Starting a Gift Basket Business

Gifts may be associated with holidays, but that doesn’t mean a gift basket business has to be a seasonal. In fact, gift baskets for new babies are the industry’s number-one seller. The corporate market can also be counted on for year-round gift-giving. That may be why 66 percent of gift basket business owners report that more than half of their overall sales come from corporate orders.  

To get your gift basket business off the ground:

1. Conduct market research to determine which types of gift baskets are selling in your area.
2. Master basic skills such as decorative paper folding and bow making.
3. Develop several gift baskets that you can sell as standard products and show to prospective customers.

Check out gift basket how-to guides

There are plenty of experts who can teach you the art as well as the business of gift baskets.
Try: 

BizBasketHelp’s eBook covers everything from bookkeeping methods to gift-basket design. Gift Basket Review Online offers guides on a variety of techniques and business issues. Join the National Specialty Gift Association and get access to an online forum where you can share ideas with other gift-basket business owners.

Outfit your gift basket workspace

Create an organized and productive work area.
Try: 

The Gift Basket Design Studio Extreme Makeover video shows you how to turn a messy work room into an efficient gift basket studio. Retailers such as Target and Office Depot sell a wide selection of storage units, shelving and other furnishings. Find raw materials such as ribbon and foil cutters at Premier Packaging.

Stock up on gift basket goodies

Keep an inventory of baskets and products that you typically include in your standard gift baskets. These items should be purchased from wholesalers. The time to buy retail is when you’re looking for unique items to fill custom gift baskets.
Try: 

Find specialty foods at Gift Basket Supplies. For baskets as well as food items and holiday-themed products, try Quality Components Unlimited. Gift Basket Wholesale Supply sells candles, coffee, gift books and more. For corporate clients who want baskets that include coffee mugs, golf balls and other products emblazoned with their company logo, check out the selection offered by The National Specialty Gift Association. Additional sources for gift basket supplies can be found at Business.com.

Build your customer list

Send promotional postcards to local companies and follow up with a phone call. Offer to sell gift baskets to local retailers on consignment. Ultimately, your reputation is your best marketing tool. Become known for producing dazzling baskets and delivering them on time.
Try: 

Take photos of your most picturesque baskets and feature them in your marketing material. Modern Postcard produces top-quality four-color postcards. They’ll even mail them for you. Feature your photos in promotional e-mails that you can create with the help of Constant Contact. Include a link to your Web site where people can place orders. Keep track of holidays so that you can design your promotions around special days.

Manage the business side of your gift basket operation

Business plans and contracts may not be your first love, but they keep your business on its feet.
Try: 

Know where you want your business to go and how you’re going to get there. When you buy BusinessPlanPro software you get a free sample business plan for a gift-basket company. Order low-cost guides on inventory planning and purchasing from Gift Basket Review Online. Many gift-basket companies sell to retailers on consignment. Find low-cost consignment contracts at 1StopLegal.com. When it’s time to price your products, don’t forget to add labor costs. Keep track of the time you and your assistants spend on assembling and delivering the baskets by using a simple time-tracking program such as TraxTime.

• According to a 2006 survey of gift-basket companies by Gift Basket Review Magazine, the top five best-selling gift-baskets occasions are: 1. new baby 2. birthdays 3. thank you 4. to cheer you/thinking of you/get well 5. sympathy.
• The average price for a corporate gift basket in 2005 (the most recent year for which statistics are available) was $61.89. The average price for a consumer gift basket was $48.41.
• One way to get your name in front of prospective customers is to donate gift baskets to charity auctions. Ask for permission to truck your business card inside the basket.