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Making Money with Special Services, Part 2

By Shirley Frazier
Sweet Survival®/GiftBasketBusiness.com

                 

 

Read Part 1

In Part 1, I challenged you to make a list of special services that you believe will benefit customers and your profit margin.

What services made up your personal "top 10" list? Requests can run the gamut, from the simple act of picking up a gift certificate to ordering a collectible valued at $1,000.

If you’re ready to explore incorporating special services into your gift basket business, here are four ideas on how to set up this specialty, develop parameters and profit form this offering:

1. Set an hourly price for travel as well as a set minimum. For example, charge $20 per hour to find specially-requested products.

The $20 will be applied to the order whether you used 6 or 60 minutes. Pricing your time creates value and alerts clients to the fact that your business is not a hobby.

2. Add a percentage over and above the price of the product when it is specially purchased for basket inclusion.

In other words, if the retail product costs $10, charge the client $10 plus anywhere between 20 percent to 30 percent extra for it. If you add 20 percent, this amounts to charging the client $12 for a $10 product.

Travel per hour plus a markup over and above the retail price. Will the client pay for this service? If yes, you’ve found the type of buyer who values your service and product. If no, you can either stop this service or continue, paying for the costs out of your own pocket. If your monthly profit and loss statement shows more of a loss than profit, live with it or make a change. It’s up to you.

 

3. Start charging for the prototype products you buy for sample baskets. Many designers buy products to use as prototypes for what may be a sizeable order.

If you travel to find specialty items and then show the prototype by way of a Emailed or snail mailed photograph, charge for this service unless the payoff is going to be so grand that you don’t mind taking a chance on buying prototypes.

For example, one gift basket designer charges a flat rate of $25 per sample prototype, which can be applied to a future order. How does she do this without alienating clients?

She’s been in business 8 years, and her reputation for excellent work is known throughout her town. When her gift basket business is discussed between customers and prospects, her terms are part of the conversation. Clients know that the $25 is money well spent because she provides the best.

4. Know your limits. Remember the satanic Bible mentioned in part one? If this or other products are items you won’t purchase due to religious beliefs or other reservations, place a disclaimer in your literature and on your Web site. State something such as, "We will make every attempt find your specialty items. However, there are certain products that we may not be able to purchase."

 

The bottom line is that if clients want specific products, the cost won’t matter. If it does matter, they’ll reconsider and buy something in your inventory. If they walk away, consider that the person wasn’t your ideal client.

Create your own "terms and conditions of service" and put it in writing in your catalog, on other literature, and on your Web site. Don’t reinvent the wheel. Scan through catalogs you receive in the mail to write a policy.

Your time is important. Let clients understand this by putting a price on it. You provide products and services, both of which are valuable.

Perhaps after reading this you’ve changed your mind; providing special services is not for you. There’s no harm in stopping before you start, as long as you’ve looked at the pros and cons of the service.

Those of you who enter this venture will surely make policy changes along the way, and also make more frequent stops at the bank.
 

©Shirley George Frazier. All rights reserved.

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