Do you have these questions in your mind?
- How profitable is a gift basket business?
- Is making gift baskets a good business?
- How much profit should you make on a gift basket?
- How do I start a gift basket business?
In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.
Table of Contents
What is Corporate Gifting Business?
Corporate Gifting is sending someone a gift to your customer, employee, vendor, or potential client to cultivate positive business relationships.
Popular reasons to send corporate gifts
- Holiday gifts
- Anniversary gifts for employees or clients
- Sales achievements
- Welcome gifts for new clients
- For team motivation
- Encouraging prospects to become customers
In addition, corporate gifts also do the company’s promotion by mentioning its name and logo on the basket or container. Recipients see it as an expression of gratitude, appreciation, and value.
Successful Gifts Basket Companies you can look to inspire yourself:
- Gifts for good
Is the Corporate Gifts Basket Business right for me?
Here are some facts to consider when deciding whether or not this business is meant for you:
- You have flexibility in terms of working hours.
- You can start your business from the comfort of your home.
- You make significant business connections.
- You have unlimited income potential.
- Predictable income stream.
- Easy to set up and launch.
- It gives a platform for your creativity.
- You will get good quick results and revenue.
- You will have to work during the holidays.
- A lot of energy is required
- The investment will be high when buying your raw materials.
- Employee turnover is often high.
- High overhead expense.
- You may need to charge sales tax
- It is challenging to make passive income in this business.
How much investment do you need for your Corporate Gifts Basket Business?
You can start a Corporate Gifting Business with small capital, with the main costs will be obtaining licenses and purchasing initial supplies for making baskets.
You can start a Corporate Gifting Business with just $10,000!
Your startup costs may differ as per the choice of your business model.
How much does the Corporate Gifts Basket Business make?
You should price your product in a way it covers its wholesale cost, labor cost, freight charges, overhead expenses, and a reasonable profit.
Gift baskets cost an average of $50 to $500.
Some of the Best Corporate Gift Ideas to Choose From:
- Gift Vouchers
- Cash and payouts
- Electronics / Gadgets
- Health and wellness
- Restaurant, Food & Drinks
- Subscriptions (Netflix, Amazon, Hulu)
- Travel and leisure
- Charity / Donations
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Ways to Market your Corporate Gift Basket Business
While Corporate Gifts Basket Business solely depends on the demands of the corporate companies and occasions and festivals that arrive frequently.
It’s always better to market your business as much as you can.
Here are some ways you can market your gifts basket business:
- Be creative in marketing, display, and promotions
- Have awesome packaging
- Go with the latest trends; include gadgets in gift baskets
- Use technology to be ahead of upcoming events
- Re-Brand yourself with new products
Corporate Gifts Basket Ideas
When getting into the corporate gift basket business, decide on the type of gift basket you will offer. Your gift baskets can be a combination of standard and custom baskets as most businesses offer.
These baskets are made from scratch by creating variations of your standard offerings / items.
Custom baskets will include items explicitly purchased for that basket, which are more expensive than your standard offerings.
These baskets include specific items for a particular event and can serve as a sample to show customers according to their needs.
Nonperishable contents can be assembled and stored and can be ready to sell baskets.
Here are some Corporate Gift Basket Ideas:
- Wine and Cheese Gift Basket
- Luxury Gift Basket
- Cookie Gift Basket
- Wellness Gift Box
- Customized Snack Gift Box
- Personalized Stationery Basket
- Chocolate & Sweets Gift Basket
- The Gourmet Gift Basket
- Spa Luxury Gift Basket
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Expenses in running a Gifts Basket Business
The expense of running a Corporate Gifts Basket Business depends upon its business model and basket products.
It can also differ depending if you are doing it from your home or a rented store.
Here is the list of common operating expenses:
- Raw Materials / Supplies
- Sales & Marketing
- Office & Administration
- Office Supplies
Challenges and Trends in Corporate Gifting Business?
Trends in the gift basket industry include:
- Gadgets are trending, presenting an opportunity for higher-revenue products.
- 60% of the sales chuck is corporate gifts, giving gift basket designers a new market.
Challenges in the gift basket industry include:
- Gift baskets with perishable food items need extra care and handling
- Gift baskets containing alcohol have to be comply with laws and regulations
If you have creativity, marketing skills, and the ability to manage multiple vendors, the business is an excellent opportunity with round-the-year events and holidays.
Most startups and new business owners often ignore this business.
You don’t make the same mistake; recognize it, as it caters to all three primary markets: Hyper Local, B2B / B2C Institutional ecosystem, and eCommerce Retail.
As companies focused on relationship building have boosted the market tenfold over the past few years, it’s a massive opportunity for you.
Want to Save Time in your Business Launch?
- How to Create a Business Plan
- What is Market Research, USP, Niche & Positioning
- How to find a suitable name for your business
- How to create your brand image (Logo + Branding)
- How to Register Your Business
- How to Register for Taxes
- How to get Licenses / Permits
- How to Open a Business Bank Account
- How to Get Business Insurance
- Which Payment Processing Terminal (POS) to buy
- How to get Funds for your Business
- How to do Sales & Marketing – Offline & Online
- Why have a Website / Blog / Social Media
- How to build & train your Dream Team
- How to provide Excellent Customer Service
- Buying an Old Business Vs Franchisee Vs Own Brand from Scratch
Handpicked inspirational Youtube videos for you
How to Start a Gift Basket Business From Your Home | Easy-to-Follow Guide – YT Channel ‘Shaun Academy’
Why Corporate Gifting is Important for your Brand – YT Channel ‘BELLA+CANVAS’
Client Holiday Gift Ideas for Solopreneurs | WOW THEM! – YT Channel ‘Moriah Riona Branding’
Useful Website Links
A. As per your investment cost, you can start anywhere from between $10K – $30K including your basic office supplies, equipment, furniture, wedding planner software, and a computer.
As a startup, you should think about learning about the market as whole and if possible, try to network with people with your niche.
A. The gift basket business makes the most money during holidays and special occasions. Companies often order gift baskets for events and as client gifts.
A. Your gift basket needs to be revolved around a theme or a specific holiday/occasion. It should be filled with products and more products. It should be appropriately packed with good quality items used.
A. The corporate gifting market will total $258 billion in the US in 2022, growing 6.6% year over the previous year.
A. Few ideas for items that include a corporate gift basket:
1. Gourmet food and drink
2. Office supplies
3. Books or magazines
4. Gift cards
5. Personal care items
6. Tech accessories
7. Custom branded items
Remember: Tailor items in your gift basket to your recipients’ interests and needs. Consider the season and the occasion when selecting items for your gift basket.