How To Start A Gift Basket Business - Free Guide
How To Start A Gift Basket Business - Free Guide
How To Start A Gift Basket Business - Free Guide
Legal Notice/Disclaimer/Disclosure
Copyright 2012 Steve Sutherland. All Rights reserved No part of this publication may be sold, copied, reproduced, stored in a retrieval system or transmitted in any form or by any means including electronic, mechanical, photocopying, recording, scanning, or otherwise without prior written permission from the author. All trademarks mentioned in this report are the property of their respective owners. The information contained in this guide represents the opinions of the author. The author has made all reasonable efforts to ensure that the information is correct and up to date. However, it cannot be guaranteed that this is the case and we make no representations or warranties with respect to the completeness or accuracy of the following information. By reading this guide users acknowledge that they cannot hold the author or publisher liable for any losses suffered as a consequence of their actions. This information is intended for educational purposes only and should be used at your own risk.
Table of Contents
1) Introduction Read This First........................................................................................4 2) Reasons to Start a Gift Basket Business ........................................................................5 3) Start up Considerations..................................................................................................8 4) Factors Contributing to Your Success...........................................................................12 5) Preparing a Business Plan............................................................................................15 6) What it Takes to Make a Six Figure Income..................................................................20 7) Ideas for Choosing a Name..........................................................................................24 8) Overview of the Industry in the US..............................................................................28 9) Doing Market Research................................................................................................31 10) Start up Costs and Funding Options...........................................................................33 11) Gift Basket Marketing Plan.........................................................................................36 12) How to Price Gift Baskets...........................................................................................40 13) Selling to Corporate Clients........................................................................................43 14) Gift Basket Drop-Shipping..........................................................................................45 15) Advertising - How to Sell Gift Baskets........................................................................48 16) Business Cards............................................................................................................52 17) Delivery and Shipping.................................................................................................54 18) What to Put in a Gift Basket - Theme Ideas...............................................................57 19) How to Make Gift Baskets..........................................................................................60 20) Other Ideas and Tips..................................................................................................63 21) Information Sources...................................................................................................66 22) Books and Start up Kits..............................................................................................68
Anyone can get started with their own home-based gift basket operation for well under a thousand dollars. This is attractive if you really want to start a business but don't have access to a lot of funding. A Home Based Business Opportunity This is one reason why the industry has largely been dominated by women up until now. Some people want to work at home because they don't like a commute to work or find that they don't often get on well working with others. Some find that they have to stay home to care for children and need some kind of work to keep themselves busy. A gift basket business is one of the best 'work at home' opportunities around and gives you some flexibility to work the hours that you want. Gift baskets as a business model work well as you don't really need a retail front or even a sign as you can do perfectly well just through online and direct marketing. Most entrepreneurs find that the sacrifice in living space is minimal as only a small area needs be set aside for putting together baskets and storing inventory. Minimal Training Requirements You don't need any specific education, qualifications or training to get started with a gift basket business. Putting some baskets together can require skill and experience but you can pick it up easily just by imitating other baskets from websites and stores (order a few yourself and dissect them) and adding your own ideas to make your own original creations. Work Day Variety One great thing about being your own boss is that your working day is never dull. As a gift basket business owner you will likely be involved with sourcing supplies, assembling baskets, taking orders, dealing with clients, managing staff, marketing and other
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administrative tasks. Variety can make for a more satisfying working day. There are many great reasons to start a gift basket business. For most people it comes down to lifestyle choices and a desire to be happy with their work, their working environment and still have the ability to earn a decent income.
3) Start up Considerations
Before you start doing your research and preparing a gift basket business plan there are some basic things that you should first consider. The following article sets out some questions that you should try to answer in order to give yourself a clear idea of the direction that you want to proceed in. Target Market While you can focus on the entire market, a better approach is to identify niche markets within the industry. You may choose to sell gift baskets to corporate clients, target consumers or go after both markets. Each market sector is different and you will have to offer different styles of gift baskets depending on the market that you choose. The best marketing methods for reaching customers in different market sectors will also vary. Home Based or Store Front? While it can be easy to run a profitable gift basket business from home it can be a different story if you have rent and other overheads to pay. However, a prominent retail location can do wonders for your business in terms of exposure to customers. The usual advice is to start off small at home and only expand into rented premises once your business is profitable. and you have steady customers. Legal Structure Should you operate as a sole proprietorship, as a partnership or as a corporation? While a sole proprietorship can be easier to set up for new businesses, a corporation is usually the best long term option. With a limited liability corporation your personal assets will be protected whereas with a sole proprietorship you, as the owner will be liable to pay for all losses personally. Seek some legal advice or talk to experienced business people to find out which is the best option for you.
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How to Sell Gift Baskets? This is perhaps the most important question to ask yourself before you make any other decisions. The most common business models are either home-based with predominantly online sales or retail based with a combination of walk-in sales and online sales. Most gift basket businesses also take a proactive approach to marketing and go out looking for clients directly. Insurance Requirements You will need to have insurance policies that protect the property of your business from theft or damage. Liability insurance is also essential in case someone suffers an injury or a loss due to an accident on your premises or as a result of the actions of one of your employees. Tax Situation Make sure that you get started off right by having a good understanding of your tax obligations and your requirements with the IRS. Plan on spending at least a couple of hours with an accountant as they set up a bookkeeping system for you. Hiring Staff Starting off as a sole operator is sensible. If you want to expand to a level where you can make a decent living from gift baskets though then you must take on employees at some point. Financing Options Are you able to fund your gift basket business independently or will you need to seek
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funding from investors, banks or other sources. Once you have answered these questions you will have a better idea of how to start doing the research and planning that is necessary to start a gift basket business successfully.
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You will need to have funding to start a gift basket business. While this doesn't necessarily have to be a large amount, you do have to take your living costs into consideration as well, at least until you can earn an income from the business. Keeping a part time job while your business is in the early stages of development is a less risky approach that some gift basket entrepreneurs take. Management and Marketing Skills Those that focus only on the practical side of the business are doomed to failure. You need to understand how to run a business operation and how to market gift baskets effectively. While these skills are intuitive for some, others would benefit from taking some related courses at a community college or reading some books on the subject. Communication Skills Success in most businesses comes down to effective communication between people. To succeed in the gift basket business you will need to be able to manage employees, sell to clients and deal with suppliers. Being a good communicator and understanding the perspectives of other people is a good way to push forward the interests of your company without stepping on anyone's toes. Organization and Time Management Skills Starting a gift basket business will require you to take on a variety of roles, the most important of which is providing a quality service to clients with timely delivery and great service. You need to be an organized person in order to get everything done to meet deadlines whilst still maintaining product and service standards. Love What you Do Lastly, you need to have an interest in learning, both about business in general and
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about the gift industry specifically. You should constantly be doing research into how you can provide better products and run a more efficient operation that delivers maximum value to clients. Reading trade magazines or attending trade shows is one way to keep up with trends and learn new strategies. If you have these skills, resources and personality traits or you are willing to focus on obtaining them, learning them or developing them, then you can proceed to start a gift basket business and to work towards getting your first few clients.
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can use for ideas on how to write your own. You can also purchase templates or software for this purpose. Below we have set out a business plan outline or template that you can follow. Keep in mind that every business consultant has their preferred format so there are many ways to go about laying out the various sections of a plan. Table of Contents Start out by offering readers a contents page at the beginning of the report so that they can quickly refer to the section that they are interested in if necessary. Executive Summary Start out with a one page summary of what your report is about and offer a basic profile of the new venture that you are proposing. Let readers know about the opportunities that you have seen in the gift basket industry and how you have come to the conclusion that the proposed business is viable. Let readers know about the current status of the project if it has been on the drawing board for a while. Background Give the reader some background information on yourself, your past experiences and your qualifications. Include basic resumes for yourself and any other partners or key players and identify the strengths that you each bring to the table. Let readers know how you came to decide that you want to start a gift basket business. Offer some background data and statistics on the gift basket industry at both the local and national level. Business Description
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Introduce readers to your idea of what your gift basket business will be like once set up. Offer them a basic description of the market that you will target and the kind of gift basket products that you will offer. Discuss the location of the proposed business and provide other useful information. Mission Statement Set out your vision for the new company, its values and the impact that you want to have on your customers and on the community. What will your brand promise clients in the way of product and service standards? Put financial matters aside for a minute and think about how you want your business to affect people in a positive way. It may be that you have strong feelings about caring for employees, the environment, healthy lifestyles or customer happiness. Goals and Objectives Set out what you hope to achieve and set out a time frame for reaching growth targets. Goals can be measured in many ways and you may set targets for total revenue, total number of baskets sold, profit margins or customer satisfaction rates among other metrics. Start up Requirements and Legal Concerns What is needed to get started? Set out start up costs and details and outline where the funding for the new venture will come from. Take into account compliance costs and any licenses or permits that have to be acquired. Report on the zoning status of your proposed location and confirm that a gift basket business would be permitted to operate there by local authorities. Management and Operations
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Point out who the owners of the proposed gift basket business are and their responsibilities relating to business development and day-to-day management. Include details of how the business will operate on a daily basis. Make a note of all the systems that you will have in place to ensure that things run smoothly, productivity is maximized and errors are avoided. You will need systems for ordering, storing client data, handling payments, ordering supplies, assembling baskets, arranging for deliveries and more. Estimate the costs involved with taking on employees and set out a time-line for taking on extra staff as the business grows. Market Analysis Examine your target market, set out some profiles of typical customers and report on how your products and services will be suited to their needs and desires. Here you can include local demographic data as well as the results of any surveys that you have carried out as part of your market research. Provide a thorough analysis of direct competitors in your area. You should also mention indirect competition as well and consider other gift related businesses that you may be in competition with. Look for strengths and weaknesses in the business models of your competitors. Highlight ways that you plan on taking market share from them by offering products and services that are in some way different, better or unique. Marketing Plan Expand on your understanding of the market by suggesting a line of products to meet their demands, a branding strategy and a pricing strategy. Set out detailed plans for getting inquiries, converting them into new customers and maintaining them for the long term. This should include details of advertising campaigns or direct marketing as
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well as details of an online strategy or other sales approaches. Financial Assessment Estimate monthly income and expenditure for the first three years of your businesses life and try to estimate profit levels and a 'break even' point. Bear in mind that things often change or turn out to be not what you expected so go about this conservatively. Set out your estimates in spreadsheet format so that you can easily view a range of scenarios by entering different revenue and expenditure forecasts.
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A full time commitment to a business is a great way to start off. Part time gift basket business operators can still enjoy success if they are disciplined. However, if you are squeezing a gift basket business in with an already busy schedule then you will be facing an uphill battle and failure will come all too easily. Commercial Space Many operators that earn a six figure income from their businesses operate out of commercial premises that give them the space and facilities that they need to store stock and supervise staff as they put the baskets together and manage orders. Commercial premises can also help by giving the business more exposure, a store front and a more professional image and they can therefore usually do more sales volume. Some home-based operators are also able to achieve six figure profits too once they are well established. Online Domination The gift basket business is more reliant on online marketing in comparison to other industries. The top companies in this field have developed highly effective websites that market their products as well as allowing their customers to use an easy ordering process. They also know how to get targeted visitors to their websites in large numbers. Understanding the Internet yourself or hiring good people to run and promote your website for you is another key to success. Marketing and Sales The best gift basket businesses have well thought out marketing plans, test a variety of advertising methods and become very good at understanding the market and what their customers want. It is all about identifying and researching profitable markets and going after them with the right products and the right style of marketing.
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Customer Service To get repeat orders from your clients and referrals you must ensure that you offer the highest standard of products and services at all times so that you can benefit from positive 'word of mouth' advertising. There is little room for error when your clients will be ordering gifts for important events like birthdays and Valentines Day. Product Line Naturally, the top companies in this field have become very good at what they do. They know what kinds of baskets sell well and they stick with a core product line that works while still testing more innovative product offerings as well. Find out what your market wants and give it to them while offering some variation if they feel inclined. Keep up with industry trends by attending trade shows and reading industry magazines. Branding The top companies in the gift basket industry understand the value of building up a brand over the long term. They get their brand out in the marketplace on their baskets and through their advertising and actions. Make a promise to your market regarding your products and services and never fail to live up to your promise. That is the best way to establish brand reputation. Once you have a good reputation you will find that sales come much easier and that you can be more confident with your pricing. Systems The top earners have systems in place to streamline the ordering process from the time they receive an order to the time it ships out. Being organized is they key to being efficient, productive and avoiding mistakes which can be very costly to your reputation. Hiring Staff
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To reach a level where the owner can draw an annual profit of over $100,000 it is usually necessary to scale up to a level of operation beyond the capabilities of one owner operator. Realize that you will have to hire employees to become successful and set out a plan for taking them on as soon as you can justify the cost. Before starting out in this industry you should consider these ideas and try to incorporate them into your gift basket business plan. Earning a great deal of money in this business and taking home a 'six figure' salary is not impossible if you focus on the factors that separate the successful gift basket operators from the hobbyists.
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'Corporate Gift Baskets' as part of your name could be a bad idea as you may wish to move into the consumer market as well at a later date. Market Appeal When coming up with a name it is good idea to think of something that is a good match with your target market. A corporate gift basket provider may go with something more serious and professional sounding that hints at a high class product or reliable service. A gift basket service catering to the consumer market on the other hand may consider a name that is cute, catchy or romantic. Putting forward the right image is the key to having customers identify your business as one that can fulfill their needs. Memorable Names A good name should be memorable and easy to pronounce. You need something that will be remembered by clients and prospects, even if they have only heard it once. Once you have put together a list of possibilities, run them by family and friends and test them several days later to see which ones they were able to recall and pronounce correctly. Practice answering the phone using a variety of names and see how they sound. Playing with Words Another great idea when brainstorming for names is to put together a big list of words that appeal to you. You can then consider combining these words with other words to make a short list of candidates. Think of words that describe your service, your baskets or the products inside your baskets. Think of emotional words that people might associate with gift giving. Sometimes the most memorable names can be totally unrelated to the theme of your business all together and they can still work well. Think of words that are powerful but
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avoid words that have been over used in business like 'best' or 'global'. Practical and Functional Gift basket business names, like those of any business should be practical. A name must be able to be fit on, and look good on business cards and other branded material that you may print in the future. Go for shorter names over longer names. Unique and Original The name that you decide on for your gift basket business should distinguish you from local competitors as well as from any other businesses and organizations. Coming up with something unique can be tough but originality is usually rewarded in the business world. A great name will help you to stand out in a crowded market. Get inspired by the names of other local businesses but be careful not to imitate them too closely. The other reason why originality is important is that you must be sure that your name is not infringing on the trademarks of other companies. Do your due diligence here and check out your selection carefully before going ahead with it. Check online as well as with your county clerks office as they have databases that can confirm availability. Website Considerations You will almost certainly want to get a website up soon after you start a gift basket business so you should also do some preliminary research into suitable domain names to make sure that there are some options available that match your business name. Ideally, you will also want to rank highly on search engines when somebody searches for you by name. Check out the search results on Google and other top search engines and make sure that they are not too cluttered with other companies using similar words in their business names.
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Personal Satisfaction Lastly, you should make sure that you are happy with the name that you have selected. It should inspire you, make you feel proud of what you have created and make you want to channel all of your energy into your new gift basket business to make it successful. Too many entrepreneurs leave the naming of their business to the last minute and end up going with something that they end up regretting further down the line. Treat the naming of your business as an important part of building a solid foundation for the future of your gift basket company. Give the naming decision the attention that it deserves.
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to people for a variety of reasons and events, from celebratory events such as birthdays and weddings through to romantic occasions and even funerals. The corporate world has also jumped on the bandwagon and baskets have become a common way for a company to show thanks or appreciation to employees and clients. Gift baskets are becoming more and more popular, with many people seeing them as an alternative to flowers (they last more than a few days if not eaten straight away). Various companies are putting almost anything into their creations these days. After all, packing gifts in a basket is really just another form of gift wrapping. Gift baskets typically include a range of products that compliment each other and follow a certain theme. While businesses operating out of retail space will get walk-in orders, home-based gift basket businesses will likely be reliant on the Internet for orders. Having a website and promoting it effectively is the key to success here. Payments can be handled online by PayPal but a successful operation should be set up to take credit card payments directly. While most business models involve heavy Internet marketing, some, particularly those catering to corporate clients are more active at going out and finding clients directly. The gift basket industry has low barriers to entry and a business can be started from home for well under a thousand dollars. No special skills or training are required. People who are creative, with a good eye for color and presentation as well as possessing good business sense will naturally do well. Depending on whether you structure your business as a limited liability company or as a sole proprietor you may be required to apply for a business license depending on the state that you are setting up in. If you intend to run your business from out of your home then you will also have to check the zoning regulations in your city to see if you are permitted to do so. Those who are able to start a gift basket business and achieve a full time income from it are usually the ones who are able to balance the creative or practical side of the business with the business administration and marketing side. This business is reasonably competitive and having a good product is only part of the formula. To
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succeed you really need to focus heavily on sales and marketing and on become highly effective at finding customers, catering to their needs and delivering a product of the highest standard with the highest level of service. The gift basket business looks set to expand well into the future and offers great opportunities to those wanting to start up a small business easily and with minimal complications. More US gift basket business statistics can be found in a variety of gift industry publications but it is important that you don't rely on national data too much but instead try to collect local information through solid market research.
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company and what they liked about their products and services. Try to find out their likes and dislikes regarding the company in question and ask them if they think there is a way that their products and services could have been improved. Some of the people that you meet while doing your market research may later become your customers if you manage to get their contact details and let them know when you have opened your business. Investigate the Competition Do some investigation into how your competitors are running their businesses. Study their product ranges and take note of how their baskets are put together. Read their websites, call them on the phone or visit them posing as a customer in order to find out as much as you can about their gift basket pricing and their ordering and sales processes. Look for aspects that you like and don't like about these other companies and decide which things you would like to implement or adapt for your new venture. While you are studying the competition you should also think about how you will differentiate your products and service from them so that you have some originality and can stand out in a crowded market. Before you risk your start up capital on a new gift basket venture make sure that you have completed thorough market research to reduce your risk and help you to plan more effectively. And even once your business is up and running it doesn't hurt to continue to research the market through your customer feedback and other methods.
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Funding When it comes to funding the start up costs for a gift basket business there are a variety of sources available. As start up costs are generally low it is a good idea for the business owner to fund them independently and to avoid going into debt. If this is not possible and external funding is required then a small loan from family is often the best option if you can convince them. Another option is to try and find an investor to take an equity stake in your business in return for a portion of ownership in the business. Investors will often want to have some input into the management of the business so you really have to make sure that your plans are along the same lines as theirs to avoid confrontation. If you have a good account history with a bank then there are a variety of small business loans available with varying repayment schedules and interest rates. You will need to show the bank your business plan, show a willingness to fund at least some of the start up costs and offer them some form of guarantee that the money will be paid back. Seeking a small business loan or grant from the government is a possibility but with so many applicants for these limited opportunities you really have to submit an outstanding application to even be considered. If you can prove that your business will give something back to the community or can commit to hiring workers who have been unemployed for some time then you will increase your chances. Lastly, if all else fails, you can always take out some cash advances on a variety of credit cards. Many small entrepreneurs fund business start ups this way but it can be risky due to the high interest rates that are involved. If you are confident that you will be in a position to start making repayments within two or three months then you will avoid being hit too hard with interest.
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No matter how you go about financing your gift basket business just make sure that you prepare a budget and ensure that all funds are put to the best possible use.
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Consider compiling photos and other product information into a brochure or album so that you have something presentable to show clients when you meet with them. Think of some marketable names for each of your gift basket creations that suit the contents or theme. You can also offer descriptions of the basket contents, packaging and overall style. Marketing a Brand Establish a brand for your gift basket business that you can build over time into something that customers immediately recognize and associate with quality and reliability. This will gradually make your marketing burden much lighter. If you get your brand out there on your gift baskets, advertising and signage, and you then back up your brands promise with quality products and services you will be building a very valuable asset. Recognition of your brand by customers will make it easier to sell baskets and easier to charge a premium price for them. Try to create a brand that is refreshing and unique in the market in order to stand out. Advertising Gift Baskets Running effective advertising campaigns is a major part of a companies marketing effort. Try as many advertising methods as your marketing budget will allow for and test results to see which ones are cost effective and which are not. Word of Mouth Marketing and Referrals In the gift basket business you will be relying on repeat customers. To keep them coming back you have to ensure that you have great products and offer great service. If you do you will not only retain your existing customers but they will spread the word and refer their friends and associates to your business as well.
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Remember that there is no room for error in this business as people are buying your products for important events. Customers expect that you will get their order right, it will look great and that it will be delivered on time. Anything less than perfect products and services will strongly encourage customers to try another business next time they need a gift. There is much more to 'word of mouth' marketing than just having good products and high service standards. Think of other ways to make your customer's experience with your business and your gift baskets so interesting, unique and memorable that they won't be able to resist telling friends about you. You can also put a referral program in place that encourages your customers to refer friends. Offer them bonuses or discounts for successful referrals. Networking Try to network with other businesses owners. They may be able to sell your products on a commission basis or you may agree to cross-promote each others products. Try to get close to other businesses in the 'gift' industry such as florists and gift shops. Bear in mind that woman are twice as likely as men to order a gift basket so also target businesses popular with women such as hair salons and beauty spas. Depending on the gift basket niches that you are catering to, having relationships with other businesses such as pet stores, wedding shops and baby supply stores may be beneficial. A great way to meet other local businesses is to join your local Chamber of Commerce. Online Marketing - Social Media Take advantage of the social media services that have become popular on the Internet over the past few years. While it can be difficult to meet new customers through the likes of Twitter and Facebook, these tools can be great for maintaining relationships and contact with your existing gift basket clients. Marketing to your Existing Clients
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It is much easier to sell to customers that have already used your services than to go out and find new customers. You can easily market to your existing customer base by encouraging everyone that buys one of your products to join a mailing list in order to receive discounts and promotions. A newsletter or email sent out just before a holiday such as Valentine's Day can work wonders for your sales. Marketing is undoubtedly the most important aspect of starting and running any successful business. If you don't know how to market your gift baskets successfully then you won't be in business for long. Set out a solid gift basket marketing plan that can give you the sales volume and market reputation that you need to grow your business over the long term.
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Other factors that may permit you to get away with above average pricing in the market include your brand reputation and your sales process. What are your Competitors Charging? One of the best approaches to pricing is to survey the market and find out what your competitors are charging for their baskets. You can then consider pricing your own at similar rates with some adjustments where necessary. Getting pricing data is easy these days as you can analyze a large number of competitors in your area by viewing their websites or giving them a quick phone call. A Pricing Formula One easy formula for pricing is to add up the cost of all the items in the basket and the packaging costs, add a suitable amount for labor and finally add on a fair profit. To keep things even more simple many business operators simply work out the total cost of supplies per unit and double it in order to make a 100% profit margin per gift basket. Larger businesses and those working out of rented premises will have to be a bit more careful with their methods as they will have to figure in fixed costs such as rent and utilities and add a small amount on to the price for each basket to compensate for these expenses. You may also have to allow for other expenses such as marketing and transportation costs. If you are getting your goods at wholesale prices then often your final basket prices will come out at an amount that is not significantly higher than what consumers would pay for the same products at the supermarket. And the price premium is worth it to them for the convenience and presentation value that is added as a result of your work. Retail prices can be a good yardstick to measure your basket prices against. It is OK to charge more than a supermarket for a basket of goodies but try not to go too far beyond retail price levels.
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Discounts and Freebies You may consider offering cheaper prices to customers that pick up their orders instead of having them delivered. When you do have loyal customers that buy from you over and over again you should also offer them small discounts to show them your appreciation. Don't be afraid to give away sample packages if you are targeting corporate clients as the value of winning some of these lucrative accounts definitely makes the cost of a freebie worthwhile. Learning how to price gift baskets at a level that suits your market can take time and requires some intuition as well as a method. It is better to price a little high (rather than low) at first to test out prices and then slowly go down from there to find a level that customers are prepared to pay.
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When meeting with clients don't forget to listen to their needs and requirements before you start ranting on about what you can offer. Try to see how the client in question is unique from your other clients and try to create a unique solution accordingly. When the time is right though you do need to know how to close the deal and finalize the details of the new account. Most companies have a casual relationship with a gift basket business rather than entering into contracts with them. Realize the importance of having clear lines of communication with prospective clients and existing ones. Impose some strict service standards upon yourself and your employees and make sure that phone calls and emails are answered or responded to within short time periods. Most companies choose one business to deal with for all their basket requirements. Scoring a corporate client can be an amazing accomplishment for your business as it is likely that you will have their 'high volume' business for many years if you treat them right. For many gift basket businesses, the corporate sector can make up over half of their annual revenue. Once you have attained some great corporate accounts you have to work on keeping them and that means that you have to be a perfectionist, getting every order right and delivered on time. Don't accept errors, and if they do happen go out of your way to explain and apologize to the client. Make sure that you keep a detailed file on each client so that you can note down any changes or any specific preferences that they have. Targeting and dominating the corporate market has been the secret behind many successful gift basket businesses. Deciding to go after corporate market with your gift baskets could prove to be very rewarding for you if you go about it wisely and professionally.
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trustworthy as well as offer a first class product line. Good communication between drop shipping suppliers and vendors is essential. If a supplier is out of stock or discontinues a product then they owe it to their vendors to let them know. Otherwise they will go ahead and sell these items and subsequently face an embarrassing situation where they have to tell their customer that they are out of stock. Respect the fact that customers gained via drop shipping don't really belong to you as the supplier. Even though the drop shipping vendors that you work with will be sending you a name and address to deliver a gift basket to fulfill an order that doesn't necessarily mean that you can start contacting those customers directly. A drop shipper will usually agree to put the logo of the seller on the gift basket or packaging to give the customer the impression that the product has come from them. Vendors will also be interested in your prices as they will want to add on a healthy margin and still be able to sell the gift basket at a competitive price. Expect sellers to want to make profit margins of up to 40% or more per sale. Good drop shipping companies will offer their vendors as many tools as they can to help them with their marketing. Sellers will need professional looking photos and accurate product descriptions to display on their sites. Some drop shippers even go as far as offering vendors a ready made website or online store that they can promote. Becoming a Drop Shipping Vendor If you find that your strengths lie in marketing then you may decide to become a gift basket drop shipper This allows you to simply focus on setting up a website, driving targeted traffic to it and making sales. All the headaches associated with sourcing supplies, storing them and gift basket creation can effectively be outsourced. You simply have to take orders, collect payments and then forward orders to the supplier. Drop shipping vendors also benefit from this business model as they are paid cash up front. They essentially pay for the gift basket after receiving funds instead of having to pay for supplies before receiving an order.
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Some gift basket businesses become drop shippers in order to diversify their product line. As a small company you may specialize in only a handful of different basket themes and styles. However if you really want to give customers the impression that you are a well established business offering a full variety of baskets or other gifts then you can easily tap into the product catalog of a large gift basket drop shipper You simply enter into a drop shipping arrangement with them and feature their products on your website. The drop shipping industry is rife with scams so you must do your due diligence before deciding on a supplier to work with. You need to make sure that the supplier that you work with is reliable and has good quality products. After all, if the product is faulty or doesn't turn up then the customer will be looking to you for compensation. It is typical for the vendors address to be attached to the basket rather than the suppliers. If your supplier suddenly disappears then you can be left facing a lot of problems. Many drop shippers charge a membership fee before they allow you to promote their products. Do some research online and you will also find that there are some drop shipping programs that are free to join. It is also likely that a drop shipper will require their vendors to sign an agreement setting out the terms of their relationship. Always look into such an agreement carefully before you sign to ensure that you are not being ripped off or taken advantage of in any way.
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Signage If you are operating out of commercial premises then you can benefit by displaying signage in a prominent place on your buildings exterior. Check this out before signing a lease. If you run a home business it may also be possible to use signage to advertise your business. You must confirm that this is allowed though as some residential areas have ordinances that forbid advertising signage. Community Events Fairs and other community events can offer you a great chance to showcase your products. People may not need a gift basket right away but you can aim to make them aware of your company so that you can secure their business in the future. If you sell baskets made up of non-perishable items then people will often buy one in advance as they know that they will be stuck for a gift for someone sometime in the near future (usually within the next few weeks or months). To really get some good publicity at an event you can always offer one of your larger, more impressive gift baskets to be auctioned off for charity or used as a prize in a charity raffle. Word of Mouth Advertising When customers talk to their friends and associates and recommend your business to them they are helping you by sending clients your way. The cost of acquiring these clients is absolutely free. Work on encouraging 'word of mouth' advertising by making your customers experience with you so unique, interesting and positive that they can't help but talk to people about you. If you can't get them talking about you voluntarily then you can always offer a reward program for customers that refer a lot of new business to you. Advertising Online This area is very broad and includes a variety of methods for driving traffic to your gift basket business website.
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Getting listed in the right directories is helpful as consumers will sometimes search for a directory of gift basket suppliers in order to quickly look over some of their options Pay-per-click advertising with search engines like Google offers you the chance to have your business advertisement come up alongside the search results for any keywords that you like. So if somebody living in Sacramento for example typed in 'Sacramento gift baskets' your advertisement would come up if you had chosen those specific keywords. It is possible to get free traffic by optimizing your website for the search engines although you will probably need extensive knowledge or expert help to rank well. Also try to exchange links or banner advertising with similar businesses in your area that are not in direct competition with you. Business Directories Directories like The Yellow Pages are still often the first place that people look when searching for a business. This is particularly true with people in the older demographics who aren't used to using the Internet for search. Effective 'Yellow Pages' advertising can make or break a business so you must do all that you can to make sure that your advertisement stands out and is the first one that people call. Community Notice Boards Posting a flyer on a notice board is usually free and is an approach that can work well, particularly in smaller communities. Always ask for permission first. Vehicle Advertising As a gift basket business owner you will undoubtedly be spending a lot of time driving around the market area that you serve. Getting an advertising wrap fitted to your vehicle with your branding and contact details on it only has a small up front cost and
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can give you years of free advertising. Local Publications Newspaper advertising can still work well if you can purchase advertising space for a reasonable price. A local newspaper may also do an article on your business if you request it and have something newsworthy to offer. Remember that advertising is usually more effective when done in campaigns as it usually takes a number of views before your message will sink in to the viewers mind. For this reason you should always run advertisements for each method continually for a certain time period instead of giving each method a 'one off shot'. Advertising is a key part of a gift basket business's marketing strategy and a considerable budget should be allocated for this important purpose.
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A good designer will make sure that your business cards are not too cluttered. If you want to go into detail about your product range then it would be necessary to print on both sides of the card. Remember that you are in a creative industry so your gift basket business cards should reflect that. Play around with the shape if your printer will let you or format your card vertically instead of horizontally. Go for bold colors that demand attention while staying away from conservative colors that won't make much of an impact. Consider including something useful, interesting or humorous on one side of your card. You could include a testimonial from one of your better known clients, a discount coupon, some interesting statistics, a recipe or even a joke. Using Cards to Promote your Business Take every opportunity that comes along to distribute your business cards. Hand one out to everyone that you meet and build a relationship with via your business as well as people that you meet socially. If you send out any kind of mail to your clients then you may as well slip a card into each envelope. Don't hesitate to hand out more than one card to people if you fee that your relationship is strong or that they are in a position to refer a lot of business to you. Let people know that you would really appreciate it if they were to mention your gift baskets to their friends and associates. Most importantly, slip a business card into each of your gift baskets as you are put them together. It would be a shame if one of the recipients of your baskets enjoyed it but didn't know how to reach you to place an order.
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As your gift basket business grows though it is unrealistic to expect that you can continue doing your own deliveries for long as you will be too busy working on other aspects of the business. You may be able to have one of your staff take over this job at some stage but the logistics involved will probably mean that this role is best to be performed by couriers and delivery companies who can be much more cost effective (due to the volume of deliveries that they will be distributing in an area). Think about a delivery that may be twenty minutes drive away and the costs associated with labor, gas and other vehicle related expenses and you will soon see that it is usually best to outsource your deliveries. Courier Services Couriers are another popular option for getting your gift baskets to the purchaser or gift recipient. Shop around and see what the various local operators have to offer in the way of rates and services. Find out if their delivery vehicles will be suitable for transporting your baskets, giving thought to the basket contents. If your creations include products that need to be kept cool such as chocolate or cheeses then you will need a solution that can cater to these needs. If your baskets are fragile and need to be kept upright and handled with care you need to let the courier service know that this is important to you and that them having your frequent business relies upon them consistently delivering your products in mint condition. Look for companies that are reliable and have a reputation for being professional. Try to get an idea of what courier services are popular with other gift basket companies and florists who have been in the business for a while. Make sure that you fully understand the rates that they charge for all areas and circumstances so that you are able to pass these expenses onto customers correctly. No matter which delivery method you use you should make sure that clear instructions are relayed from the client to the individual or company doing the delivery. The delivery person should know exactly how to get to the address and any other specific instructions that the client has stated. Make it clear who is responsible for additional
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charges in cases where deliveries are not able to be made first time round causing the delivery company to have to return to an address for a second or third try. Shipping Options While couriers are great for local deliveries you will have to look into a shipping service such as UPS or Federal Express for deliveries that are further afield. Compare a variety of option by the services that they offer, which will vary by delivery time, destination, package size and weight (price may also be cheaper if you drop packages off to your shipper instead of having them pick them up). It may not always be best to go with the same service for every basket as prices will vary depending on each unique situation. If your gift baskets are to be shipped then you must make sure that they are protected in transit so that they arrive in good condition. Source a variety of boxes that will easily fit your gift baskets inside them. Wrap each finished product in bubble wrap and then place it inside an appropriately sized box. Add some form of padding to protect the basket such as screwed up newspaper or foam peanuts. Lastly you can seal the box with tape and place a 'This Way Up' sticker on the box to let shippers know how the package should be handled. You will undoubtedly be receiving a lot of your supplies in packaged boxes and you may be able to reuse some of this packaging to cut down the expense of having to buy so much new packaging. There are several delivery options that you can use to get your gift basket creations into the hands of your customers and you should fully research the options before preparing your gift basket business plan. Look for solutions that minimize headaches for you, get your baskets to the door undamaged, offer customers great service as well as offering great value. Product delivery is an important part of running a gift basket business so you should put the time into developing a system that works well.
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Gift Basket businesses do an incredible amount of business over holiday periods and customers will often want a basket that suits the holiday or season. Put together special baskets for holidays such as Valentines Day or Christmas that are made up of gift items and packaging that is relevant. Pet Baskets Some people treat their dogs and cats very well these days. To brighten up their day (and the pet's) or for a doggie birthday, pet related gift baskets are all the rage. The product mix will of course include pet foods and treats, toys and other pet accessories. Beverages and Alcohol If you know someone that has a preference for coffee, tea or alcoholic beverages you can put together a basket that encompasses these things and more. Just be sure that you are complying with local regulations if you are selling gift baskets containing alcohol. Customized Baskets Some customers like to have a lot of input into their order so you many consider allowing them to customize their own basket. Let them choose from a variety of basket sizes, shapes and colors and let them view the full range of products that you stock so they can choose the combination that appeals to them. Finally you can give the client options in the way that the basket is wrapped and presented. Personal Themes You can offer to personalize a basket for anyone by finding out a little more about their interests and combining items related to their job, lifestyle or hobbies into a themed basket.
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To run a successful gift basket business you should offer the time-tested favorites that are in demand and put your own unique style on them. Offer the customer a selection of the baskets that you know they are looking for and then throw in a few more original designs into the mix to surprise them.
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The Right Balance Fill the basket to an appropriate level. Baskets that have empty space can make your business look cheap whereas those that are too cluttered can make your products look untidy and ugly. Try to get the right balance when filling a basket. Also think about the balance between different kinds of products. Some products compliment each other while others don't go so well together. Secure for Delivery Try to make sure that items are secure in the way that you place them. People are paying for the 'look' or presentation when they buy a gift basket and if everything falls out of place by the time they get to the party it is disastrous for them and you. Use tape in a subtle way that allows you to secure the products in place without revealing any tape until the basket is unpacked. Packaging Clear cellophane is king when it comes to packaging. Most gift basket operations wrap their final product in cellophane and then decorate them with ribbons, bows and other decorations. Having ribbons with a printed message on them adds a nice touch. If you won't be having somebody doing your gift basket business deliveries personally then you may have to look at additional packaging if the basket is to be delivered by courier. Ideally you can wrap them with bubble wrap, pack them into tight fitting cardboard boxes, stuff the box with Styrofoam peanuts or another product that offers padding and then you are good to go. Don't forget to label the box with 'fragile' and 'this way up' stickers. Attach a Card
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Ask customers if they want a message or greeting printed on a small card or tag and offer to attach this for them. If not, attach a blank card for the client to complete themselves. Branding Think of ways that you can send every basket out with your company branding on it to encourage people to order from you again. If you put your business card at the bottom of the basket then the person who received the gift will see it when they unpack their basket. However, if you manage to get your company branding on the outside of the product you will be seen by possibly a lot more people. Inspiration If you do get stuck for new product ideas or find that your plans just aren't coming out right don't get discouraged. Remember that all creative people encounter these problems from time to time. Take some time to do some more research, seek inspiration from other areas of art or crafts or have a nosy online at what some of the other designers around the world are doing. When you are feeling refreshed and inspired then get back to creating beautiful gift baskets for your business. Practice Makes Perfect While anyone can make a gift basket, it takes a little time and patience to get the process down and come up with professional looking results. You will find numerous articles online that will teach you how to assemble a gift basket and package it. Read up on different techniques and ideas and then have a few practice runs before you prepare the basket for your first order. If you want to be successful in this business then you have to know how to make a gift basket quickly, easily and cheaply. Once you know how to assemble a basket yourself you can then teach employees how to do it.
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otherwise buy something. This is a great way to get your products noticed and remembered by friends and associates. Product Range Start out with a product range of no more than five or six baskets. Focus on quality in the beginning rather than trying to offer a huge range of products. Having to learn how to put a large range of baskets together and manage a huge amount of stock to supply them will be a nightmare when you are starting out. Your aim should be to a have a few great baskets that you know so well that you could make them blindfolded. You can then spend the early days of your businesses life focusing on marketing, taking orders, delivery and customer service. Get things running smoothly before you really start to diversify your product range. Save Money with Creative Ideas Save money on basket decoration and increase your profit margins. You can be really thrifty in the ways that you decorate and present your baskets and still have them looking great if you put your mind to it. Look into buying in bulk and think beyond the usually suppliers like gift shops that are likely to be more expensive. Look into buying at garage sales, auctions (online and offline), thrift stores or even consider asking suitable companies for their excess supplies or off-cuts that may be otherwise thrown away. Your customers won't know where you get your supplies from and with a bit of creativity you can have your baskets looking top-class on a shoestring budget. Getting Innovative with Suppliers One great way to source products for your gift basket business is to become a sales representative for a company selling health or beauty products such as Avon. While these products can be hard to sell under normal circumstances, if you package them up in a basket they suddenly become much more marketable. And you know that you are getting the products for a reasonable wholesale price.
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Drop Shipping If you want to increase the variety of baskets in your product range then one good idea is to consider drop shipping. Drop shipping is where you have another company supply the gift baskets and you simply have to sell them on your website. When you get an order you let the supplier know and they arrange for the basket to be assembled and delivered with your company branding on it. You then share the proceeds of the sale with the supplier. Be careful which suppliers you use though as you are putting your companies reputation in their hands and any bad product or service that they offer will reflect badly on your business.
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There are also number of gift basket business associations that offer paid memberships but it is hard to be sure how credible they are. Some of them have tried to implement certification and quality standards but none have managed to make any impact on the industry. Members just end up paying to be associated with an association that nobody recognizes anyway and they get little else in return for their fees. It is uncertain as to whether these associations are able to offer useful advice to those starting out. There was a 'gift basket magazine' available several years ago called 'Gift Basket Review' but it is no longer in print. Although the industry is reasonably large in North America it seems unable to offer enough regular readers for any kind of regular magazine. There are some general gift industry publications available though and these often cover gift baskets within their content. One of the best ways to learn about the business is to get some practical experience if possible. Look for a course on making gift baskets in your city or consider working for a gift basket business for six months to learn the ropes. Another source of information can be competitors and suppliers, if you can get friendly with them and get them talking. Do your best to find out as much information as you possibly can about the gift basket business before you start. By being fully informed you will stand the best chance of starting out in the right direction and avoiding common mistakes.
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their material is written from. The main reasoning for doing this is that there are many start up guides which have been written by authors that don't necessarily have first hand experience inside the industry that they write about. It is better to buy a guide that has been put together by a real gift basket business owner rather than a writer who writes on the gift basket business one month and then something else the next month. Whether you are buying real books or digital information online always check the sellers refund policy before you make a purchase. Many sellers offer a money back guarantee to people who have found that their products failed to live up to expectations. Do yourself a big favor and make sure that you do your homework before you go and put your time and money into your gift basket venture. The right books or start up guides can set you on a course for success and give you the edge that you will need to compete with your more established competitors.
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