Gift basket business is practicable from home or a dedicated shop. Startup depends on amount of inventory you stock. Things to consider are tax, insurance, leasing a shop, funding, staff and advertisement. Here are a few ideas on how to start the business.
When to make Gift Baskets
The busiest time for gift makers are during celebratory periods. Public or religious holidays are boom periods with many sales. Popular holidays are Christmas, New Year, Valentine, Easter and Muslim Holidays. The baskets also sell throughout the year for anniversaries, AGM meetings, birthdays, weddings.
Pick periods for Sales
- New Year
- Boxing day
- Muslim Holidays
- AGM meetings
How to make a gift basket
A gift basket comprises different items based on the theme. The only way to breakeven is to purchase the items in bulk. This will afford better pricing more products for the basket.
To make your own basket the first step is to buy a beautiful basket. The size of the basket and type of items will determine the price. Once you have a basket add one of each item to makeup the gift. Use a transparent wrapping nylon to provide good packaging.
Type of Gift Baskets
There are over fifty types of gift baskets based on the theme. You have college survival baskets, spring cleaning, coffee love, fruit basket. Others are spa, chocolate, Champaign, wine and gourmet gift basket.
Gift basket Themes
- college survival baskets
- spring cleaning
- coffee love
- fruit basket
- gourmet gift basket
- premium basket
Your choice of products should complement each other. If you are making a fruit basket select fruits like oranges, pineapple, grapes, bananas, grapes. Fruit baskets are very perishable therefore arrange them when there is an order. Popular baskets have products like evaporated milk, cornflakes and beverages.
Products in basket
- evaporated milk
- granulated sugar
Cost considerations are price in the basket, the basket, wrapping foil, tape. Factor in transportation, labor, and advertisement.an average basket is sold for $15 to $25. The maker makes about 35% on each item.
The baskets are made for private individuals or corporate clients. Customers include supermarkets, grocery stores, local stores, companies.
- private individuals
- corporate clients
- grocery stores
- local shops
Most operators work alone or with an assistance. However as the business grows you need additional hands on a part-time bases.
To reach customers you need an effective marketing strategy. Use word of mouth, print and electronic media. Use newspaper advertisement, radio, online publications. Sell the business on Instagram, Facebook and guest blogging.
Marketing the Gift Basket Business
- print flyer
- business cards
- use newspaper advertisement
- social media (Facebook/Instagram)
- guest blogging
- build website
- word of mouth
Build a simple website for the business. You can hire a web developer or build the site yourself. A popular platform is WordPress then buy a memorable domain name. On the site showcase your products and location. Add contact information, phone number and office address.
A gift basket maker does not need a license or permit. However you need insurance and some items are subjected to value added tax.
Steps to Start a GIFT Basket Business
Step1 write a business plan
The first step is to write a gift basket business plan a carry out a feasibility study. Study what the competition is doing, items in their basket and prices.
Step2 Form a Business
Forming a business is purely at your discretion. You can register the business as a sole enterprise or limited liability company.
Step3 get insurance
Get insurance cover and tax identification number. Find out which products attract value added tax.
Step 4 purchase items
Purchase items that are properly packaged popular and not perishable. Buy the products, baskets, wrapping nylon, scissors.
Step5 Find customers
Device an effective marketing strategy to find customers. Some gift makers only produce based on orders.