Liquor Licenses and Gift Baskets Don’t Always Mix
Liquor licenses continue to be a frequently-asked question at gift basket classes. I also talk about liquor laws at Ask The Gift Basket Expert.
A newspaper article recently made public on the Web explained another side of getting a liquor license that I didn’t realize, and perhaps you also want to know.
Most cities have reached their maximum for issuing these licenses, so if you want one, you must buy it from a licensed store that’s closing. The inflated price must be staggering. And it doesn’t end there.
Once you and the seller come to a price agreement, transfer paperwork must be completed to let your city, county, or other issuing department know that you are the person purchasing the license.
Is all of this worth it just to tell clients that you can add liquor to their gift baskets?
This transfer option is, of course, only available to retail stores, not to home-based designers.
Wine and liquor alternatives are abundant. From ciders to flavored beverages, in traditional bottles or unique containers, there’s something non-alcoholic to include that will intoxicate your clients without liquors’ involvement.
If you are still searching for a liquor license, how do you see it increasing your business?
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Are Your Gift Baskets Protected?
I’d be in a Miami hospital right now from heat exhaustion had it not been for the umbrella that shielded me from sun rays during my short walk to the convention center to demonstrate gift wrapping techniques at the Miami Beach Gift Show.
The protection of fabric, stretched by a wire frame, provided comfort in the sun. Insurance protection provides similar coverage for your gift basket business.
In the 1990s we used to only be concerned with product liability protection, but now there’s more on the insurance plate. There’s protection against:
Buying insurance can be a significant yearly expense, but what’s worse is having no coverage if a suit begins.
I’m personally covered by an umbrella in the sun and insurance for business protection. Are you?
Learn more about insurance options here and also about the CD, Legal Tips to Keep Your Company Out of Court.
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Baskets in Bankruptcy
It’s truly heartbreaking when your gift basket business does not work out as planned to the point where you cease business and liquidate all assets.
That’s what happened to a Minneapolis-based designer. Notice of her Chapter 7 bankruptcy appeared in StarTribune.com.
Information about the court proceedings is No. 5 on the page, just above the St. Paul-area notices.
You can read more about Chapter 7 bankruptcy and what it entails on the USCourts.gov Web site.
There is no way, even through a time line, to trace how a firm ends up in bankruptcy. You may think the company overextended itself, believing they’d have more sales than occurred. You may also feel that the owner didn’t plan well or keep orderly records. Much more can happen.
This and more is the chance we take as business owners. Once you realize that the tide will not turn your way, it’s time to take action, and that action may be to close shop. You’ll have sleepless nights, and you may cry.
But it’s okay to let go. You enjoyed your time in the business and move on to something else that fulfills your life, whether working for someone else or starting a new business in the coming years. Somehow, the shred gets into our blood and doesn’t let go. That’s okay, too.
This gift basket company has just under $240,000 in assets for disposal, according to newspaper records. I certainly wish her well.
Would you file for bankruptcy if your assets substantially outweighed your liabilities?
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How to Stop the Theft of Gift Baskets
This three-paragraph article published in The Buffalo News, about a gift basket and other items stolen from a church, reminds me of the similar problem that occurred years ago.
I was delivering several gift baskets at a community center, and the person in charge told me that we would place the baskets on a table just inside the center’s main door.
We entered the facility a third and final time with the last four baskets. It was easy to see that someone had taken two of the designs, because there was an empty space on the table where there was none about two minutes before.
Thankfully, I was paid in full before the delivery. But what if I wasn’t? I’m sure the person in charge would not have paid me for the missing gift baskets, even though it was not my fault.
How can you keep this situation from happening to you during a delivery? It comes down to security measures that protect you and educate the client.
1. Add a one-line sentence to your purchase orders and/or invoices that states: “(Your company name) is not liable for any product thefts that occur during the delivery of merchandise.” Note: This is a sample sentence. Let your attorney determine the structure of the exact sentence to be added.
2. Ask your contact, before the delivery begins, if a trustworthy person can act as a monitor while the gift baskets enter the building.
3. Suggest to the client that the gift baskets be placed in a locked room until distribution. This is a wise suggestion whether you are delivering to a church or office building.
The last thing you want to hear is that you will not be paid for gift baskets stolen while the delivery was made. Protect your client and yourself with a plan to be ready for the worst while expecting the best.
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Is it Time to Buy Insurance?
“Where can I get insurance? Do I really need it?”
This question is asked at nearly every adult school gift basket class I teach, and I bet new and current designers in future classes will ask the same.
It’s important for every designer to consider investing in the type of business insurance that matches their level of liability.
For us, that includes product liability insurance (even if products are prepackaged) and fire/flood/theft (for your workspace and if you sell on consignment).
You’ll also qualify for other types of coverage, but it’s best to talk to an insurance agent who’s knowledgeable about small business policies to learn your options.
Insurance isn’t a glamorous topic, but neither is the thought of receiving a summons or losing everything you’ve worked so hard to obtain.
This page provides more information on insurance requirements.
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