Crafting a Successful Small Business. Joanne Dewberry
point) is that each item has been made by you and not mass-produced. Your prices also reflect the standard of your product. If you price too low, customers will not have confidence that your product is well made.
A crafter’s most valuable resource is their time; some may have more than others, but ultimately this is what prices your products at a premium. If you’re going to give your time away for free then you will not develop a successful business. Instead of seeking to lower your product prices in order to compete with others, look at your USP. Think of ways in which you can develop a strong brand, ensuring potential customers will want to do business with you even if you are not the cheapest on the market. Jamie Fry (www.creativestores.co.uk/UncleBundleCrafts) describes below how he used to be guilty of underselling himself and his products:
“I used to do my research online and try to fit in with those prices or lower, but would never make any money. Also, initially I was buying my materials from high street stores but soon realised that I needed to get myself some trade accounts to buy wholesale. I do, however, have an individual price for every part of a make and at the moment simply round it up to a sensible selling price.”
Jamie has already started to make the necessary changes to increase his profitability. His next step is to construct a pricing formula which works for him and his customer base.
When I posed the question “How do you decide on price/ monetise your products?” to a variety of different craft businesses, the response was varied.
Michelle Williams (www.craftecademy.co.uk) agreed with my suggestion to have a formula:
“Taking into account all of the costs; not only the cost of the materials, but also make sure you factor in your time accordingly! Remember, when people are buying hand-crafted goods, they are paying for your time. Many handmade goods take a considerable amount of time to make, not to mention skill and dedication! Many people sell their craft products at a price that is too low when you actually analyse the amount of time that has gone into making them. Always check out your competitors too, to see what their pricing strategy is and position against them appropriately.”
Michelle also points out that your pricing strategy should be appropriate to your target market too. It’s important to think about who you are targeting and where you will sell your products, as this will have also have a bearing on your pricing.
Caroline Watts (www.carolinewattsembroidery.co.uk) gives a prime example of how she tailors her prices and products to her target market, dependent on where, when and how she is selling:
“Pricing for me depends on where my products will be sold; for local craft fairs I have to charge less than I would online. It is very much pricing for the market you sell in. I don’t sell my current range at craft fairs because in Yorkshire people don’t seem to be prepared to pay full price but if it is a bargain they are likely to buy a few small things. At craft fairs I tend to sell samples, seconds and end of line products.”
However, some crafters said that they like to try and keep their product pricing more ‘real’:
“I often think ‘what would I pay for this?’ My prices have changed over the years. I can now get more for my work because I have built up a reputation and of course my skills keep improving. I do believe though that crafters cannot charge for the time and effort that goes into their lovely things, and so we at best accept a reasonable donation, and I am happy with that.”
– Catherine L Owen, The Raggy Rat (www.facebook.com/raggyrat)
In my opinion these people are not interested in developing a brand or a business, they are looking for a hobby whereby they can make a few pennies if that.
Costing correctly is vital to the success of your business so take the time in the beginning to develop a formula and get to grips with your pricing.
N.B.
I’m not going to cover keeping accounts, cash flow, VAT, etc. in this book as there are literally hundreds of existing books that already do that.
Activity #2: Fresh Face Mask
by Skin Bistro ( www.skinbistro.co.uk )
This is a simple recipe which you can make with ingredients bought at the supermarket.
You can choose from a variety of fruits, dairy or tea as the ‘liquid’ part and for the ‘dry’ part there is cocoa powder through to clay. It’s always good to pick your ingredients according to your skin type.
If you don’t use the whole preparation in one treatment, keep the rest in the fridge and use within three days.
Liquid part: 2 teaspoons
Dry part: 1 teaspoon
Recipes
Step 1. Mix both ingredients together until you get a smooth paste consistency. Apply to your clean, dry face. You can use the back of your mixing teaspoon to smooth the liquid onto your face. This works really well!
Step 2. Leave it for 10–15 minutes, until it’s dry. If you have dry or sensitive skin, leave it for less time (5–10 minutes), just so that the mask doesn’t dry on your face.
Step 3. To rinse it off, wet a face cloth with tepid water, wring it out lightly, stretch it and press it gently against your face. Leave it for one minute and then wipe the mask off. Rinse the cloth and repeat until the mask is completely removed. To finish off, splash your face with cold water.
Honey is a versatile addition to your mask and can be used for any skin type. If you suffer from blemishes or spots, Manuka honey may help alleviate the condition. Add 1/2 teaspoon to any of the recipes above.
© Skin Bistro UK
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