by Melissa M. Kellogg and Shirley George Frazier
Artcile from www.giftshopmag.com

Gift baskets are a good idea for your business. Just ask Terry August, owner of Fancifull Gift Baskets in Los Angeles. The retailer has profited from selling gift baskets to the movie and television industries in her area.

Shirley George Frazier, industry expert and author, predicts that the gift basket business will bring in around $4.8 billion in sales this year. As a retailer, you can capitalize on this market by either adding to or starting a gift basket line in your store.

1. One of the top businesses for the 21st century (Entrepreneur Magazine)
2. $4.8 billion in sales in 2008 (giftbasketbusiness.com)
3. Exponentially increase customer base by marketing online and to corporate clients.
4. Increase sales per customer and sell excess inventory at full retail price.
5. Build loyalty by providing a service to busy customers.
6. Great for increasing holiday sales. Use items already in your store.
7. Good marketing.
8. Donate gift baskets to charity events.
9. Great way to create competitive advantage over other gift shops.
10. Good up-selling tool to customers in a rush.

Your customers give gift baskets for just about any reason—from Christmas to thank-you gifts. A prepackaged gift basket will cater to customers who are shopping for an easy, complete gift, says Mary Lake-Thompson, owner of Mary Lake-Thompson Ltd., in Oroville, CA.

Even better, gift baskets are a convenient way to improve store sales and even turn clearance items into fresh, full-priced, saleable items. To fire up customers' imagination, put a grouping of products together and package them attractively. This reminds customers that they can group items already in your store to create a complete gift. Frazier says it is likely that using gift baskets will result in your customers buying more products, especially if you let them pick out items to be put into the baskets. August agrees. She says customers end up spending up to twice their original budget when they pick out gift items to be packaged together.

Offering customized gift baskets can expand your customer base with the potential to serve local corporations that often need convenient gifts for their customers and employees. August, who has designed and created gift baskets for the Emmy Awards, goes the extra mile by offering to store items, provide gift reminders and maintain recipient addresses. She assembles customized corporate gifts, based on her clients' price points. These can include logo items paired with gourmet food, wine and even personalized cards. So if you are looking for a new way to invigorate sales, gift baskets may be just what you are looking for.

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