Creating and selling gift baskets is a viable business idea that can be run by virtually anyone who feels that he or she has the desirable gift-choosing tastes to match different occasions including birthdays, Christmas, anniversaries, weddings, events of romance, housewarmings, baby showers, and all other gifting occasions.
To be a success at creating and selling gift baskets, you have to be creative and imaginative. However, you have to combine these qualities with the conventional skills that are required of every other business including proactive marketing, being financial savvy, and effective overall management.
1Starting the Gift Basket Business
The gift basket business is only slightly capital intensive and the overhead costs are quite manageable, as well. As you consider starting this type of venture, you have to be clear on a number of issues; the most critical of these being the following: determining the type of gift baskets you will offer, who your target market is and how you will reach it, and from where your operations will be run.
For startups whose capital resources are on the lower side, it is preferable that the operations initially be run from home. Doing so will enable you save on monies that could be otherwise spent on rent and assorted overhead costs. Working from your house also allows you the flexibility of time as opposed to being based in an office-type outlet.
If you intend to start operations from an office space, be sure to identify a location that is in proximity with your target market. Choose a location that is easily accessible, suitably priced, secure, and well-frequented.
Complete the startup process by registering the business name and making sure to obtain all the requisite certifications and licenses relevant in your city, state, or country.
2Common Offerings in the Gift Basket Business
By far the most popular categories of gift baskets include:
- Gourmet baskets – These make the largest proportion of gift baskets by popularity. Such baskets contain gourmet foods, assorted snacks, wine, cheese, chocolate, etc.
- Bath and body baskets – This is a very popular category, as well. The contents of these baskets include fragrances, lotions, oils, scented soaps, etc.
- Shower baskets – These are meant for baby showers or weddings and are packed accordingly. You can decide to specialize in such gift baskets for a single market or you can choose to cater to both.
- Customized baskets – These are gift baskets that are packed according to the list of contents issued by a client. They tend to be pricier since shopping for the items is equally specialized.
3Pricing your Gift Baskets
Pricing has never been an easy decision to make and rightfully so. You need to exercise caution to avoid the risk of under-pricing or overpricing. The former will certainly diminish your profit-making potential while the latter can easily lead to a considerable loss of customers.
Effective pricing should first of all begin with a comparison of the prices being quoted for similar packages offered by your competitors. Secondly, you should compute all the costs incurred in creating and selling a gift basket, a sum that should also incorporate the time you took to assemble the package. To this figure add a suitable markup, as high as 100% the cost of the items in the basket. Check to see that this price tallies with the market average. If it is too high you need to investigate what costs you can reduce in the gift basket assembly process. If it is too low then you are probably buying items of lower quality or you may not be factoring in all your expenses accurately.
4Effectively Marketing a Gift Basket
Your business’ marketing campaign should enable you to not only get the word out about your service but to entice prospective clients about the advantages they stand to gain by allowing you to serve them. With effective marketing you should be able to carve out a fine name and reputation that will do much of the talking on your behalf. However, you must remember that a successful business is built on fine words and deeds and that the two work hand-in-hand.
Perhaps the most effective marketing strategy for your gift basket business is word of mouth. People will always want to spread the word about a fine service they were treated to since they would want their friends to have the same experience. As a business owner the onus will be on you to maintain excellent standards in basket creation, gift selection, customer service, and punctuality in gift basket delivery. Sustained excellence in these will assure you of sustained positive word of mouth. Complement this with other techniques including online advertising, creation and distribution of brochures, the yellow pages, etc.
5Information about the Creating and Selling Gift Baskets Business
There is plenty of online information that can provide useful advice on this business venture. Some of the websites you can visit include www.rockhillcottage.com, www.fabjob.com, and www.powerhomebiz.com.
