Wednesday, January 14, 2009

Banding Together

That’s the way it works. That was the concept behind shopping centers. United into one unit, sharing a big parking lot, attracts more traffic to each individual shop. It works.

The meer size, carries with it, a physcological impression of superiority. Individual shops, that might have a hard time attracting the shoppers, would find themselves reaping the benefits by joining together with several others shops, in one spot. Have you ever wondered why a store would put out twice the rent, just to be included in a shopping center? There must be a good reason.

That is what Judy’s Corner is all about.

I’m familiar with the rail but the rail isn’t all that particular about who is linked, where. If you fit into a wide range called ‘art’, then you fit,in their opinion. The webring is much the same. Not only do they not care about specialized categories, they don’t control who your neighbor is.

Again, that’s what Judy’s Corner is all about. Not only is it important to me, that it be only hand made crafts, listing on our front page, I also care to keep the categories, within the category, separated in some way, so as not to provide ready made competition. The very least, I can do, is put two crafter’s alike, on oposite ends of the board. What’s more, I’m talking about tangible products, not website desiging. There is a huge difference.

The bigger the crowd, the better the traffic for all. I’m working on that but not getting much cooperation, as yet. Odd, considering I’m offering this for free, want to help out and I know there’s a massive world of crafter’s out there, needing more sales.

If anybody has any suggestions, I’d love to hear it.

Mixing Plaster

(excerpt)
How to mix Plaster:

1. Always weigh out the amount of plaster you need, then look up the water by weight percentage. For example USG # 1 Pottery for making molds uses 70% water to plaster. So 10 lb. of plaster requires 7 lb. of water. First weigh out the plaster you need, take that amount and multiply it by .7,(point 7), (7/10) this gives you how much water to use.

2. Generally speaking the larger the percentage of water the softer and more absorbent the plaster will be. The harder the plaster the less water used.

3. Hot water will speed up the set time and cold water will slow it down.

4. Place the water in a suitable sized container. Always add plaster to water. Pour the plaster into the water and let slake for one minute. Mix by hand or with a Jiffy Mixer, being careful not to suck air into the plaster. When the mixture is lump free it is ready to pour; don’t wait for it to start to thicken.
(end excerpt)

This is a note from a supplier. In all my packed boxes from the ceramics shop, I have the complete charts for every variety of plasters and cements. I promise, as I continue to unpack and arrange, when I run across these charts, I’ll be back with the information.

After studying the formulas, years ago, I devised a shortcut which I describe in the ebook. I’ve never had a problem using my little shortcut.

Just a couple notes:
Hot water truly does speed up the setting time. I prefer room temperature, as then my timed activities are right on.
I have, due to interruptions, left plaster sitting for up to an hour, without the chemical reaction starting, simply because I had not begun to mix.
Plaster is not panicky stuff. :)
Always, after shaking in the plaster, let it sit (untouched) for at least 5 minutes before mixing. This is called slaking. It gives ever particle an opportunity to come into contact with water.
Mix for 3 minutes steady (5 minutes for hydrastone). Let sit for 3 minutes. Mix again for 3 minutes and pour.

If using plaster or hydrastone to pour into rubber molds, tap the sides of the mold to release trapped air bubbles.

Tax Headaches

I’m still facing a mountain of receipts and math. Why? Well, I’m just full of excuses: a move from one state to another, retrieving all the ceramics equipment out of storage, pneumonia (dragging tail), and a whole slew of busy, busy.




What ever the reasons, I resorted to a box just to make sure I kept receipts all together. I can’t wait until this part is over, 2008 was tumultuous and I’m ready to settle down and get back into a routine.



Is it just me, or do crafter’s just always have a head full of ideas and lists of things to do? I’m never bored. My entire life seems to have been spent in shoving things to the back burner while I work on something else.



That other instruction book is almost ready, the one that discusses things like rubber molds, the variety of rubber and how to use them, the variety of mediums used in molds, all that. Pictures, were the hold back, and I’m just finishing a custom job involving both rubber and plaster molds.



If you’re like me, it’s not a matter of organization, it’s a matter of having way too much to do in just one life time. Do you think we’ll ever get a handle on it?

Wednesday, December 31, 2008

Tax Time

It’s rolling around again. So I thought I’d spend a little time and remind folks about those things that can save them taxes.
If you happen to hold down a job, as well as working your crafts, you can file 2 forms:your regular 1040 or 1040a as well as the schedule C for business. There is so much, you can deduct through the business, you might just as well see how it works out. Right? :)
If you’re working out of the home, and even if you don’t but you keep books at home, you have a deduction, right there, for the business portion of the home expenses.
Uncle Sam, specifies that the space you use for tax deductions, can’t be used for anything but the business. So quarter off a section that’s just for your crafting, measure that space and claim it for the business.
From outside, measure the house and get the square footage. Then determine the square footage of your workspace (claimed). Let’s say you have a home measuring 2000 square feet and you use a small room, measuring 12X12 = 144 Square feet. Divide the 144 by 2000 to get 7%. 7% of the total overhead, is used strictly for business.
Now let’s say you burn 2 lightbulbs for an average of 2 hours per day. This takes a lot of estimating. Estimate, what percentage of the total electricity, is being used by those 2 lightbulbs. If your 2 lightbulbs is only about 10% of the total light bulbs being used in the house, then determine what percentage your lights would be for the total electrical use. Let’s say you run the dishwasher once a day, the clothes washer and dryer once a day, the vacuum once a week, the TV and average of 4 hours a day and the computer and average of 2 hours a day. I’d say those 2 lightbulbs are running somewhere in the ballpark of 2% of the total electricity. I’d take that 2% of every electric bill and claim it as a deduction.
Keep receipts for everything you use in your crafts. Right down to the scotch tape, ball point pen, paper, computer use, the gas to go get these supplies, replacement light bulbs, cleaning supplies.
Now how much do you use your car for business? Break that down to wear and tear on the car, plus the gas. It takes some brain cells but it’s worth every penny.
Now how about that lamp you use. Are you using it for the household or strictly for your crafts? If you’re using a lamp strictly for your crafts (crafts you intend to sell in your business), sign it over to the business and then depreciate it on your taxes. The table? Has it been absorbed by the business? Turn it over to ownership by the business and depreciate it.
Every penny you spend, in the name of creating for profit, is a deduction. Postage stamps, postage,and every supply or material.
If you’ve had a bad year, and spent more than you made back, you have a huge tax deduction that will lower your taxes all the more, giving you a bigger refund.
If you give something away, in the name of advertising or promotion, it’s deductible for it’s full retail value.
Put on your thinking cap, before you approach the taxes. Make a list of every piece of equipment, that is used strictly for the business: table, chair, rug,computer,paper,lamps, clamps,bottles,jars (seriously) pens and pencils, any patterns or reading materials (used for education in your niche), webpage hosting, bandaids, magnifying glasses, every hand tool….if donated by you to the business, depreciate it on your taxes.
Did you put product in a shop, the shop went out of business and you lost out on your product or any money for it….it’s a loss…list the loss. A water leak ruined your velvet? It’s a loss, list it. You went to a show and somebody walked off with one of your products without paying for it? It’s a loss, list it. You provided a sales rep with samples and he flew the coop? It’s a loss. List the full retail price.
Are you a ceramist? Do you make your own molds? Those molds have value, even if you made it yourself. That mold is a tool. Depreciate it. Make your own master blocks? That master block is not only a tool, it’s a copyright. Depreciate it. Without it, you’d lose out on business.
The point is to think as a business, not a hobbiest. If you’re in the business of selling your crafts, you’re in business. Don’t miss out of saved money.

Do I have to have a business license to claim it on my taxes?

For the sake of taxes, you don’t have to have a business license but you do need some sort of claim to business.
The first order of business, should be a separate bank account, strictly for your business. It doesn’t have to be a business account, you can also have a personal account for your business, by listing your name along with ‘dba Your business name’.
Keeping careful books for the business, is important. If the IRS ever comes to visit, they will be looking for the ‘business books’.
You don’t have to be formal, to be considered a business.

Tuesday, December 30, 2008

New Safety Law affecting Crafter's producing childrens Items

There is a new safety law passed that needs your attention. If you produce any product for children under the age of 12, you need to pay attention to this new law.

You can read the content of the bill at http://www.govtrack.us/congress/bill.xpd?bill=h110-4040


excerpt from cafemom



“We are doing everything we can to have it modified to include us, to be fair to us.. but at this point, we are being treated the same as big industry.. and while this will not affect them substantially, it WILL affect us. Hundreds, if not thousands, of crafters across our country will be put out of business. Those crafters are not only an intregal part of not only the local economy but they supply quality handmade goods as an alternative to mass produced and wasteful big box store goods. They will not be able to do what they do anymore if this law does not add an amendment for us. “



You can read the full article at http://www.cafemom.com/journals/read/1320853/H_R_4040_the_CPSIA_truth_

Sign a petition http://nationalbankruptcyday.com/

Another site for contacting elected officials and sending letters http://www.ipetitions.com/petition/economicimpactsofCPSIA/index.html

This is a costly law, for the small time manufacturer (crafters) and needs our attention.

True, this only affects those making items for children, but this should concern all crafter’s. In this law, we are included with huge manufacturers.

Friday, December 26, 2008

The Hardest Thing to do To Our Own Crafted Products

There are times when we simply have to be business minded, especially when we look to our own crafting as a means of income.

I love my knitting machine and boy, can I design clothing to fit any body. I love designing for the knitting and I adore some of those yarns. But, there was just one problem with it, it didn’t sell. I haven’t been able to spend time with my knitting machine, since 1987. I miss it, you bet but there are other concerns on the front burner.

There are so many crafty subjects, I’ve had to leave behind, things I love doing, simply because they didn’t pay.

That’s the hardest thing, when it comes to making any kind of living off your crafts. If you can’t stand back and look at the overall picture, you doomed to playing with your hobbies instead of succeeding as a crafter.

Checking out the booths at craft shows, isn’t going to help you either. You don’t know how well, those folks are doing.

Sit back and think. Make a list of every craft you can do, including the ones you’re not very good with. Among all that talent, what projects could you work with, perfect, that could provide that ‘great excuse to buy’? Coat rack, jewelry containment,bathroom organization,dresser top organization,kitchen organization, warmth, bedding, durability, reminders, that sort of thing. Call this utilitarian.

Thinking utilitarian, what (of your talents or designs) can you apply to make an item also art?

Once you’ve decided what sort of item, and the design, start practicing and perfecting. What ever you do, strive to be the best in that field. Experiment with color combinations. Work for those ‘oohs and aahs’ from the neighbors and friends.

Any item, you can offer in small, medium and large, do so. There is always the buyer who truly desires to buy but can’t afford the large one. Bring your product down to fit the market, instead of asking the market to fit your product. In these trying times, is no time for outright experiments just to see if it will sell.

Sometimes, we have to leave our own desires behind, in exchange for success.

Times are getting tough

Will it affect you?  


As crafter's, we already know that Christmas to mid summer is pretty much dead. So how will you survive these months?  


If you have the means to do it, I'd suggest checking out the national shows. If you happen to have a quality product, this is the place to make connections with wholesale buyers.


Some of us are ready for this step and some are not. For those who are not, this is the time to reflect.  


First, lets deal with the small, at home worker, with no expansion money or with no desire to expand. The next couple of months is a good time to reflect. How well did your product move last year? Did you make profit, or did you barely cover your costs?  


If your product was well received and you did make a profit, what can you do to offer more for the money, this year? What tweak, can you add to make your product more desirable? Is it possible to make your product more utilitarian? More polished, more finished looking? Is it possible to lower your costs? Is it possible to cut your man hours?  


If your product was not well received, now is the time to ask why. Is it possible that your product is not 'necessary' enough? People are tightening the belt and it's time to think in that pattern.  


If your product was not well received, it's time to think 'new product', but before you go off in that direction, examine what traits were appealing about your present product. Possibly the theme? Was it color?  


Let's say your theme was a cute little pig and everybody just went nuts over the design but didn't buy. Now let's say your product was strictly decorative. What can you do with that same theme and make something utilitarian. Something so useful, it helps with clutter in the kitchen or bathroom. How about other ideas, like a 2 tiered trivet for the dining table or a toilet paper holder or a special rack for spices? Something that gives a better excuse to spend the money, by providing a solution to a need.  
 


For those with the means to expand, the means to grow and push your business. 


This is the time to investigate the national shows. Which ones can report to you; the gross sales, the number of vendors during that gross sales. Check out crafting boards, with chatter about those shows. Are there any complaints? If possible, contact one of the vendors and ask if the show was a success.  


Once you've decided which show and signed up, get ready. Not only do you need a good showing of the variety of design or colors, that you offer (mass produced) but you also need to think carefully about your display. 


Remember things like 'blue brings out the sheen of silver or crystal' and 'white is best for multicolor'. The slightest things, make a difference.  


Get swatches of varying materials and see how they display your product, under vague lighting, like overhead florescent. What kind of light do you need, to set off your product. Work to make your product glow. 


Remember, you may wind up in the middle of a row, surrounded by all sorts of colors and shapes and 'crowds'. Crowds (purses, bags, strollers, noise) hurts your sales. Bring them inside the booth. 


Make your booth inviting, let your possible buyers come inside, out of the scramble. Present yourself and your product. Have brochures or large cards with your story, the story of your product, etc. Have handy price lists for the wholesale buyer. Offer individualized product, be willing to make small changes for large orders. Offer corporate gifts.(even in this economy, they still have those Hawaiian conventions)


Do not price your products for the retail market. Make your buyer ask. If an individual, buying retail, if they don't ask, they don't have the money anyway. If a wholesale buyer, they would prefer the retail market not see prices.  


Be sure to price your products, with wholesale in mind, to cover your materials/labor/overhead/plus a profit. Don't cut off your nose and remember you will be offering bulk discounts.  


If you have any of your product (which is being offered at the show), already in a shop somewhere, ask that shop owner for permission to take a couple photos of your product, sitting on their shelf. Use those photos to push the marketability of your product. Include those photos, in your brochure or a stand up display.  


Stand up displays, sitting behind your product on your show table, is a great way to display varieties of use or settings, for your product, without having to build displays that show off these varying settings.  


You have a lot of work, just getting ready for this show. It's your shot for the wholesale market and for expansion. Make the most of it. Be professional. Be proud of your product. Be ready with company headings on order forms, 3 copy so as to hand the customer his copy and still have 2, for yourself. Have plenty of business cards and copies of your large cards or brochures, with easy ways to make an order. Include all information, such as shipping costs and discounts. Qualify your buyers.  


For special orders, you want a deposit to cover your costs, in the event something happens and the order fails. You never know.  


Personally, I think it's better to wear quality clothing, than to 'dress the part', such as colonial dresses and bonnets. This is a wholesale market, you're after and they are business people. They are only interested in you, as a business minded person and not your personality. Of course, it's great to be friendly but not so friendly, you look like a patsy.  


In all that you do, it's not 'Me', it's 'My people'. It's nobody's business, if you work out of your garage. That garage is your 'studio', your 'warehouse', your 'workshop', your 'factory'.  


Don't be afraid to go for the quality buyer. They are there, I promise. While it's true, most of the franchised shops are buying from company warehouses that buy from China, there are also high end shop owners, who look forward to certain shows each year. I'd say to look for that good buyer, who is that one out of each 100, passing by your booth. Don't worry about those 99. :)  


If you're going to spend the entry fee, anyway, you might as well go for it 100% and arrange for your tables and lighting and display. All or nothing.

Monday, December 15, 2008

Drawing Your Attention to the New Group

We have a new group for craft business discussions. Click on the title of this blog. :)

How to Start

OK, so now the question is out there. How do I start?


Let's say you make a little doll. Let's get down to the nitty gritty and say 'clothespin dolls'.


There's hardly a market for something like a clothespin doll but that's what you make and you wonder if there is any possible way.


Actually, there is but you have to get even more creative. If you don't have the money to get someone to design and make you a heavy paper or cardboard display, maybe you can make the first one to get started. How about a heavy paper (something about half the thickness of cardboard. You've seen those displays.) Using the colored side, use a cookie cutter or any cylinder the right size, to use as a guide while you cut out holes with a Xacto blade. What you're creating is a display, to stand up your little dolls. Like those you see at the gas station, displaying cigarette lighters. You want to stand your little dolls, all in neat rows.


Fold the paper, so that it forms a shallow box, the sides and back folded down, to raise the display board up off the table. Then attach a back board that stands up behind the display. Just use solid colors to get you started.


Now you have a display. Fill that display with your best work then take a look at it. More impressive, isn't it.

Now let's say there is a gift shop nearby that can help you to sample out the product. That's exactly what you're going to ask, "Can we go at this more like consignment, long enough to test out this product. I need your help." There's bound to be at least one little shop that will give it a try. As long as they don't have to feel obligated, in case something happens, they will be more open to the idea.

Either that or a craft show, where you can set the display at the front of your table, to sample out the product.

You see, you just might have a product that nobody values, the way you do. If that's the case, you don't want to waste your time. Better to just make them as Christmas ornaments to give out, next year. If you're serious about wanting to make a living, using your own talents, don't invest in a dead product.

That, by the way, is my own terminology when designing a new product. Is it a 'go' or is it 'dead'? If it's a dead product from the get-go, I don't want to have anything to do with it. I'm not in the business of wasting money and time.

You literally have to be your own worst critic. At the same time, you have to give the product half a chance. Imagine it sitting on a shop shelf, along side other products similar. Will it look like junk or would it fit in nicely?

If you have a product that might sit in nicely, and compare with similar products, then run with it but don't bank on anything until you see that product perform for you.

One of the best ways to test out your product, is through friends, relatives and neighbors. Ask them, flat out, what would you pay for this item? Would it be desirable if you saw it in a shop? Would you ever want to collect them? Run this survey past as many people, as you can, before investing too much in it. Oh yeah, and be sure to tell your friends to be cruely honest.

So let's say you have a product that has come through scrutiny with flying colors but you don't have the money for things like shows. Can you make enough of the product, to make a nice display in a shop? Then go visiting to find the shop that will help you test out your product - sort of like partnership.

I've done it and with a very nice shop, in the bottom floor of an upscale hotel. All I had to do was talk with the owner. I let her know I was sampling the market. If she could handle just a few of a new design, and handle it like consignment (actually, we settled on handling it like an outright wholesale delivery BUT collection would happen after a few sales). This way, she didn't have to keep special books for me. I came back a couple weeks later, with more product, and to check on progress. She had sold everything I brought, I wrote out a receipt for her and she cut me a check on the spot. This way, she could handle it just like all her other buying.

Then one day, I took her a sampling of 2 sleep masks, for some folks across the country from me. I just told her, the folks wanted to test the market here and we could handle this the same way. That way, there was no problem with her tagging them and putting them out for sale. If they sold, she'd be buying them wholesale, when she saw me again and if not, I'd collect them and return them to the owners.

You have to be honest about what you're doing. It's not a sales pitch, it's a mini-partnership, to test the product. Most shop owners are willing to help, especially.....especially if you can promise them and exclusive, within a certain territory, in exchange for their help. They have competition and there's only so many ways to get out ahead. This is just one way to help them out, in exchange.

If you find yourself with a product that's moving, not only do you have your first wholesale outlet but you have testimony for the next shop. Go outside that promised exclusive territory, find a shop suitable for your product, and go visit. Tell them how well it's selling at 'so and so's shop'. Go from there and keep working it.

If you find that you can set up at a show, some day, make sure you aren't crossing your own customers. Don't sell the same product within that promised exclusive territory, right under their nose. If you do, you lose that outlet. Back scratching, all the way. Be friends with your customers and be on their side.

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