Making Money From Gifts Business
A lot of people are trying to earn revenues and make money from the business of gifts these days. The business of selling gifts has a very broad interpretation. A gift can range from a small and costly solitaire ring to a large and not so expensive greeting card. The variety and range of gifts offered is huge in this fast moving society. To be able to catch up with the requirements of the gift buyer, it is important to be the leader when it comes to quality, timeliness of delivery and service at the same time with showing innovation and creativity.
Before moving further on how to make money from gifts business, let us have a basic understanding of the concept and terminology involved in gifts business. Anything bestowed by one person to another to show love and care, without any compensation in return for the same is termed as a gift. Gifts are a means to show your love, affection, care, warmth, friendliness, liking and concern towards the person to whom a gift is offered. These days gifts are given to celebrate special occasions like birthdays, festivals, anniversary, silver jubilees, first baby, father?s day, mother?s day, teacher?s day, valentine?s day, appreciation, apology, get well, new home, sympathy, thank you, congratulations, holiday season, retirement etc. Also, exchange of gifts is a common gesture to please business clients these days.
How to make money from Gifts Business?
Who does not want to make their near and dear ones happy and cared for? It is believed that gifts are the easiest and most convenient way to show emotions like love, care, appreciation, sympathy, affection etc. towards your family, friends and business clients. Consequently gifts are in huge demand these days by the buyers and the business of selling gifts has been booming at a fast pace. A few advantages in the business of gifts over other business are- almost everyone is your customer, referrals and repeat customer is common if the service and quality is good, it is a business to show your creativity and innovation. Below are a few suggestions on how to make money from gifts business:
? Start at a small scale: The business of selling gifts is such that without investing much money, you can earn good returns. In the beginning, it will be beneficial if you start the business at a small scale. One can just make and sell customized gift baskets for various occasions to our friends and relatives in the beginning. The investment in this case will be minimal. The word of mouth will play its role if the quality and service is appreciable. Later with time, the scale of the gifts business can be increased to get much higher returns.
? Tie up with corporate: In the gifts business, it will be great if you get bulk orders. For getting bulk orders, it is suggested that tie up with big corporate in and around the town can be done. One thing that needs to be kept in mind is that, the volume of gifts purchased in case of tie up will drive the revenues. So, it will not be a wrong decision if competitive prices are offered in this case to achieve bulk orders from big companies. Also, it will be imperative to maintain quality and timeliness of service so that the relationship lasts for a longer period. You can offer gift cards with no cash back feature to promote your business. The foremost advantage being your advertisement. Also, the customer normally buys a gift of a higher value than the value of the gift card. This strategy can work wonders for you by retaining existing customers and bringing in new customers if the service quality is good.
? Promote your Business: Your business of selling gifts will generate revenues if people are aware about the range and variety of gift products offered and the price for the same. For making people aware about your business, it is important to promote your business. There are various ways to do so. Each method to promote has varied cost and effort involved in it and every method gives different result depending upon the time and situation of use of each method. One has to be extra careful in the promotion of gifts business. One method which might be of use for one gifts business in one town might be unfruitful for the other gifts business in the same town on account of several factors. It is important to choose the right method of promotion as mistakes in choosing the method of business promotion can be very costly. One can opt for promotion through creating a website, applying search engine optimization(SEO), using social networking websites like facebook, orkut etc., writing blogs, maintaining good relation with existing customers, offering extra service of timely delivery and gift wrapping, offering free-bees, running contests, offering gift certificates, etc.
? Choose your path- Be an Intermediary or a manufacturer: It might be a good decision if in the gifts business you only act as a manufacturer of gifts and sell it to the intermediary rather than the customer or act as an intermediary between the buyer of the gift and the manufacturer. This will provide you with specialization in whichever area you choose depending upon your liking and money outflow. Each stream has its pros and cons. If you choose to be an intermediary, you are not adding any value to the gifts but you are just earning the commission. You can offer a wider range of gifts to the customers by having tie up with several manufacturers at the backend. If you choose to be a manufacturer of gifts, you are saved from the hassle of dealing with individual customers. You will be getting bulk orders from the intermediary and hence you can focus more on showing your creativity and innovation. Various factors like money, storage space, etc, shall be considered before making this decision.
? Focus on Quality: No business can survive for long if the customers are not convinced that they are getting value for the money spent by them. Thus, it is extremely important that you maintain high standards of quality of product and service. Timeliness in delivery of gifts also plays an important role in shaping the image of the business in the minds of the customers. One wrong act can leave a bad impression in the mind of the buyers and will in return spread negative word of mouth, which can be tarnishing to the image of your gifts business. Like any other business, it is recommended that quality shall be the main area of focus in all circumstances for achieving success in gifts business.
Some of the suggestions for becoming an efficient businessman in the business of gifts are listed below:
1) Gather as much information as you can.
2) Do enough market research and analysis.
3) Use and exploit your links and references.
4) Keep a positive attitude.
5) Develop and maintain your goodwill.
6) Always be innovative and creative in your approach.
7) Understand the market and customize products wherever necessary.
8) Build a database of existing customers and keep them updated about the new products and schemes.
9) Understand that the customer comes first.
10) Make changes in your action plan whenever required.
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