Home Based Gift Basket Business

A home based gift basket business may be the perfect home business idea for you.

The free guide to starting a gift basket home business includes:

About a gift basket home business

Starting a gift basket business

Marketing and selling gift baskets

Gift basket ideas

Special occasion gift baskets

How to make gift baskets

Find out what the competition is charging

Do some research and find out the average prices for similar gift baskets in your area. Use the internet, local advertising and local gift basket companies. This will act as a guide to what you can expect customers to pay for a particular type of gift basket. Work out the percentage profit you want to make from each basket and use this as a guide in costing out each gift basket in terms of the items you can include and what you can afford to pay for containers and decorations.

Calculate your costs.

The prices you set for your gift baskets must reflect the costs of the actual gift basket items and supplies and the expenses of running your home based gift basket business. Your inventory costs will vary depending on the type of gift basket supplies you use. Your intial costs will include the cost of any equipment you buy and the cost of a business license.

Your running expenses include your ongoing advertising and travel costs. Factor in these costs by including a percentage of the total monthly spend on equipment, advertising and travel per basket price. This amount will depend on the number of gift baskets you sell and deliver per month. You can charge separately for delivery for each gift basket depending on distance. Don't forget to factor in the cost of your time. Work out how long it takes to assemble a gift basket and calculate a cost for your labor.

Take these factors into consideration when working out your costs

• Business start up costs. Business license, registering a business name.
• Special equipment. This may include craft tools, shrink wrapper, glue gun, work table.
• Office supplies. Items such as order book and invoice book if done manually or computer supplies.
• Advertising costs. Business cards, fliers, pamphlets, brochures. Signage costs. Cost of advertising in local newspapers, directories etc.
• Gift basket supplies. Baskets/containers, packing materials, decorative materials, cellophane or shrink wrap and the product items or gifts. This cost will vary greatly according to what you put in the basket. Remember to get a business license so that you puchase supplies at the wholesale rather than retail price. In our start up a gift basket business guide we suggest that selecting a few standard gift baskets to offer initially is the best way to begin a home based gift basket business as it reduces the inventory needed and the costs involved. You can always buy a few unique items to personalize or customize the gift basket.

• Set your price for each gift basket. Once you have determined your costs and expenses per gift basket you can set a specific price for each gift basket you offer. Theoretically your price should cover the supplies cost for that gift basket, the labor costs and the delivery costs for that specific gift basket. Plus a proportionate share of advertising and running costs for your home based gift basket business and a reasonable profit.
• What sort of profit can be expected? Most gift basket businesses expect to net between 20 to 30 percent of their gross revenue or selling price. This is typically achieved by applying a 90 to 100 percent markup on the cost of the items in the gift basket. This can be achieved by clever sourcing of supplies rather than purchasing inferior items.
• Don't undersell your gift baskets. Often new businesses make the mistake of charging less than the going rate to try and get customers. Don't underprice your product. You need to be seen to be competitive and you need to make money. Have confidence in yourself and the product you are providing.

Running a home based gift basket business can be both fun and profitable. Use your entrepreneurial skills to create and sell a good, value-for-money product.

About a home based gift basket business

Starting a gift basket business

Marketing and selling gift baskets

Gift basket ideas

Special occasion gift baskets

Homemade gift basket ideas

How to make gift baskets

Catchy gift basket business names

Small Business Licenses

Start a gift basket business from home and become part of this exciting and profitable growth industry.

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