| The gift basket service business is one of the | | | | oils, lotions, scented soaps, fragrances, etc. When |
| fastest growing home businesses in North America. In | | | | making such a basket please make sure that these |
| this business, the more creative you are, the more | | | | supplies should last a family for a month. |
| you prosper. | | | | - Shower Baskets: These are perfect gifts for |
| Space: The ideal place to start your gift basket | | | | wedding and baby showers, and are usually stocked |
| service business is your home. It allows you to start | | | | with a variety of every day necessities. |
| your business with a small amount of capital, save | | | | - Customized Baskets: These are baskets that are |
| commuting expenses and operate part-time or | | | | packed with items selected by customers. They are |
| full-time. However, to operate from home you need | | | | more expensive as you have to create a |
| a decent sized room with display facility. | | | | made-to-order basket so the price should be |
| If your home is not suitable for this business, you | | | | negotiated with the customer before you begin your |
| may rent or lease a separate location, which may be | | | | shopping. |
| costly. When doing so, you should look for a location | | | | Pricing: You need to consider the following factors |
| that is in a high traffic area, and has parking facility. It | | | | while pricing your baskets: |
| should have enough inventory storage capacity and a | | | | - The labour, materials and time required by you to |
| customer friendly layout so that customers can easily | | | | assemble the basket |
| view all products without tripping or squeezing | | | | - The cost of merchandise in the basket |
| themselves through narrow corridors. | | | | - The delivery charges for delivering the basket to its |
| Inventory: The items for gift basket service business | | | | destination. |
| may be purchased through both wholesale and retail | | | | - The overhead operating expenses associated with |
| channels. The items that should be bought through | | | | your location and business. |
| wholesale channels are baskets, 'filler' items such as | | | | - The profit percentage you want to earn from each |
| tissue paper, brown paper, string, tape etc. | | | | basket. |
| You may also build your inventory by: | | | | - Your competitor's price so that you can price your |
| - Attending gift shows to get crafts and 'hard to find' | | | | own baskets competitively. |
| gifts. | | | | Advertising and promotion: While word of mouth |
| - Joining supplier mailing lists | | | | publicity based on customer satisfaction can make or |
| - Buying your items in bulk thus getting quantity | | | | break your gift basket service business you should |
| discounts | | | | also adopt other advertising methods to reach out to |
| However, initially you must limit your inventory to a | | | | new customers. Newspaper advertisements and |
| manageable level. It is bad business practice to block | | | | direct mail may be a good help to: |
| capital. | | | | - Convince customers that your baskets are the |
| Skills: You can run your business on your own but | | | | best. |
| may need to hire employees in the peak season, like | | | | - Enhance your company's image. |
| Christmas, when the orders are more than you can | | | | - Create a desire and draw customers to your |
| handle alone. Thus you need to know how to recruit, | | | | service. |
| interview, motivate, train and develop personnel. With | | | | You can also put up colorful fliers in shopping malls, |
| this, you should also be familiar with skills like | | | | grocery stores etc. Yellow pages and targeted online |
| bookkeeping, purchasing and advertising basics | | | | advertising can also be considered to increase |
| Product: Some of the standard baskets that you | | | | customer awareness. |
| may offer are: | | | | Tools of the trade: You will need to have regular |
| - Gourmet/Food Baskets: These are great gifts for | | | | office equipment, shrink-wrap equipment for sealing |
| friends and families. They can be thematic like | | | | fresh food items and a company vehicle for custom |
| chocolate baskets, wine and cheese baskets, etc. | | | | shopping, and deliveries of your baskets. |
| - Toiletry Baskets: These can include items such as | | | | |