It is unfortunate that many gift basket companies are closing or changing hands more and more frequently. Due to economic conditions many companies are being sold or simply closing. Declining or poor sales are difficult enough to deal with, but marry that with years of poor ordering practices (too much inventory/losses due to expired product), unmanageable overhead and poor planning, are taking their tolls on many companies.
I was lucky many years ago, when starting Boodles of Baskets, to get some sound advice from smart business individuals. Some of the recommendations I received were:
-deal in cash (do not over extend yourself with credit). This was great advice. It allowed the business to grow under its own steam so to speak, and had a snowball effect on other areas. It prevented us from purchasing more items than we could sell within a short period of time, which kept our products fresh and current, which allowed us to change quickly when new trends emerged.
-listen to your customers and give them what they want. Again great advice. We are lucky to have some of the greatest customers in the business! They have always been very generous with their advice letting us know what type of offerings they would like to have access to and see in the future.
-don’t let your overhead get the better of you and fill the space you need wisely. Be it with products, enhancements, work space and even staff. Planning these things carefully will save you time and money. You can then pass these savings on to your customers.
There were many other words of wisdom along the way, but due, especially, to these sage pieces of advice, we are pleased to be entering our 15th year of business with a sound organization that continues to grow and expand.