Are gift basket businesses profitable? How can you increase the profitability of a gift basket company? Here is everything you need to know. Just like every other business that can be started on a small, medium or large scale, a gift basket business can be profitable as long as all other factors that will aid the profitability of the business are put in place and enforced while running the business.
Table of Content
- To start with, What is a Gift Basket Business?
- 1. Create and Promote Special Packages on a Regular Basis
- 2. Partner with Key Stakeholders That Will Help You Attract Customers
- 3. Develop Mailing Lists and Leverage on Email Marketing
- 4. Spend More on Advertising and Promotion
- 5. Leverage on Short Videos on Social Media
- 6. Get All Your Employees Involved in Marketing Your Services
- 7. Form Strategic Marketing Alliance with Players in the Wedding and Event Planning Industry
- 8. Build Good Business Network
- 9. Develop a Customer Referral Program
- 10. Engage in Guerilla Marketing
- 11. Brand Your Official Vehicles and Delivery Vans
- 12. List Your Gift Basket Business Company on Yellow Pages Ads (Local Directories)
To start with, What is a Gift Basket Business?
Gift basket business is a business that packages different gifts items in a basket and puts them up for sale or delivery to different clients as requested. A gift basket business can specialize in preparing and packaging toiletry baskets, gourmet/food baskets, wedding and baby shower baskets, nut/fruit baskets, bath product gift baskets, candy gift baskets, floral baskets and customized gifts baskets.
Gift baskets also have started stocking organic and healthy foods, as of 2010, while some gift basket companies have started the organic and healthy line as a niche. Gift basket business can indeed be profitable, but in order to grow your gift basket business to become profitable, here are ways you can achieve it;
12 Ways to Increase the Profitability of your Gift Basket Business
1. Create and Promote Special Packages on a Regular Basis
One of the ways that you can make your gift basket business profitable is to ensure that from time to time you come up with promos that will be too tempting for customers to resist and at the same time will not deep into your profitability.
For example, if your competitors are offering a wedding and baby shower baskets or floral baskets and customized gifts baskets for $100 per gift basket, you can go below the industry average and start with $90 per gift basket.
2. Partner with Key Stakeholders That Will Help You Attract Customers
Another marketing strategy that you need to adopt if you want to run a profitable gift basket business is to ensure that you partner with key stakeholders in and around the location where you have your target market. You can partner with different wedding, event and party planners, human resources and admin professionals et al. Please note that you can reach an agreement with them on the percentage they stand to get when any customer comes through their referrals.
3. Develop Mailing Lists and Leverage on Email Marketing
Develop mailing lists of your target market is yet another marketing idea that you can leverage on to market your gift basket business and make the business profitable. Before launching any business, you would have in mind the people and businesses that would patronize your products hence you should develop mailing lists and always leverage the list to market your gift baskets. Email marketing is an ideal approach and a means of getting new visitors engaged with your business.
4. Spend More on Advertising and Promotion
If indeed you want to make more money and maximize profits from your gift basket business, you must be ready to spend money be in the faces of your target market. You are expected to advertise your gift basket business on local dailies (community newspapers), local TV and local radio stations.
You are expected to promote your gift basket business online via blogs and all available social media platforms. Make use of attractive hand bills to create awareness and also to give direction to your office location. Position your signage/flexi banners at strategic places in and around the city where you have your gift basket business (office).
5. Leverage on Short Videos on Social Media
In the era that we are in, you can hardly achieve anything worthwhile on social medial without leveraging on short video content to drive your narratives. You could create a short-but-sweet video that explains what your gift basket business is all about, the product and services your offer, or you could dive deep into a topic that relates to your business.
Your potential customers might be searching for how-to videos that give you an opportunity to catch their attention. And with the ability to shoot videos on any smartphone, this is a free marketing idea that can make a big impact.
Short video is really valuable when it comes to marketing anything on social media including a gift basket business. All you have to do is to ensure that you produce a quality and easy to understand video. Interestingly, you can do the video yourself if you don’t have enough money to hire professionals to help you shoot the video.
6. Get All Your Employees Involved in Marketing Your Services
As a gift basket business owner, part of what you need to do if you want to continue to welcome clients is to ensure that all your employees (not only marketing and sales executives) are directly or indirectly involved in the sales and marketing of your gift baskets.
Just ensure that you create provision for your employees to earn a commission when they bring in business for the organization. You can as well create business model that will enable freelancers to work with your organization especially as it relates to bringing in business; whenever they refer clients to your organization, they will earn a percentage of the deal.
7. Form Strategic Marketing Alliance with Players in the Wedding and Event Planning Industry
As a gift basket business owner, if you want to continue to welcome client, then you should look towards forming strategic marketing alliance with major players in the industry.
Good enough, there are opportunities for gift basket businesses to form strategic marketing alliance with players in the wedding and event planning industry due to the fact that some most wedding and event planners don’t own their own gift basket business and would want to contract such services when they have such contracts.
Networking is perhaps one of the most effective and creative marketing ideas needed to begin to build your clientele base and you have to put plans in place to leverage on all your networks if you truly want to do well with your gift basket business.
In view of that, you should look out for gatherings where you can network with wedding planners, event planners, party planners, general contractors and human resources and admin professionals et al. These are the people that will likely patronize your gift basket business.
Another strategic marketing idea that you can deploy for your gift basket business is to develop a customer referral program that will help you reward customers who refer other customers to you. This is actually encouraging word of mouth promotion of your business. Interestingly, customers that you get via referral would definitely become another satisfied customer that will help you attract other customers.
10. Engage in Guerilla Marketing
Applying guerilla marketing approach is yet another creative marketing idea that you adopt for your gift basket business in order to generate revenues and maximize profits. Guerilla marketing emphasizes creativity over budget, and strategies are often cheap and easy to implement, especially when localized.
Broadcast your Twitter handle with sidewalk chalk, use an abandoned storefront as a canvas for street art, or plaster custom stickers on urban décor that makes those who stroll by look twice. There is a ton of room for invention here, and you don’t need a big budget to be successful with this idea.
11. Brand Your Official Vehicles and Delivery Vans
If you run a standard gift basket business, you are expected to have official vehicles or delivery vans. If this applies to you, then one of the ways of marketing the business is to brand all your delivery vans in such a way that people would always want to make enquiries about the business. Aside from branding all your delivery vans and official vehicles, you can as well paste stickers of your company on clients and family member’s cars. It will go a long way to communicate your brand.
12. List Your Gift Basket Business Company on Yellow Pages Ads (Local Directories)
Another sure way to make your gift basket business profitable is to ensure that you list your gift basket business on yellow paged ads (local directories) in your city or community. Although with the advent of internet, hard copy yellow pages’ ads have been relegated to the background, but it is still one major tool that will help people identify your business office or contact you when they need your services urgently. Of course, if people know that your gift basket business exists in their location, they will sure patronize your services.