How much money do you think consumers will spend on gift cards this season? 5 billion or 10 billion? Try $25 billion dollars during just this holiday season! That is more money then most big industries will see in a fiscal year. 80% of all consumers will purchase gift cards with average amount of $116 per card. Do you see the money making opportunities that I see?

Let me break it down for you. Any good company that has an active gift card department is going to have bigger returns this year. On average when you give someone a gift card, they will spend an additional 10-15% at that store. Companies are trying to promote the use of gift cards because they see this money making opportunity. Invest in these kinds of businesses and buy some of their shares to profit from their revenue. The next year will be huge for a lot of companies that participate in gift card programs.

This phenomenon has also drizzled its way to the banking industry. Why would the banking industry get involved in a consumer product market? They make absurd returns on every gift card sold. It usually cost about $2.50 just to activate a card; which about 90% of that is pure profit. The holidays last year my little branch alone cleared out of all the gift cards 10 days after receiving our shipment of 250 cards! This business opportunity is growing at an exponential rate. Get involved people!

Holidays’ Big Work-Out, an article I wrote about how businesses are banking on the idea that consumers will buy gift cards, is becoming extremely true. You can profit from this kind of situation by investing in the good businesses that sell gift cards. Best Buy, Circuit City, Kroger, SunTrust, Walgreens, and Costco are just some of the companies I invest in that sell gift cards.

Do you have any more companies that you think will profit with gift cards?