Four Reasons to Register Your Gift Basket Business
Posted on July 1, 2011
Filed Under Laws and Contracts | Comments Off
Lucy asks: “What comes first: Starting my gift basket business or applying for a business license? Does it matter?”
Once you know, without a doubt, that the business of gift baskets are your passion and you will be making them for income purposes, it’s best to apply for your business license first.
Here’s why:
1. The license commits you to starting this business for real. You’ll have to submit any taxes collected when you get orders from people within your state, which is one task that hobbyists don’t want to complete (it’s a simple process to tally your sales and submit sales tax).
2. You’ll pay no sales tax to retail companies that have supplies you wish to buy. A.C. Moore and Michaels, as examples, may have baskets or floral supplies discounted at a cost so low that it makes sense to buy from them. When you have a license, you can register your business with those retailers so you pay no sales tax on the items purchased.
3. You will qualify for state assistance, contests, and other incentives and support because you registered your business as a bona fide entity regarded highly by institutions that are willing to assist you free of charge (places such as the Small Business Development Center).
4. There will be lots of confusion if someone else has registered the business name you want to use and you don’t notify the proper state or country officials beforehand. In addition, you will most likely have to change your business name and all marketing materials when you finally register.
The low cost of legal registration provides you with lots of rewards and money-saving opportunities. That’s why it’s wise to take care of the paperwork before you officially open for business.
How to Decide to Keep or Lose a Customer
Posted on June 10, 2011
Filed Under Business Basics | Comments Off
Suzanne asks:
“How do I tell a customer that the gift baskets she wants for a low price cost a lot more for me to make? I don’t want to lose her, but I don’t know what to say.“
This person may have already visited retailers in your local area and found that their prices are not to her liking, so she’s now asking you to make what retailers already know is not profitable.
I’m guessing, of course, but some potential customers approach us with requests that are simply impossible to complete.
A woman once asked me to make a large gift basket and charge her a small basket price, plus she wanted 30 days to pay, and this was her first order!
How did I handle it? I explained that while I wasn’t able to fulfill her requests due to my pricing structure, I was happy to recommend her to other designers who might be more accommodating.
Those other designers turned her down as well. She wanted too much for too little, and all of us found the words to turn down her request since staying in business is a top priority when you decide to become an entrepreneur.
You have a choice to either:
- Inform the customer that you are unable to produce her preferred gift baskets at the cost she wants to pay,
- Provide her with alternative styles from your design inventory, or
- Make the gift baskets for her and take a loss.
If the first option is best, the words are easy to say. Do not allow emotion to get in the way; you’re making a business decision based on your desire to stay in business.
If the second option is best, inform the customer about the value and satisfaction other buyers have experienced with those particular styles.
If the third option is best, make the gift baskets, but be ready for additional orders from the customer that will keep you profitless.
Which is your choice?
Where to Find Baskets
Posted on May 13, 2011
Filed Under Products and Supplies | Comments Off
Zena asks: “It’s becoming more difficult to find baskets to make gift baskets. How can I find basket sources when suppliers aren’t around?”
There are plenty of basket sources still available, especially if you’re located in the United States. Even if you’re not U.S. based, baskets are imported to your country from many places for many reasons, including gift basket making.
Before I qualified to buy baskets from wholesalers, I visited retail stores selling baskets, and these stores usually leave tags attached to baskets for sale telling you who made it or where the retailer purchased it.
Learning where florists buy their supplies is another way to locate suppliers.
The website, BasketsGiftBaskets.com, may also be helpful in leading you to basket sources.
Baskets are made mostly in Asian-based countries, and they’re not slowing down production. Keep looking in retail stores and through wholesale facilities that cater to florists and related professionals. You’ll find that baskets are plentiful in places right in your backyard.
