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Phone Cards Are Winners

Aug 1, 2009

About two years ago, Pre-Paid Promotions Inc. began providing retailers with emergency phone cards with a sweepstakes attached. "The phone cards with sweepstakes games are now in their third generation," says Michael Moore, president. In addition, his company has extended its retail offerings to also include point of sale terminals, ATMs and more.

The sweepstakes phone cards, however, remain a winning offer for both retailers and consumers. The cards are sold in rolls of 1,500 or 3,000 phone cards, under a variety of different promotional brands such as Sizzlin' Sevens and Dialing Dollars. "The retailer can chose the brand, each of which has themed graphics," says Moore.

To help retailers make the most of this, "promotional advantage," he says, a variety of point of sale materials come free with the phone card package. "They include banners, counter mats, door clings and other signage that calls attention to the sweepstakes phone cards." The phone cards come in a choice of seven or 13 minutes of domestic long distance phone usage and sell for $1 and $2 per card. Each roll is a self contained sweepstakes promotion with peel 'n win or scratch 'n win properties. There are a set number of prizes in a roll, assigned at random by computer. Depending on the brand and type, prizes can range from $1 to $1,000. The phone cards don't expire, but the card winnings can only be redeemed at the retail outlet where the card is purchased. "The winners tend to spend their winnings at that location," Moore says.

The wholesale cost of the rolls is based on a package price and the size of an order with Pre-Paid Promotions. Moore says the wholesale is typically about $200 a roll, and the average profit margin is 30 percent, once sweepstakes redemption is accounted for.

Among the additional products available from Pre-Paid Promotions is the, "One Terminal Solution." This is a point of sale device that can be programmed to utilize individual retailers' needs, such as to accept debit and credit cards, gift cards, check guarantee, loyalty programs and even to sell cellular cards. "It is available for purchase or lease," says Moore, "and eliminates the need for several point of sale terminals. The checkout area is valuable real estate," he notes, "and the One Terminal Solution not only saves space, but also simplifies the purchasing process." The same company also sells or leases ATMs. While acknowledging that this is a competitive market, Moore says, "we will be competitively priced with anyone."

For more information, contact:
Pre-Paid Promotions Inc.
4240 Carmichael Road
Montgomery, AL 36106
Toll Free: 877-576-3020
Tel.: 334-395-5777
Fax: 334-277-3900

Topic: Company Profiles

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Article ID: 1141

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