Gift Basket Sales are Slow for the Big Boys
Did you see the earnings breakdown recently released for 1-800-Flowers?
Here’s the story, and be sure to read the last paragraph:
“Sales in Gourmet Food and Gift Baskets fell 11.9%, to $22.9 million…”
You may be saying to yourself, “I’ll take a hit like that anytime if my sales are $22.9 million,” but remember that this firm works with thousands of small outlets that receive orders through the 1-800-Flowers wire service.
If you’re part of that service, the numbers indicate that gift basket orders arriving at your location, in all probability, decreased.
If you work independently, sales may have also slowed, but the tide might be turning this month with student care package orders created by you and arriving at schools worldwide, a big boost for your revenue.
See this article for incentive to go after that market.
The big boys can afford a temporary dip in sales. I can promise you that they will experience a big increase during the holidays. Are you planning the same for your business?
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What are Your Frequently-Asked Questions About Gift Baskets?
How many products should I put in a medium-sized basket?
What’s the best way to organize catalogs?
When do you start contacting customers for holiday orders?
Those are three popular questions that I hear at my classes and seminars, and there are many more. These questions are asked frequently because:
1. New designers enter the industry each year.
2. Designers want to know if new or updated information is available.
3. Everyone appreciates reminders and motivation.
Questions and answers on designing, maintaining, and selling gift baskets are cataloged in its own FAQ section. Beginners often consult the start-up basics page, while designers interested in selling through other retailers review these tips.
When you find a solution in the FAQ section, be sure to put it to use as soon as possible. Then you can move on to capture more sales and selling opportunities.
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Who’s Telling You Not to Start a Gift Basket Business?
When you’re excited about selling gift baskets, you feel like telling the world. But some people in the world won’t be happy with your decision.
I told an uncle about my choice to make gift baskets. He bombarded me with questions. I happily answered him with responses that proved I’d done my homework, but it didn’t matter. He thought my decision was, for lack of another way of saying it, a crock.
How would you feel if a friend or family member tried to stop you from making gift baskets? Would their harsh words deflate you, or would you take their words with a grain of salt and move forward with your plans?
I address this issue in the first chapter of How to Start a Home-Based Gift Basket Business because most of us have felt the sting of strong opinions coming from people who are closest to us. They don’t believe you will be successful. They say you won’t make it, that this will be another failed attempt at running a business.
How can you proceed if your spirit is deflated?
1. Stop sharing your plans with naysayers.
2. Research the rewards and challenges of participating in the gift basket business so that you’re ready for just about anything.
3. Keep working at your day job until revenues match your employment income for at least nine months.
4. Consistently market your business to clients through online and offline methods to grow your following.
5. Surround yourself with entrepreneurs who support and understand your beliefs.
6. Share your concerns here and at Ask The Gift Basket Expert.
Had I listened to my uncle, I would not have grown my revenue year after year, stopped working for someone else, marketed my gift baskets on television and cable shows, or developed the Gift Basket Business site and blog (what you’re reading here) where I share ideas and information with you.
Most of all, the books How to Start a Home-Based Gift Basket Business and The Gift Basket Design Book would not be available to guide you and thousands of other designers in the right direction.
Listen to your inner spirit. If gift baskets are your passion, let no one’s words take you off course. Keep people who understand business ownership and management in your corner. They are the ones who will bombard you with good guidance.
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How to Create an Online Signature that Promotes Your Business
Can you afford to own or rent a billboard to promote your gift baskets? It’s possible when there’s no cost.
Leaving a customized signature each time you post an online question, response, or business introduction is critical to help spread the word about your gifts and baskets.
It’s the equivalent of leaving business cards all over the Web.
Speaking of online questions, a new solution is available at Ask The Gift Basket Expert.
Your signature, which is created through your Email account or saved in word processing or Notepad for copying and pasting, contains words that inspire readers to visit your site. Any of the following is appropriate as part of your signature:
1) Your Name
2) Business Name
3) Business Slogan or Tag Line
4) Web Site Address
5) Telephone Number
6) Optional Special Occasion Tag Line, such as “Visit Today for Holiday Baskets
that Build Your Business”
Here’s one of my current signatures:
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Do you have what it takes to make money with gift baskets?
http://www.giftbasketbusiness.com/SuccessTips/tensteps.htm
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Here’s one to get you started:
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Baskets n’ Bows
Making gift giving simple and easy is what we do for you.
Call today for a free brochure.
http://www.basketsnbowscompany.com/
(932) 555-5252
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Notice that the “Making gift giving…” tagline focuses on a benefit that’s very important to prospects who are time stressed or have difficulty choosing what to buy. Consider this type of value-added statement as you decide how to promote.
Keep your signature as concise as possible. Signatures that are too wordy won’t be read, and others, which are laced with dashes and dots to resemble faces and gestures, are best reserved for art students.
Consult your Email host’s instructions for creating your electronic billboard. Also, look at other people’s signatures for more ideas on how to create a memorable message that gets results.
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Baskets in Bankruptcy
It’s truly heartbreaking when your gift basket business does not work out as planned to the point where you cease business and liquidate all assets.
That’s what happened to a Minneapolis-based designer. Notice of her Chapter 7 bankruptcy appeared in StarTribune.com.
Information about the court proceedings is No. 5 on the page, just above the St. Paul-area notices.
You can read more about Chapter 7 bankruptcy and what it entails on the USCourts.gov Web site.
There is no way, even through a time line, to trace how a firm ends up in bankruptcy. You may think the company overextended itself, believing they’d have more sales than occurred. You may also feel that the owner didn’t plan well or keep orderly records. Much more can happen.
This and more is the chance we take as business owners. Once you realize that the tide will not turn your way, it’s time to take action, and that action may be to close shop. You’ll have sleepless nights, and you may cry.
But it’s okay to let go. You enjoyed your time in the business and move on to something else that fulfills your life, whether working for someone else or starting a new business in the coming years. Somehow, the shred gets into our blood and doesn’t let go. That’s okay, too.
This gift basket company has just under $240,000 in assets for disposal, according to newspaper records. I certainly wish her well.
Would you file for bankruptcy if your assets substantially outweighed your liabilities?
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