Smart Business Strategies

Questions Answered in previous gift basket newsletters through this site.
©2005 Shirley Frazier. All rights reserved. Click here for reprint permission.

Q. I've estimated that I need to sell 100 baskets a month to stay profitable. What can I do to make sure I'm successful?

A. Your estimate is not unreasonable as long as you:

*Have a steady stream of prospects and clients
*Maintain an organized workspace (the new Gift Basket Design Studio Extreme Makeover video will help with this)
*Secure part-time or full-time design help

Set an average basket price as part of the 100 baskets/month goal.

For example, if your average retail gift basket price is $100, the gross sales of $10,000 per month (100 baskets x $100 each) will keep you profitably working at home or in most storefronts.

As long as you market your business aggressively, you'll find 100 baskets a month to be no problem to design and sell.

Q. I want to work with corporations that hold events in my area, but I have no idea how to find them. What's best to do first?

A. Joining a local chamber of commerce will give you more access to conference and event planners within area companies. It's a small investment that has potential for big payoffs.

Another way to find corporate events is through the individuals who are already clients. In most cases, each person works for a company or is married to someone gainfully employed. Ask these individual clients about employers' upcoming events. Give them an incentive for alerting you to such functions, such as small complimentary gifts or certificates.

Some designers actively pursue corporate events through a page on their Web site that displays gift ideas for each attendee. This may also work for you.

Q. March is usually a slow month for my business even though I do everything possible to keep sales coming. What can I work on now to make business more efficient?

A. March is a month to plan your marketing campaign for the next three quarters if that hasn't yet been completed.

It's also a time to purge your workspace to organize and get rid of items that don't sell. This lets you make room for new products that are more appealing to your clients. Three more areas of concentration include:

1. Updating Web site to include spring and Administrative Professionals Day gift and design photographs.
2. Backing up critical computer files onto an external source.
3. Reviewing expenses and researching alternative suppliers for design products and administrative services.

Be sure to focus on sales opportunities for March 2006 and other months that you consider slow for sales.

Q. How do I make a profit on custom gift baskets created with products in my retail store when those products are already marked up?

A. Most designers ensure profits by charging a design fee that's clearly posted in strategic locations within the store. The design fee incorporates the price of supplies that are not sold within the store but are part of the gift's creation (shred, bows, paper, enhancements, etc.). The fee also includes your labor.

Establish a pricing system for small, medium, and large designs. Calculate your costs ahead of time to ensure that you will profit from your work. For example, if the supply fee for a small gift basket costs $6 wholesale, you might consider charging customers $12. This price is just for the design and does not include the cost of products placed within the basket.

This fee structure is different than fees charged by home-based designers, as the home based do not have a retail store where customers can walk in and immediately see merchandise.

Q. There are lots of banks in my town, and they're all buying ads in the paper to compete for customers. Is there any way I can get them to buy my baskets?

A.  Banks are good candidates to buy gift baskets, especially for clients with big accounts and those who refer them to prospective account holders.

My advice is to approach the bank where you currently have an account. Both of you have a vested interest in each other: the bank wants to increase their accounts and monetary position, and you want more sales to increase your account balance.

If you haven't yet established a relationship with a bank officer, start now. The officer will tell you about how they court new customers, but he will only do so if you become more familiar to him. Quick and casual conversations when you happen to be in the bank help to cement your relationship. Soon, you can give the officer ideas on increasing their accounts by sending gift baskets to prospective clients and customers who've just opened accounts.

Be sure to ask your contact about other banking officials, located at that branch and other branches, who may also need your services.

©2005 Shirley Frazier. All rights reserved. Click here for reprint permission.