Business Tips Part 24: Consignment
- Is the shop well established and been in business for long? If it is new you will need to be extra careful,
- Are most of the goods on sale in the shop bought outright/wholesale? If so encourage the owner to do the same with your pieces,
- Contact other designers/artisans who have pieces for sale in the shop for their feedback on the shop and business practices,
- Ask if the insurance documents cover consignment items,
- Find out what will happen if your items are stolen or damaged - will the shop pay you?
- How long will a product be on the shelf? If they are not sold within the set timeframe how will they be returned to you? It isnt ideal to have items sitting on the shelf for long periods of time as they may become damaged and you will be unable to sell them.
Do any of you do consignment? Have any tips you would like to share?
On the next Business Tips blog: Wholesale Part 1
Friday, 5 March 2010 | 0 Comments
Business Tips Part 23: Craft Fairs part 2
A visitor to a craft fair isn't necessarily looking for something specific but wants to see what is on offer on the day. Keep this in mind when you set up your table so that your items can be accessible and ready to be picked up....and purchased! Your stall needs to be inviting, uncluttered, simple and have the prices on display.
Consider using some props so that people can see the uses of your items. This is not so relevant for the cards at Butterfly-Crafts but I could show different ways to use a crochet flower brooch such as on a cardigan, a hat or even on pretty ribbon for wrapping a present. Also think about raising some items up off of the table to eye level or use display boards along the back. No matter what you do however, practice before the big day so that you can tweak the stand until you are happy.
Some additional tips:
- Keep a record of your inventory before and after the fair,
- Have a method of recording each sale and if you have an assistant make sure they know how to do this too,
- Consider tying down items that may appeal to slippery fingers,
- Bring an assistant to help you package and talk about your products, keep you company when it is slow and let you have a break,
- Set yourself a target such as make three times your table money, or sell all of one type of product.
But my number one tip: Have fun!
On the next business tips blog: Consignment
Image from EmilyClaireCreationsMonday, 1 March 2010 | 1 Comment
Business Tips Part 22 - Craft Fairs, part 1
If like Butterfly-Crafts your craft business is relatively new, a craft fair can be a fantastic introduction into the retail market - a chance to test out product lines and prices. Craft fairs of today are not all about selling as much as you can to make your cover fee back, but they are a chance to congregate with like-minded people and exhange ideas. Summed up, they are a great opportunity to meet, greet and sell.
Craft fairs range in size and so do their entrance or table fee so it is always recommended to research before comitting to have a table. Questions to ponder include does the fair live up to its reputation? Do your products have the right 'fit'? What are the demographics of those who attend? and, can you afford it?
Along with those questions, there is one essential question to ask: Will I be ready on time? If it is going to be your first craft fair it will be hard to judge how much inventory you should take but it is far better to have more than you need rather than too little. Aim to make as much as your time and resources will allow. As you become a craft fair regular you will be able to guage how much inventory to take with you.
Coming next time: Craft fairs part 2
Friday, 26 February 2010 | 0 Comments
Business Set Up Tips Part 21 - Marketing Plans
So with all your new found publicity skills you might just have been promoted in a magazine article or a feature on Hand Made News or receive a thousand hits from a high profile blog feature but what was todays feature will be tomorrows fish wrappers as the saying goes. You will need to start thinking longer term to the next six or twelve months and ask yourself one question: How can I keep the momentum going?
A successful marketing programme is based on frequency and keeping your business name and products in your audiences face until they recognise your brand and then buy your products.
Before devsing a marketing plan or create your marketing materials, you need to have a clear understanding as to who your target audience are. Get to know your customers, how do they spend? How much to they spend? What blogs or magazines do they read? That way, you can create materials they will respond to. Knowing your customers specific wants and needs will help you put together products to meet those desires.
As you begin to put your marketing plan together, assess your goals and budget. If you need immediate results to stir up interest quickly try advertising or getting into a high traffic blog (like mine!) However for most of us small business owners in the craft world we have the time but no money! In this instance, put your money into publicity rather than advertising. Send new material to editors, follow up and remind them of your company until they bite. Publicity is not a marketing method for the impatient, you may spend days putting together press kits and sending them out and get no response, it might even take months for an article to be published.
It is also worh bearing in mind that not all of your ideas, products or sales are appropriate for PR activity - it is for you to decide what is important to publicise and what can be skipped over.
I must admit, writing this blog has made me think about having an actual marketing plan, something I donot have as yet. It would be great if you have any marketing tips to share, please comment......
Friday, 9 October 2009 | 2 Comments
Business Set Up Tips Part 20 - Hiring a Publicist
A publicist is paid to sing your praises from the roof tops to the press but also consult with you on every aspect of your business. The most imporant thing a publicist can do, is develop your marketing strategy.
A publicist will want to present your products to their contacts every season so you will need to be prepared and committed to delivering an agreed quota. You need to ask yourself if you are really ready for major recognition and the sales (and production) this will bring - I know I'm not just yet but Butterfly-Crafts will be one day! Finally, and most importantly, can you even afford one?
Remember you are hiring a publicist for their expertise and contacts and this unfortunately does not come cheap. On top of their monthly fee, you may also have to pay out for their telephone calls, postage and copying costs. You will still have to create your press kit and advertising because although the publicist can advertise you, they are not necessarily a graphic designer.
If you do decide to take the next step in marketing and hire, choose carefully and pick someone you have a good rapport with and who you feel will represent you well. Do your research with different companies and ask fellow store owners for their contacts. But, when it comes to signing that contract, put your expectations in writing and stay in contact.
It is really important to realise that a publicist can be selective about who they choose to work with. Like all of use, they will want a client who is easy to work with and whose talents and skills they truely believe in as you are likely to be committed to a minimum contract.
One thing to bear in mind with a publicist however is that the results are cumulative so you may not see immediate results but when they do start, they are likely to snowball!
Monday, 5 October 2009 | 1 Comment
Business Set Up Tips Part 19 - Press Kits
In the last business tips blog we looked briefly at being your own publicist. Now we look at what to do next and how to develop a press kit.If you hear back from the editor or their designers from the publication you approached, it is possible that they will be working on a deadline and want your information yesterday. The best way to be prepared for this is by having a web page with high-res images, key facts, press releases and suchlike that can be downloaded quickly. Sometimes this approach can be quicker than snail mail and if you make work easier for your contacts, they may be back for more.
However, it is good to have a hard copy press kit as one way to express your creativity in your business material. Standard components of the press kit would include:
- a catalogue with clear photos and descriptions,
- a line sheet with product numbers and whole sale prices,
- a biography,
- colour copies of any press cuttings,
- press releases if what you are announcing is newsworthy,
- a few samples if you can spare them as often Editors prefer something visual to a press release.
A press kit is a great chance to be imaginative, but is can go terribly wrong if you try and jump through too many hoops and end up confusing the viewer and losing the message whilst you're at it. If you can balance out simplicity and creativity you'll have a winning kit. You may also consider:
- Including your contact information on the bottom of every item in the kit,
- Reflect your brand by reinforcing your colours and logos,
- Everything in the kit, aside from samples, should remain flat as editors often keep a stack of kits on their desk - and you wouldn't want to be the person who sent in a poster tube and you roll off or get binned.
- As a precaution label each and every item in the case it were to be separated from the rest.
- Don't include too many loose small items incase they get lost.
A note of caution though regarding samples - if you send unsolicited samples to publications, it is very unlikely that you will receive them back as they would be considered gifts. However if an editor was to request something specific from you, you will be more likely to see it again.
So your challenge for this week is to think about what you would include in a press kit.......
Image from http://www.theangryrobot.artfire.com/
Friday, 2 October 2009 | 0 Comments
Business Set Up Tips Part 18 - Being your own publicist
In an ideal world, you should aim to spend at least two hours a week working on publicity and getting your brand and products into the media. If it is applicable, might I suggest a trip to the local newsagent or library to research your target publications?
For magazines, bear in mind that the lead time is often three to five months and if you have Christmas products, you need to approach them in the Summer time. Take note of the Editor for the section your work would fit in and send them a press kit. Double check that the address you have found is not for advertising or subscriptions as often these are managed separately to the magazine. Once you have the information you need, write the Editor a letter, talk a little about your business and show that you have read their publication bt explaining why your product would be a good fit.
Editors are looking for something that stands out against the crowd so it is likely you will write to many editors. What ever you do however, don't get lazy and send off a generic letter or just fill in the blanks of a stock letter, tailor each letter to the editor you are writing to.
Happy researching!!
Monday, 28 September 2009 | 1 Comment
Business Set Up Tips Part 15 - Photography
So, after a long hard think I decided to use a silver background, I just bought some wrapping paper, and use two props in all of my photos: purple butterflies and a purple pen, that way my store front has a uniformity to it and I am so pleased!
I have gathered a few tips on photography and would like to share:
- Do not use a flash as this can distort the product colour
- Use indirect light as direct light can create harsh shadows
- Buy daylight, tungsten or halogen lightbulbs as incandescent ones can create a yellow effect
- Use soft, diffuse lighting such as a photographer's umbrella or a light box.
- Use a tripod as your hands will shake no matter how steady you think you are.
- Get to know your camera as some digital cameras have manual settings allowing you to programme the shutter speeds and apertures.
- Think about using the macro setting (I do!) as this will help focus when taking up-close pictures
- Be creative with your backgrounds/settings or just use something plain. Something too busy will distract from the product
- Take multiple shots of the same item (I take about 10) and think how the buyer would want to see the item. I photo my cards from all angles I can think of and then close up on specific parts. Make jewelry? Then make sure you photograph the reverse of the item if appropriate.
- Learn how to use a photo editing software as you will need it!
Some links you may find helpful:
- Understanding your camera settings
- An introduction to the depth of field
- What is aperture and why should you care
- Shutter speed and its effect on photos
- ISO: What is this funny little number?
Coming the next time for Business Tips (Friday) - Having an online presence
Monday, 7 September 2009 | 1 Comment
Business Tips Set Up Part 14 - Marketing & Publicity
Once you take that first step into the world of marketing, you must first consider the materials you use to represent your business. Your stationery communicates a message about your business therefore should feature your logo and represent your brand. My business cards for Butterfly-Crafts shown here are one way I market myself.Tuesday, 1 September 2009 | 2 Comments
Business Tips Part 13 - Pricing Part 2
Material Cost - the cost of each material directly used including packaging
Labour Cost - Calculate how much your time is truely worth
Overhead Cost - Everything that is not labour or materials such as a trade show stand, equipment and promotional items.
Profit - Money in your pocket when you have paid all of your expenses
Mark Up - The % of materials and/or labout costs added to an item to reach a price.
Retail price = wholes ale price x markup
It is recommended that a minimum markup for wholesale price is 100% to cover overheads and profit but if you can increase this it can only be to your benefit.
The retail price is what you suggest your wholesale customers (if you have any) sell your items at. If you sell directly to your customers online or in your own shop, you still need to sell at the retail price or you will be underselling your wholesale customers and risk losing them. Selling at retail also increases your profit margins and enables you to have sales or special offers because even if you have a sale at wholesale price you still make a profit.
Evaluating your prices every few months is essential. Pricing is a balancing act between your costs and what your target market is willing to pay - I find this balancing act very difficult as do many. An alternative method is to work in reverse starting with what you think people are willing to pay, half it to get a wholesale price and then realise that you have to use materials in line with this price. You may be surprised to find your profit margin may increase this way.
If through evaluation you discover that your prices are indeed too high, look at ways to reduce your costs, such as wholesale purchasing, before automatically dropping your prices.
Next time - we start looking at marketing and publicity.
Image from Salvagenation
Saturday, 29 August 2009 | 1 Comment
Business Set Up part 12 - Pricing (Part 1)
You can take it from me as I have first hand knowledge, pricing can be one of the most challenging aspects of owning a craft business because it isn't always about following a formula.Friday, 21 August 2009 | 2 Comments
Business Set Up Tips Part 11 - Production
In the previous business tips blog, we looked at packaging your items. Well today we are going to look at production and lowering the cost of supplies.Monday, 17 August 2009 | 0 Comments
Business Set Up Part 10 - Packaging
Packaging may be the last step in the design process but, it is still an important step and still requires thought and planning. Friday, 14 August 2009 | 1 Comment
Business Set Up Part 9 - Plagiarism
In the last Business Set up blog, we looked at product research, this time around we are going to look at how research can sometimes go that step too far into blatant copying and how your product is a mirror image of someone elses work. Monday, 10 August 2009 | 1 Comment
Business Set Up Part 8 - Product Research
It's now time to think a little about researching a new product line. Creating your product is a personal process but you are placing that product in a market for consumption therefore people have to want to buy it!- What products already exist and is there already market saturation?
- What products are missing?
- What trends did you notice?
- At craft shows, how many tables are selling similar products?
- Why did certain designs appeak to you?
- What are the wholesale and retail prices?
Attending a craft fair or trade show is a fantastic method of research. However, try not to make it too obvious you are on the hunt for ideas! Trade shows can be hard to access initially as you often have to prove you are a legitimate business. But, once you gain entry, check out the floor plan and booths you wish to visit and get moving! If you are able, pick up a price sheet and catalogue and always keep a notebook handy to write down the information - but perhaps over a coffee and not infront of the booth.
Craft fairs can be easier to access, I attend a minimum of one a year to check out what's new and behave like a shopper - all in the name of research for Butterfly-Crafts you understand!
If you return home in a major panic about all of the work required to reach the standard of those at the craft shows or trade fairs just remember - everyone had to start somewhere
Coming next time in the Business Tips (monday) - Tempted to copy?
Friday, 7 August 2009 | 0 Comments
Business Set UP Part 7 - Capturing Ideas (Pt2)
Last time we looked at developing ideas for product, this time we will look at capturing ideas and setting goals.Monday, 3 August 2009 | 1 Comment
Business Set Up Part 6 - Capturing Ideas (Pt1)
Inspiration can present itself in so many ways; perhaps it might be a complete idea of just a tiny little acorn of an idea. But, sometimes it is the little acorns that set your products apart from the rest - from tiny acorns grow great oaks afterall.Monday, 27 July 2009 | 0 Comments
Business Set Up Part 5 - Brand Identity
Monday, 20 July 2009 | 0 Comments
Business Set Up Part 4 - Creating a Mission Statement
Friday, 17 July 2009 | 0 Comments
About Me
I am a paper crafter and supporter of all things handmade! I love to create cards for people but not only papercrafts I also like to sew, knit and make soap.





