Gift Basket Open
House
Opening a Different
Form of Advertising
You have tried every known form
of advertising; some have worked and some have not. Those that
worked one time did not work a second time. John Wanamaker, of
the Wanamaker Department Stores in Philadelphia may have been
right when he said, "I know half of my advertising doesn't
work. I just don't know which half it is".
For most gift
basket businesses, yellow page advertising and newspaper advertising
have been the most popular. A few of the more sizable businesses
can afford radio or television advertising. Businesses can now
take advantage of selling anywhere in the world by way of the
Internet. Some of the very progressive businesses have done very
well by utilizing the names and addresses of customers, and creating
unique forms of direct mail advertising.
And with some of the
business owners we have spoken with, becoming active members of
their local chambers or a networking group, has shown to pay great
dividends. Attending functions like these and passing out the
business card or one that has a small gift from their business
can often introduce you and your business to companies that may
not catch your traditional advertising.
With the benefit of
some creative gift basket retailers, we are going to share with
you an idea borrowed from another area of retail. For businesses
that are primarily gift or floral shops, having an open house
is often a tradition. Those who are owners and managers of Hallmark
Gold Crown stores have the opportunity of taking advantage of
a nationally advertised open house event.
But what about the
businesses that do not fit into these molds? A business that primarily
sells gift baskets to consumers and walk in trade will probably
want to be located in a high traffic or easily accessible location.
This can be achieved in a shopping center, mall, downtown area,
or even a stand alone store.
And surely, the business needs
to have an attractive facility if they are to capitalize on the
idea of getting a customer "in the mood" to buy, and
buying more once they are in the shop.
For those gift basket
businesses that receive a sizable portion of their business from
commercial accounts, the traditional concerns of a retailer for
facilities, hours and related areas are less applicable. Perhaps
having the correct form of advertising is even more critical to
these businesses.
We spoke with several gift basket
shop owners to gain from their insight and experience. Our visits
with each of them will probably surprise you as not all of them
gave resounding endorsements to the idea of having an open house.
We will share their successes, failures, and with one commercial
account oriented retailer, some great progress in the growth of
their business by way of an open house.
We begin with Lee Lang,
owner of A Basket Affair in Broomfield, Colorado. The shop is located
in an old post office building. Her business is a 50-50 split between
consumer and commercial accounts. In the building, Lang dedicates
45% of the 1000 square feet to a sales floor.
For the past three
years, she has held a holiday open house in November. She has been
successful with her open house as she cites one customer who spent
$10,000 during one of her events.
In her business, like many others
there are disproportionate number of customers placing their orders
very close to the holiday season. As a way of working this, she
did try a September open house in which she offered early bird discounts
to her customers. Because of a lack of time, however,
she has not continued the event.
To promote the event, Lang utilizes
newspaper ads, mailers to her list of 350 names, and relies heavily
on her networking through Chamber of Commerce groups and networking
clubs that she has a membership in.
Our second retailer is Ann
Powell, owner of Taylor Made for You of Richmond, Virginia. Powell
is not an advocate of open houses citing her last experience from
a grand opening as she moved her business two years ago. Her business
is located in an industrial park about a half mile off the beaten
path. For the grand opening she did all the things you would expect
would work; the chamber of commerce and the official ribbon cutting.
She used newspaper and radio to invite people to come to her new
facility which has a 1,500 square foot sales floor and a 4,500
square foot warehouse.
Powell has a mailing list most
retailers would be envious of as it numbers in excess of 6,000.
In discussing her feelings with open houses, she comments as to
why she thinks the last one did not provide her with the desired
results. She utilized a marketing person who selected some 2,500
of the names to be on the invitation list; a move she now has second
thoughts about. And while there were positive results from having the event,
the expense and effort were not justified.
Our third retailer
is the business that has had the experience everyone probably
hopes for. Carrie Escobar of Koala-T Gifts of Kissimmee, Florida
has ` to the point where 95% of her business is commercial. Kissimmee,
only a few miles from Disney, and hundreds of thousands of hotel
meeting rooms, as well as within 90 minutes of Tampa and the gulf
coast, provides her with an enviable market area.
Escobar sites
the consumer who called, taking 45 minutes to discuss such intricate
details as the color of the shredded cellophane, and finally spending
$25. As a contract, she mentions a buyer from Microsoft who in
planning an event to be held in Orlando spent $5,000 in the same
amount of time.
Her business, an 800 square
foot building, is in a unique location as it is on the same 2 1/2
acre plot as her home.
With the success of her first
commercial open house, as we spoke in May, Escobar was already working
on her 2001 event. She cited one of the major Orlando area entertainment
groups had placed their Christmas order.
Escobar is looking at multiple
open houses for several reasons. She has identified numerous groups
of customers: law firms, accounting firms, realtors, contractors,
hospitals, doctors, the hotel sales and marketing firms, and the entertainment companies. "Many of the groups would welcome the opportunity to network while attending an open house, while
there are a few who do not feel comfortable shopping in the presence
of their competition", she explains. Escobar is working to
provide a comfortable experience for all her existing and potential
clients, especially in light of a number of the clients being
capable of writing an order that is a "five digit number".
Because of the growth of her
business, Escobar is working hard to capitalize on the possibilities
of the 2001 holiday season.
As you can see from our three
examples, an open house can be a great addition to your business,
but is not a cure all to any gift basket business. And if you want
to find out, you are going to have to try one for yourself.