What’s the difference between a person who makes gift baskets as a hobby and a person who operates a full-time gift basket enterprise?
One thinks about fun money to spend on something they don’t do often, and the other is helping employees to put food on the table for their families.
There’s a thick line between the two groups, and that’s what determines the price you apply to every gift basket you sell.
One group isn’t better; they simply have a unique way of seeing gift baskets in their lives.
Which is your category?
A person who’s new to gift baskets and has coaching questions:
- Sees the gift as a fun item to make
- Uses their living room for designing
- Doesn’t want to charge “too much”
A person who’s new to gift baskets but enrolls in one of my VIP programs:
- Makes a total commitment to changing their lifestyle for the better
- Sets up a dedicated studio or workspace to organize their business
- Decides to charge the highest prices possible for the delivered value
Knowing what you want to achieve with gift baskets determines how much you charge for the designs you make.
You may be losing money
The VIP clients set their charges after we account for every cost associated with business operations, and there are lots of costs.
If you don’t account for all of it, you’re probably losing money.
For example, a gift basket that you make for $50 may actually cost you $65.
If you sell 10 of those $50 gift baskets, your loss is $150. That’s not a business or a good hobby, right?
I’ve performed extensive calculations with VIP clients in business for one year before we teamed up. When we totaled their true costs, their mouths hit the floor.
Then we got busy, and they began setting the right fees. They charge correctly for their designs, and now they profit every month.
How do you know that you are charging the right prices for your gift baskets?