Do You Add Expiration Dates on Your Gift Baskets?
One of my good friends is a regular gift basket receiver because of the support she provides to people in her industry.
This lady recently Emailed me to ask:
“I’ve had a beautiful gift basket on my mantle for three years. Is it okay to open it now and eat the contents?”
My immediate reply was, “You can open the gift basket and begin enjoying the non-edible products, but don’t you dare eat any of the snacks.”
She Emailed me back saying that she can understand why eating any of the items now would be hazardous to her health.
She also said that she was surprised to see no labeling from the gift basket designer related to the general expiration date.
You may think that gift basket recipients, especially the ones that are adults, automatically know that anything in a gift basket not eaten within a certain period of time is no longer consumable, but they don’t know.
Long ago, I created a label placed in an area of the basket that immediately alerted receivers about the perishable items.
Last week, I talked about business insurance, and this is one of the reasons why insurance is critical to your longevity. People might eat something they’ve saved for a very long time.
What type of labeling do you add to your gift baskets to alert customers and recipients about product expiration?
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“Do I Really Need Insurance for My Gift Basket Business?”
Why is insurance one of the most-baffling parts of your business? It’s likely due to one of these reasons.
1. I don’t know where to get insurance.
2. I don’t know how much insurance to get.
3. Do I really need insurance if I’m buying pre-packaged foods?
I’m sure insurance companies would be very pleased if, when you registered your business with the proper officials, you were also required to show proof of insurance for that business, similar to when buying a house or vehicle.
The last time I bought a car, the dealer called my insurance company as I sat at his desk for proof that I had insurance before I drove off the lot. If I was purchasing a business, chances are I could not start selling gift baskets unless I had coverage.
Hopefully, such a scenario will not become a reality, but if your business is not protected by insurance, don’t you also hope that nothing will ever happen that proves it would have been better to buy it?
Click here to read more about insurance. Then determine if it’s hope or peace of mind that will allow you to sleep at night.
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Are Taxes Testing Your Gift Basket Business?
Remember: Enter the gift basket business contest. Get details here.
Okay, who’s running a business and not remitting state sales taxes? I just read a story about a Minnesota-based business owner who decided to keep all the money.
The story, published in StarTribune.com, uncovers more than just a home-based owner who innocently overlooked his obligation. But what’s basic to us is understanding that if you’ve registered your gift basket business in the United States:
1. Gift baskets are considered a luxury and are therefore taxed when sold to individuals or firms in your state.
For example, if a client lives in Vermont and your business operates in Vermont, the client is taxed. If a client lives in New York and your business operates in Vermont, the client is not taxed.
2. Gift basket profits and losses are entered on the Internal Revenue Service’s (IRS) Schedule C at the end of each tax year if you operate as a sole proprietorship, partnership, or limited liability corporation (LLC).
Meet with your accountant to make sure your taxes are filed using the correct documents, and believe me, Schedule C is just one of many necessary forms.
3. Gift basket state sales tax is remitted either monthly or quarterly depending on your state’s laws.
The business section on your state’s Web site provides more details on when the tax is due, and your accountant will also know.
Many states only accept electronic payments. Put the payment schedule on your calendar so that you pay on time.
If you make gift baskets outside of the U.S., a certain department within your country will provide all details on how to remit monies due.
I used to create massive spreadsheets by hand to determine my sales and taxes. Thank goodness that was long ago.
Now in QuickBooks, by clicking the Vendors — Sales Tax — Pay Sales Tax button, I instantly know my income and sales tax liability, and the online payment takes about five minutes. No more fingers and toes!
The Minnesota guy faces “up to five years in prison, up to a $10,000 fine, or both.” That’s no way to run a business.
Do you believe that one of your competitors is not paying their fair share of sales tax?
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Will Your Gift Baskets Go Up in Flames?
What would you do if your business no longer existed due to fire?
That’s what happened Sunday night to a Long Island, New York-based florist. You can read the story at Newsday.com.
Everything was destroyed including the gift baskets also sold by the florist.
When asked about the value of his merchandise, the owner said,
“…he could not estimate his losses. ‘I couldn’t even fathom it,’…”
What a terrible situation.
Do you have a backup plan in case of fire, flood, or other situation that temporarily or permanently halts your business? Here are some things to do now before the week ends.
1. Take photographs of your workspace, inventory, and equipment.
Years ago when my husband’s car was stolen, he had lots of tools in the trunk. The insurance company would not pay him for the loss because he had no proof of ownership.
Even though he no longer had receipts, photographs would have provided proof and allowed him to recoup some of the investment.
2. Review your business insurance to learn which documents are best kept in a location outside of your workspace.
Insurance carriers don’t object to cashing your premium checks as much as they seem to object to paying you for losses. Make sure you understand the policy for your own protection.
3. Install a fire alarm in your workspace.
You may not be able to install a sprinkler system, but a fire alarm will create attention.
The florist’s fire occurred during the Columbus Day weekend. If your office is closed on certain days, perhaps unplugging all equipment before leaving is also wise.
Here’s where to learn more about photography and insurance.
What precautions have you taken against unforeseen circumstances?
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Welcome, from Shirley George Frazier
