Susanna asks:

“How do companies get to make gift baskets for places like Costco and Sam’s Club? Is that kind of opportunity open to me?”

I don’t know the exact method companies use to get wholesale club accounts, but I do know that if this is the type of client you wish to pursue, there are certain things you must have in order to satisfy these accounts.

1. A staff to create assembly-line gift baskets. This feat is one that cannot be accomplished by one designer. You must have employees, part-time or full-time, ready to create these gifts.

2. Warehouse space. This is different than a workspace, as kitchen tables and home basements are not large enough to store these baskets. Once the gift baskets are made, there will be a lag time between placing them on a truck and shipping them to the delivery facility.

3. Lots of capital and inventory. You’ll probably have to fund the project unless your contract states that the warehouse club will pay some monies up front.

Still, you’ll need cash for a large portion of the account. Also, you need to prepare a plan on where to buy and store the goods.

4. Space to receive leftover baskets. I don’t know if warehouse clubs keep gift baskets that don’t sell, but I have a feeling they don’t. That means you’ll have to accept leftover baskets when the selling season is over.

5. Persistence to get the final check. This is the part that puts many businesses out of business. If you’re not well capitalized, a club order has the potential to make you money or drain it from your pockets.

Such a huge order can be a blessing or a curse. It all depends on whether or not you’ve researched how other firms get the job done so that you’re ready for practically anything.

There are other considerations, but these five are enough to fortify your commitment or dash your hopes.

I hope it’s the former.

© 2008-2010 Shirley George Frazier. All rights reserved. Shirley George Frazier is recognized as the leading authority on the gift basket industry. She is author of How to Start a Home-Based Gift Basket Business, The Gift Basket Design Book, and Marketing Strategies for the Home-Based Business. Visit GiftBasketBusiness.com for videos, CDs, reports, tips, online newsletter, and much more to learn, grow, and profit with gift baskets.

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