Each year, as aspiring designers enter the gift basket industry, one question is always on their minds:
“How can I compete with (superstore name) when they sell gift baskets for low prices?”
It’s a subject I talk about extensively in chapter 10 of How to Start a Home-Based Gift Basket Business because we all need a reminder on how to view these membership stores.
While superstores can be viewed as competitors during the end-of-year holiday season, they are really indirect competitors, firms that offer what you sell but cater to people who aren’t looking for your type of service.
The people who roll gift baskets out of these stores, on flatbed surfaces in the wind or rain, want something quick and don’t concern themselves with superior styling and freshness.
Superstores are also viewed as non-competitors because unlike them, your studio is not set up in a football field-size environment. When you reach this level, you can then consider superstores to be a direct competitor, one that competes head to head with you for customers and sales.
Meanwhile, these stores can be considered as allies because they sell products that fit within your inventory such as:
The article, Who is Your Gift Basket Competition?, provides more insight on this popular topic, and when you’re ready, the article, Making Gift Baskets for Warehouse Clubs, prepares you for the huge step of making gift baskets for their members.
When you see gift baskets at a superstore, do you pass by them without a glance, or do you check them out with a microscope to counter customers’ comparisons?
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