If You Are Looking To Start A Gift Basket Business, Make Sure You Proactively Plan Your Pricing Policies Upfront
Uncover the pricing strategies that will help you start a gift basket business that can profitably meet your customer's needs,
Though I Was Happy To Start A Gift Basket Business Of My Own, I Regret Not Dealing With Pricing Issues Up Front
Learning how to price my baskets was one of the best and toughest lessons that I learned. I regret not putting more though into the process initially and just winging it.I feel as if I could have avoided many issues and mistakes if I had been more focused when I got started.
Pricing Tip 1 - If You Are Looking To Start A Gift Basket Business, Make Sure You Charge For Your Delivery Services
When I finally buckled down with my gift basket start-up business, I addressed my overhead first. I realized that people pay for delivery when something is mailed and don't mind paying you to deliver the basket to their place of work.
So, I decided that any basket that I had to deliver would have a five dollar delivery fee added to it. I also decided to only offer my delivery service to people within a twenty five mile radius.
Also, If Your Gift Basket Start Up Business Will Offer A Delivery Service, Make Sure You Coordinate Your Deliveries
I incorporate the delivery into my other errands for the day, because five dollars does not really cover the cost of gas.
Pricing Tip 2 - If You Are Looking To Start A Gift Basket Business, Then Make Sure You Set Expectations Up Front On The Minimum Amount You Want To Make On A Basket
I decided that I would ideally like to make ten dollars off of every basket. I achieve this goal by buying items wholesale. Now, I buy some of the baskets at the dollar store.
- I have even begun to buy other items like cellophane and shredded paper wholesale. This allows me to keep the costs down and then I do not need to by it at retail cost.
- Also, By buying items in bulk I have saved a great deal of money and increased my overall profits.
Pricing Tip 3 - If You Ship, Include The Shipping Costs In Your Price
When you start a gift basket business, make sure you charge your customers the correct shipping cost - because if you don't those additional costs will eat into your profits.
I never ship an item for free. I make sure that the client understands that tax and shipping will be added to their order.
Pricing Tip 4 - Resist The Urge To Go Overboard By Adding More An More To A Basket That Is Complete - Make Sure Your Clients Know Upfront That You Will
Believe me, I believe in giving my clients the best. I also believe in customer service. But, I had to learn the difference between giving 'exceptional service' and giving away too much inventory.
In fact, I lost a great deal of money in the beginning by going overboard.I would get very excited by my vision and would put too much into each basket. I lost money because I would charge the client and then add items that were above and beyond what they paid for.
- I quickly learned that I should only include the exact items that are promised.
- For example, If a client wants something else included , like a specific baby blanket , I charge them for it.
Pricing Tip 5 - When Starting Your Gift Basket Business, It Makes Sense That You Know What Your Minimum-Priced Basket Will Be
- I never price a basket below twenty five dollars.
- I also have a policy to differentiate the items I include in the lower priced baskets vs. the higher priced baskets. For example, in the lower price baskets I only include small items and are quick to make.
Pricing Tip 6 - Be prepared To Face Pricing Challenges
Setting and keeping your prices in-pace with customer's expectations and rising inventory costs is a challenge for any business.
When you start your gift basket business, you'll find that juggling expenses and setting prices is part art and part science and comes with the territory of starting your own business.
Below, I will share my top three pricing/gift basket business challenges with you in hopes that it will help you to start a gift basket business that is both cherished by your customers and profitable.
- Challenge 1. My first challenge has been making sure that I maintain prices even as prices of my supplies have increased.
- Challenge 2. The second has been making clients understand that the less they pay , the less there will be in each basket .
- Challenge 3. My last challenge has been trying to make sure that I make a profit.
Pricing Tips For Starting A Gift Basket Business - The Bottom-Line
Starting a gift basket business that is profitable is key to your business survival.
This is why I hope you will walk away with a better understanding of what you will need to do to ensure that your gift basket business start-up is both successful and profitable.
Starting a gift basket business that actually produce profit is not a guarantee, which is why I have learned that I sometimes have to temper my vision with being practical.
The Key To Balancing It All
Please understand me - I'm not saying that you have to create 'cheap' baskets in order to make a profit, but what I am saying is to factor in the profit your business needs whenever you are creating your baskets an setting your prices.
- It's okay to serve your customers with the best and most creative gift basket ever.
- But make sure you do so with the understanding that your end-goal is to be able to serve your customers in such a way that it's a value-based win for them, and a profitable-based win for you and your business.
If You Make Pricing A Front-End Priority In Your Gift Basket Business Start-Up, It Will Save You Loads Of Headache In The End
Make sure you proactively think through your pricing realities and policies before starting your gift basket business.
Else your business won't enough money to sustain itself, and you will find yourself starting a short-lived business that is doomed to fail before it has a chance to get off the ground.
Here's To You Starting A Gift Basket Business That Customers Will Crave!