My Gift Basket Income Dropped. Now What?
I’m hearing and reading about how corporate clients are cutting back on ordering gift baskets.
This may not be happening to you, but it is a situation that some are facing this holiday season.
Earlier this week I wrote about Terry and Wally August and how their income decreased (so far) this year to $1 million from $1.3 million in 2005.
This week I also read an article on a Nashville, Tennessee television Web site about a gift basket business with a 60 percent drop in sales.
“When people order basket they want more of a $25 to $30 range baskets instead of maybe a $50 to $60 range basket,”…
Some customers cannot be cajoled, convinced, or influenced in any way to spend more than or as much as last year. You know that. But what are the options to try and get clients to order?
The bottom line is to offer incentives, perks that won’t bite into your budget but be seen as valuable to buyers.
The fact that your customers want to stay in business is the exact reason why giving gift baskets to their loyal customers is imperative. This is what you tell them on the phone, by letter, through postcards, and on your Web site.
A drop in income calls for an increase in client communication. That’s your action plan.
Grant Money Available to Start a Gift Basket Business
“Those who are looking for the money, we want to let them know we are giving away more than $500,000 in grant money just sitting there waiting for someone to meet the criteria,”…
Money to start your business – yes, it’s still out there if you look for it, even as the media constantly paints a doom and gloom economic picture.
A representative for The Center for Business Development at Indiana State University stated the above quote in Monday’s MyWabashValley.com. You can read the article here, and I hope that Indiana-based gift basket designers and aspiring designers apply.
This type of program is the reason I talk about where to find money sources, which begins on this page. Monies continue to be available. It’s a matter of you looking for it, uncovering sources, and applying for funds.
It’s important to realize that no institution will simply hand you the money. As the article states, one of the key factors is to be “willing to put forth the effort.” That goes beyond a mere idea. You must:
Most of all, prepare a complete plan that focuses on a specific underserved gift basket niche. That’s what will truly get attention and funding.
If you’re not based in Indiana, there’s still possibility that a business development center in your state or country has such a program. It’s up to you to find it.
Gift Basket Donations Do Receivers a World of Good
Some of the most heartfelt stories associated with gift baskets are the ones where our product benefits someone in need.
That’s the focus of a story about gift basket donations to benefit a woman with brain cancer featured in The-Review.com.
Click on the article’s picture to see closeup of the gift baskets. Aren’t the containers and overall styling terrific?
The square wood container is a classic look, great for individuals or as a corporate gift, and the pumpkin is also attractive.
This story is a terrific example of how gift baskets brighten everyone’s day, especially the person they benefit.
In the past, I’ve suggested how to choose charities that receive your gift baskets and how donations can increase your income.
Libraries are also fond of having gift baskets at their fund-raising events, and I’ve shared ideas on linking your gift baskets with them.
I often suggest to my clients to donate one basket per month to a charity that’s close to their heart. That donation serves to:
What’s your opinion about the gift baskets shown in the picture?
Famous Gift Basket Shops Need Marketing Help, Too
Seeing Fancifull Gift Baskets owners Terry and Wally August featured in yesterday’s Los Angeles Times brought back great memories of meeting them and touring their gorgeous shop, a fixture next to Paramount Studios.
Upon entering, I was mesmerized by large, lush designs created in bronze containers and customized baby strollers.
The administration area was to the left, and multiple shelves holding gourmet foods, gifts, and spa items was to the right.
Beyond the shelves, I saw four workers creating gift baskets to be delivered that day. The shop also housed a cooler for fresh flowers, and to the left, behind the administration area, was a huge storage room for finished gift baskets waiting for delivery.
Terry’s and Wally’s operation is well known and very successful, but it’s not immune to a drop in sales, and that’s the focus in the Los Angeles Times story. It’s a must read, and you’ll find it here along with a terrific picture (they’re both as down to earth as shown).
This makeover article provides them with tips to:
Note: The term advisory board was just added to the dictionary.
If you’re looking for a quick workspace makeover, this audio CD will help, and 101 marketing tips are found in this book, delivered fast by Email.
Be sure to have a pen and paper handy as you read this makeover, as it will surely help you brainstorm ideas to consider for your business.
If an expert came to your shop, what advice would you seek?
NOTICE: Until late December, I’ll feature articles more often here than the regular three times weekly schedule, as gift basket stories will become plentiful between now and the holidays.
Higher Gift Basket Sales Depend on Lower Costs
“…we continue to be highly focused on achieving our bottom-line growth goals by leveraging our business platform to reduce our operating expense ratio.”
Jim McCann, CEO of 1-800-Flowers.com, said this is part of his company’s strategy to keep the firm profitable.
Last week, MarketWatch.com reported the company’s revenue for the last quarter. Here’s the first sentence in the gourmet food and gift baskets section:
“Revenues increased 60.5 percent to $37.2 million compared with $23.2 million in the prior year period.”
You can read the entire report here, and I encourage you to do so. It’s absolutely critical to read about competitors who sell on this level so that you can determine how to increase your market share.
1-800-Flowers is one of a handful of companies in our industry that’s publicly traded and must, by law, report their revenue. The rest (like you) are privately held, so it’s unlikely that you’ll learn about a smaller rival’s earnings.
McCann mentioned that lowering operating costs was partly the reason for growth. Have you recently reviewed your expenses to see where you can trim waste? Here are some areas to consider:
As an example, I reviewed and decreased my telephone charges, saving me $192 annually, and I lowered my credit card transaction expenses to save an additional $300 each year.
How can you increase sales by lowering costs and still satisfy customers?
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