Treasury Sunday, January 13th

Every other  Sunday I like to give thanks to some of the curators who have included my products in their beautiful shopping collections, known as treasuries on Etsy. Please take some time to view these gorgeous treasuries and to shop the stores!

January Fragrance of the Month - VANILLA TOBACCO!

I have to admit - Vanilla Tobacco is not a fragrance I could have concocted on my own. A coworker came to me one day saying that she fell in love with the cologne a family member of hers was wearing, and could I please replicate it? The fragrance was Tobacco Vanille, a unisex scent from Tom Ford.

Really? Tobacco? I'm sure this is what you're thinking.  I did too at first, but then I began thinking about the tobacco plant, not the burnt cigarette. I prefer to think of the houseplant Nicotiana, a cousin to the southern crop. Thinking of tobacco as a plant was easier to think of it as a fragrance, slightly floral and slightly herbal. 

My first attempts at the fragrance were too vanilla.  It took a few attempts to find the musky nuance. While the Tom Ford version speaks of notes of honey, it was the touch of Sandalwood my blend needed to find the undertones. Top notes begin with Tobacco, which is actually an herbal, slightly floral scent. Don't think of Grandpa's pipe here!!! Middle notes bring out my rich Gourmet Vanilla, and the candle lands with bottom notes of Asian Sandalwood. Now, this is my favorite fragrance, and I'm so glad to offer this custom blend to you as the January fragrance of the month! 

All January, Vanilla Tobacco is offered to you in all home fragrance products and 10% off. For a current listing of products, please see the Fragrance of the Month section of my shop.

Happy New Year!

Dorene

Etsy shop review - The Beetle Wing/Kelsey Payton - Jan 6th

Today's Etsy shop review features Kelsey Payton of The Beetle Wing.  Please take a moment to view these unique crafts!

 I love animals, I always have ever since I was little. My parents let me own pretty much any animal I wanted, and I've always been fascinated by birds. Anything with feathers I just love.

Arrowhead and Braided Hemp Choker

So I have had the chance to own a variety of chickens, ducks, pigeons, geese, guinea, parakeets and peafowl throughout my life. At my shop, I sell feather earrings and other animal or nature inspired items. Shell, Bone, Wood, porcupine quills and more.

Iridescent Beetle Wing Earrings

And I'm constantly experimenting with new materials and new designs. I can't stay hooked on just one thing, I have to explore all of the possibilities! Nature inspires me in almost all of my projects, It is a major factor and all of my projects. Nature is so full of interesting things.

Brown Seashell Earrings

I'm proud of every item I make, but I have to say I'm most proud with the feather earrings I make. I take a lot of time making sure the feathers look just right and they are durable to wear.

Long Pigeon Feather Earrings

Outside of Etsy, I'm finishing school, taking care of my pets and just trying to enjoy life. My main hobby of course is Etsy, but I also collect salt and pepper shakers and do Photography. I don't have a full time job yet, but I'm hoping after school I can become and Art teacher or professional photographer.

Dried Sweet Gum Seeds

You can find us on facebook here: http://www.facebook.com/KelseysCreationsMore?ref=hl 

I'm also hoping I can get a YouTube account soon for videos of my birds and DIY crafts!

2012's Top Ten

I'm pleased to introduce to you today's Top Ten List (with a nod to Kennedy Center Honoree and fellow Ball State alum) of my best selling fragrances:

#11 - Orange Blossom and Pumpkin Chai Tea

There were quite a few ties in this year's list, so I chose to list my Top Eleven fragrances.

Orange Blossom is a custom blended fragrance I created early in 2012. I had read in Perfume & Flavorist that 2012 fragrance trends came from a perspective of "Wild Luxury Consumer"  Orange Flower was second on the list. Blending orange and jasmine fragrance oils, I found a fragrance that my Florida customers consider to be just like the local fruit trees. Personally, I love this scent in the body fragrances I've developed.

Pumpkin Chai Tea was another original creation from October 2011.  I'm not sure I can tell you where my creativity for this originated, but I remember I was looking for a more unique pumpkin fragrance than pumpkin pie. Pumpkin Chai Tea was the first of my custom blends and has been a top seller since that first fall introduction.

#9 - Apple Harvest

Apple Harvest is a true apple orchard fragrance, combining Red Delicious, Macintosh, and Granny Smith scents. If you love a trip to your local orchard, you will love this fall favorite!




#8 - Gourmet Vanilla

What can I say? Vanilla is the most popular candle fragrance across all candle companies, so the challenge is to find a vanilla that is special to you. Originally, I called this fragrance Very Vanilla, because that's what I thought it was. But as I was rebranding my product in the fall I realized this fragrance smells like a vanilla extract, so why not rebrand the scent as Gourmet Vanilla?

#6 - Orchid Rain and Rum Raisin

Usually, I am not a floral person, so it's a challenge to me to include floral scents in my collection. What I love about Orchid Rain is that is certainly a floral, yet the spa-like additions of bamboo and watercress bring a light and powdery finish to a scent that isn't overly sweet.

Rum Raisin has become a holiday classic, especially to my local customers. Combining rich caramel with butterscotch and vanilla cream, this luxurious fragrance reminds me of my favorite bread pudding!



#4 - Home for the Holidays and Stormy Weather

Both fragrances are similar to the national Y***** C*****, but hand poured for a personal touch! Home for the Holidays combines cinnamon and baking spices with a touch of pine and smell just like cookie baking day during the holidays!

Stormy Weather became an instant best seller once I entered the wholesale market. Similar to Stormwatch, this unique fragrance combines lavender and ocean scents with a slight hint of spice and musk. It was a favorite of mine before I began making candles, and I was so glad to find a similar fragrance to offer to you!


#2 - Cinnamon & Balsam and Cranberry Pomegrante

Cinnamon & Balsam is a custom fragrance I created last year.  True story - I was attempting to create a Cinnaberry fragrance, and used Balsam rather than Bayberry.  Well, sometimes best sellers are inspiration and sometimes perspiration! After much sweating and stewing, I decided to offer the fragrance as the mistake it was, and I'm so glad I did! It is a strong fragrance and not for the faint of heart, but absolutely wonderful for the holidays!

Cranberry Pomegranate is an unusual fruity fragrance for the holiday season. With top notes of the citrus fragrances it's named for, Cranberry Pomegranate has a secondary top note of bubbly champagne. For those looking for a fruity alternative to holiday fragrances, Cranberry Pomegranate is a perfect choice and can freshen your home year round!

And now Number One on Today's Top Ten.....

LAVENDER

Of course. What else could it be? My Lavender is admittedly more floral than grassy, yet conveys the same sense of clean you'd expect from this eternal favorite. I wish I could invent a scratch & sniff application for your computer, your phone, or your tablet so you could smell on your own, but for now I'll have to rely on selling a few to you!




So what's your favorite? What are your predictions for the 2013 Top Ten list? My offer to you, my loyal followers, is 15% off any of the fragrances listed above next time you shop D'Lites by Dorene. Just use coupon code BlogLover at checkout!

Happy New Year!

Treasury Sunday - December 30th

Every other Sunday I give thanks to the curators who have featured my products in their gorgeous collections, also known as treasuries, on Etsy. Please take some time to view these creative products!

Etsy Shop review - Illusion Creations

Today I'm pleased to introduce to you Rosi with Illusion  Creations. Please take some time to meet her and view her beautiful creations!

Well, I'll start by saying that I'm a retired senior who has always enjoyed making things. I retired from the corporate world 3 years ago. I have 3 wonderful children and 3 even more wonderful grandchildren and expecting another in the Spring.

Fall Silk Floral Arrangement

While visiting with my sister-in-law at Christmas 2 years ago, she showed me these beautiful ornaments she had made and I thought, "ooh, I can make those and give them as gifts", which I did.  

Gold Christmas Ball Ornament

Everyone was amazed by them and kept telling me you should sell them. I had come across Etsy while doing some Christmas shopping.  By the time I decided to opened a shop it was after the holidays, too late for the ornaments, so I opened listing floral arrangements. By August, I was ready for my ornaments.  My shop has a variety of items. Besides my floral arrangements & Christmas ornaments, I also sell frames, mirrors, boxes, dressy hats for women, etc.  I also have inspirational poems which I've written myself.  My creativity has no rhyme or reason.  I could be sitting watching TV and something pops into my head, this also happens when I'm reading before I go to sleep.

Wide Brim Hat

My shops are my hobby (although I love to read) and also part of my income. Social Security is not 
enough to live on.

Keepsake/Trinket Box

The item I'm most proud of is my inspirational poem because I wrote it myself.

Inspirational Art Frame

Selling Wholesale - Little Problems and Lessons Learned

One of the lessons I've learned from selling wholesale is that little problems become big problems, and big problems become bigger problems.

When I started selling candles, I did so because 1.) I found I was making too many to burn and to give away; and 2.) my son had graduated, my child support went away, and I needed the additional income. When I started selling wholesale, I did so because I thought the additional revenue generated from larger sales would bring in additional income.

What I learned firsthand from starting my business was that it takes money to make money. Oh, I knew that, I thought to myself. But I didn't realize at the time that little of the sales generated actually made it back to my personal cash flow. Revenue generated simply went to purchasing more supplies to generate more sales. So, it should stand to reason that it would take more cash flow to begin selling wholesale and that it would take time for everything to balance. Bigger orders simply means more revenue being spent for supply inventory.

Lesson learned from big problem #1.

Along the way I've learned lessons from problem #2 - your product has to be immaculate. Not that mine has ever been substandard, but sometimes I'm too close to it to see the minor imperfections a shop owner would see. (Which is also why I always have someone proofread any truly important piece of written word at work!) So, I've quickly learned to improve the packaging of my product and how it's shipped. People want hand crafted items, as long as the items don't look hand crafted.

This weekend I lost over $375, and I learned hard lesson #3.

There were are few imperfections and an item was broken; the buyer was completely unsatisfied and would not accept replacement products. She only wanted a total refund. And I had no policies to protect me.

No policies about refunds. No policies about returns. I called the buyer to try to correct the situation, because from my perspective every argument I was given could be fixed. But it didn't matter.  From her perspective, I needed to play with the big boys.  And if Yank** Cand** could give a total refund, so could I.

I'm not here to cry (although I've done a lot of it), and I'm not here to encourage negative conversation about how (COMPLETELY) unreasonable she was. But I am here to share the lessons I've learned. I know the moans and groans we all experience when the individual buyer complains, wants a lower price or refund, or leaves negative feedback.  But until you are able to deal with (and afford) the "small" problems the individual buyer brings, it's going to be challenging to deal with (and afford) the "small" problems the wholesale buyer brings.

So, now I have my policy on refunds. I have my policy on returns. Without trying to be unreasonable, I don't offer them, but will offer replacement product in its place. The policy will be written on all order, invoice, and shipping documentation. At least until I can afford to lose another $375.

What lessons have you learned?

Treasury Sunday - December 16th

Every other Sunday I give thanks to curators who have included my products in their treasuries, shopping collections on Etsy. Please take some time to view these creations and visit the other stores and their wonderful items! Which is your favorite?

Decorating with Candles - Holiday Style!

Most of you probably have your homes decorated to the hilt this holiday season, but there may be a mantle or tablescape that needs just a touch of warmth.  That's where candles can come to save the day! While boutique, fragrant candles are meant to stand on their own, inexpensive candles from your local low cost department store can be decorated with a few simple items from your craft store to create a unique look for your home!

Cranberries are an inexpensive and colorful decoration this holiday season. Find a shapely vase, fill with cranberries and water, and top with a tea light.

For a more sophisticated look, fill a bread tray or other piece of your coordinating dinnerware with cranberries and set a few small pillar candles evenly spaced.

To create this even more elegant look, place roses at the bottom of a straight hurricane vase, fill two thirds with water, and place a handful of cranberries, which will float to the top. Set your tea light atop and voila!

Even though this concept is not a holiday decoration, it could be easily converted by using colored sand to coordinate with your festive decor!

If your look includes a lot of greenery, wrap leaves around pillar candles and tie with a colorful bow! I think this would be lovely in Hanukkah blues!

For a fun look, use a hot glue gun to adhere candies to a pillar candle. I love the look of the peppermints, but  I think the look in ribbon candies (my favorite) would be uniquely elegant!

And for the simplest look of all, use a simple white plate with simple white votives and candies sprinkled around. Less than 60 seconds, and you've created a festive centerpiece for your home!

For more ideas, please see my Pinterest board. 

Happy holidays!

Dorene

Etsy shop review - Janet Davis of JD's Bow Creations

Today I'm pleased to introduce to you Janet Davis of JD's Bow Creation. Please take some time to learn more about her and her wonderful creations!

I am retired from a local hospital where I worked for 32 years as an Administrative Assistant.  I started my business quite by accident and for something to do with my free time.  A friend and I decided to start up a baking business so we signed up for 6 local craft shows.  We made a variety of candies and brownies, cookies, coffee cakes, etc.  and decided to sell gift trays filled with truffles, assorted chocolates and fudge.  The trays weren’t selling very well so I learned how to make bows to put on the trays hoping to market our business a little better.  The bows were such a hit that we started selling gift trays by the bow that was on them instead of what chocolates were on the tray.  At the end of our craft show run, my friend decided that we weren’t making enough to cover our expenses so we abandoned the baking business.

Valentine's gift wrap bow

I had so much fun making bows and there was enough interest for my bows that I wanted to start a different business.  Another friend told me about Etsy so I checked it out.  I set up my policies and shop information on December 27^th but officially opened my “doors” (complete with inventory) on January 15, 2012.  I started with Christmas bows and expanded to Valentine’s Day, St. Patrick’s Day, Weddings, Baby showers, Memorial Day/Fourth of July, Birthdays, and Special Occasions such as house warming gifts, graduations, anniversaries, etc.

Wedding/Bridal Shower silver bow

My mom taught me how to knit, crochet and sew and I taught myself how to do many more crafts.  I helped my sister, who has her own floral business in her home, make corsages and boutonnieres for weddings.   I also taught myself how to frame pictures by picking out matting, glass and frames.  I discovered I had a good eye for color and with my knowledge of other crafts, my artistry started shining through.

Spring peach all occasion gift bow

My designs start with one item –it could be a flower, button or ribbon – and grows from there.  I never have a set plan of what my design will look like but it ends up in a bow.

Birthday bow with a tiger perspective

I am equally proud of all my bows but I thought this bow turned out very elegant for an ivory wedding:

Satin rose and pearl bow

You can find more of my fun creations on my Pinterest page:

http://pinterest.com/jdsdesigns/gift-bows-from-jd-s-bow-creations/

Holiday Shopping at D'Lites by Dorene

The holidays seem to come earlier and earlier every year. Our retail environment seems to believe that opening earlier every year is a way to satisfy consumer demand, when in reality, we continue to look for gifts that are more unique and personal than big business can deliver. Not everyone is situated to deliver hand made gifts of their own. That's where D'Lites by Dorene is here to help. In addition to the high quality candle and home fragrance products you've come to know, I'm pleased to introduce to you several gift ideas available to you now:

Pine Cone Firestarters

While not new, this is a concept I've been working on over the past year. As a gift that keeps on giving, my pine cone firestarters have been triple dipped in my most popular seasonal fragrances and are wicked the entire length of the cone. My pine cones have been locally harvested and dried over a year to light perfectly and to start your home fire with a fragrant burst!As with my candles, the wax of the pine cones is a custom blend of paraffin and soy waxes. Paraffin is used to hold the strong colors you see and scents you smell. Soy is used to create a product more eco-friendly to our environment. Together, a quality product is created and tested to be the best possible for you and your home.

To ensure your order can be filled and mailed to your recipient by Christmas, please place your order no later than December 10th.

Beyond Candles: Bath & Body Fragrances Looking for a personal, affordable gift for your neighbor or coworker? Look no further than the bath & body fragrances available at D'Lites by Dorene. While candles and home fragrance products are a large portion of my business, I also delight in creating body fragrance products that are unique  from the commercial market. This holiday season, I have new and afforable gift ideas ready for you: Gift set of lotion bars, rose petal soaps, and candles - New! These gift sets are the perfect accompaniment to your powder room or indulgence for a romantic bath. Create your ambiance by lighting this cute 2 oz candle, then place rose petal soaps in a pretty soap dish with these small lotion bars nearby. Rose petal soaps are made to be disposed after each individual use and provide a dainty look for your powder room. My lotion bars are made with locally harvested beeswax and emolient shea and cocoa butters. For a romantic evening, light the candle and float the rose petals in the bath tub for a relaxing soak. Let the lotion bar melt on your skin for a light and smooth protective barrier on your skin. All of this is yours or a unique gift for only $16. Check my website for color coordinated fragrances and gift ideas. All gifts can be mailed to your recipient and can include a gift tag.  Fragrances of the Month: Cinnamon & Balsam, Snickerdoodle! Throughout December, I'm offering my two most popular holiday fragrances at 10% off! Cinnamon & Balsam is a custom blend of two popular fragrances found this time of year.  If you like a strong, pine fragrance blended with cinnamon spice, these candles are for you! Cinnamon & Balsam is a good, modern fragrance for those who like to experiment and be on the cutting edge. Snickerdoodle is also a custom blend based upon the classic Christmas cookie (well, at least it is in my household!). Snickerdoodle is a good fragrance to create the cozy, comfort of home feeling we tend to gravitate toward this time of year. For information on product availability and prices, please see the Fragrance of the Month section in my Etsy shop!

Treasury Sunday - December 2nd

Every other Sunday I give thanks to the curators who have featured my products in their beautiful shopping collections on Etsy, called "treasuries." Please take the time to visit these gorgeous collections and start your holiday shopping!

Selling Wholesale: Thinking about Costing and Pricing

One of the first challenges with any business is determining your pricing structure, and many businesses go under because they are not charging enough. If your marketing strategy is to be a low cost leader (think Walmart) this may work for you as the volume of sales will drive your revenue. But when starting a business, we're often think about any sales, not yet volume of sales.

The first step in determining pricing is to be knowledgeable of your costs. Be sure you have a clear knowledge of cost per unit when calculating your product costs.

For example, assume I make a necklace comprised of three simple pieces.  Piece A is available in units of 10 for $1. Piece B is available in units of 12 for $1. Piece C is available in single units for $1.  Your units costs are:

Piece A = $1/10 = $0.10
Piece B = $1/12 = $0.08
Piece C = $1/1 = $1.00

Now, assume the necklace needs 7 units of Piece A, 5 units of Piece B, and 3 units of Piece C.  Your products costs are:

Piece A = $0.10 x 7 = $0.70
Piece B = $0.08 x 5 = $0.40
Piece C = $1.00 x 3 = $3.00

Total cost = $4.10

But don't forget about labor and overhead costs.  Yes! You need to pay yourself! This example is going to assume $10 per hour labor, although I know your time is valued at much more than this!  Assume it takes 15 minutes to make one necklace. Total labor cost for one necklace is:

Labor = $10.00/4 = $2.50
Add product costs = $4.10
Total cost so far = $6.60

Then the dreaded overhead costs: rent, marketing, insurance, utilities, machinery.  For easy math, let's assume these costs equal $10.00 per day.  Total overhead cost to make one necklace per day is:

Overhead = $10.00
Add labor costs = $2.50
Add product costs = $4.10
Total cost so far = $16.60

Your wholesale price should be at least twice your costs.  Therefore:

Wholesale price = $16.60 x 2 = $33.20

Whoa!!!!! That's what I'm selling my necklace for as retail!!!! It is so easy to fall into this trap, because we know what a similar product may sell for in similar online shops, and even in our local department store. The online competitor may sell for $25.00 and the local department store for $15.00.  But, you say, mine is hand crafted with better quality items. Cost is not always a deciding factor with the customer, sometimes quality is.  But you still need to be competitive.  That's where selling wholesale can help you break even and become profitable.

Let's use the same example. You know you can make a single necklace in 15 minutes, but because of working in larger quantities, you can make 6 necklaces in one hour.  Now, your costs looks like this:

Product costs = $4.10 x 6 = $24.60
Labor costs = $10.00
Overhead costs = $10.00

Total costs = $44.60
Per unit cost = $44.60/6 = $7.43
Wholesale price = $7.43 x 2 = $14.86

Now you're competitive! The necklace can be sold for retail price of wholesale x 2 = $29.72, which I would round up to $30.00.

This is truly a contrived example, but it demonstrates what I like to call Economies of Time. We're familiar with Economies of Scale, in which buying larger quantities drives down the cost per unit.  With Economies of Time, doing repetitive tasks successively can help you to build speed, allowing your to accomplish more per units of time.

But I also use this example intentionally, as it's the model on which I base my pricing.  I sell my candles wholesale for $10 each, and cases of 12 for $120.  Pretty simple math.  But it takes just as long to make 12 candles as it does to make 1.  (Think preparing a batch of cookies then putting only one into the oven). I use Economies of Time to provide a 10% savings to the buyer if each case is one fragrance only.  I'm willing to pass my savings in time on to the buyer and sell one fragrance case for only $108.00.

Now, as someone just beginning to gain wholesale orders, I realize it will take some time for a buyer to want to buy an entire case of one fragrance. But I believe they will see this as an incentive as as they become more comfortable and intrigued with my product!

What also goes unsaid in this example, is the extra costs of supply inventory for unmade product. Using my batch of cookies example, when I only bake one cookie, I have not only excess flour, sugar, and butter (supply inventory) but excess unbaked cookie dough (product inventory). This carries a cost as well as the excess flour, sugar and butter are opened and will only be used when I make another batch (sunk costs), and I can't sell the dough until I bake again (inventory).

This week I encourage you to think about you can maximize your time by producing in larger quantities. Even in the example above, each necklace will be slightly different due to the natural variance in hand crafted items. But if our goal is to make money from our craft, we need to analyze the costs associated with our business.

I welcome your thoughts, feedback, and questions. Until then, happy sales!

Dorene

Etsy shop review - Katya of Katrinmania

Today I'm pleased to introduce to you Ekaterina Pavlolva (also known as Katya) of Katrinmaina. Please read more about her wonderful work here:

My name is Ekaterina, but all my friends call me Katya - it is shorter and everyone understands the spelling :)

I felt I could create something all my life, but I found myself as an artisan only two years ago when I attended felting workshop. We were going to "draw" the picture using the colorful wool. I took a piece of wool and....I fell in love deeply, completely and forever :)

Felted wall hanging - The Owl

Since that time I always "roll" something, because felting (wet felting) is a process including rolling the wool many-many times.

Felted brooch - Chysanthemum

It is difficult to say what exactly gives me creativity. I think it is something inside my mind -feelings... or an idea... 

It comes and sweeps you out of your feet suddenly and later you just see the result of it in your hands.. It can be a scarf or wall hanging or...both :)

There are a lot of examples in my etsy shop :)

The Indian Cress - felted wool necklace

My favorite item is this picture

Felted Still Art

You can find my products among my friends, relatives and since I`m on Etsy - my customers :)

Also some you can find in my web album:

https://picasaweb.google.com/KulikovaKatya/HandFeltedWool

Outside of Etsy I`m a housewife right now. I`m bringing up my daughter (she is 5), my son (he is 4 months) and my husband :)

You can also "like" me on facebook :)

http://www.facebook.com/pages/Katrinmania/358089880898546

Thank you so much for your time to read my Hamlet monologue and have a nice day :)

Katya

Selling Wholesale: Being Prepared

I began thinking about selling wholesale in early last summer. How I made that decision was based upon my desire, not only to get more product into stores, but to increase my revenue. Yet, for as much as I write about being prepared and making sound business decisions, once I entered the wholesale market, I found I was not as prepared for selling wholesale as I thought I was.

Here's how it started: I knew I needed more revenue. I know it's just as easy and no less time consuming to pour five candles as it is to pour one. So my logic at the time told me that if I could sell more candles, I could make more money! And working full time, I did not have the time to market my product, so why not find someone to do that for me?

But here are some issues I was struggling with:

• Branding - I wasn't happy with my branding. Like most entrepreneurs, I did not have a lot of revenue to invest in graphic design. But in my for me, much of my product line needs to be sold with graphic design. Until you can smell through your computer, I needed something else to help me sell my product.
• Inventory or financial management - I didn't have an inventory or financial management system. Yes, I promote the fact that I create my product at the time of order. And yes, I was keeping track of my revenue and expenses. But I did have a small inventory that I kept for craft shows and farmer's markets.
• Promotional materials - If you followed my newsletter series, you know how much I enjoy marketing. I didn't think developing promotional materials would be too big of a task.
• Policies - I had a vague thought in my head of $100 minimum orders and payment upon order, but that was it. I hadn't thought about policies for samples, shipping, order processing, returns....the list goes on and on.

I had approached some local stores before about selling my products. I had even sent sample tea lights and basic information. But I wasn't getting anywhere. When I found a site to place a free listing for representation, I decided, why not? 

So, imagine my surprise when two days later, a representative did in fact contact me about repping my line!

My wisdom to you today is to be prepared.  If you're struggling with an aspect or two of your business as it exists now, the problem will only magnify when your sales become larger. Take time out of your busy schedule now to identify a problem. Maybe you know you have an issue but can't identify exactly its cause. Or identify where you have an opportunity to do better. Then take time to think through how to resolve it. Reach out to other business owners if you need to. Ask for help from friends. But don't think that by waiting "until you get that large order" means you should avoid dealing with it now.

With Thanksgiving and the holiday shopping weekend ahead of us, I know many of you won't have as much time for my weekly business lessons. The next few weeks, we'll address each of the issues I listed and how they were resolved. If you have struggles with any of these problems or other issues and concerns, please let me know.  Let's work on them together over the next few weeks and start 2013 with a bang!

Treasury Sunday - November 18th

Every other Sunday I give thanks to those curators who have featured me in their gorgeous treasuries, shopping collections on Etsy. I hope you enjoy these wonderful collections, visit the curators, and shop the stores!

Wholesale vs. Craft Shows

Last week I introduced the next topic in my business series as Selling Wholesale.  I had been debating about how to move forward and which topic to broach first, when, lo and behold! Yesterday I received an email from Arts Business Institute with their thoughts on this very subject!

The theory of their blog post compared the risk and potential of craft sales to the risk and potential of selling wholesale.  At a craft show, it can be difficult to predict what your sales will be.  If you have products remaining, you know what your sales potential of that product is.  But if you sell out, you have no basis upon which to calculate your potential future sales. Using an 80/20 rule (80% of your sales come from 20% of your products),  knowing your potential can help you plan how much product to make with a level of accuracy an unknown cannot.  Because you may never know if you could have sold more, you will never know how much money you could have made.

Also, you have no potential of unsold product as well as the cost of additional inventory.

Selling wholesale, particularly at wholesale trade shows in their example, you only have to make one item to showcase as sample inventory, from which you will sell.  If you get orders, great! Your return on investment (ROI) is great.  For example, your sample costs $10 to make. You receive an order for 100 units. Your ROI is as follows:

1 (sample) x $10 (cost) = $10
100 (units) x $10 = $1,000
ROI = Sales divided by cost
ROI = $1,000/$10
ROI = 100

In other words, for every unit made, you receive 100 in return.

If you make no sales from an item, you're only out the cost of one item, compared to the cost of all unsold items you would have from a craft show.

In essence, it's much easier and less expensive to change your product line when selling wholesale. Because you can gauge if something doesn't sell, you only need to product one item to replace it in your inventory.  And you don't have excess inventory left to sell.

Another point that I like is: every product is sold before it is made. Every dollar spent on supply inventory for an order will become a return on that investment.

The last point made in the article refers to repeat sellers.  Happy customers will return again and again. And what better customers than those that make purchases in bulk!!!

Many of us hope to make money while producing art. But if we're serious about making money in addition to making art, we need to spend a proportional amount of time running our business. Why not run the numbers and give wholesale a try?

Until next time,

Dorene

Etsy shop review - Spiritually Sewn

Today I'm pleased to introduce to you Spiritually Sewn. Read more about her wonderful work here:

I recently started an Etsy business in which I sell notebooks that I cover with novelty fabrics. I don’t really see myself as being creative but I like to improve on other ideas.

Journal composition notebook journal wih matching Kanzashi flower fountain pen

Spiritually Sewn fabric journal ensembles make great gifts from mom to daughter; teacher to nurse; church to organization; and everyone in between. 

Journal with -Kanzashi- Fabric Flower Fountian pen notebook composition

Spirtually Sewn was my vision in 2011 but due to circumstances I was unable to open my Etsy shop. Disappointed, I packed away my sewing machine and all of my lovely fabrics knowing that next year would be another chance to start. I had almost given up on my vision but with faith on, August 22, 2012 I was able to open my shop.

Fast forward to 2012, I pulled out the yards of fabric that I had packed away the previous year along with my sewing machine and decided to try it again. I have operated a homebased business before and I loved being an entrepreneur. The timing was right and here I am the proprietor of Spiritually Sewn.

Journal notebook covered Fabric journal with -Kanzashi- Fabric Flower Fountian pen

I love to write so crafting journals are more than a craft it's and enjoyment and I use them alot. From jotting down my bills to writing poetry. The journals that I make are simple but chic; utilitarian but ornamental. I think the kanzashi flower and fabric covered foutain pen makes them stand out along with the various type and patterns of fabric

I am most proud of the matching fountain pens as it took much trial and error to produce them.

Kanzashi flower fountain pen

In addition to running my Etsy shop, I work and additional full-time job and I’m earning my first college degree.

You can also find me here:

https://www.facebook.com/pages/Spiritually-Sewn-Page

https://twitter.com/SpirituallySewn

http://spirituallysewn.wordpress.com/