If you make gift baskets at home and don’t have any way within your residence to show off your designs to the general public, selling your gift baskets at another person’s store may be a great solution.
Such an agreement between you and a brick-and-mortar retailer is known as selling on consignment.
The traditional consignment method goes like this: you meet with the retailer, show that person a sample of gift baskets you wish to offer for sale within the store, and then come to terms with the retailer on how much of a percentage of the retail price you will receive after each sale.
There are other areas to finalize, too, to ensure that your product stays safe against theft and man-made catastrophies.
A second method, which is not consignment (and is actually better for you), is to sell your gift baskets outright to the retailer. This means that the selling cost of your gift baskets is:
- Low enough for the retailer to make a profit when it’s sold
- High enough for you to make a profit when sold outright to the retailer
Selling outright can be tricky. However, this type of sale means you don’t return to the store to pick up any gift baskets that have not sold. Lots of gift basket designers choose this option only after they know how to price their gift baskets for sale to retailers.
Selling on consignment is explained in detail in chapter 7 (Advertising and Promotion) of the gift basket book. If either consignment or selling outright to a retailer is of interest, the book will get you started.
Which option sounds like it’s right for you: consignment or outright sales?