On a consulting trip a couple of years ago, a retailer told me that their number one problem was ‘labor and cost drain’ from making gift baskets for walk-in store customers. The retailer allowed customers to select any assortment of merchandise from the store, then request that those items be packaged into a gift basket. The problem, according to the retailer, was that he couldn’t make money on the gift baskets.

“Are you charging a labor and design fee? Or a packing fee?” I asked.

“What’s that?” came the reply.

In his answer was the solution to the problem. He couldn’t make money on gift baskets because he wasn’t charging for the gift packing service. When advised to add a 20% - 30% fee, he voiced concern, thinking he would lose sales. The free service was very popular with his customers.

To resolve the problem, I suggested two possible ideas that he might implement:
1. You-Pack boxes (ready to ship boxes with excelsior, bubble wrap, and shipping tape available to customers). Customers who still want the free service could wrap jellies and jams in bubble wrap, and pack other non-breakables in a ready-to-ship box. Excelsior straw could be put out in the boxes, and customers could arrange items in the straw. The boxes, instead of being free, could have a $2 - $3 price to cover the cost of shred and bubble wrap.

2. Baskets and other more design-oriented boxes/baskets could also be placed in stacks near the items most often selected by customers (in this store -- regional foods). Each basket could be priced high enough to cover the design and packing fee. A basket that might normally sell for $2, and hold an average of $20 in retail items, could be priced at $5 or $6 to cover the cost of the packing.

On the surface, customers would not be charged a design and packing fee. The retailer, of course, would reap an extra 20% - 30% from the padded prices added onto the containers.

Last week I called to inquire about this retailer’s gift basket sales this year. “Great!” he replied. He reported that customers were selecting fewer components, but expressing no concern at all about the prices on containers and boxes. “I’m finally making a profit,” he enthused, thanking me again for the advice last year.

Take the free advice and apply it to your gift basket store policies. You’ll make even more than this gentleman because you don’t have to pay the consulting fee!

November 18, 2009 - Nassau Candy Distributors of Hicksville, New York, is voluntarily recalling possibly unlabeled pegable snack tubs because they contain the following undeclared allergens; Tree Nuts {Almonds}, Soy and Milk and may contain the following undeclared allergens Peanuts, other Tree Nuts {brazil nuts, walnuts, filberts, hazelnuts, pecans, pistachios, macadamia nuts,  cashews and coconut}.  People who have an allergy to any of these specific types of allergens run the risk of serious or life-threatening allergic reaction if they consume these products.
The Tasty Dish Snack Tubs weredistributed and sold nationwide to Bed Bath & Beyond retail stores.
The products come in clear plastic packages that have a triangular front label identifying the Brand: Tasty Dish, the Product Name: Chocolate Almonds, Chocolate Raisins, or Sour Neon Worms and the Net Weight: Chocolate Almonds are 9.75 oz. (276g), Chocolate Raisins are 11oz. (311), and Sour Neon Worms are 9.5 oz. (269g) and they all have a 4” clear film safety shrink band on them.  

No illnesses have been reported to date in connection with this problem
This voluntary recall was initiated after receiving a report that a small percentage of the tubs in the retail locations were missing the back label.  All of the retails stores have been inspected and any tubs that are missing the back labels have been removed from the shelves.  Subsequent investigation indicates the problem was caused by a temporary breakdown in the packaging process. The labeling machine that applied the back label which contains the ingredient statement, nutritional information and allergen listing experienced a mechanical malfunction that went undetected by the operator.
Consumers who have purchased these Tasty Dish Snack Tubs and find no back label containing the ingredient statement, nutritional information and allergen listing are urged not to consume the product and to return it to Bed Bath & Beyond for a full refund. Consumers with questions may contact Nassau Candy directly at 516-433-7100 ext 297, Monday – Friday 9 am -4 pm ET.
 

What do you do when funds are low, inventory is thinning out, and you need a holiday merchandise sell-through to raise survival cash for your business? That was the problem facing a retailer I worked with last week. As consulting work goes, it was the most fun, and yet challenging job I’ve been asked to undertake. Here are some of the “move inventory” ideas we brainstormed together.

First . . .
- Pull samples of all the non-perishable gift items that haven’t sold in the last year. Bring into the design room and set them out on a table.

- Gather any and all decorative bags/boxes and containers -- especially holiday odds and ends -- and put them in an area beside the gift items.

- Assemble standard inventory samples of gourmet foods that can be used as main components.

Next . . .
- See what you have that can be repackaged and/or camouflaged into decorative bags, boxes and tins.

- Brainstorm for ways to work odds and ends into gift baskets/boxed sets (i.e. adding an ornament to fill space).

- Think of ways to mix non-matching items into “daily specials” -- gift baskets that can be wrapped in patterned cellophane so that nothing shows inside the basket. Next, make signage to place next to these daily specials, advertising the products inside the basket. Mark these baskets 30%, 40%, or even 50% off the standard price. Use these odd-lot baskets to raise capitol and clear out the last pieces of really great merchandise lines.

- Build a big display with motif merchandise. Pull together everything with a snowman theme, for example, and group the merchandise together in a tasteful display. Themed items will sell better placed together.

For my client, the initial results were positive. The first customer into the store the next day purchased 12 centerpieces, created with the pull-together odd-case inventory. This customer also stopped in front of a snowman display (where we had made a half-dozen gift sets from the mismatched inventory) and said she was considering buying little sets like these for office gifts. She would return later for the purchase (these sets had also been priced at a daily special of $9.99). In addition, she was intrigued by the idea of some miniature baskets with candy in them, that my client (following the coaching session) suggested could be handed out as a token of appreciation with staff paychecks. “Yes,” she said. “I’ll need about 60 of those.”

Great first customer reaction and sales from the inventory workover! Ah . . . it feels good to hear the cash register ringing! Especially when everything is total profit ‘cause last year’s inventory was paid for but just sitting around. That’s even better than finding $5 of quarters in your sofa!!!!

The tradition remains, but the story changes for Garry Trudeau and the Doonesbury troupe in Trudeau’s newest book, Tee Time in Berzerkistan (Andrews McMeel Publishing LLC). Like has has done in som many of his past Doonesbury classics, Trudeau humorously maps out the life of Mike Doonesbury, but this time Mike finds himself in a time of political and personal upheaval. Life seems to be constantly transforming -- and not only for Mike. Duke starts working for the maleficent dictator of Berzerkistan, whose “alleged ethnic cleansing” image needs some “lipstick.” Much like the worls of Mike and duke, the worlds of the rest of the Doonesbury cast are changing. BD searches for answers to provide to wounded soldiers, and Mark uses the airwaves to provide answers to a searching public. Alex tries to get a grip on her social networking, Rick is challenged to find his place in today’s Internet-dominated society, and a terrorist follows soldier Ray home. All of this takes place in Tee Time in Berzerkistan, which also includes comic strips featuring one of the most historic political races ever. Conversations from the White House, war zones, and terrorist hideouts are part of the mix, and Zonker characteristically provides his philosophical insight on it all.

Office minions rejoice! For twenty years you’ve followed Dilbert and his exploits in office futility. Now all of your hard cubicle-based work is about to be paid off with 14 Years of Loyal Service in a Fabric-Covered Box: A Dilbert Book (Andrews McMeel Publishing, LLC). The latest collection of Dilbert strips takes you through the darkening economy under its umbrella of dry comedy. As the business world implodes around Dilbert, Wally, Alice and their Pointy-Haired Boss, the laughs are as big as the bailouts. There’s simply never been a better time to be a Dilbert fan. And we’ve never needed his savvy sense and quiet indignation more than we do today.

Set your office snack basket themes by adding a copy or two of this laughable book!

The world of diversity is on your street, and chances are, in your very own circle of friends, acquaintances, and business associates. You may already be in the habit of buying and selling kosher foods. But if not, consider the benefit to your business. Typically, we think of kosher foods as being a Jewish market, but Muslims and Hindu’s also buy and use kosher foods.

In the Jewish community, Hannukah is coming faster than Christmas. Shoppers will be browsing for the perfect gift for Jewish friends. In addition to stocking a line of kosher foods, think about bringing in a few accents to theme Hannukah gift boxes and baskets. Find more Hannukah and kosher food information in the latest GBR Online, just posted for your enjoyment!

Bonus 4th Quarter GBR Now Live!

Merry Christmas! Just for you, a bonus 4th quarter GBR Online issue has posted for your enjoyment. You’ll find holiday design ideas and articles to help you grow your business.

During the season, let us know how you’re doing. We’re here to help and encourage you as you work to build a good company. YOU CAN DO IT! Believe and you can achieve your goals.