By Sharon Stello | Enterprise associate editor | November 25, 2009 08:47
Can't decide whether Aunt Marge would like a book from The Avid Reader, a Christmas ornament from The Naturalist or some tickets to the Varsity Theatre? Not sure what gift to give your child's teacher or soccer coach?
Just in time for the holidays, the Davis Downtown Business Association offers a solution: a gift card, redeemable at more than 200 downtown shops, restaurants, theaters and service providers. It's like the shopping mall gift cards that can be used at any store - only this card keeps the money in Davis.
DDBA Director Joy Cohan said several community members had suggested the idea of a downtown gift card over the past couple of years. Cohan liked the concept, but it took some time to get the logistics worked out.
'It was something that I always thought would be just a great idea for downtown, to expand marketability,' Cohan said.
The gift card will give buyers - and recipients - options.
'I think it's going to be one-stop shopping for them (community members), instead of running around and maybe picking out the wrong gift.'
The downtown Davis gift card, available in denominations from $5 to $500, will be available starting Thursday, Dec. 3. A list of participating businesses will be posted soon on the DDBA's Web site, http://www.davisdowntown.com.
Cards may be purchased between 9 a.m. and 5 p.m. Monday through Friday at the DDBA office, 826 Second St. (in the former South Pacific depot substation next to the train tracks, between Village Bakery and the Davis Transit Depot), and at The Avid Reader, 617 Second St.
They also may be ordered 24 hours a day on the DDBA's Web site, set to relaunch Tuesday with payment options including Visa, MasterCard and PayPal. Cards can be mailed to the buyer or directly to the recipient with a special gift message. And there's no shipping charge.
How it works
No matter whether the cards are purchased in person or online, a $2-per-card convenience fee will be charged to help the DDBA, a nonprofit organization, cover costs of running the gift card program. Cohan said the DDBA does not aim to make a profit from card sales, just recoup expenses.
'We don't look at this as a money maker. We look at it as an investment,' Cohan said. 'This is an investment that DDBA has made in the health and prosperity and vitality of businesses - that help make downtown Davis a special place.'
The gift card works as a private-label credit card that can be swiped at cash registers like any other credit or debit card, making it easy for merchants to accept.
The transactions will be handled by Store Financial, a payment systems processor and industry leader in gift card programs for unaffiliated merchant groups. Store Financial runs the gift card programs for Arden Fair Mall in Sacramento and downtown districts across the country. The company was in town last week set up the system and meet with merchants for on-the-ground training.
'It was important for us to go with a company that knew what they were doing,' Cohan said. 'We feel that we're doing this in the right way, in a measured way. - It's a system they (consumers) can trust.'
As is customary with most pre-paid credit cards, balances remaining on cards 13 months after purchase will be assessed a $2.50-per-month account maintenance fee until funds on the card are depleted.
Gift keeps giving
Cohan said the DDBA wanted to boost the downtown district's competitive edge as more and more stores vie for Davis residents' shopping dollars.
Gift cards make a great holiday or birthday present, she said, with the added benefit of supporting the city's locally based businesses that hire local employees and pump dollars back into the community.
'That makes people feel like they're giving something more meaningful,' Cohan said. 'It feels like the right thing to do.'
According to a survey by the National Retail Federation, the largest retail trade association in the United States, gift cards remain the top gift choice this holiday season among gift recipients. More than 55 percent of adults said they wanted to receive a gift card. Apparel, books, DVDs and electronic all received fewer votes.
Consistent with last year, 77.2 percent of people will buy at least one gift card during the holidays, NRF reported.
Several grocery and drug stores offer a rack of gift cards for major chain stores and restaurants.
'We want downtown Davis to be on that list as an option,' Cohan said.
Although there are no immediate plans to get the downtown Davis gift card added to grocery store racks, community members will at least have the cards available to purchase in town.
'We felt like it was a natural follow-up to the $30 on 8/30 event. It carries forward a lot of the philosophy,' Cohan said.
The $30 on 8/30 event encouraged community members to show their support for local merchants by spending $30 or more at downtown Davis shops on Aug. 30, as a way to boost sales in the struggling economy. The event proved so successful that the DDBA plans a similar event in January - $30 on 1/30 - just in time for those who received downtown gift cards at the holidays to go spend them.
Cohan said keeping dollars in the community is especially key in this challenging economy. And shopping locally ties into 'green' efforts to decrease impacts on the environment.
Additionally, the cards are made of 100 percent recycled plastic - and can be added to the recycle bin once funds are depleted. The festive card holders also are made from 100 percent recycled paper.
After the holiday season, Cohan said she plans to market bulk sales of the card and look at potential for specialized sales. Some ideas include working with UC Davis and other major employers who might be willing to use the downtown gift card as part of their worker incentive programs. She also envisions the parents of UCD students buying downtown gift cards for their son or daughter to buy essentials or to eat out occasionally.
For more information, visit www.davisdowntown.com or contact Cohan at (530) 756-8763 or .
- Reach Sharon Stello at sstello@davisenterprise.net or (530) 747-8043. Comment on this story at www.davisenterprise.com
