1 Torie Nguyen and Cathy Pitters work the PDX Super Crafty booth at Renegade Craft Fair Chicago in 2005.
Biz of DIY: to market, to market
Issue #26
Susanstars proprietor Susan Beal shares her advice for turning craft into cash. Continued from Venus 26
By Susan Beal
Published: December 1st, 2005 | 1:56pm
So you’ve decided to go pro with your crafting — props to you! You’ve even started to get the word out about your forthcoming line of handmade messenger bags or vinyl cuffs. Now it’s time to think about how and where you want to sell your goods.
Running your own business is hard work, but so rewarding — it’s a great feeling when your crafty skills start paying for insurance, rent, and the fun stuff. Here are a few tips to turn your cool crafts into some cold, hard cash.
APPROACHING STORES
Once you’ve perfected a few of your designs, try approaching small, independent stores around town that you like. Call during slow hours (weekday afternoons are usually a good bet) and make an appointment with the manager or buyer. Bring a selection of your best-made pieces and your business cards. Even if you’re nervous, be confident in your work. You're doing the buyer a favor by bringing cool stuff in; otherwise, he or she would have to go out searching for inventory. Try to be open to constructive criticism and feedback. Suggestions from people who look at cool stuff all day can really strengthen your designs.
If you offer different choices for your items, a catalog or flip-book of photos is very helpful for showing the range of your work. Name or number each piece for simplicity (like Cupcake Bag in #4 denim lined with #8 pink polka dots). If you do one-of-a-kinds only, number or name them clearly.
A $3 sales-order invoice book is invaluable for keeping simple, clear records. Leave one carbon copy with the shop owner and keep one for yourself. That way you'll know for sure how many pieces you sent in, how much they’re selling for, and how long they've been there. You can also type more detailed invoices on your computer and send them with your work. Check in about once a month to see how things are selling.
PRICING
Deciding the value on the price tag is a truly difficult part of the job. Make sure you don’t undersell yourself and that you cover your time and materials. Original, handmade pieces are valuable. One standard formula is to triple your materials costs and pay yourself a decent hourly wage. Another is to ask several friends or crafty businesspeople what they would pay for a piece. Ask shop owners their opinions. You can start something out at the upper end of your price range and lower it after a few weeks if it hasn't sold.
WHOLESALE VS. CONSIGNMENT
There are two main ways to get paid for your work:
• Wholesale means the store will pay you outright for your pieces, either when they receive them or at net-30 terms, which means you’ll be paid within 30 days from when the store receives your merchandise and invoice. The store typically charges customers double your wholesale price, meaning you’ll be paid 50% of the retail price.
• Consignment means that the store will pay you for a piece after it sells, and the percentage you'll receive will be set between 50% and 70%. There is no guarantee things will sell, of course — items may be handed back to you after a few months. Be prepared to trade old pieces out for new ones.
Either way, you should get paid in a timely fashion. Many shops pay on either the first or 15th of the month for the previous month's sales. Consigning is a little trickier to keep track of than wholesaling. Ask for a list of which pieces sold so you can check it against your own records and make sure everything is in order. This is especially crucial if you are dealing with a shop in another city. Good communication is essential.
ONLINE SALES
Selling your work online can transform your business. Creating a simple Web site, finding hosting, and creating a shopping cart are easier than ever. Services like doteasy.com provide inexpensive hosting. If you sign up with PayPal, they offer a free shopping cart. If you can't make your own site, trade some goods for the Web design.
Online shops that specialize in handmade work (like plainmabel.com, cutxpaste.com, and virginthreads.com) are also wonderful for getting your work out to more customers. They typically do consignment and pay each month as your items sell.
CRAFT FAIRS
Fairs can really help your business thrive, too. Well-established events, like Renegade Craft Fair in Chicago and New York, bring hundreds of shoppers in, and many shop owners or buyers stop by craft sales to scout for new vendors, so selling there can really increase your visibility. When you sell items directly, you also get a better percent of the profit.
Participating in a craft fair usually costs a fee of 10% or more of your sales, or a $10 to $50 flat fee for a table per day, though it varies quite a bit. If you join a fair, find out the details — whether you need to provide your own table, lights, and other accessories, how early to set up, etc. — well in advance. Bring your own tablecloth and displays. Experiment with different displays and try using multilevel configurations to draw the eye. And don’t forget change: I like to start with about $20 in ones and $30 in fives. In the weeks leading up to the fair, promote your sale via e-mail, postcards, fliers, Craigslist, word-of-mouth, and anything else you can think of.
CARDS AND TAGS
Shop owners and customers will take you much more seriously with professional business cards and tags for your work. Put your name, business name, contact info, and Web site (if you have one) on your cards. Try designing them yourself or ask a friend — I traded a pendant in exchange for my business card. You can print and cut them yourself at a copy shop or get free ones made at vistaprint.com. After you get your cards made, never, ever leave the house without them.
For custom sew-in clothing tags or paper hangtags, try nwtag.com.
TRADING
This is the most fun thing about selling your handmade stuff — swapping it with other artists! People you meet through shows or sales usually don't want to schlep everything home at the end of the day either, so propose a trade if you have your eye on something good. Don't take it personally if you get turned down — we all need the money sometimes.
Outside of the crafty-business universe, try approaching your hairdresser, Web designer, massage therapist, or favorite coffeehouse or restaurant about trading your cool stuff for their cool services.
Comments
Please login to be able to comment on this article.
more