The profit potential of the gift basket business is kind of blurry to some before they get started and they could be forgiven for wondering if a full-time income is possible. In this article we look at the profit potential of the gift basket business, how much earning and profit are possible, and lastly we look at the factors that separate the ‘six figure’ operators from the small timers.
Typical Gift Basket Business Earnings
For gift basket business owners operating out of their homes it is not unreasonable to expect to turnover between $15,000 to $25,000 in the first year of business if they work hard allowing for a profit of around $6,000 to $10,000. Once a business in this industry gets better established owners can expect a typical annual salary of around $20,000 to $25,000 part time or $30,000 to $80,000 full-time.
To break into the ‘six figure’ level companies usually have to expand out of the home business model and move into commercial space. Many gift basket businesses allow their owners to take home an income of over $100,000 a year and for some players in this business much more has been possible.
What does it take to Earn ‘Six Figures’?
1) While some business owners in this industry do very well from home, only with commercial premises can you really get the space and facilities to take your gift basket business to the next level. A store front will also increase your market exposure and give your business a much more professional appearance.
2) The successful players in this business control the Internet and make it a key part of their marketing strategy. This involves refining their websites until they offer customers the perfect shopping experience and the easiest ordering process. Understanding how to drive large numbers of targeted visitors to a website is also important.
3) Referrals and repeat orders are one way to acquire new customers for no advertising spend. By showing clients a high standard of service and making their experience with your company truly unique you can benefit immensely from word of mouth marketing.
Mistakes in this business can be unforgivable and cause you to lose clients. Put systems in place to ensure that you have fool-proof ordering and delivery systems.
4) The winners in this business all have extremely well thought through sales and marketing plans. They understand the market well, develop the right products and use the appropriate methods to market their products. Some high earners have devised sales processes that bring in corporate clients and they thrive in this area.
5) The top performers have a core product range of baskets that they know sell well but they also continue to innovate and try new things.
6) Branding is also important for building business value over the long term. A recognizable brand makes sales and marketing a lot easier than it is for a newly established brand. Brand development takes time but is well worth the effort.
7) Lastly, knowing how to hire and manage employees is a skill that can also help push your business over the ‘six figure’ barrier. To scale up your productivity to fulfill the volume of orders that you need to be highly profitable you need to have a team in place and know how to communicate with them to get things done.
As with most industries though, marketing is the key to success and the most difficult part of running a gift basket business is making sales. If you look at the best players in this business you will see that they have had their success by either mastering online sales, corporate sales or retailing.
Making a decent annual income is not impossible in the gift basket business if you focus on these success factors that typically separate the successful business from the amateurs.