Uncover the pricing strategies that will help you start a gift basket business that can profitably meet your customer's needs,
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.
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.
I incorporate the delivery into my other errands for the day, because five dollars does not really cover the cost of gas.
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.
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.
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.
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.
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.
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.
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.
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