A San Diego Gift Basket Company Starts with a Dream – Our EXCLAMATIONS! Story

We are honored to be featured in a popular gift basket industry magazine! This fantastic article by author Gayle Gallager tells our story…how we began, what we believe in and where we are today!

Our Story – A San Diego Gift Basket Company Starts with a Dream

If not for the real estate recession in the early 1990’s, Claudia Johnson might still be working for a building developer. But the recession did happen, and the San Diego developer she worked for slowly downsized from 160 to less than 12 employees. Johnson made it down to the final dozen before the inevitable ax fell. That was when she had her first experience with unemployment checks. And that’s when-with her very last one (a whopping $200)-she started EXCLAMATIONS! ” I was shopping with my mom after I received that last check,” said Johnson, “and we passed by a florist going out of business. They had a bunch of burgundy baskets with gold accents, and they inspired me. I told my mom, ‘I’m going to start a business.’ I bought those burgundy baskets and there was no looking back.”

Of course…that was just the beginning. This isn’t a from-unemployment-to-instant-success story. No, this gal paid her dues. One of the fascinating things about Johnson’s story, however, is that she paid her dues with cash every step of the way. “If I couldn’t pay cash for my inventory, office supplies, etc., I just didn’t buy them!” said Johnson. “In the beginning, my budget was so tight,” she said, “that most of my shelving, tables and other office furniture came from companies that were moving or going out of business.”

Goodbye Guestroom, Hello Showroom!
It was, to which many small business owners can relate, a humble beginning. “For three years, I operated out of my guest room, the hallway, and a couple of closets,” said Johnson. Then came the first move into a 500 square foot commercial space. The business grew, and two years later there was a second move to 1,200 square feet. More growth over the next year required a third move to 3,200 square feet. The moving part of this story isn’t over yet, so keep reading. Throughout this time, Johnson has kept a strict rule about her space. “I’ve chosen to operate my business from traditional business parks,” she said. “My shop is open on weekdays by appointment only.”

She also practiced a no-debt policy throughout her growth spurts. “Working on a cash-only basis forced me to fine tune my work spaces without overspending,” said Johnson. Not only did Johnson stay out of debt during her business’s growth, she saved money too, eventually having enough in 2001 to qualify for an SBA loan. This leads us to her last move-into the 5,000 square foot building she purchased with her SBA loan. “It truly is amazing,” said Johnson. Ironically, when she was renting her first space of 500 square feet, she met another tenant a few doors away who thought of her business as a “hobby”. In fact, he used to marvel at how she could possibly achieve success creating gifts. Eventually, he relocated and she lost contact with him. That is, until she bought the building that he had moved into! He was now giving her a monthly rent check and was quite shocked to learn that Claudia was now his landlord! EXCLAMATIONS! to grow and when his lease came up for renewal, he moved out and she took over the entire 5,000 square foot building! “Today my shop features a gorgeous showroom, executive offices, a production area and a shipping department, said Johnson.” Someday her building will…

Someday her building will become her retirement! Johnson has two full-time and several part-time employees who are on call for specific orders and projects. It’s notable that in 2007, employee Amy Kcomt celebrated her tenth anniversary with EXCLAMATIONS! Kcomt is Johnson’s operations manager and lead designer. Another employee, Production Manager Lorena Mendoza, has worked for Johnson four years.
That kind of loyalty is rare, and Johnson knows it. “My staff takes care of everything. They’re trustworthy and dynamic and can really run my shop without me!” said Johnson, who is a firm believer in taking care of the staff that takes care of you. “If I could give only one piece of advice to a new gift basket designer-or any new business owner for that matter-I’d say be good to your staff, financially and otherwise. That’s the only way to cultivate loyalty and keep good people.”

Keeping It Neat And Pretty
While at the Fancy Food Show in San Diego earlier this year, Cherie Reagor and Valerie Trescot had the pleasure of touring the EXCLAMATIONS! facility. As evidenced by the beautiful photographs in this feature article, you can see that Claudia’s shop is so perfectly organized and pleasantly appointed that it makes a great “home away from home.” “It was both inspiring and motivating,” said Cherie. “Not only were we impressed by Claudia’s business-it made us come home and work on our own organizational skills!”

“Even clients compliment us on how well-organized everything is, said Johnson. I know when they see our attention to detail, it makes them comfortable and increases their trust in us.” Then there’s Johnson’s top-flight staff. “Their care with our work spaces and products is always evident,” said Johnson. “Together, as a team, we maintain a very organized, clean and efficient shop.We never lose sight of tending to the details.” Attention to details is something Johnson and her staff insist on, and it’s one of the things Johnson believes contributed largely to her success. Johnson said that every area of her shop is arranged for maximum efficiency, from the floors to the walls, and on up to the ceilings. Everything in Johnson’s building is in its optimum place. She said that how you store, file and label is key. “We don’t spend time wondering where we put something. We always know where to find just what we’re looking for,” she said. The EXCLAMATIONS! staff rotates gourmet foods weekly for freshness. Gift items are organized on shelves by category: Corporate, Spa and Beauty, Baby, Golf, Housewares, Stationary, etc. “We allocate appropriate storage space for each category,” said Johnson. “This ensures that we see everything in inventory and nothing gets lost from view. Our walls are lined with shelving and our custom-made lofts hang from the ceilings.”

Getting Her Stripes
You know that old saying about luck being the result of preparation meeting opportunity? Well that’s the kind of luck Johnson had. While it might seem that her road to success has been totally smooth, she was enduring the bumps and fits and starts of any serious, dedicated business owner. First, she spent long hours studying the industry and teaching herself how to design gift baskets. Attending conventions and instructional courses helped hone her skills. Then, she had to convince family and friends that her business was more than a hobby. “A lot of people weren’t taking my venture seriously,” said Johnson. “Eventually, they saw it for the real business it is. But it was a little hard at first to deal with the attitude that I was ‘playing.’ I overcame it by keeping my attitude positive and forging on!” There were also financial struggles in the early years. Paying cash for everything and trying to remain debt-free isn’t an easy way to go, because that means you often go without the things you need. Staying financially solvent always wins in the end, though. And for Johnson, it means she has a successful business along with a record of staying debt-free for 15 years! Another struggle for Johnson was finding the right gifts and gourmet vendors. “I wanted products that were high quality and unique-and ones I could be proud to sell,” she said. “I quickly learned that gift shows and gift basket conventions would settle that issue for me.” Johnson’s thriving business and beautiful showroom are the result of good planning, responsible money management, organization, research, education, legwork, quality control, and attention to detail. That’s the kind of “luck” hardworking people like Claudia Johnson have!

The Power Of The Referral
“Well it certainly helps to like people!” said Johnson when asked about how she finds new customers. “I promote myself in subtle ways everywhere I go. I lead a very busy life and have an outgoing personality, so it’s easy for me to connect with people,” said Johnson. “Truth be told, I’m always marketing!” And here’s the interesting part. That’s Johnson’s entire marketing plan! When she meets someone new, she tells them what she does and asks them to keep her in mind when they need her service. No brochures, no direct mail, no radio, no newspaper ads. On the power of her personality alone, she’s built her business. Well, that and the acquaintance who hired Johnson to create 20 baskets for her law firm. That was Johnson’s first “real order”-created out of her guest room. She sold them for $75 each. Those 20 baskets were the beginning of a solid referral business, which continues to branch out in all directions. One referral leads to another and then another and then another. These referrals continue because of the professionalism of her company, exceptional customer care and unique gift offerings. She has created the winning combination. No ad campaign ever. Honestly, where would we be without determination and persistence? But sustaining a business on referrals couldn’t work without other important things. That would be Johnson’s ethics, integrity, and passion. She stays involved with the industry and is always giving back to her community. She treats everyone the way she wants to be treated. “The Golden Rule-do unto others as you would have others do unto you-goes a long way,” said Johnson.

Grateful and Blessed
We asked Johnson how she chose “EXCLAMATIONS!” as her company’s name. Her answer was, “When I write, I tend to use a lot of exclamation points! They indicate excitement-just how the recipient feels when they receive one of my gifts! I also wanted a business name that was as diverse as the gift services we offer.” There you go. A grateful Claudia Johnson, a bright and loyal staff, the owner of a 5,000 square foot building, a thriving and extremely organized business. What a blessed gal!