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Gift Basket FAQ 3

Selling Baskets through Other Retailers (Click on each question)

 
  1. Would flower shops that don't already sell gift baskets be interested in selling mine?
     
  2. What other stores might be interested in selling my baskets?
     
  3. How much of a percentage of the price is customary to give to a retail store for selling my baskets?
     
  4. Should I have a written agreement with the store?
     
  5. Do I lose my money if someone steals one of my baskets from the store?
     
  6. Can I get reimbursed if the store catches fire and everything is destroyed, including my baskets?
     

Visit to the FAQ Index page for a full list of all of the frequently-asked questions pages.

Also visit the Success Articles section.


Would flower shops that don't already sell gift baskets be interested in mine?

The flower shop owner may have an interest in selling your gift baskets. Visit a store you believe would be a good match for your baskets. Gauge the storeís popularity. Is the shop located in a busy part of town?  Is there a lot of customer activity inside? Does the telephone ring sporadically, and are orders being taken in this manner?

If this is a busy shop and you are comfortable with the environment, ask the owner if he/she would be willing to form such a partnership. The worse youíll hear is ďno,Ē and if thatís the case, move on to another possible sales source.

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What other stores might be interested in selling my baskets?

 

Stores that sell similar products, such as plush items, stationery, candy and snacks, or services that customers need daily, are good targets.

A few possibilities are hospital gift shops, craft consignment stores, mail box centers, confectioners, coffee shops and pharmacies.

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How much of a percentage of the price is customary to give to a retail store for selling my baskets?

Offer the retail store owner a small percentage. Start with 15 percent. If a gift basketís retail price is $30, the store owner will receive $4.50, the rest is yours.

It's recommended that the agreed-upon percentage not be more than 25 percent, if possible. A higher percentage will substantially decrease your profit margin.

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Should I have a written agreement with the store?

When you enter into any type of arrangement that puts your gift baskets into another personís hands, that arrangement is best secured through a written agreement.

 

For our purposes, this is called a consignment agreement and details all of the facts agreed to by both parties.  This includes, but is not limited to, the number of gift baskets to be sold, the percentage to be paid to the store owner, and how often sales will be settled (weekly, monthly, etc.).

Consignment agreement forms are available in some small business books and on the Internet and are customizable for your needs.

The CD, Legal Tips to Keep Your Company Out of Court, gives you lots of help to craft an agreement.

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Do I lose my money if someone steals one of my baskets from the store?

The store owner will be responsible to reimburse you for the retail price of the basket as long as this is specified in your consignment agreement.

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Can I get reimbursed if the store catches fire and everything is destroyed, including my baskets?

As covered in the previous question, reimbursement for damaged or destroyed gift baskets must be specified in your written agreement with the store owner. Unfortunately, there may be a waiting period for reimbursement, as the owner must wait for a settlement from his/her insurance company.

Another caveat is that the owner may file bankruptcy after such devastation, and your reimbursement may be less than the retail price.  Itís very important to craft the best consignment agreement possible, but even so, problems can occur. Choose your business partners wisely.

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Visit to the FAQ Index page for a full list of all of the frequently-asked questions pages.


Copyright 1998-2005 Shirley George Frazier. Click here for reprint permission.
Some text is adapted from How to Start a Home-Based Gift Basket Business.

 


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