Gift Basket Business Start Up

New Gift Basket Business Start Up Information

When starting a gift basket business, there are many things to think about, things to consider and things to ask yourself.

Determine Your Market. Do you have any idea who your customers are going to be? Opening the doors and expecting customers to flock to your product is just setting yourself up for a huge disappointment. It’s absolutely necessary to conduct some research, prior to proceeding with your business. If you don’t do it now, you’ll regret it later.

Business Start Up

The business of Gift Baskets is not limited to the individual shopper. Your best paying customers will come from setting up accounts with local companies and businesses. Every business in your area is a potential customer. They each have some type of program in place for employee recognition and they buy gratuities for their clients. If you establish a solid buying program with 5-6 mid-size or large companies, their orders will carry you through the traditional slow months.

For the Gift Basket business owner, the slow months are traditionally January, March, July, August, September and October. However, if you target your marketing appropriately, your business will develop into year-round customers. Many Gift Basket businesses only concentrate on the main holidays and count on at least 50% of their yearly profits to be gained during the Christmas period. This is a mistake. You want to aggressively market, so your sales will be consistent all year through.

Research Your Market

Conducting intensive market research is the foundation of any successful business. First, research your competition. Any Gift Basket company, whether storefront, home-based, or on the Internet, who is serious about doing business, will be advertised in the Yellow Pages. Most brick-and-mortar stores still put their business name and delivery areas in the traditional phone book, and most have trended into submitting their company information to online directories such as: Google Places, Bing Places, and online phone directories such as: the Yellow Pages, and the White Pages.

Phone or email each company and request a brochure or catalog. Ask about their products, what type of Gift Baskets do they offer and the price ranges. Do they deliver? Do they ship? Select two or three companies that seem to be your biggest competition and order a gift basket from each one. Evaluate their quality and the presentation. Keep notes on all aspects of the transaction, their customer service and their end product. Knowing the competition will give you valuable insight into exactly what your business should offer, and what you can do to set your business apart from your primary competitors.

Local Chamber of Commerce and Area Companies

Call your local Chamber of Commerce, a trade association, an executive from a hotel, the owner of a travel agency, various corporate executives, real estate companies, mortgage companies, etc, and arrange a presentation meeting. The more area businesses you interview, the more information you will have to determine your area market demands. Bring three samples of your gift baskets, small, medium and large. You are there to gather data on who they currently purchase gifting items from and if they would be interested in your services.

Some questions to ask:

• Do they currently purchase gift baskets for their employees/clients?
• How often do they purchase them?
• What type do they normally purchase?
• Are they satisfied with the quality they have been receiving?
• What is the average price they have been paying?
• Do their clients ask them for referrals of gift basket companies?
• What type of products or packaging would appeal to them?
• What do they think about your gift baskets?
• If not currently purchasing gift baskets, would they consider buying from you?

Target local area Florists. You could sell gift baskets to them for a reduced amount. Florists want to carry gift baskets in their shops, but both the floral industry and the business of gift baskets are both very labor intensive businesses. Many florists who’ve set up their own in-house gift basket business, find they can’t effectively manage both. Setting up a monthly buying program with your area Florists will ensure another avenue of consistent income for your business.

Also contact any business in your area that caters to specific products, compatible with gift baskets. Perhaps gourmet food stores, fine chocolate stores, upscale department stores, etc. It would be appealing to them to be able to purchase a set number of pre-made baskets every month, than to have to perform the entire assembly process themselves.

Review Your Data

After you’ve compiled your information, ask yourself these questions:

• Is there a market for your baskets?
• Can you define who your potential customers are?
• Do you know who your competitors are?
• What are the advantages your product has over the competition?
• Do you know your competitor’s prices?
• Do you know how to market and sell your product?
• Can you afford the costs of opening the business?
• Can you price your product competitively and still make a product?