Articles about gift baskets written by people who don’t participate in this industry estimate start-up amounts that are too low to believe.
My hope is that you have skepticism about what they write, because you have to make gift baskets. not just write about it, to know how much it really costs to buy everything you need.
The cost depends on what you have in your home or office so you don’t have to buy items purchased in the past.
A breakdown of the most common costs include but are not limited to:
Inventory (what you resell to clients)
Baskets, shred, enhancements, prepackaged foods, gift items, cellophane, shrink wrap, ribbon
Supplies (items that support the inventory)
Shrink wrap machine, heat gun, storage containers, shelving, cellophane and ribbon racks, bags
Office items (administrative equipment)
Telephone (cellphone or land line), computer, printer, business checks, desk, chair, filing cabinet
Stationery, stamps, brochures, photography equipment, postcards, flyers, banners, website
Boxes, bubble wrap, labels
Internet access, credit card account, education, memberships, business insurance, subscriptions, accounting software
From this list, you can imagine that costs will total a minimum of and often more than $2,500, and the cost depends on:
- How many of the required items you buy immediately, and
- Whether you’re making gift baskets full time or part time.
If gift baskets are a part-time venture, some items such as business insurance, a dedicated office, and a credit card account, won’t be necessary. You’ll buy what you need to make individual gift baskets when a friend or family member asks you to make one. The kitchen or living room table may act as your design space, and you’ll deliver the gift basket as you complete other errands.
Operating a gift basket business full time requires a bigger investment. You must register your business with the proper authorities, and that will cost an average $50. You need a dedicated space to create your designs, and your home phone (perhaps not even your cellphone) cannot double as your business line. Everything about your business must be professional, and that costs much more money than making gift baskets part time.
Everyone’s cost is different because no one buys the same items due to space constraints and personal vision for business success.
- Do you really need to buy a $300 shrink wrap machine at the beginning, or can you wait to buy it 6-12 months after you open for business? Only you know for sure. That’s one example of determining costs only you can answer.
- Will you invest in a website right away ($150 plus your time), or will you wait until you create enough gift basket samples to display on the site? Will you build the site or hire someone to do it for you (from $500 to $10,000 and more)? Again, this cost depends on your individual choice.
Gift basket business start-up costs also depend on your location and how much you pay for everything associated with your venture. Prices can run the gamut, and if you don’t shop comparatively, as you probably do for personal items, you might spend more because you didn’t do your research before buying.
Now you know the answer to the question how much does it cost to start making gift baskets: the cost depends on your goals and vision for making and selling them.
How much do you believe it will cost you? How much do you want it to cost?