Selling Gift Baskets on Consignment

Question: I'm just starting out and was wondering is it a good idea to approach local gift/florist shops about selling your baskets in their store?

If yes, how do you go about pricing something in that situation? Is consignment the best way to go?

Answer: Approaching local gift and florist shops is a very good idea and is quite profitable for some who pursue this opportunity.

Make sure that you browse through the shops first to see if gift baskets are already being sold. Also take the time to watch the store's traffic patterns. Is this store located in a well-traveled area, where people come in and out at a steady pace, or is it off the beaten track with few to no people entering within an hour's time?

This one question helps to determine whether or not a gift or floral shop is a good candidate to sell your gift baskets.

You can either put your baskets on consignment, or you could sell your baskets outright, which is probably the better way to go.

There are many percentage splits for baskets displayed on consignment. You, of course, want the best percentage possible, such as the shop owner receiving 10-20 percent of the retail sale, giving you 80-90 percent. Start at the low end of the percentage table to leave room for negotiation.

Creating a contract for both you and the shop own to sign is a smart move before you allow a shop to host your baskets. A contract will include information such as:

• The duration of the consignment agreement
• When payments will be completed and in what method (cash, check, etc.)
• What happens in case your baskets are stolen, damaged by fire, etc.

To complete this process, you'll find sample contracts online, in books, and through your attorney.

As mentioned earlier, you can sell your baskets outright rather than carve a consignment deal. To do this, you must make good-looking baskets for a low price and sell them at a profit that will still allow the shop owner to mark up the basket to make their own profit. This is possible, but it will take some experimentation on your part to find products that allow you to wholesale your gift baskets.

Whichever way you choose to sell on consignment, you can strike deals that make your full or part-time gift basket business thrive.