Specialty Food Magazine

SEP 2012

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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(continued from p. 28) THE ART OF THE GIFT BASKET When the Talk of the Town team gets a call, they're ready with a bevy of questions, from favorite colors to hobbies. "The personalized touch helps make us successful," Tammy Shapiro says. "Sometimes, to give birth to a gift basket, the last thing to do is to say, I need a gift basket for $79, and do it in too methodical or too linear a process," he says. Porat doesn't see his business com- peting with mass-market offerings, whose stark prices are impossible to match when striving for high quality. "A lot of times we don't have as easy a time reaching ambitious goals at a lower price point. We often sur- pass our goals at the higher price point," he reveals. One basket, Notable Noshables, set at $199, is one of the company's best sellers. "We cannot be too afraid of price points, to go with better quality stuff," he says. Keeping prices set, however, is some- thing he strives to do. Chelsea Market Baskets reviews its full line of products every year, fine-tuning some as needed when pric- es for individual products increase. "[When] it's a less-than-$100 gift, that's important to maintain," he notes. As for a "golden" price point, it's hard to tell. At Gourmet Again and MarketSpice, the $50 range is popular; at Chelsea Market Baskets, $100. But the industry doesn't nec- essarily ebb and flow as expected. "What I've found interesting is that when times are tough, people will buy more gifts like this," Chase says, crediting the simple functional- ity of food gifts. Promotion Channels Satisfied customers are the reigning champi- ons when it comes to promoting gift basket services. "Most of my business is referral and word of mouth," Shapiro shares. Lacking a brick-and-mortar store, she emphasizes face-to-face meetings. "I volunteer my time and build the relationships," she says, not- ing that she attends business-networking women's groups, gets involved in charity events and visits property management asso- ciations regularly. Online advertising and social media play a big role as well. Porat advertises through Google AdWords and is active on Facebook and Twitter; Shapiro sends e-blasts through Constant Contact to keep up with customers. Print catalogs and company websites alike help promote gift baskets visually. Chase asserts visual advertising will help reel in new customers. "They have to see it so they know what they're getting," she says. "They're not just going to go by words." When it comes to holiday promotions, know your clients' schedule. Shapiro says for corporate clients, who may have budgets for use within specific time frames, the earlier, the better. "We have everything selected by late June, photographed by July and are seeing customers by late August," she says. From the retail perspective, Porat recommends starting no earlier than September to get the most out of promotion. He offers "reminders" later on to stay fresh in customers' minds. "I like to have an event in early November to promote gift baskets before people get swept up into Thanksgiving," he says. "I'm the Staff" Depending on the client base, a gift basket staff can be a luxury. "I'm the staff," Chase says plainly, adding that she personally designs the baskets and prepares orders. While part- time help comes in during the holidays when orders swell, she regularly puts in 12-hour days during the fourth-quarter rush. Spector makes up one half of Gourmet Again's gift team, the shop's owner the other. She, too, puts in overtime during the holidays, but preparation helps mitigate the stress. "We have enough advance notice," she explains. "Everything doesn't go out on the same day, so we plan. We plan." For larger operations, keeping a regular staff isn't unheard of. Talk of the Town has three part-timers throughout the year, and Shapiro has a legion of extra help around the busier times of year, from friends' col- lege-age students on winter break to stay- at-home mothers looking for a few hours of seasonal work. Porat's core team at Chelsea Market Baskets is about six, growing to upwards of 50 or 60 people in December. Creativity and Keeping it Fresh While long-term customers are a boon for business, they also provide the greatest chal- lenge. "I've been doing some people's gifts for the entire time that I've been in business," says Shapiro—nearly 20 years. "So I need to come every year with something fresh and different and new." Sometimes a subtle refresh of a popular gift can be enough. "It's nice to look at a gift and say, How can we make this better?" says Porat, whose business introduces new gift baskets every few months. Some gifts work so well, they need little change at all. Chelsea Market Baskets' Supreme Snack Selections, filled with traditional English shortbread, Ruthy's Rugelach, Leonidas Chocolates and more, available at several prices, was devised for the company's first Christmas season. "That gift has been with us for 15 years," Porat says. "It has just worked." While the food gifting industry is in the green, it's still subject to the fluctua- tions of luxury markets. "This industry is not a necessity, it's an amenity, and we're the first thing to go when budgets get cut," particularly with corporate clients, Shapiro warns. "You have to be very adaptable." |SFM| Eva Meszaros is associate editor of Specialty Food Magazine. READ MORE TIPS ABOUT GIFT BASKET ASSEMBLY and popular products at specialtyfood.com/ onlinehighlights. SEPTEMBER 2012 117

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