Can I save my failed gift basket business?
Hi everyone,my mother and I opened a gift basket business, primarily home and internet based last year. While we have had some sales, it has not been enough to keep us going.Most of our supplies expired and we are out of money to try to keep going. While we bought enough supplies to make a nice variety of baskets, we didnt go completely overboard...or so we thought. We thought we were doing everything right but I guess not.We have talked to other owners on forums like this one and it seemed as if we were doing the same things.We marketed the business in local newspapers, attended a tradeshow (home tradeshow...maybe not the best type to attend?), did a couple radio ads, handed out promotional pieces at major events and walks, donated to other events, did presentations at real estate office, etc.We have even priced our baskets below what most business are asking for so I cant see the price being the problem.We took out about a $10,000 loan and its all gone and we barely made 1/4 back.
- babyboomer1001Lv 74 years agoFavorite Answer
Did you do due diligence on the type of business to begin with? It sounds like you forgot that step. If there is no market for anymore gift baskets, then expect failure. Only so many people and companies want to buy them. If there is a glut in the market, then you started the wrong business.
- Anonymous4 years ago
No, you can't save this business except by miracle.
Your gift baskets would have to be truly unique and probably of very high quality. And you'd need some kind of corporate client that wants to send (probably custom) gift baskets to their clients. A real estate agent? A bed and breakfast? Something like that....an ongoing customer.
The general public really doesn't send many gift baskets (just ask your friends and neighbors) and when they do, they go to the big boys like Harry & David, etc. Gift baskets are honestly a bit out of vogue.
You may have the nicest gift baskets ever, but your business model is flawed. You're going after a customer you aren't going to get and you're competing in an already over-saturated market with a product no one really wants.
- A HunchLv 74 years ago
Is there something unique about your gift baskets?
Honestly, I don't think there is much of a market for gift baskets. At Christmas this year, I noticed that Costco had about 1/3 that they had a few years ago and even had some left over. In my job, I go to large businesses. This year I noticed that I didn't see any gift baskets at Christmas time in their lunch rooms.
- WRGLv 74 years ago
Hang it up. Either there isn't a market for your product or there are better/cheaper/better marketed competitors.