Started a gift basket business but they are not selling, what are we doing wrong?

Question

In March, my family started a gift basket business. We operate out of home and have website. We attended a major trade show as a vendor and only sold three or four baskets. We sent literature to real estate agents, funeral homes, and the list of potential customers from the trade show. We have also gotten creative and put together cute inexpensive favors for the ladies at the Race for the Cure marathon. We have donated a few baskets for some charity events. We still havnet seen profit. We have also just joined a craft store for the holidays through the end of December in hopes to get ourselves out there. We have only sold 18 dollars so far and its been almost a month. Other vendors at the store sell like crazy and they are selling crafts as well. Is it just that people are not likely to buy a gift basket unless its for a special occassion? Our baskets are priced way under competitors. I know we havent put out any expensive ads, could that be it? Hopefully someone can help.

We have also posted ads online, put our business cards & postcards in some stores and some places let us sit a basket out on display. What kind of advertising is appropriate for this type of business? I dont see any gift basket ads and barely see florist ads. They are very expensive ads and maybe thats why a lot of florists and gift basket companies dont advertise and compete with big name competitors? Like Wendys or Kmart can advertise everywhere & anywhere but we cannot afford that type. What else can we do? Thanks

Answer 1

Target your market and think about doing specialty baskets made for exclusively for the recipient. That means taking orders and not buying items in bulk but you should see a bigger return than what you're seeing now. Good Luck!

Answer 2

Ok I'm just the messenger so don't shoot me for what I am about to say. We are in a different "time" right now in 2006. The industries that are booming does not include gift baskets. We are in a different age now.

First it was the Industrial age
Then it was automobiles
Then recently the information age
Right now the fastest growing indrusty is "Wellness".

So let's see...how could we morph that into the gift basket industry? You got it! Make your gift baskets "wellness" gift baskets and I bet you that works. As you know there are millions of gift baskets out there. Why not have a niche on the market?

You could have healthy things in there. I know there is healthy chocolate and snacks for sure. Also by having a WELLNESS gift basket you don't have to put just food in there. You could even have any product that has to do with wellness.

If you are in this business to make money then what I would suggest is find a consumable business. Gift baskets are not consumable. So what happens is when a person buys your basket you are done with the sell and you are done earning income.

However a consumable business is better. When folks run out they reorder and you get paid again and again without having to sell again and again. Makes sense wouldn't you say?

So find a co. with an extremely high reorder rate. If you are doing gift baskets for fun and not really wanting to earn income that's one thing but you seem ambitous and wanting to earn income. Find something Consumable where you keep getting paid.

I know..I know...the moment is coming where we say what we do but it's true. My wife and I are still being compensated for work we did 3 years ago. We are in a consumable business with no selling and no making baskets.

If you can do what you are doing..you would find our business much easier. Bring no money but bring your time to our conference at
http://www.entertheconference.com and have your speakers on. We'll show you what we do and we won't ask you for any dough..nor will you ever pay us.

But consumbables are the way to go.

Answer 3

Just a thought - sometimes if something is priced TOO cheap, people don't want to buy it because - it's too cheap! I'm not in business, but have a feeling if the product is priced correctly (higher) it might sell better. I'm thinking in terms of being a customer and sometimes if things are priced as if to look expensive, I might be more inclined to buy it because I think it's must be a good product. If it's cheap, I might have second thoughts. Sounds funny, but you could try that with some of your products and put the price up and see what happens!
Cheers Christine E

Answer 4

Retail can be such a pain !! You need to SUPER social and be ready to give away things.

Keep in mind that work of mouth ins the best advertising! It can make your or break you.

You need to make people realize that they cannot live without your baskets!! You need to appeal to certain individuals that will crave what you have to sell.

You need to get some mini baskets made up for giving out to local businesses and institutes. I am sure you have all your bases covered when it comes to types of baskets but I will run through a few just in case.

Are you making bskets that are food and other products ? These gift basket can be anything and you can appeal to anyone simply by hitting what it is they love.

Do you have baskets for local health clubs ? Things that will appeal to the work out crowds such as soaps, candles, fitness music, barbells, sweat towels, sugar free candies, health foods(huge variety), personal hygene products such as specialty deoderants, colognes, etc...

Do you have baskets that appeal to the chocoholics !? Self explanitory.

Do you have baskets that appeal to MEN!? A basket of tools, grease rags, a tire gauge, w-d40 spray, oil can, hanging bracets for the garage, tool box, even a how to book. You can ask your customer what theme. It could be a fishing OR hunting basket for the sportman.

Do you have all sizes of baskets so even a student could afford a small one for a special teacher? One that would have an apple in it, stickers, markers, a special teacher pin or plaque, etc...

Do you hit the local hospitals and nursing homes ? Explain that your baskets can be made to order for every individual simply by asking a few questions about the person receiving the basket. Have one of your big baskets on display at the hospitals for people to view with some explaining that custom baskets are made to order.

Visit your schools teachers lounge, hospital reception area, nursing home, factory lunch rooms, dentist office, mega mart managers, banking institutes of all kinds, fitness centers, chiropractor office, all the churches, insurance offices, car dealerships. Hit up all the break rooms and lunch rooms of all the business you can possibly think of.

You can have the local churches put an announcement of your business in their bulletin. YOU need to get out there and be super social. This would not be a business for an introvert!!

Give out super small baskets as samples and offer a slight discount for the first order and possibly delivery discount if you deliver.

Advertising in the newspaper is not the answer !! Like I said word of mouth is the greatest !

I would think you knew all this already so sorry if I was of no help! Sometimes its just nice to hear others input and ideas.

Good luck and get out there !!

Answer 5

It sounds like you've done a lot of the positive steps in marketing.

I have to ask this, so that you can ask yourself...Is it possible you need to change the appearance of the basket, or perhaps the product composition?

Most purchases of this sort are inspired by the feeling one gets when they see the product. For example, if you have a range of products that are all different colors that just look "scattered" (to be polite), your sales will be far less than if you have products that have for example black labels, appear to be premium products, and is all put together in a fashion that "drips" with sophistication.

That's just one thing to take a look at if all other things have been considered.

Good luck, I hope it works out for you.

Answer 6

Participate, in local events and get your presence felt through some small events. You may make your own Mailing list ( Client Data Base ) of perspective Customers as well a Customer data Base to approach corporate customers to be promoted among particular group or locality you are operating.

More over Rome was not built in a day.

Good Luck !!

Answer 7

I think it is just the economy. people do not buy extras when they are struggling to pay for necessities. maybe the competition's customers are from an established customer base. It takes a little time to establish ones self. Don't give up hope.

Answer 8

have you show them to anyone who works on
Wall St ? Perhaps you need to go to companies that
are well off & don't mind spending a little extra cash to
make someone in the office feel special on their
b-day or a holiday?

Sounds like you are doing everything else, good luck !

Answer 9

Find the type of business on the link below that best describes what it is that YOU do (or want to do). Then see how to truly use the Net to make your specific business (or business idea) thrive. http://www.wotsnext.com

Answer 10

Hi, sorry to hear your baskets are not selling well. I can give you a website that may help you if you email me to [e-mail]. Thank you.