January 03, 2012

I Want to Start a Gift Card Company

This Christmas, I received a bunch of gift cards.

Since then, I've come close to accidentally throwing most of them already. In fact, as far as I know, I've probably lost one or two already. They're just sitting there with the cards and empty boxes, and I forget.

And I can't be the only one.

So, what if I started a gift card company that sold gift cards at a loss? For instance, I sell $50 gift cards for $45. People are thrilled, thinking they're getting an amazing deal. And they are - the ones who use them.

But when you account for those who lose, discard or never use them?

I could price-corner the gift card market, and still come out way ahead?