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Maximizing Profits with Luxury Greeting Cards
Maximising Profits with Luxury Greeting Cards
We all know the thrill of opening up the mailbox to see our name hand-written on the front of an envelope — and it turns out, that’s a universal human experience. Studies conducted by the Royal Mail identified that the emotional impact of receiving a personalized greeting card far surpassed what was experienced when receiving an email or text greeting. Getting an email or happy birthday text just doesn’t give us that same serotonin boost.
That’s why greeting cards are such a fantastic small business option. The UK market for greeting cards has grown 16.2% per year between 2017 and 2022. But perhaps more interesting than the gross market figures is how accessible it is to begin your small business in greeting cards. All you need is some unique card ideas, an Etsy store, and reliable greeting card printing.
It’s clear, greeting cards aren't going anywhere. But one of the common mistakes new business owners make is a failure to understand the market. Doing your research really is essential if you want to run a profitable greeting card business, and that means effectively leveraging the services of your digital partners and the range of customization they provide. Doing so will help you unlock your profit potential and make higher revenues on the same number of sales.
In this article, we’ll delve into the key ways business owners can maximize profits by selling greeting cards. We’ll look into the hottest industry trends, plus the power of luxury finishes to add that extra revenue and how to market your cards effectively. We’ll also consider how you can maximize your relationship with your supplier to ensure your customers are getting the best-quality greeting cards available. Looking to the future of the greeting card industry, we will help you stay competitive and set your business up for long-term success.
Trends in the Greeting Card Industry
Firstly, let’s dive into the current market. We often hear that it’s much easier to send an eCard than a greeting card, and we know that our society thrives on convenience. So, are people still buying physical cards? The data says — absolutely.
Market Trends
While the industry has experienced fluctuating growth patterns in recent years, there’s still a clear and strong demand for personalized, physical expressions of emotion. According to figures published in the UK Greeting Card Market Report, over £1.5 billion is spent annually, with an average total of 708 million single greeting cards purchased. And that’s just in the UK! The American market is booming more than ever, with annual greeting card sales at over $8 billion. As of 2022, greeting cards' global market value was $19.25 billion.
According to Card Factory, The number of UK adults purchasing greeting cards was up to 73% in 2021, while in 2020, it was only 71%. But greeting card companies are now focusing on innovation, personalization, and customization options, enabling consumers to create more meaningful and unique greeting cards. Design and artistic aspects have also evolved, as consumers are showing more interest in visually appealing cards that are in line with current design and cultural trends. Luxury finishes aren’t only preferred, but they are expected.
Online Sales
Online shopping has, of course, had a substantial impact on the greeting card industry too. The pandemic prompted a shift in consumer behavior, with more people choosing to shop online for cards. Customers don’t necessarily want to go to the store to browse for and purchase a greeting card. Not only are there limited options in-store, but they lack personalization options.
Surely this is more evidence in favor of eCards? Well, surprisingly, no. The data shows 87% of greeting cards are still physical, not eCards. What it does mean is that many traditional greeting card companies have established online platforms to help them reach a broader customer base and address new demands. That means reaching those customers in the UK, the USA, and internationally, all from the comfort of your own home or small business address.
Environmental Concerns
One key trend with greetings cards is environmental awareness — a factor that increases in relevancy year on year, and which continually influences purchasing choices. Environmental awareness means your customers demand eco-friendly greeting card options, such as those printed on recycled paper or using biodegradable, soy inks.
It’s essential that greeting card companies offer sustainable options if they want to meet the current and future demands of the market, as we know that environmental concerns will continue to grow in the coming years.
The Power of Luxury Finishes
The trend data shows us that the greeting card market is still thriving, but how can new and small sellers stand out from key players like Hallmark to get a slice of the pie?
The answer lies in luxury finishes — the greeting card market is all about quality over quantity. While small business owners may not have the volume of sales of huge companies like Budget Greeting Cards, or Card Factory, there is still potential for increased profit by unlocking the power of luxury finishes.
Exploring a Diverse Range of Luxury Finishes
Leveraging the wide variety of luxury finishes available, you have more customization opportunities and the creative freedom to create one-of-a-kind greeting cards that can be sold at a higher price point.
1. Variety of Paper Types
There are over 40 different paper types available that you can print your greeting cards on. These include Silk, Gloss, Uncoated, Recycled, Kraft, Cotton, Rag, Wheat, Cannabis, Colorplan, Pearlescent, Zeta Hammer, Zeta Laid, Zeta Linen, Arpa Ribber, Tintoretto Gesso and more!
Each paper type has different thickness options and comes in different sizes based on the unique specifications of the material. With so many options, you can choose a paper type that best represents your brand and your unique selling proposition (USP), whether eco-friendly, artistic, or elegant. You can also choose whether you want your cards to be printed in portrait, landscape, or square format.
2. Lamination Techniques
Lamination gives you the opportunity to increase the quality of your greeting cards and give them an added aesthetic finish. We recommend only laminating the outside of the greeting cards to ensure that customers can still personalize them with handwritten messages on the inside if they choose. There are three primary lamination options available.
These include:
- Matt Laminate - If you're aiming for a modern, understated vibe, go for Matt laminated greeting cards. It's great for darker designs, giving your artwork a softer touch. This option doesn't reflect light, making it perfect for a contemporary matte finish.
- Gloss Laminate - Want your colors to pop? Choose gloss laminate for your design. It makes colors more vibrant and adds an extra oomph to your artwork. This one's perfect for colorful image-based cards. Plus, the way it catches the light is sure to grab attention and make your artwork stand out. It's also tougher against scratches compared to the matt finish.
- Soft Touch Laminate - If you're all about textures, soft touch laminate is the way to go. It gives your cards a velvety, luxurious feel that surprises anyone who touches it. No shiny reflections, just a subtle, soft, and matt finish.
3. Foil Embellishments
If you really want your greeting cards to stand out, foil embellishments are a luxury finish that you don’t want to skimp out on. There are a huge range of metallic foil colors to choose from, including gold, silver, rose gold, copper, pink, purple, red, blue, green, black chrome, holographic, and spot UV.
How Luxury Finishes Elevate Greeting Cards
So, why should you choose to invest in greeting cards with luxury finishes over basic and inexpensive greeting card options? As a seller, creating a brand presence is essential if you want to remain competitive and continue to turn profits. Greeting cards with luxury finishes have a distinctive visual appeal that will help you stand out from other greeting cards on the market.
They also have enhanced perceived value, especially if you include finishes like foil embellishments. And that means you can charge more per card than with basic cards. Thirdly, when designing greeting cards, you want to create memorable impressions on those who receive them. While people love receiving greeting cards in general, the luxury finishes will make an even bigger impact.
Marketing and Promoting Luxury Greeting Cards
Marketing and promoting luxury greeting cards is easier and more straightforward than trying to sell generic greeting cards. That’s because luxury finishes give you a unique selling proposition so you can tailor your marketing accordingly. Identifying your target audience is the first step to effectively marketing your cards. Who are you selling to? If you’re using recycled paper or printing on cannabis, wheat, or cotton, you may be targeting a crowd who is more environmentally conscious. Or if you’re using soft touch laminate alongside foil embellishments, you may be marketing to an audience who appreciates the finer things in life.
Once you’ve identified your target audience, you can start crafting your marketing strategy. Some effective marketing tactics include:
- Leveraging your social media platforms
- Collaborations and partnerships
- Showcasing luxury in your product imagery
- Communicating the value of investing in luxury cards
But the best way to market luxury greeting cards will always be word-of-mouth. Your card is seen on someone's fridge or displayed on a shelf, and guests ask, “Where did you get that?” The good news is that luxury greeting cards are more likely to be kept on display, and therefore they are more likely to be seen.
Financial Benefits of Opting for Luxury Greeting Cards
Luxury greeting cards cost more to print than standard greeting cards, so what is the difference in profit-earning potential? Let’s look at some real-world examples and profit comparisons of what our real-life customers see. One of our long-term clients is a small business owner selling greeting cards on Etsy. We asked her to share her profit margins for her last couple of orders and spoke to her about why she prefers luxury finishes, every time.
Calculating profits: Standard vs. Luxury Greeting Cards
Our Etsy seller’s initial purchase was for an order of 100 standard greeting cards on A5 350GSM Silk paper with no finishing for £33.95. She then sold her cards for £2.95 a piece, turning a total profit of £261.
Her second order, however, was for 100 luxury greeting cards on A5 400GSM Silk paper, with gold foil and lamination, for £190.95. These cards could then be sold for more, with a retail price of £4.95 a piece, turning a total profit of £304.05.
Now, our client’s business has grown. She’s able to increase the number of cards she prints each time and benefit from a quantity discount, but she still sells the cards at the same price in her Etsy store. Now, her numbers look more like this:
500 standard greeting cards on A5 350GSM Silk paper with no finishing for £97.95. These cards were sold for £2.95 a piece, turning a total profit of £1,377.
500 luxury greeting cards on A5 400GSM Silk paper, with gold foil and lamination for £733.95. These cards were sold for £4.95 a piece, turning a total profit of £1,741.
That’s a whopping difference of £364 in profit.
By leveraging both the resale value of luxury greeting cards and the advantage of a quantity discount, it’s much more lucrative for our clients to sell luxury greeting cards than it is to sell standard greeting cards.
Maximise Profit Potential with Luxury Greeting Cards
If you’re running a greeting card business, then creating luxury greeting cards is the best way to maximize your earning potential. We’ve seen how greeting cards can hit an emotional cord that digital messages simply can’t match, and the market is still buzzing with demand. But the secret sauce is luxury finishes. By leveraging different paper types, lamination, and metallic foil embellishments, you can create cards that stand out from the crowd and create a name for yourself as a brand. And this will be increasingly important as the greeting card market becomes more and more competitive.
Luxury finishes give your cards an edge that can’t be replicated by mass-produced options. They make your cards memorable, and that’s what the market is looking for. Customers want greeting cards that create an impact, and they are willing to pay for them. Even though they are more of an upfront investment for a business owner, adding a luxury finish to your printing creates the types of greeting cards that will turn a profit.
As we look into the future of the greeting card industry, remember that staying ahead isn’t just about making cards, it’s about crafting experiences. Personal connections are more valued than ever, and luxury greeting cards provide the opportunity to create more memorable experiences that stand out in a sea of messages.
