Cardcash

is interested in buying that card.Our average inventory turn is less than twoweeks.Some cards go as quickly asminutes,depending on the popularityof the brand. And our pricing is such that we’re in control over how fast that inventorymoves,and the small marginwe want tomake on that card.AWal-Mart cardwill sell minutes after it’s been sold to us.If it’smore of a niche market brand,it might take twoweeks until a buyer is found for it,but all cards that we buy,we price tomove fairlyquickly.” BVM: What kind of competition exists in your space? Bohm: “Well,obviously,there’s eBay,because that’s a secondarymarket for everything,but gift cards are a small portion of its business.There is a company in California,Cardpool,but I would saywe’re currentlyone of the largest in the space,if not the largest.” BVM: Has anything occurred recently,or planned for the near future that will impact theway the business operates? Bohm: “We started an initiativewhich tookoff very nicely.In addition to offering consumers cash for their gift cards,we’re also giving them the ability to trade CARDCASH a gift card for another brand.Sayyou got aMacy’s gift card and you don’t want it.CardCashwill either give you 80 cents on the dollar,or we can give you an Amazon gift card.Now,if you’re doing a trade for,say, Amazon,you’re going to get five percent more value than the cash option,so youwould get 85 cents on the dollar for that gift card.If youwere to trade it for a Dell gift card or a CVS gift card,you’d get some top-off over the cash option. “So,for a seller,it’s actuallymore value in their pock- et.In our trade option,we have about 20 of themost popular brands in the U.S.,such as eBay,Dell,Toys“R” Us, Amazon.You can trade your gift card for themand you get a lot more value.Now,for that retailer,Amazon, for example,it’s a great deal–theynowhave the abil- ity to offer something to someonewho had aMacy’s gift card but didn’t want it and acquire themas a cus- tomer shopping atAmazon.And the reasonwhywe’re able to give that top-off is because it’s actuallybeing fueled by the retailers.Amazon is actuallycontributing to the cost of their customer acquisition an extra few percentage points in order to attract aMacy’s customer to come toAmazon.” BVM: Are your transactions done physicallyor digi- tally? Bohm: “About 80 to 90 percent of our volume is All of your readers shop at retailers and if they all want to save money, I would definitely encourage them to download the CardCash mobile app ... You download the app, and you put your credit card information in the app to pay for your purchase. Once you set it up properly, it’s a frictionless ex- perience, and at some retailers you’ll save three percent, and at some you’ll save 20 or 30 percent. ELLIOT BOHM CEO