Holiday Gift Basket Seminar

Recapping the Apex Gift Foods Show

More than a hundred florists and gift basket business owners gathered in the warehouse of Apex Gift Foods/Keystone Ribbon in Pittsburgh, PA for a friendly, informal seminar presented by Debra Paulk, publisher of Gift Basket Review magazine. The following is a brief recap of some of the content, along with photographs of the designs and a list of the products used in each design.

Earn Higher Markups

Small business owners need better profit margins to succeed on lower volume sales. In the past, gift baskets brought 300% markups -- even higher in some cases. Today, the common pricing does not provide those high markups. But, with careful product selection and strong styling, gift baskets can enjoy those margins again.

Throughout the seminar, guests were asked to put a retail price on each basket as it was shown. Without fail, each of the gift baskets were priced by the audience with a near or better 300% markup -- BEFORE they knew the wholesale product cost of the basket. Realizing the potential for better markups is there, both florists and gift basket business owners were eager to learn more about how to achieve those lucrative margins.

Impulse Purchases

Can gift baskets sell well as impulse items? Yes, when the price point is bearable and the design tempts the buyer. Here, a small pumpkin and harvest container is filled with cocoa, fudge and caramels -- the perfect pick-up gift for a teacher, friend, colleague or family member.

Photo#1: Fall Treat

Wholesale cost:  $ 4.47

Suggested retail: $12.99

Items:

Container $2.25

Fudge  $  .91

4 Caramels @ .02   $  .08

2 Cocoas @.61  $1.22

Offer Corporate Gifts for the Office

In recent years, more businesses have elected to send one large gift that will serve an entire small office/department. Instead of a luxury gift for the primary executive, companies are choosing one gift in the same price point that is designed for multiple recipients. Office snack trays serve this function well.

Components for these baskets are often selected to please a variety of palettes. From salty to sweet, meats and cheese, to chocolates and cookies, an office snack basket has something for everyone. Also, instead of individual components, office snack baskets often offer bags of cookies, boxes of nuts/popcorn, and larger serving sizes in all food groups. Also, a larger, after-use item can be used as a raffle or prize drawing. In the Fall Snack Tray, a permanent arrangement of fall flowers can be lifted out of the tray. Later, the tray itself can be used to serve the abundance of snacks.

Photo #2: Fall Snack Basket

To fill the tray, keep perceived value high and actual costs lower, the box of popcorn snacks is opened with the decorative box top angled so that the popcorn will show, but the box top used individually fills twice the space that the box would fill unopened.

Use colors, ribbon, and enhancement motifs to develop a style brand for holiday baskets. Keeping to one style saves money on inventory and magnifies the image of the florist or gift basket company.  Three designs that follow illustrate how “branding” a style creates a better impact.  Also, most of the designs created for the seminar were built to reflect current national trends in price points. Currently, the average cost of a corporate basket is $80; the average consumer price is $42.

Photo #3: Bushel of Thanks

Wholesale costs: $13.04

Suggested retail: $45.00

Items:

Cocoa   $ . 61

Brent & Sam’s Cookies  $2.49

Shortbread  $1.75

Floral  $3.00

Basket $1.19

Design Note:

Heavy florals were used in this design. To wrap the design for delivery, the cello is left open on the sides. Also, a ribbon is placed inside the basket to fill more space for less. Instead of attaching a second ribbon to the neck of the cello, two floral blossoms were attached.

Photo #4: Autumn Celebration

Wholesale cost: $13.06

Suggested retail: $45.00

Items:

Basket    $2.79

Beef sticks  $1.35

Chocolate cream cookies @.35  $  .70

Salem Cheese Straws in tin $6.49

Mixed nuts $1.20

Photo #5: Harvest Snack Basket

Wholesale cost: $10.42

Suggested retail: $45.00

Items:

Basket   $2.25

Soy Crisps   $1.04

Beef summer sausage  $1.06

Red Chili Dipping Pretzels  $2.08

DeBeukelaer Chocolate Piroulines  $2.25

Gussini Breadsticks $1.74

Put A “Hook” In The Basket: Keepsakes Help Customers Remember

Customers often won’t remember the contents of the basket. They may not be able to tell you which kind of cookies were included but they can easily remember, “It was the basket with the cookie ornaments!”  Planning a “hook” in the basket goes beyond initial memory. For years, clients, friends/family will remember the “cookie” basket with the keepsake ornament.  In photo #6, the basket is packed with themed raspberry cookies, chocolate cookies, and much more. But the memorable part of the basket is the personality created with the red checked ribbon and the cookie ornaments.

Photo #6: Cookie It Up!

Wholesale cost: $16.31

Suggested retail: $50.00

Items:

Double peanut basket $2.99

Chocolate Cream Cookies $  .35

Brent & Sam’s Cookies @$1.20 each $2.40

Cinnamon Honey Biscuits $  .65

Raspberry Tartlets  $1.75

Candy Canes (1 lg. @ .14; 2 sm. @ .04 $  .22

3 Snowman Cookie Ornaments $7.95

Use Bulk Keepsakes to Create Theme and Save Labor

A large basket with “beary best greetings” sells because of the teddy bear door hanger. Even though the cost of the hanger is higher than many components, the size of the hanger fills a great deal of space in the basket -- and that saves dollars in packing time.

Photo #7: Beary Best Holiday Greetings

Wholesale cost: $22.52

Suggested retail: $65.00

Items:

Willow basket (set)  $6.50

Bear doorknob hanger $7.99

Rocky Road Popcorn  $1.66

S’mores  $1.00

Butter Cookies  $1.35

Brent & Sam’s Cookies $1.20

Minuet Cocoa Cookies @.75  $1.50

Gourmet Classic Cocoa @.61 $1.22

Don’t Smush The Plush? There’s An Easier Way To Shrinkwrap Plush

Some designers go to elaborate lengths to keep plush animals from getting smushed against shrinkwrap.  It doesn’t have to be so labor-intense! Simply shrinkwrap the entire basket but DON’T move the heat gun over the plush. Even with the plush sitting outside the basket as shown in photo #8, the animal is not flattened. Even the feet keep their 3-D effect.

Photo #8: Reindeer Whimsy

Wholesale cost:            $13.54

Suggested retail:    $40.00

Items:

S’mores    $1.00

Shortbread fingers  $1.00

Butterscotch Shortbread   $2.50

Chocolate Chip Shortbread   $  .50

Candy canes  $  .04

Reindeer & holly  $4.00

Basket  $4.50

Photo #9: From Our Family To Yours

Wholesale cost: $27.50

Suggested retail price: $75.00 – 80.00

Snowman family $11.95

Brent & Sam’s cookies  $  2.25

Raspberry Tartlets $  1.75

Blackberry Tartlets $  1.75

Cocoa $    .61

Frosted Crispies $  2.99

Holly/pine enhancement $  2.50

Basket $  2.99

Add $5 to $7 in Perceived Value To A Basket With A Topper of Cello

In many of the designs shown, the baskets were shrinkwrapped with a dome bag. To achieve better perceived value, the baskets were then overwrapped (on the side, usually) with a strip of cellophane, often using a decorative pattern. At the top, a “kerchief” fan was added with an additional strip of cello. This strip is folded into a square. Each side is folded from the outer edge at a diagonal, meeting in the center. The folded edges are folded back again. (To see this technique demonstrated, watch Starting Out Right Gift Basket Design and Construction; Festivities Publications)

Photo #10: Holly Jolly Snack Basket

Wholesale cost: $18.28

Suggested retail: $60.00

Items:

Basket  $6.15

New York Style Cheesecake  $3.28

2 fudge @ .91  $1.82

2 Fortunes Coffees @ $ 1.47  $2.94

Cherub Cookies  $2.94

Chocolate Pretzel Nuggets $1.41

Gourmet hot cocoa  $  .60

Permanent Floral Sprays Add Elegance; High-End Containers Have Appeal

Gift basket buyers often select a specific design primarily because they like the container. In corporate VIP designs, a handsome container topped with an impressive floral spray can make the sale.  High-end gourmet items also set the stage for corporate acceptance.

Photo #11: VIP Greetings

Wholesale cost: $ 34.01

Suggested retail: $100.00

Items:

Collectible container  $12.30

Cheese @$2.20 $4.40

Thompson’s Chocolate cigar box   $1.15

Wine cheese biscuits @$2.83   $5.66

Carr’s Roasted Vegetable. Crackers $2.29

Carr’s Multi-Grain Crackers $2.29

Smoked Salmon  $3.32

DeBeukelaer Chocolate Piroulines $1.54

Water Crackers $1.06

Use Enhancements to Decorate and Fill the Base of the Basket

Some florals can become the “hook” in a basket. In this lovely holiday tea basket, a magnolia fills one quarter of the basket, and sets a stylish motif. Inside this basket are pastel teas and cookies normally thought of as spring items. However, paired with the right enhancement, these gourmet gifts can move right through the holidays.

Photo #12: Holiday Tea

Wholesale cost: $15.37

Suggested retail: $45.00

Items:

Blackberry Tartlets $1.75

Cappuccino  $1.62

Lemon Shortbread $  .75

Lemon Tea Cookie  $1.75

Bonbons   $1.00

Magnolia & Pine spray    $4.00

Basket   $4.50

It Doesn’t Have To Be A Basket

Unusual containers, urns, serving trays, and a host of other gifts can be used to present a stunning assortment of gourmet gifts. The urn shown here houses a permanent spray of florals on one side, and a bounty of goodies on the other.

Photo #13A: Classic Gourmet

Wholesale cost: $12.07

Suggested retail: $40.00 - $45.00

Items:

Urn  $2.20

Beef salami @ $2.54    $5.08

Sourdough wine bits  $1.79

Smoked Salmon  $3.00

Services Can Provide Good Income

To earn strong markups, consider allowing customers to bring in the gift, with your firm providing the decorative wrapping services. Contact a wine boutique and offer to provide gift-wrapping services for beverages. Some retailers claim to earn $20 or more on beverage wrapping services. When a customer buys a $100 dollar of champagne, a 20% charge for wrapping isn’t out of the question.  Also, to attract more impulse sales, bubble bath or any stand-alone sized gift can be offered in your store wrapped in bags and florals. 

Photo #13B

As shown in the photo, a bottle of non-alcoholic champagne is placed in a gold bag, with a floral spray and ribbon attached to the neck. The wholesale cost of the bag and floral are approximately $6.50.