Making a profit from a gift basket business involves much more than simply selling plenty of gift baskets. There are many factors that contribute to the overall profit of a business, including the salary, supplies used to produce the gift baskets and the selling price. To start making a profit in your gift basket business, compose a list of your supplies along with the prices, and start setting your gift basket prices so they can bring in a profit for you and keep your business afloat for years to come.
Create a list outlining the supplies you use to compose the gift baskets and the content you put in them. Add a price to each of the items, so you have a general idea of the overall value of the gift baskets based on their content. This includes wrapping paper, bows and greeting cards, if applicable.
Set your gift basket price based on the monetary amount in the gift baskets. Give yourself a profit of at least 15 percent. For example, if your gift baskets have a content value of $100, set your gift basket price for around $120 to $140.
Create a budget to determine how many gift baskets you need to sell to pay your bills and cover your expenses. You need to be well aware of how many baskets you need to sell in order to run a successful business and make a profit.
Set your personal salary. The salary should be covered in the profit you have decided, but not be your entire profit. For example, if your gift basket is worth $100 and you have set the price at $140, set between $20 and $30 aside for your expenses and the rest of the amount aside for a profit. If you find that you cannot cover your salary in your prices, consider adjusting your spending. To survive a gift basket business, cut down on expenses, such as purchasing daily coffees or going out for dinner. Instead, make coffee and cook at home.
Save money by making the gift baskets on demand. For example, do not spend money on building several gift baskets for storage. Instead, make them as the orders come in. This allows you to save money and labor, which means you can spend the time on marketing your baskets.
Market your gift baskets repeatedly to attract customers. The more you market, the more customers you can potentially attract for a purchase.
Based in Toronto, Mary Jane has been writing for online magazines and databases since 2002. Her articles have appeared on the Simon & Schuster website and she received an editor's choice award in 2009. She holds a Master of Arts in psychology of language use from the University of Copenhagen in Denmark.