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.

Offer an election year bonus such as a free $25, $35, etc. gift basket with every 12 ordered. The free basket price is the retail value, but it costs you less.

Create more tall, slim designs along with the larger assortments, and make these designs on an as-shown basis (no substitutions). I talk about that in a newsletter issued this month.

Design standalone gift sets, the type that need no basket. Less labor, quick to sell.

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.

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