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?
Related articles to learn, grow, and profit:
- Consider Wholesale Specials to Lower Your Costs
- Gift Basket Sales are Slow for the Big Boys
- Data: Your Friend that Finds Sales and Future Success
- Getting Paid Before Delivering Baskets
- How Anniversary Cards Increase Gift Basket Sales
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These are some great tips.
In addition to the ones you’ve offered I’ve saved money by avoiding the holiday-specific gift items and letting the ribbon or enhancements carry the theme. For Christmas, for example, a red, green or gold mug can serve for a holiday design, but yet be used throughout the year for other themes.
Flora,
This is truly a terrific tip, one that savvy designers live by each holiday season.
It ensures high turnover and healthy sales. I’m so glad you shared it with us.