Quick And Simple Pricing

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It can be very confusing and frustrating to price your own craft items. The main issue when selling a handmade item is that you must cover your material/supply costs and you should earn something for your time and labor. This means you must keep a record of your material costs and the time spent making the item. Fair pricing should mean that you as artist or craftsperson (as well as your customer) are satisfied with the final selling price.

Did you provide your best work? Did you use quality supplies to make your craft? Did you put your love of crafting into each piece of work you create? If you are answering, “YES,” then you deserve ‘fair’ payment for your work and creativity. Sometimes it helps to ask a friend or spouse to help you with pricing. An objective opinion from a friend or spouse can mean a lot and often you will under-price your crafts whereas an objective voice will not.

There are many formulas for pricing your crafts when you are selling occasionally (not full time). The first and easiest is to 2X, 3X, or 4X the cost of materials. If a necklace’s materials add up to $1, then you may choose to sell the necklace at $2, $3, or $4.

A second method is to check out what similar items are priced. Visit a gift shop, craft show, or look through catalogs. If you see similar jewelry selling for $4.50, then you may choose to price according to the marketplace.

Another method is ADD the cost of materials to your labor cost. The cost of materials for your necklace was $1. You wish to make $10 per hour while working. You can make 5 necklaces in an hour meaning the cost of labor was $2. Added together (material cost plus labor) these factors will give you a selling price of $3.

Often it can be a combination of formulas that will give you a realistic selling price and then pay attention to how your customers react to the price on the tag. Do customers grab 5 at a time? This could mean you hit the right price or may even be able to raise the asking price. Do your customers quickly put the necklace back acting like their fingers got burned just touching it? It might be time to re-evaluate your prices. Don’t make pricing an obstacle to your selling. Learn the pricing formulas and learn your customers’ spending budgets!

Organized In Three Steps

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Organization: the act, process, or condition of structure to arrange a complete and functional whole; set up an administrative structure; to arrange by systematic planning and united effort.

There are times when even the thought of organization seems baffling and overwhelming to even the most structured soul. It is almost as if the act of organizing is too staggering, yet, being organized is an effective way to get more work done in a given day. A recent consumer magazine stated that by simply having ‘a place for everything and everything in its place’ a person can save three days in a year. Imagine, an extra 72 hours in your schedule, by not spending those precious minutes hunting for the scissors, tracking down a shipping order, or running around aimlessly for the scrap of paper on which you wrote a supplier’s phone number.

Step One

For most professional crafters, the best way to handle any overwhelming job (yes, organization can seem like work) is to break the job of organization down into smaller tasks. The first step is to become a list maker. Memory is an interesting (and mysterious) concept for most creative individuals. It is wisest not to rely on one’s memory to get organized. Most creative people have great memories when it comes to things they enjoy, but the memory gets very selective when the “boring” things start to surface and need to be tackled. Grab a notebook or journal and make it the permanent location for all your lists. As you become more organized this notebook will start take form with categories and subcategorizes. But if you are a beginner, just starting your journey into becoming organized, take it slow and be content with finding a place for your list notebook. Commit that place to memory!

Your first list should be a list of questions that will help you get organized.

  • What you need more time to do?
  • What you feel needs organizing within your business?
  • What items/tasks would help you accomplish, schedule, coordinate rather than confuse your business?
  • What activities give you the most frustration?

The real key to organization is to know what it is you want to organize. Breaking down what you want to accomplish will allow you to focus on the goals you want to achieve. Putting your thoughts into writing is simply a way to organize the thoughts. Seeing it in black and white makes it all just a little less overwhelming, unless of course, your list gets lengthy! If the list is giving you heart palpitations, it is time to break the list up into small lists. This is actually a good thing. Dividing a list up means you have just taken a giant step towards organizing the chaos.

Step Two

Like all new adventures or any attempt at change, the road to organization has ups and downs, bumps and curves, and even a few icy patches that raise the hair on your neck! The second step to organization is to work with your natural thought patterns and processes rather than fight old habits. Creative people seldom recognize that their creativity is really a process. Creativity is grossly underrated by most. Creativity doesn’t just happen. Ideas don’t have any value unless someone notices and approves of the idea. The first person to “notice” the idea must be the idea creator. You! Pay close attention to how you come up with and utilize your creative thoughts, ideas, and designs. Find your own patterns, processes, steps, and organization. Don’t get organized by the book. Get organized by yourself.

An example that comes to mind for me is the fact that I rarely think alphabetical, but for me the organization of files is an easier process when placed into categories. I have over a hundred files of suppliers. I knew when I set up this file system for suppliers I would never remember the company names of all of them, however I could remember the categories of supplies that each provided. My supplier files are broken down into several categories: Current Suppliers, Hard Crafts and Soft Crafts. From these three categories I subcategorized the Hard and Soft Craft suppliers. Within Hard Craft are all the suppliers of Jewelry/Findings, Wood, Rubber Stamps, Brushes, and so on. Within Soft Craft are the suppliers of Fabric, Batting, and other soft craft supplies. The system works for me. I know where to find my suppliers without even blinking.

Step Three

Steps 1 and 2 will help you flow into step 3, which is as clear-cut and simple as any task you need to accomplish. Step 3: DO IT! No excuses, no delays, no putting it off until tomorrow. Just do it! Procrastination is the waste of time. Take a hard, long look at the tasks and jobs you put off. Is there a pattern? Is there a reason? Prioritize your work. Figure out what is most important. Figure out what timetable you must work within. Another key element of organization is scheduling your work. We tend to put off or procrastinate tasks or jobs that we dislike, cause discomfort, or we find boring. Yet, the worry that the job is not being completed causes more anxiety than the original task that needed to be accomplished.

When the steps to organization are applied to the Professional Crafter, the goal is to give the Professional Crafter a more effective and efficient work place. Don’t let the process of organization bewilder you. Look at making your work place more organized as an adventure. A creative trip to creating more time in your schedule and a more enjoyable work environment. One step at a time. One step closer to the perfect organizational being. As a matter of fact, as I flip thought my list notebook sitting here on my desk, I think I have a list for being perfect some where in it. Now, if I could only find it!

Five Ways To Be Organized in the Office:

  1. Touch mail once. Read mail the same time each day. Choose one of the following options: 1. Act. 2. Record and File. 3. Pitch it!
  2. Keep one calendar/schedule. Write everything down on the calendar as if happens. Start the day with a quick look at the current day and the next three days.
  3. Use an answering machine. Return calls at a set time each day. Use voice mail and leave messages for clients/suppliers/customers.
  4. Don’t allow your desk to become crowded or stacked. It is human nature to avoid confusion. Try to clear your desk each time you leave it. Every six months, remove all items, papers, catalogs, magazine, newsletters, etc. that you have not found useful.
  5. If possible, computerize your office. This tool is amazing! Computer programs on the market today take half the work out of organizing billing, invoices, correspondence, and many everyday office tasks.

Five Ways To Be Organized In Your Studio/Manufacturing:

  1. Schedule six months out and post all deadlines, due dates, and deliveries.
  2. Clear work areas at the end of each day to the best of your ability. Return all tools and supplies to the same place each day. This is a great time to clean, oil, or maintain tools.
  3. Break down a product/design into as many steps as possible. Work each step to the maximum, and then move on to the next step.
  4. Keep a current list of supplies or materials that are low or need to be ordered within the next month so you don’t run out without notice.
  5. Take breaks. Every 30 to 60 minutes, stand up and stretch or take a short walk. Refreshing your body and mind lead to clearer thought and more effective use of time. Use an answering machine when in production, interruptions break the rhythm of production.

Motivation to Create

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As craft professionals, we all face times when we just can’t get motivated to start or finish a project or design. Read on for a few pick-me-ups to kick-start you and get you inspired!

  • Set your goals. List several short term (day, week, month) and a few long term (year to five year) goals. Break the goals down into steps. Check off the steps and celebrated every goal reached! Calibrate the celebration to the size of the goal!
  • Add something new and different to your routine. Change materials, color themes, or motifs of your current work. Step back and view your work. What can be added? What can be changed?
  • Take a class or teach a class. Learning new skills or developing learned ones adds new light to your craft. Teaching others brings in new perspective. Our students are often our best teachers. Listen to your teacher or your students.
  • Take a walk; visit a park or garden, people watch at a mall. Exercise builds energy and energy gets you motivated. Nothing inspires like nature so surround yourself in the sights, colors, smells, motion, and taste of it. People-watching is a joy. Listen to the kids laughing. Find the seniors smiling. Observe the buyers browsing!
  • Organize your supplies or rearrange your work area. Think of ways to find your supplies easier or more efficiently. Rearrange your work area to add more light, more color, more stimulation. If you are bored in your work area, you will be bored in your work! Personalize your space. Make it yours! The routine of organizing often helps you relax into creativity.
  • Visit the local gift shops in your area or take a day trip to a nearby big city. Schedule a trip to a museum or special exhibit that might be in the area. Invite your friends over for a creativity party! Pick up a new magazine you’ve never read before.
  • Buy a book on your favorite craft and read it! Learn more about what you do and the others who also enjoy your medium. Or you might try reading a new book on selling, marketing, design, writing skills, bookkeeping. Update your knowledge with the latest information. New date will refresh you and might inspire new ideas you can’t wait to get started on.
  • Take time out to play. Experiment each week for an hour or two with your medium. If a painter…just spend sometime mixing colors. If a quilter…play with fabric shapes and colors. If a woodworker…try new cuts or sanding techniques. Don’t put any pressure on yourself to “complete” or “create” anything…just play.
  • Visit a trade show or consumer show. Find out what craft, gift, toy, or stationary trade or consumer shows will be in your area. Visit at least one trade show every one to two years if a professional in crafting.
  • Take a vacation! May be not a vacation where you travel by car, boat, or plane, but a vacation from your craft or your business. Take a day, two days, or even a week and don’t touch, do, or even think crafts. Absence often does make the heart grow fonder. Don’t risk burnout! And make sure you have a hobby if you are a craft professional. As a craft professional what you do for a living is what others do to relax! So treat yourself to a leisure activity outside of crafting or select a craft to enjoy for fun not for work/profit.

Make Some Money With Your Hobby!

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You don’t have to be a full time business to make some extra spending money from your crafts. Many crafters sell their items at church bazaars and community arts and crafts shows as a way of “reinvesting” in their hobbies! All you need to do is dedicate a weekend once or twice a year to participate in a bazaar and you can make enough to spend through out the year on your crafting passions.

Most smaller craft shows and bazaars do not “jury” participants, which means you don’t have to prepare slides or photos of your work and booth display to get into the show. You’ll simply have to fill out an application to participate and pay a show fee. Fees do vary depending on how much advertising is done, but you can expect to pay as little as $25 for a tabletop for a day to as much as $150 for a 10’ x 10’ space over a weekend. You do need to find out what the show promoters are offering for that fee. Do you need to bring your own tables, chairs and booth cover?

It’s important to know if the show is indoors or outdoors. Depending on the weather in your area you might chose not to participate in outdoor events. It’s also nice to have a crafting friend who might want to share a space with you for the event and you can give each other breaks through out the day. You might also like to ask the show promoters approximately how many shoppers turned out for their last craft event so you’ll have a better idea of how much inventory to prepare.

Don’t over tax yourself preparing for a small show or bazaar. You can always take orders at the event or hand out simple business or contact cards to the shoppers. It’s better to sell out at a show like this than to sit on unsold inventory. Pricing the items can be difficult. The main pricing point is that you must make back your supply or material costs plus 35% for overhead (your show fee, labor and other odds and ends). Remember that you aren’t “in business”, but rather supporting your crafting habit. It is difficult to sell items priced over $20 at a small show or bazaar. Your hot selling items will be those priced under $5, but don’t give away any item by under-pricing it!

Small craft shows and bazaars are a fun way to earn a little extra spending money and a way to motivate yourself to make more by selling off the crafts sitting in your closet! You can find shows and bazaars by word of mouth or contacting your local Chamber of Commerce.

Let’s Throw A Home Craft Party

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A home party can be a great way to earn income from your crafting. With a little planning and organization, this type of marketplace has great advantages. You don’t really need to worry about the weather conditions and you have complete control over how your crafts will be displayed. Everyone loves a party!

  • Home craft parties are similar to other home parties (Tupperware for example) except you are going to sell your crafts. You can also invite other crafters who do not make the same items to join you and split the costs.
  • Select the date, location, and who is going to participate.
  • Schedule out all the jobs: Organizing, writing up the invitations, Setting-up the home, refreshments, mailing list, pricing and tagging, and don’t forget the clean-up.
  • Mailing lists can be made up of past customers, friends and family, church groups and such. Give door prizes and a bonus if an invited guest brings a friend. Mail out invitations/postcards at least two weeks in advance or have a phone invitation party.
  • The invitation must have address (map is best), time, date, phone number, and contact name.
  • At least one week before the party have all items gathered and tagged. If more than one person is selling crafts be sure to color code the price tags and keep an inventory/receipt pad near the check-out.
  • Day before the show, set-up the home decorating at least a living room, bathroom, or dining room. Show off the crafts and give lots of home decor ideas to your potential customers. Create unique displays and group items together. If you are selling Christmas ornaments…set-up a lighted tree with Christmas Carols playing softly in the background. Hang wreaths, place kitchen items in the kitchen. Be sure to remove personal items from the rooms if possible.
  • Have plenty of change in your checkout area. Store up bags for packing purchased items.
  • Greet each guest. Have a sign in book to record phone numbers or address for future/annual craft party. Walk customers through sale rooms and tell them politely if certain rooms are off-limits.
  • Decorate your door or have a festive sign outside the house to help customers locate the “party” home. If it is a seasonal craft party, dress up for the holiday.
  • If you do not want young children, state so on the invitation. Better yet, hire a teenager to baby-sit and designate a room in the home as the playroom. Have the sitter teach a craft to the children that way moms can shop in a more relaxed atmosphere.
  • Tally up the money and see if the show was a success for you. Home Craft Parties are getting to be annual events and grow over the years. Good Luck!

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