April 2, 2012

I've been beating myself over the head lately for not accomplishing all my goals by the end of the four months. I didn't loose weight (meh), I didn't finish my brochure or packaging, I didn't learn my CAD program well enough to use it exclusively for my designs and more, but I don't want to bore you too much. But I have to stop that now, because I've already done more than half of what I set out to accomplish.

Yesterday, I sold another set of brooches on my Artfire shop. In the beginning of the four months, I sat down and examined my product line. I thought to myself, what would the average buyer want. I thought I had a unique product, and I did. My asymmetrical three flower necklaces, while beautiful, are not for everyone. I thought that I should add single flower necklaces, bracelets, hairbands and brooches.

Not sure that I could make a decent profit on the new offerings, I made spreadsheets of cost of materials and time involved to make. It turned out that the cost of materials for the headbands and brooches, made them very profitable, and the labor was really not that bad. It's actually the cost of chain  and findings that is the highest, even though assembly is pretty quick.

I also noticed with my Apron shop, that your sales increase on Artfire, after you reach a certain number of sales. It's actually about 80, but recently my sales have doubled there, and I've done some off line selling. My goal is to wholesale, but adding a website and offering more product has done wonders. I've also done a little off site advertising (free) and will continue to find more venues and blogs to make offers to.

What I'm suggesting is, that if you are not doing as well as you expect, take a good hard look at your product. Sit down, have a glass of wine, take a bath, visualize your product and what you could offer. Look at what other sellers are doing. I see so many beautiful elegant earrings on Etsy that have the wrong earwires on them. It just takes a little effort to finds a simple clean elegant earwire to raise your beautiful earrings up a notch or two. You can even make your own, fairly easily, or buy from another crafter.

I was shocked at how my efforts have paid off. I've been on Artfire for almost 2 years and was about to give up and close the shop. Last month I sold twice as much jewelry as I sold Aprons/bowties on my other shop. It's a little bit of work and planning, but after all, we're not just crafters and artists, we're entrepreneurs.

February 24, 2012

Oh this virus will not quit. My resistance is so low. Still in my lungs and I'm getting a fever blister on my lip. I only get those about every 3-4 years now. Like when I get the flu really bad. Just making me tired and last night I couldn't sleep. But I have much more energy.

Today I made 5 new headbands. I'm making some Baby Photo Prop, so I worked on one of those and the new tie headbands that can also be worn on the neck. They are really cute and I can offer them at a much better price. They will be great for wholesaling. Just have to figure out the packaging. I also made a new bangle bracelet, heather gray. I think that will be a great color too. I hope I can get some pictures tomorrow, but I'm not sure when I can get them modeled.

I've also worked on my material cost and profit per hour for the headbands, photo props and necklaces. The profit per hour is very good. Nothing under $10 wholesale. That's right where it should be. That is if I can keep the speed up on the manufacturing. It's partially because my cost of materials is low. I'm mush faster at the crocheting than I thought I was. I timed myself today and manufacturing was better than I imagined. Some things are as much as $20 an hour wholesale, but I'd have to say $15 average. That's still a pretty low income, but manageable. If I add full priced shop sales and a few weddings a year, I could live on it.

Next project is to present my work to potential shops. I could use a bit more publicity. I have to work on that too. I have to send out some things and hope I get people to wear them. I'll do a giveaway too.

I'm feeling positive, because I know that a good percentage of success is self fulfilled. It's not the product, it's the presentation and the attitude. 

February 16, 2012

Sometimes I hate that I have the kind of mind that can calculate how much profit I make on an item and how many I have to sell to make X amount of dollars. But in so many ways it's better, because this way I can see which of my items are best to offer wholesale.

I first have to calculate the cost of materials for each item. Then I have to calculate the time to make each to figure out what my dollar per hour rate is.

So I took my profit and divided by how much time to make the (necklace, brooch, etc) then multiply by 60 (minutes in an hour) that way I can see how much profit per hour.

In order to make 30,000 a year off broaches, I would have to sell nearly 7000 of them a year and work 65 hours a week crafting and packaging. That is at a 50% off wholesale. My profit and $ per hour on my venue are great if I could sell anything. Wholesale could be a viable option if I can sell at a bit higher price and pick up speed on my production. Nice to know there are variables.

Let see, if I made 10 pieces a day at an average of $8 profit each wholesale. That's $80 a day or for 5 days $400 a week, or $20,800. That's manageable, but not a lot of money. OK, I just figured that I can live on that. And it would be about 3000 pieces a year or 50 a week. Working only 5 days a week too. The publicity might even increase shop sales at which I make a much larger profit.

If I could place 20 pieces in 150 stores across the country that's manageable. I think I could make more than that and find more stores. It's a big country.

I suppose I'm not factoring everything. I did round up cost a lot, and I didn't include time for promotion and customer contact. But I also think that wholesale sales of less expensive items can lead to sales of more expensive items.

I can also sell at craft shows, but I need low cost items that I can sell pretty reasonably. I think a simple tie headband with single flower would sell well. They can also be worn on neck.

One of the things I found interesting, and I only did the calculation for 4 different items, was that although some had a much higher profit, $ per hour was less on them. I'm going to go over a few more items tomorrow and make some decisions. With the spread sheet I'm making, I can actually see if new items will be worth offering at all.

I'll post how I came to my results on Cinders Says so others can see how they're doing if they want to. Sometimes though, if you have another income, and you're doing this for fun, I think it's best not to go into it this deep and be blissfully unaware.  

February 15, 2012

Today was wasted running my daughter to the Dr for her sinus infection and grocery shopping. By the time I got back and got everything put away and everyone settled down, It was pretty late. We are all feeling pretty bad, so it's hard to get anything done.

I know this is crazy to talk about here, because I want to talk business related thing, but I guess when you look at it, everything you do relates to how you run your business, and the product you make, so here goes.

I shop at an international discount grocer, because we don't have too much money at this time, and their prices are half to one third of the other stores. Selection is not great, but we can feed 5 people for about $250 a month. Beat that! They had packages of Red Velvet cake mix on sale for $.99, after Valentine's Day clearance, so I HAD to buy 2.

Why did I have to buy them? Because I have never had Red Velvet cake in my life. I have eaten trilobite looking sea creatures in China, but never Red Velvet cake. We made it last night and although I can't smell or taste much, it was OK. By that I meant that I really don't like cake. So with a super moist cake and cream cheese frosting, it didn't really taste too much like cake. It was OK.

Now I can say I've had Red Velvet cake. I'll have to try homemade sometime too.

I started calculating profit of my flowers. I have to calculate time and profit to see what I would make on each version. I'll start with brooches and one and two flower necklaces. I should have some results tomorrow. I hope it will be worth my time to wholesale.