Presentation Why Buy It Community Card Program Overview 9.8.2010

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How a Community Card Program Can Make A Difference in Your City

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Presentation Why Buy It Community Card Program Overview 9.8.2010

  1. 1. Introduction to Community Card Systems: How it Can Make a Difference  to Your Community & Economy ® Tools to Grow Your Local Economy Property of Buy it Local, LLC | confidential information not for distribution
  2. 2. why cards? ® The “Gift Card” Market • Americans buying gift cards: 75% • Avg. spent per person: $125-150 • Annual Market Size: $20-24B How many are local? Property of Buy it Local, LLC | confidential information not for distribution 2
  3. 3. why cards? ® Cards for local stores & cards for spending within  local areas only represents approx. 5% (est.)  lo cal x . 5% Ap pro Here’s real leakage out of local markets Property of Buy it Local, LLC | confidential information not for distribution 3
  4. 4. why cards? ® The Importance:   Lost Sales Income for Local Retailers • High% of local or smaller retailers are adversely impacted. • As national card trends grow, local retail gets farther behind in sales opportunities. • Leakage of buying power is becoming increasingly critical to the tax base across the U.S. Property of Buy it Local, LLC | confidential information not for distribution 4
  5. 5. economic future ® the state of our nation •Spending Has Outstripped GDP •Public Debt Exceeds 13.7Trillion Property of Buy it Local, LLC | confidential information not for distribution 5
  6. 6. national problems ® the state of our nation • It’s imperative for local/regional /state communities to have a plan to capture any & all available consumer dollars & taxes NOW to negotiate the growing budget crunch and contraction in consumer spending. Property of Buy it Local, LLC | confidential information not for distribution 6
  7. 7. results ® 2009 Holiday Spending Trend Buy it*Downtown vs. National 18% 17% 16% U.S. Adj.for Returns+ 14% % Change 2008-2009 12% 10% U.S.* 8% 6% Buy it*Downtown 4% 1% 1.60% 2% +Source: MasterCard *Source: ShopperTrak 0% New York Times, Dec.30,2009 U.S. Adj.for Returns+ U.S.* Buy it*Downtown ● Buy it*Downtown showed 963 -1,600% increase above national averages Source: Internal Data, Buy it*Dow ntow n, January 4, 2010 •Buy it*® community card programs have shown they can increase spending to local merchants through their program many times the national average . 7 Property of Buy it Local, LLC | confidential information not for distribution
  8. 8. Local Card Program results Counters Negative Economy ® 1,124% increase 1.0% 0.7% May - Dec. 0.5% National personal 0.5% consumption expenditures National Consumer 0.0% Spending Trendline -0.1% -0.2% Buy it Downtown- -0.5% -0.4% Chattanooga Redemptions -1.0% -0.8% Sources: Dept.of  Commerce,  -1.1% -1.0% Bureau of  Economic  Analysis,  -1.5% 2.2.2009; Buy  it*Downtown  Internal Data,  May.’08‐Dec.’08 •While national consumer spending trends downward, Buy it*® community card programs have shown they can drive new spending to local merchants . 8 Property of Buy it Local, LLC | confidential information not for distribution
  9. 9. ® Buy it*®Cards is a buy local program that’s more than talk- it locks in dollars for your merchants and community & creates measurable results… even in recession. Property of Buy it Local, LLC | confidential information not for distribution 9
  10. 10. how it works ® COMMUNITY CARD SYSTEMS Property of Buy it Local, LLC | confidential information not for distribution WORK JUST LIKE A GIFT CARD OR PREPAID CARD electronic tracking across merchants auto funds transfer for merchant settlement online account balances for enrollees online admin reports 10 Making it easier to patronize local merchants with contemporary consumer retail tools
  11. 11. target target champions ® card buyers •City, Regional or State Elected •Corporate/Businesses Officials -Employee Rewards •Economic Development -Customer Incentives Programs (local, regional, state) •Defined (Retail) Corridors -Gifting •Tourism / Convention Agencies •Tourists •Chambers of Commerce •Schools •Private, Multi-tenant Retail •Colleges Developers ●Corporate Community •Hospitals •Private Colleges/Schools •Doctors Offices ●Merchant Associations •Realtors ●Private Foundations •Developers •Revitalization Programs •Defined geographies, •Professional neighborhoods •Groups-reunions, tours ●Urban/Downtown Areas •Conventions •Community Based Programs/ •Individuals Organizations Ideal for volume sales! Property of Buy it Local, LLC | confidential information not for distribution 11
  12. 12. how it works ® Easy-to-Use! Property of Buy it Local, LLC | confidential information not for distribution • no activation required • card registration encouraged for added protection if lost or stolen • reloadable – at any sales location or online • online card balance & statements* • one card, useable at multi-locations • no fees or penalties if used at least once every 12 months** • any denomination $10-$500 *registered cardholder benefits 12 **cards not used at least once in 12 months don’t help our economy! Inactivity fees of $5/month against unused balances will be charged until you use the card again
  13. 13. why buy cards? ® – Visibly demonstrate your commitment to your merchants & local economy – Be counted Your transactions only count towards our community goal if you use a community card so it can be tracked – Give great gifts, while helping community too – Support/contribute to community economic development efforts- without spending more Simply switch what you would normally give for gifts or rewards that you had budgeted & achieve 2 results with your purchase! – Help build your retail planning database Using your card as often as possible will help us track retail patterns which are helpful in understanding our merchant support and expansion efforts. – Help protect your local tax base Purchases out of area lead to lower tax collections = higher tax rates – Higher economic impact By stopping consumer leakage from our market, we can actually grow our economy with less new investment 13 Property of Buy it Local, LLC | confidential information not for distribution
  14. 14. why buy cards? ® – It’s an awesome gift- with lots of choice! People love them! – There’s something for everyone. – It’s easy! It’s the hip way to buy local. 14 Property of Buy it Local, LLC | confidential information not for distribution
  15. 15. ® You can make a difference on small businesses & your local economy, just by how you spend your money- maximize your impact by buying & spending community cards Property of Buy it Local, LLC | confidential information not for distribution 15
  16. 16. other benefits of our community card program: more than cards ® … a call to action for campaigns 16 Property of Buy it Local, LLC | confidential information not for distribution
  17. 17. other benefits of our community card program: more than cards ® …perfect complement for Special Events 17 Property of Buy it Local, LLC | confidential information not for distribution
  18. 18. other benefits of our community card program: more than cards ® … tools for promotion & engaging community Wi n n e r epstakes th Sw e Decemb er 24 •Card programs are more than a product •Cards are a vehicle to connect, build excitement AND steer dollars to your merchants! 18 Property of Buy it Local, LLC | confidential information not for distribution
  19. 19. more than cards ® … tons of occasions & uses •your card designs •Unlimited card styles ● …the possibilities are endless! “Thank you for Visiting x City” cards … ALL “Shop x City” cards “Thank You” customer cards designed to “Welcome to xCity” cards drive $ to “Come Explore xCity” cards your local “Night-on-the-Town” cards businesses “Student Advantage” cards 19 Property of Buy it Local, LLC | confidential information not for distribution
  20. 20. Triple Visibility ® Every Card Has Visibility / Impacts at Least 3 Persons: 1 2 d XYZ Local Gift Car Buyer 3 Receiver (cardholder) 1 or More Merchants •Card programs can increase the number involved & affected  by you‐ reinforces brand of sponsors too! 20 Property of Buy it Local, LLC | confidential information not for distribution
  21. 21. Broaden Support ® Card Programs Connect & Engage ACROSS the Community Corporate Community (card buyers) Consumers/ Government General  (tax beneficiaries) Public (card buyers &  cardholders) Realtors/ Developers Merchants/ (card buyers &  Local  merchant  incentives) Retailers (redeeming/ Community  sales locations) Groups/ Schools/Others (card buyers & cardholders) 21 Property of Buy it Local, LLC | confidential information not for distribution
  22. 22. potential uses ® Shopping / Gift / Community Prepaid Cards Gift/prepaid cards for defined geography (holiday, special occasions, etc)- retail and corporate | Tourism & Visitor Cards | Attractions | Special purpose cards Employee Performance Rewards Reaching/exceeding targets | Attendance | Community service | Other Health Improvements Weight management goals | Exercise participation Smoking cessation | Health education participation Vaccinations/shots | Annual physicals | Other exams / routine checkups | Below Average Sick Days | Other Property of Buy it Local, LLC | confidential information not for distribution 22
  23. 23. potential uses ® Green Friendly & Environmental Stewardship Recycling participation | Weatherization | Energy efficient purchasing | Green friendly building construction | More! Government or Citizenship Rewards Timely or early tax payments | Reduced natural resource consumption (i.e. water) | Charitable service or contributions | Parking rewards Schools / Colleges Parental Involvement Rewards | Student Performance Incentives | Off Campus Student Life Cards | Meal Plans 23
  24. 24. merchant benefits ® – Competitive Alternative to National Cards $24B industry/year – Capture & Steer Consumer Dollars to You – Brings NEW Business survey of card buyers show 90+% bought other gift card type options before – Extends Holiday Buying Season – Better Positioned to Capture Group/Corporate Business multi-merchant advantage, few merchants can achieve on own – Marketing & Promotion with Participation web directory, card listings; potential blast emails, campaigns, more 24 Property of Buy it Local, LLC | confidential information not for distribution
  25. 25. merchant benefits ® – Stone Soup & Market Differentiation creates more than sum of parts, creates a totally unique offering – Consumers Like Them cards are sexy & convenient, people love them & love having choice! – Electronic Tracking get your reports online – Merchants Can Sell Cards, Drive Traffic to Location – Easy Operation mom & pops to cinemas, groceries, boutiques & restaurants-it’s easy for everyone – Local Retail Statistics builds database of local consumer patterns for future retail planning & understanding of your marketplace 25 Property of Buy it Local, LLC | confidential information not for distribution
  26. 26. more results * ® • Merchant ROI Avg.: 711% • High Performing ROI: 2,900-4,900% • Avg. Spending Beyond Card Face Value: 40% • Avg. Card Sales Growth: 75-135% annually • Avg. Value Card Sold: $40.00 • Avg. Redemption: $ 17.53 *your own card program results may vary depending on the composition of your merchant network, geography and sales efforts; the profile above is based on current program averages and does not guarantee exact results Property of Buy it Local, LLC | confidential information not for distribution 26
  27. 27. more than cards ® one-of-a-kind reporting and tracking system …the results are measurable! The buy it*® proprietary, web based management system is the only turnkey card program available specifically designed for economic development & planning use. 27 Property of Buy it Local, LLC | confidential information not for distribution
  28. 28. about buy it*® ® • specializes in custom, private electronic card networks • buy it*® is the leading turnkey card program specifically designed for communities & economic development Property of Buy it Local, LLC | confidential information not for distribution 28
  29. 29. “Community” buy it*® creates ® Card Systems Card systems for local spending to help grow local economies Property of Buy it Local, LLC | confidential information not for distribution 29
  30. 30. about us ® who are the creators of Buy it*® Buy it*® community card programs leverage consumer technologies and national transaction processing platforms to create customized, local transaction networks to steer and track spending for economic development purposes. Buy it*® community economic tools are created by Buy it Local, LLC. Buy it Local developed and implemented the flagship community card program for downtown Chattanooga, Tennessee known as “Buy it*downtown®” which began operation in 2007. Buy it Local Company expertise includes: economic development, banking, technology, strategic planning, finance, retail Property of Buy it Local, LLC | confidential information not for distribution 30
  31. 31. building on success ® expanding a model that already works Beta Site Program: Buy it*Downtown® (Chattanooga) •Buy it*downtown® currently operates the community card program for downtown Chattanooga. •Buy it*downtown® started in partnership with the Lyndhurst and Benwood Foundations in 2007 to benefit downtown merchants. •Even though the program exists for a limited geographic footprint and was started during the economic recession, it has experienced triple digit growth and successfully created over $1M in economic impact in a short time. •Blue Cross Blue Shield Tennessee is an active participant in the downtown community card program. Using Buy it*downtown® cards as their exclusive holiday gift and one of two approved management rewards option. BCBST has channeled budgeted corporate employee expenses to directly benefit some 80 local merchants, instead of using online and other vendors. It’s this type of choice that can have a real stimulus effect on businesses. Buy it Local has tools to make it happen. Property of Buy it Local, LLC | confidential information not for distribution 31
  32. 32. operating performance ® Buy it*® is the best of both worlds: robust, national architecture + local market customization Buy it*Transaction Network: 0% Down Time Transaction Platform Volume/Yr: 4Million EFT Platform Volume/Yr: $1B 32 Property of Buy it Local, LLC | confidential information not for distribution
  33. 33. locations ® Transaction Network Platform:  Massachusetts &  Colorado Data Centers/Hosting:            Colorado & California EFT Processing Platform: Tennessee Customer Service:       Tennessee Technical Support:      Tennessee Payment Processing:   Tennessee Decision Support Programming:      Tennessee Systems Integration: Tennessee Sales: Tennessee Buy it*®Headquarters:   Chattanooga, TN Property of Buy it Local, LLC | confidential information not for distribution 33
  34. 34. contact us ® to learn more website: www.buyitcards.com email: admin@buyitcards.com phone: (888)88 -buy it (423)643-0715 Buy it*®Cards is a product and service of Buy it Local, LLC. We would love to work with you to benefit your economy, businesses and community. Property of Buy it Local, LLC | confidential information not for distribution 34

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