Gourmet gift baskets are popular among small business owners who want to give gifts to employees, customers, other business owners or business contacts. Individuals also buy them to give to family members and other people as birthday gifts or for other special occasions. Starting a gourmet gift baskets business is one of the easiest businesses to launch from home. You can keep your expenses low and gain a high profit margin if you choose wholesale suppliers with the best prices.
Education and Training
No education and training is required to launch a gourmet gift baskets business. You do need to acquire basic product selling skills, such as how to buy and organize wholesale supplies. Being creative and learning how to design a basket is important, but you can learn that by studying baskets on the market, or watching a video tutorial.
You can expect to earn $50,000 per year in gross sales if you market and sell to corporations. You'll make less selling directly to individuals, but you can make around $30,000 when you first get started. Some businesses who have established enough corporate contacts and have been in business for years have made as much as $200,000 in sales. The corporate market does pay more, and corporations order large batches, as opposed to one-time purchases yearly from individuals.
The best way to run a gourmet gift baskets business from home is to choose a niche you want to serve. You should focus your marketing and time on either corporations and small businesses or individuals and families. That doesn't mean that you should turn down opportunities from someone who is not your target audience, but it does mean that you should put your marketing dollars on one niche market. Some of the special occasions that individuals need baskets for include:
- Housewarming parties
- Special events
You don't want to specialize in any one of these areas, because you may not have a large enough market. You have to decide either to cater to the corporate or non-corporate markets.
Gourmet Gift Baskets Contents
Gourmet foods, snacks and beverages are the basic ingredients to gift baskets. Some of the items include:
- Jams and preserves
A major part of your business is to find these items at wholesale prices so that you can make a profit. Network within trade associations and other groups that have gift basket business owners as members to help you sort out which suppliers you should work with. You should also participate in forums, ask lots of questions and get the inside scoop of which wholesalers to work with.
With the potential of making $50,000 a year from your home, you can expect to have competition. Before you launch your business, you have to see who your competitors are, who they sell to and what they sell. Start with your local competitors first and then branch out to online competitors. Pay attention to prices, but also what method of delivery they use, such as a courier service, hand delivery or mail. Check review websites, such as Yelp, to see what others are saying about your competitors, and determine how you can distinguish yourself.
Whatever niche market you serve, make it a point to always offer high quality gourmet gift baskets. You'll earn repeat business and contracts as a result.
Daphne Mallory, Esq. is the co-owner of Mallory Writing Services and has written more than 100 articles helping home based business owners and entrepreneurs start and market their business. You can learn more about her here.