Exploring Opportunities

Hobby and Craft Shows

The importance of booth displays is frequently over looked. This is another time you want to look professional. You want to draw people to your booth. Think of ways that would entice people to stop by your booth. (We give out free flyers that have interesting and fun information related to our jewelry.) Draw up plans and experiment. You want people to walk into your booth. Tease them with something outside, or at the edge of your booth, so they have an idea of what you make. You could put up a sign, or set a larger piece of your work out by itself. Attend shows yourself to collect ideas and try to pay attention to which booths are the busiest and why. Draw a mental or physical sketch of their layout.

You should not try to work a show by yourself. You need some one there to relieve you occasionally for trips to the rest room, or to get a snack. Many times you are forced to park your car a good distance away after you unload and set up. We have developed a system now where my husband brings his bike. So, in case we forgot something, he can quickly zip to the car and back.

Shows can generate a large portion of your yearly earnings. They attract large crowds, especially around the Christmas holidays. If you also sell your work in consignment or other stores, or if you're starting to sell through mail order, shows also provide you with opportunities to notify people. (On our flyers, we list places that sell our jewelry regularly.) However, shows have become very competitive and difficult to get into. Some people think they have saturated the market, and there are too many of them. They are also very expensive to enter. You often must pay at least $100, plus you need tables, a tent, and other supplies to professionally set up your booth. If you're not sure you're ready to put a lot of expense into art shows, try doing a small one during the Christmas season. See if you can borrow tables from people and hope it doesn't rain (a tent can cost from $100 to $800). If all goes well, then gear up for next season and go for it!

Consignment

Since the shop pays the rent, and for some one to sell your merchandise, many of them require 50% to 35% of your total sales. However, don't let this stop you from considering the opportunities of consignment. Simply mark up your items accordingly. If you want to sell antique china, and you need $10 for a vase, and the shop requires 50%, then you would sell the vase for $20.

Many consignment shops and galleries are choosey about who they do business with. As with shows, you may be asked to submit slides or photos. They also may want a resume or bio (write up) about you. Then they have a committee review your work and decide if you "fit in," and if your work will sell. Don't become discouraged if you are not always accepted. Your work may not be appropriate for their clientele, or there may too many items that are similar to your's. Keep looking.

Be careful when doing consignment, however, especially with businesses that don't exclusively deal with consignment items. I can't tell you how many times I have been cheated. Eventually, I've always gotten my money, but only after months of phone calls, letters, and in some cases threats. If you still want to do consignment with some one, but you're not sure, consider writing a contract stating how often you will be paid and how much interest they'll owe for late payment. If they refuse to sign, then you probably shouldn't trust them.

As you may know now, there are good points and bad points to consignment. But, if you work with a reputable retailer, and find a place where your work "fits in," then starting your hobby or craft business through consignment sales is an excellent way to start.

Renting Space

As the renter, you are responsible for setting up your display, pricing, and keeping inventory in stock. Peg boards are very handy. You can paint them, trim them with wall paper, and add shelves. Just like the shows, you need to attract people to your display. Look around at other renters for ideas. Then experiment!

Renting can be an expensive way to start out. You should not immediately expect the rent to come from your profits. But, the convenience of having someone sell your merchandise, accept checks and credit cards, and paying sales tax can't be beat.

Flea Markets

Fees for space varies between $12 a day for a table (they furnish), and $150 a month for a walk in booth and storage space. During the Christmas season, rates usually go up. All flea markets have an office. Call first and find out what you need to do. Very popular markets may have a waiting list.

I honestly cannot recommend flea markets for crafters, though collectors of items such as antiques often do well at them. For many people, a trip to a flea market is a social event. They aren't necessarily there to buy anything. People are also there to look for "bargains." Why should they pay $10 for your hand painted t-shirt, when they can get a decorated t-shirt (made in Japan) for $5 from another vendor. They don't care that yours is painted by hand, and the other was mass produced in a factory. Another draw back to flea markets is, to do well, you need to be established. That means being there every week. This would allow you to work at home part of the week, but three days of that week you'd be out at the market.

Mail Order

To start out in mail order, you don't necessarily need to spend a large amount of money on a slick, glossy, color catalog. A simple double sided piece of paper can list your items along with a description of each. Or, if you feel illustrations are necessary to communicate what you're selling, you could include a sketch of each item. Perhaps you know some one with enough talent to draw illustrations for you in exchange for your merchandise. If you have access to a camera and computer, you could take photographs and scan them. Once you've scanned the pictures, they could be used just like clip art. A small "home-made" brochure, along with an order form, and cover letter, and you're ready to start.

Next, you have to find customers. This can be done by putting an ad in a related magazine or newsletter. You could also check your local library again. They can provide you with addresses divided by zip codes. Names are not included, but you can just address mailings to "current resident." If you also do an occasional show, that is a perfect time to hand out information or ask people to sign up for future mailings.

Mail order could lead to a much larger income than shows and consignment provide. However, though no business venture will be an over night success, mail order success will often take much longer than other endeavors. Most established mail order businesses have been in business for dozens for years.

Home Parties

Well, the same routine can be used to sell your merchandise. You can start by scheduling a couple of parties with friends and family. More than likely, they are familiar with your work and may have even bragged to their friends about you. This provides them with a chance to show you and your talent or knowledge off. You can provide door prizes, a special purchase with purchase, or a gift with purchase as incentives. I've done a few of these myself during the Christmas season, and have earned as much as $150 for only a few hours of my time. For the beginner, I suggest at least trying a few. And, if you have a knack for selling, and dealing with people, you could do very well.

The problems with home parties are probably already known to you. Sometimes the hostess may feel she's forcing her friends into something. Often people will tell you they'll come, and stand you up at the last minute, which can limit your sales, and also insult the party giver. The final reason to be leery of home parties is scheduling new parties at a party. The system is suppose to regenerate at least one party from another, but you're not always that lucky. If possible, try to schedule your's around the holiday season.

Boutiques and Stores

When selling to a shop owner, it is very important to portray that professional image which was discussed earlier. Business cards, price lists, and pictures are invaluable tools. Be prepared to have wholesale and retail prices allotted for your merchandise. Since they buy in large quantities, store owners expect to pay less than your retail price. Try to come up with the lowest price you can while still making a profit. (See Pricing Your Merchandise.) However, it is not unreasonable for you to expect them to purchase a dozen of one item at your lowest rate. So, on your list, you could have prices divided into quantity rates.

Cold calls are really about the only way to go when selling to businesses you don't know. If time allows, check out their store first to make sure your products would fit their needs. Maybe start with a phone call, and follow up with a visit. Whatever you do, try not to visit on a weekend. These are their busy days, and they won't have or make time for you. You may have success just by walking in from the street unannounced. This way they don't have time to make up excuses. Expect to make more than one visit to a store. Frequently, they ask you to come back with more of one of your products. They may want to wait until it is closer to Christmas. Don't let this discourage you. Follow up! Send them more information about you in the mail. Call them every few months to find out if they're ready to buy yet.

Though time consuming, you can make some very large sales when selling to boutiques and other shops. The time you put in will seem well spent when you close a $300 sale. (I've even known of one energetic crafter who sold her work to a local department store and grossed $5,000!) Remember though, these shops are usually looking for unique merchandise. If you're selling your work to every shop within a ten mile radius, they'll no longer consider your merchandise unique. So, traveling around a bit is usually necessary. (If you're planning a vacation, this is a great way to make some contacts, and a tax write off at the same time.) With enough time and energy, selling your merchandise to shops and boutiques is another way you can earn money with your talents and interests.

Opening a Small Store in Your Home

Having a shop in your home provides the luxury of steady customers, and the convenience of working in your home. This is a new trend, especially around older neighborhoods. Rules on zoning vary, so make sure you thoroughly research zoning restrictions before going too far. You will probably have to write up your proposed plan to be reviewed by the local zoning board. Written approval from your neighbors would also be of help. Make sure they realize you are talking about a small shop.

Selling directly from your home can be a great alternative for the home bound crafter and hobbyist. Low overhead, and freedom to work when you want to is very appealing and can also be very profitable. However, be prepared for rude customers to come knocking on your door even though the sign says CLOSED. If you like your privacy, then this alternative may not be for you.