I’m a great believer in finding your niche and developing it. But I also support the idea of capitalizing on untapped sources of income that are hiding in our businesses.

What are some of these?

1. Partner with a complementary business. Work with a florist, balloon artist or caterer to expand in the wedding and party market. While one of them may supply the decor or refreshments, you could provide the centerpieces of welcome gifts.

2. Offer your design services to groups or companies who want gift baskets but don’t know how to make them: specialty stores, nonprofit organizations, churches, and fundraisers.

3. Offer products on your website that complement your designs, but are created by and shipped by another company. An affiliate arrangement enables you to get a percentage of a sale without doing any of the work. Many major companies offer affiliate partnerships. Learn more about making profits from affiliate partnerships.

4. Sell ad space on your website to companies who are targeting the same market you are. If your clients are corporate or small businesses, they also need business cards, website design services, printing services and more.

5. Provide consultation or classes for newcomers to the gift basket business.

6. If you have a large amount of retail or warehouse space consider subleasing to another business.

7. Bring quality traffic to your site by posting comments on message boards and blogs frequented by your target client.

8. Publish a newsletter with information and tips that are of value to your clients. You will keep them informed of new products and services in each issue, of course.

These are just a few of the ways to tap into the hidden riches in your gift basket business. What are some ways that have worked for you?

This  tip may surprise you: Turn away all unreasonable orders that don’t allow you to make a profit.

Sometime during your career as a basketeer someone will ask you to do an order that sounds good on the surface.

For example, a few years ago I was asked by a well-known corporation to create 750 baskets using their products. Their budget was $10 per basket. From their perspective they were spending $7,500, but from my perspective the picture was very different.

In order to make a profit my cost would need to be no more than $3.33. Since my workspace could not handle an order this size, I would need to rent a warehouse for assembly. 

In addition, I would need to hire workers to help me, and rent a truck to make the delivery on a Sunday to the destination which was over 60 miles from my studio. I couldn’t see where I would make a profit.

Furthermore, although the client was providing all the products, I was still expected to provide the container, shrinkwrap or cellophane, filler and the bow.

I began to sense anxiety and disaster looming in my future.

I threw this great-sounding catch back in the river.

Your experience with such a scenario could be very different. If you can crunch the numbers so that you make a profit, then by all means take the order. But remember the wise old saying, “If if smells like a rat, looks like a rat and scurries like a rat, it’s probably a rat.”

Most gift basket designers are in business to offer a quality service and make a profit. You deserve appreciation and respect too.

Learn how to land orders that will make a profit with my audio CD, “Low-Cost Secrets for Landing Corporate Accounts.”

You can’t believe how many times I’ve heard gift basket designers say “I love to design, but I don’t like to sell.” Then they ask how they can go about getting customers.

If you are stockpiling inventory, creating beautiful designs, but not enjoying any sales, then you are a gift basket scaredy cat. You are headed down a course that spells financial disaster and mental distress.

But all is not lost. If you are ready to get over your fear of selling and watch your business prosper, here are seven things you can do.

1. Hire an associate or take on a partner who is skilled at sales. This person’s job will be to gather and follow leads to keep you busy filling orders. You will still to work on your own sales skills but the whole burden won’t be on your shoulders.

2. Become active in your local chamber or business network where you can meet potential customers on a weekly or monthly basis. Focus on building business relationships rather than selling. Getting to know your colleagues will reduce your fear and alleviate their hesitance. Most people buy from companies they’ve gotten to know and trust.

3. Listen to your colleagues and potential clients. Encourage them to talk about their themselves and their needs. The more people talk about themselves, the more they like you.

4. Face the fact that no one is a born salesman. It may seem that way to you as you watch others land accounts with little effort. But the truth is, becoming good at sales takes effort, work, perseverance and practice.

5. Face your fear. You are not alone. Good salesmen have had to overcome shyness, low self-esteem, stuttering, physical deformities and many other hurdles. They were determined to succeed and it was this determination that pushed them to learn and grow. You can too.

6. Take a baby step each day toward getting the sales you need to stay in business. You can learn about this by reading articles, books, subscribing to newsletters, attending conferences and networking with the successful members of the gift basket industry. The Small Business Administration offers tremendous free to low-cost help to businesses in every state.

7. Stop thinking of yourself as an interruption. You are offering a service that clients need. By neglecting to offer your gift basket service, you are depriving potential clients of a service that could help their businesses grow.

Many gift basket retailers email, call and write to me asking where they can get help for their businesses in their area. There is much help available, but you just have to find it.

Today I received an invitation to a free Lunch and Learn Seminar being offered by my city in partnership with the county’s Small Business Development Center. The topic is “The Fine Art of Being the Market Leader Forever,” and lunch is provided. I reserved my spot immediately.

Wanting to see what other seminars the County Small Business Development Center offers, I visited their website. There were seminars on Quick Books, employment law, driving traffic to your website and more ranging from free to no more than $25.

Small Development Centers are part of the national Small Business Administration. Use the SBA’s locator to find out where the Center is near you.

Create gifts that require minimum time to assemble, but are impressive.

2. When a hotel manager requested a $10 gift to give her regular guests at New Years. I filled a cub tote with a perpetual calendar, cinnamon tea and cookies. My total cost was $3.25.

The great thing about placing products in a bag or box is that you don’t have to worry about color coordinating the packaging. Wrap all the products in tissue and place them in the bag or box. You’re done!

3. Hooray for Hollywood can be used for a wide variety of gift-giving occasions. Fill a Hollywood gift box with typical movie candy and a bag of microwaveable popcorn. I also added a pair of sunglasses from a novelty store.

To discover sources for your cellophane, ribbon and enhancements, visit our free online directory RibbonWrap and Pack. In this online directory you will find companies who offer specialty packaging for the gift basket retailer, such as decorative nested boxes, trays, containers, designer printed cello, basket fillers, ribbon, shrinkwrap, raffia, organza bags and more.

When Mother’s Day is celebrated on May 10th this year, Reuters UK  reports that the average consumer is expected to spend $128.89 on Mom based on a survey by the National Retail Federation.  Even though this is a slight dip over previous years, it is still cause for optimism for gift basket designers.

Even though the majority of consumers are still expected to buy flowers or take mom for a specialty outing, 33% report that they will shop for specialty gifts. For gift basket designers this is good news.

Gift baskets are still an attractive choice for Mother’s Day because of the versatility and variety possible. As you create your Mother’s Day designs, keep in mind the following

1. With seven in ten moms  in the workforce, gifts that help smooth the transition from home to work  and back, or make the workplace pleasant are ideal.  Products such as desktop water fountain, picture frames, car commute items such as thermos, and relaxation items fit the bill.
2. Because working moms need help, consider items that ease communication between babysitters and other caregivers: memo pads, checklists, room monitors
3. Modern moms have varied interests that don’t always include cooking. Many also love gardening, traveling pets, and riding Harleys.
4. Moms come in many types: stay-at-home moms may also be working at home; moms may also be baby boomers, lesbian moms or grandmom turned mom again raisingtheir grandchildren.

The ideal gift basket is always the one that best meets the needs and interests of the recipient. But since you are the gift basket expert your customers will look to you for ideas and gift suggestions.

To get more ideas, visit Easy Gift Basket Ideas and Bath and Body Wholesalers.

Now is the time to market your Mother’s Day designs, contact your customers and if you haven’t already done so, display your Mother’s Day designs. That way, you can cash in on the bright outlook for your share of gift sales.

 Gifts that require light labor are those that need some wrapping or enhancement, but not much.

1. Each year, stores such as Costco and Trader Joes sell chocolates that are delicious and popular. Wrapping a box of truffles in printed cellophane with a dashing bow works well for low budgets. Don’t worry that your customers will recognize these products. They probably already like them and will be delighted to see them all dressed up.

2. The plastic portfolios found in office supply stores were intended for documents, but make wonderful gifts when filled with snacks and wrapped with bow.

I created such a design for a real estate firm for their associates during Administrative Professionals Week.

3. Fill a tin box, imprinted box or gable box with candy, cookies or other affordable pre-wrapped snacks.

Find out where to get a wide variety of containers from www.GiftBaskets Containers.com, our free online directory, listing over 100 wholesale sources. You will discover companies that offer baskets made of willow, grapevine, bamboo, birch, twig, coco bark, mesh, shabby chic, galvanized metal, wood, ceramic, paper mache and wire.

You can also crates, starter trunks chests, themed boxes, tins, movie reel tins, trays, planters, bird cages, picket fence, picnic baskets. You’ll find companies that carry containers in all types of shapes: round, rectangular, hexagonal and even some shaped like the major states of the USA.

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Short-cuts, low labor and high profits can be yours by incorporating

• Drop-shipping
• Ready-Made Gift Baskets
• Consignment and Partnering

The first time I was asked by a potential client to make $5 gifts I had to hold back a laugh.

Was she kidding? There was no way I could imagine making a profit from $5 gifts, even if she did want to order 100 of them.

If you haven’t already encountered the client who wants low cost gifts–under $25–you will.

Of course you have the choice of turning away such orders or referring them to others.

Many basketeers set a minimum such as $25, and don’t offer anything for less.

By dismissing low-cost gifts, however, especially during tough economic times, you will turn away many corporate clients looking for large quantity orders for special events, conventions, giveaways, tokens and more,  

If you decide to provide low-cost gifts, how will you possibly satisfy such customer demands and make profits at the same time? This week’s blog will be devoted to answering this question.

1. Establish a pricing formula that allows you to profit.

Many basketeers triple the total wholesale costs to determine the retail price of a standard gift basket. A $25 gift basket, for example, would cost no more than $8.33 in materials and contents. 

For gifts under $8, however, I adjust my formula to doubling the total cost, since for these I use stand-alones that require little to no labor. So, for a $5 gift, for example, I’d locate a gift that cost no more than $2.50.

2. Consider the quantity before you accept the order. An order for 1,000 gifts may be  worth your time more than three $5 gifts. This only works, of course, if you can provide the large orders with little to no labor.

3. Become a shrewd shopper and a clever designer so you can find gift items that require little to no labor on your part.

 Short-cuts, low labor and high profits can be yours by considering

• Drop-shipping
• Ready-Made Gift Baskets
• Consignment and Partnering
  

Remember how the late-night munchies distracted you when you were studying deep into the midnight hours?

Students who attend one of several lucky universities can now fuel late-night study sessions by having munchies delivered to them. The Daily Pennsylvanian reports on a service created by Wharton students called The Lazy Grocer.  Currently they offer food, drink and essentials in 23 categories up until 2AM Sunday through Wednesday and 3:30AM Thursday through Saturday.

Another late-night service is La Mamma Pizza and More that gets high ratings from students in the Boston area for its delicious food and friendly late-night service.

Want something fast in Manhattan? Max Delivery will bring a rental DVD, cold medication, food, cleaning supplies and more to you in 10 minutes. They take orders 24 hours a day but delivery is noon until midnight.

These businesses all prove that there is a market for services that meet customers’ needs in unique, convenient and fast ways. Perhaps there are some inventive ways you can make your gift basket service more attractive to customers. Hmmm.

In today’s newsletter I talked against the idea of hiring family and friends. One of my subscribers takes the opposite view. Listen to her view

I really enjoy reading your basket business newsletters and am in the planning stages of my own gift basket business. Your success is very encouraging for those of us just starting out.

I do, however, must voice my opinion on your recent article about hiring family members. It was obviously one-sided AGAINST hiring family members. Did you know that over 80% of America’s businesses are family owned and operated? From mom & pop gas stations to billion dollar corporations - and they function VERY successfully in most circumstances.

There are many Family Business Centers across the nation - mostly in educational/university settings such as University of San Francisco: www.usfca.edu/fbrc- that support family business. In addition, there is an international organization - The Family Firm Institute - www.ffi.org.

There are many positive aspects to owning a family business and working with family members - farmers and ranchers have done it since this nation was founded - husbands/wives can spend more time together, children learn the importance of responsibility, it perpetuates a family heritage and legacy, it builds a future for the next generation, it ensures retirement and personal security for family members, respect for one another is developed as well as pride, loyalty, and trust…and the list goes on. I’m not saying it will be a painless process, but hiring family members should definitely not be excluded from anyone’s business plan without serious consideration of both the pro’s and the con’s.

In conclusion, it is not my intent to alter your viewpoint on hiring family members; however, I appreciate your time in allowing me to express mine.

Sincerely,
Linda Burcham

What do you think? Do you run a family gift basket business? Speak up.