The holiday season is a terrific time to see gift basket designs sold by competitors and other sellers.

Seeing what they offer will give you a good look at what’s included and how it’s designed so you can differentiate your gift baskets from theirs throughout 2012.

If time allows (and in some cases, if you’re a member), take a look at what’s available in:

• Costco
• KMart
• Macy’s
• Office Depot
• Sam’s Club
• Staples
• Target
• Walmart

This is a short list of sellers, and you’ll find other retailers that are local to you.

I wrote an article last year about holiday competition that you might find useful today. My heart used to sink when I saw other places where gift baskets were sold, but then I realized how much more in terms of service that I offer my customers. My hope is that you’ll recognize the same about yourself, too.

Shirley George Frazier

Related articles:

1. Happy to Make and Sell Gift Baskets? You Have Lots More to be Thankful For
2. Who or What Influenced You to Make Gift Baskets?
3. Time Away from Your Desk is Necessary for Gift Basket Success

Last year I asked you to comment on your favorite type of inner basket material (what you use to stuff the inside of the basket) and whether it’s newspaper, Kraft paper, or another type of filler.

Like basket stuffing, shred comes in many forms. There’s:

• Crinkle (also known as Sizzle)
• Tissue
• Mylar
• Parchment
• Excelsior

I had no idea, when first starting my business, that so many types of shred were available. I was most familiar with crinkle and parchment and then learned about the others.

When I began teaching gift basket classes, I brought samples of shred with me to show students. I didn’t want the shred I frequently used to be the only one they knew about, as that wouldn’t be fair to students who want to create a variety of designs according to customer orders.

The shred that works best for me is the one that resonates most with the person receiving the basket. The one chosen for each design also depends on the occasion.

Which is your shred of choice, and what makes it the one you go to most often?

Shirley George Frazier

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My travels take me through many towns where gift basket shops exist, and like your area, there have been many changes in those towns.

Some of the gift basket stores are no longer around.

When you see that a competitor has closed their shop, what’s the first thing you think?

• Business is bad. Oh boy. Am I next?
• Too bad. I wonder how to contact them to buy their customer list.
• Good! Now I can get all the town’s business.

There are many reasons why businesses close, and in many cases, it’s due to a lifestyle change or owner’s passing, so don’t let your mind run wild thinking you’re business will soon fail (isn’t it terrible how the mind plays tricks?).

The good news is that the No. 2 thought listed above, the one about buying a customer list, is possible. Your town’s city hall may have information on how to contact the business owner. Try this approach if you’re serious about approaching those potential clients.

How many competitors in your area have closed their businesses, and what were your thoughts when you saw the empty storefront?

Shirley George Frazier

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How would you react if a competitor set up shop directly across the street from your location?

This problem occurs not only to retail shop owners but also to home-based business owners.

Before you answer the above question, make sure you understand who the competition is for you and who it isn’t. The article, Who is Your Gift Basket Competition? provides insight in case you’re not sure.

Years ago I interviewed two gift basket store entrepreneurs whose shops faced each other in a popular town 15 minutes from my location. Each of them told me that they weren’t concerned with the other’s business because they catered to different clientele.

Still, something about their body language told me that an uneasiness had set in between them even if it wasn’t mentioned during our conversations.

What’s the first thing you’d do if competition set up camp close to your business?

Shirley George Frazier

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You decide to make gift baskets in your area for individuals and corporate buyers. In your search for competitors, you find none. What could that mean?

• No one needs gift baskets – that’s highly unlikely as people in general need gifts for all occasions
• Gift basket stores once existed but designers closed up shop – this may exemplify the need for gift baskets but not for a standalone facility
• Florists and out-of-area firms service the local market – if this is true, you haven’t don’t enough research, as this proves there are competitors

I remember one of the first “rules” learned in business about being the first person in the area to offer a product or service and how such a position meant your business would fail. Today, we know this rule to generally be untrue.

How many people have iPhone repair businesses and maintain companies that consult with niche businesses? That alone points to the fact that gift baskets have their place in every city, even those with just 100 residents.

Your main objective is to research the target market so you purchase gift basket products that they want most.

Outside of one shop specializing in fruit baskets, I was the first business in my area to offer gift baskets What position do you hold in your area?

Shirley George Frazier

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As the economy continues taking its toll on industries large and small, your business may be generating more orders due to less competition in the area.

Has this occurred, or has downsizing introduced new gift basket businesses started by people making career changes?

Most of my designer clients report many more sales from corporations they were once unable to convert due to long-time competitors.

They are happy about the increased orders but know that at some point new players will enter the market, so they’re guarding against that possibility now.

You’ll learn more about this topic in the article, Who is Your Gift Basket Competition?

What’s the competitive action like in your area?

Shirley George Frazier

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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?

Shirley George Frazier

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During the fourth quarter every year, gift basket competition of some type comes to town. They set up makeshift shops in malls, standalone stores, and even in supermarkets.

This is in addition to the competition you already prepare for at superstores, discount retailers, and office supply chains. How do you convince clients to order from you rather than the other outlets that try to trump your sales?

One gift basket designer I recently spoke with says she deflects competitors by expanding her services during the holiday season.

That includes the distribution of free gifts (beautifully wrapped, slow-moving merchandise) and the mailing or Emailing of a customized gift-giving list generated according to the client’s order list from last year.

She says that she knows her clients appreciate her services because her sales increase each year.

What’s your plan for watching how and when the competition comes to your town, and how do you convince customers to buy from you and not from them?

Shirley George Frazier

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