns.Word-of-mouth of our own customers referring them to their friends is also a great source of customer acquisition.We have a very large recurring customer base.Customers get addicted to our platformas soon as theyget introducedto it.It’snot like thereareanyrestric- tionswhereyoucanonlyuse thegift cardfor a certainproduct at a retailer,suchascoupons that comewithrestrictions.Gift cardsare,essentially, cashtobeusedfor anyiteminthestore.We carryover1,000brands,sothereareveryfew brandswherepeopleshopthatwedon’t carry.If it’sa largenational or regional brand,we’regoing tohave that cardonourwebsite.” BVM: So anyonewho either wants to buyor sell a particular card goes through you? Bohm: “Correct.Anybodycan sell us that card and then,there’s going to be a buyer who