Gift Basket Making – How to Begin
Filling or stuffing the inside of an empty basket is easy if you’re familiar with gift basket making, but if you’re just starting, the process isn’t always simple.
I remember trying to figure out how to stabilize the basket’s inner foundation, thinking that I’d need a protractor, ruler, or compass to help me figure it out.
Then I saw a demonstration at a gift basket convention that revealed the secret foundation ingredient. Sounds like something straight out of a spy novel, doesn’t it?
That’s what I share in the above video tutorial for those of you who are starting to make gift baskets part time or full time.
If you’re a veteran designer, what material did you use to fill the inner basket when you began?
If you’re just starting, how helpful is this video, and what else would you like demonstrated in the future?
How Confusing are Your Gift Basket Tax Laws?
Making sense of the sales tax laws in your state or country is an important part of running a gift basket business.
That’s because you need to know when to collect taxes and how to remit them.
However, there are times when collecting taxes on some sales and not on others will be confusing, a good reason why getting advice from an accountant that specializes in small business rules will be a huge help. That’s a point I make on pages 71 and 72 in the updated gift basket book.
This article about collecting taxes on bagels sold in New York is a good example of a law that makes you say, “Huh?”
According to the article, New York state’s laws on bagel sales are:
- If it’s sold whole, the bagel is not taxed.
- If it’s sliced and/or topped with a spread, it’s taxed.
- If the customer leaves the store without eating the bagel, it’s not taxed.
- If the customer eats the bagel in the store, it’s taxed.
Can you imagine trying to figure out how to apply tax to a gift basket in that manner? Thankfully, U.S. laws generally mandate taxing gift baskets sold to residents in the state where you do business and not to out-of-state customers. Other laws may apply according to where you live.
What if a state’s or country’s laws specified a gift basket tax if:
- The customer owns a cat but not a dog.
- The place where the basket is delivered is surrounded by a white picket fence.
- The recipient works in construction but only on houses, not commercial buildings.
If these examples make you shake your head, you can imagine what bagel sellers are going through.
The bottom line is to know your tax laws and maintain a relationship with a knowledgeable accountant who can update you on rules you can’t possibly decipher on your own.
What problems have you experienced with sales tax laws in your area?
Three Ways to Make Your Gift Basket Web Site Visible
Standing out against thousands of gift basket Web sites isn’t an easy process, especially when big-named businesses rank higher than yours within search engines.
One question I hear often at my Web site seminars is:
“How can I get to be No. 1 when people search online for gift baskets?”
My response is this:
You may not be the first listing, but there is better potential to be No. 1 in other ways.
How can you increase your online prominence? Here are three steps.
1. Make sure your site includes keywords related to your location. There’s a lot of talk and writing about how keywords aren’t useful, but when I’m searching for resources in Chicago or Miami, companies that include these keywords in their descriptions rank high. That’s what your customers want, too.
2. Add something on the site that’s important to visitors. Whether it’s a gift checklist or holiday calendar, this bonus item is one that other sites don’t offer. That will increase your visibility and sway visitors to like and trust you enough to place orders.
3. Market with more than a business card. Sure, business cards are a basic promotional tool in offline settings, but online you must be a constant marketer through social media, your Email signature, and when responding to blog posts.
Consider scheduling a pre-holiday Web site review, an easy process which is described on the page Tune Up Your Web Site Today.
What’s one way that you increase your gift basket Web site visibility?
Your Gift Basket Business Name May Land You in Court
What if your postal mailbox included an attorney’s letter telling you to cease and desist from using the name you chose for your gift basket business?
That’s what’s happening right now to a New Jersey-based gift basket company whose name allegedly resembles a well-known brand, according to a trademark infringement lawsuit lodged by Build-A-Bear.
The big bear retail business, which is often found in malls across the U.S., states in their lawsuit that a gift basket firm’s name copies their own, which causes consumer confusion.
Such lawsuits have occurred in the past, some of which come to light in the news and others that are settled without media knowledge. This problem is an example of what you may not know when starting your business, which is why I interviewed small business attorney, Robin Gronsky, on the CD Legal Tips to Keep Your Company Out of Court.
How would you react if you were in this gift basket business’s shoes?
Sign Up for Drop Shipping, Then Expect Explosive Sales
“What if a lot of people order gift baskets at the same time?”
“How do I handle all the work?”
That dual question is frequently asked in classes and at trade shows after my demos or presentations. The questions are valid, as I know more than a handful of designers who went from no sales to mega orders, especially around the Christmas holidays.
These questions also reveal the fear of success. You start a business to become your own boss, control your destiny, and bring joy and comfort to other people’s lives. But those goals come at a cost. You’ll have to:
- Cut ties with full-time employment.
- Create a dedicated workspace possibly outside of your home.
- Hire temporary or permanent help to handle big jobs.
It’s enough to make your head spin. So why not keep working for someone else so you don’t have to make these decisions? Come one, that’s not what you want.
Thankfully, drop shipping firms are a comfort during the transition, picking up lots of the slack so your business appears much larger than it is.
Drop shippers not only take a lot of the designing and shipping off your hands; they also provide a broad range of products, such as cheesecakes and flowers, items you want to offer but can’t store in your inventory.
It’s wise to consider membership with a drop shipping firm now before the holiday season arrives. Many drop shippers won’t allow you to join between October and December, which is their busy season along with yours. They order enough product to accommodate their members, not to assist designers who suddenly realize they need help.
If you’re not familiar with the services drop shipping companies provide, click here for a video introduction to gift basket drop shipping and to learn more about who they are and what you can expect when working with them. Also available for more insight are a drop ship report and 60-minute CD interview with an industry expert.
What’s stopping you from drop shipping? Explain your dilemma in the comments area, and let’s iron out this problem now so that you’re prepared for explosive sales.
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