Creating One Product and Selling Another

It's funny. No matter how you figure what you area of your business you believe you need to focus on, your customers always know best.

I've been working on building up my necklace inventory for my upcoming craft show on December 3rd (Toms River Intermediate South, in Beachwood, NJ) because that is my best selling item at shows and also in my Etsy shop. And as I'm looking through my sea glass collection for pendant quality pieces, my shop gets wiped out of earrings- not that I'm complaining. (actually, Yay I made an online sale!)

Just when I thought I knew best, my customers strongly have me focusing on another project because they have made it a glaring weakness in my shop inventory. So it's back to the drawing board, going through smaller pieces of sea glass and marking off the area I'd like hubby to drill holes while I check the inventory of earring components.

While I search I lay out a plan to replenish my earring inventory, I hope you enjoy the images of a couple of my latest sea glass necklaces and one of my favorite pairs of earrings that are departing for the desert of Tucson, Az.

'til next time,
R

The Economy and the Handmade Industry

There hasn't been one handmade artisan I've spoken with that can say they have not been hit hard by the current state of the economy. Traffic at shows seem down slightly, but more and more of the traffic appear to be "just looking" and often leave the show empty-handed.

Personally speaking, the upper end pieces that used to move quickly from my inventory have stagnated, and even at reduced prices, they remain in my online or brick and mortar consignment shops. There was a time when I could not locate enough rare jewelry quality pieces of sea glass. Now the only time I add jewelry-quality pieces to my collection, is when I find them on the beach. Even when I have a chance to privately purchase a nice lot of quality sea glass, I have to pass because my customers have been hesitant on making higher-end purchases.

The reasons are always the same. They like a specific piece of jewelry, and they may come back to my display two or three times to look at it. But in the end, they walk away from the piece saying something to the effect of "I just can't spend the money"

Creating a lower end line of sea glass jewelry has helped. My surfer necklace line is very affordable, but it's more of a teenagers line of jewelry. The price does bring in potential customers to my display, but at this time the line sells to a niche market, within the niche market of sea glass jewelry customers.

I have found more and more customers asking to purchases a wrapped sea glass pendant, rather than buy the entire necklace. And in a buyer's market, there have been a few customers looking to "negotiate" on the final price.

Selling my handmade creations has been getting harder and harder as this year winds to a close. Show sales are down, online sales are way down, and so are my profit margins. Adapting to budgets of potential customers is a must, and I've had a little success with the newer creations. Adapting further is certainly needed, but I see this holiday season slipping away because I don't know if there will be a mad buying spree in the last few weeks prior to the holidays.

How have the sales been at your shop and shows? Have you found lower prices meant increased sales, or have your sales remained stagnant...and how have you adapted your creations to what the market is willing to bear?

'til next time..
R

Random Thoughts... Etsy and the Economy

In my previous entry, I mentioned that it appears that sea glass has disappeared from the beaches in New Jersey. The extreme winter took it's toll on the beaches, and the reconstruction of the beach has buried much of the glass. As current and future storms erode the beach, the glass in and near the beach is also getting buried.

Since their really hasn't been much to look for on the beach, I've found myself (sitting in my beach chair, working on my tan) thinking more about how the current economy has affected my online and craft fair sales. To say the economy is not good is an understatement. It has not been good for quite some time and this has affected my small handmade jewelry business.

Yet as August rolls around, there are many mixed signals coming from the state of our economy, and yet again, it is showing it's affect for me on Etsy. And this time, it appears to be a positive affect.

My DH has always been a number/stats type of person. He has been responsible listing items, and has noticed trends, that have allowed him to predict when I'm about to make a sale. He noticed these tell-tale signs starting in late July, and mentioned to me that things might be picking up soon.

I was quite skeptical because August has never really been a good month for my shop. Since sea glass is more of a beachy, summery type of accessory, I had already chalked up the summer season as another disappointment...just like the holiday season of 2009, the spring wedding season, Valentine's Day, etc. The economy was still shaky, the daily stock market reports resembled a roller-coaster ride on the boardwalk, so I assumed the "things might be picking up soon" comment to be a future sale, perhaps two (welcomed sales, nonetheless)

My hubby always looks to see how many members are hearting my shop & items. Not just any members, but members that don't have shops. It has always been his indicator that a sale could be forthcoming. And from late July thru the first week of August, I saw several "buyer-only" hearts in my shop... and despite what is usually a slow month, despite an economy that just can't seem to turn the corner, and in spite of the end of summer coming quickly...a sale, followed by another, and then a request, and a sale.

After speaking with a few other Etsy shop owners, they also mentioned a few "buyer-only" members frequenting their shops, "a few more than usual" is what one shop owner stated. Since the last days of July, 50% of my shop hearts are either secret admirers, or buy-only members. In the previous 5 or 6 months, I'd be willing to bet that 90% of the hearts received during that time, came from shop owners.

Is this a case of the economy finally rounding the corner, and improving? Or have people been sitting on their money for so long that they are getting restless, and want to do a little shopping...perhaps an early start on their holiday shopping?

I'm not sure, but I am sure happy about the the increased visits to my shop...and I'm thrilled that I'm prepared to keep my shop in the buyers memory by promoting, and listing new items.

This almost makes me want to brave the 90 degree heat, and do an outdoor show...almost.

'til next time...
R

How To Increase Sales In A Sluggish Economy

Spring has turned to summer, and you were planning on selling many of your handmade crafts at at fairs, and online. But the results you were hoping for have yet to materialize and you are not sure why.

The easiest explanation is people just don't have the amount of disposable cash to buy the "I want that" items. Let's face it, the economy has hit everyone hard, not just handmade artisans. This economy has forced people to examine the way they spend their money on...and more importantly, on what they spend their money on. Fewer and fewer people will use their credit cards for ANY reason other than an emergency, and that may explain why your online sales are down. After all, how many people carry balances on their Paypal account. Unless you are selling items to someone how sells "stuff" on eBay, or a fellow Etsy artist, I think you'll find many of your customers make their purchases with Paypal, via a credit card.

Doing a craft fair may not always be the answer either. When doing a show for the first time, vendors need to do research on a shows prior history before filling out an application. Was the show well-attended in the past? Was the event well promoted? How available is the shows curator...is he/she available to answer questions & with they provide contact info for a few vendors from prior years for you to speak with. If you don't "feel it" when doing your research, you would probably be best served to pass on the show. If you want to get a feel for a show for next year, you should plan on attending the event to see for yourself...grab a few business cards while you are there, and contact them a few weeks later to get their opinion while the show is still fresh in their memory.

If you are considering returning to a show you did last year, be totally honest with yourself on how the show went for you last time. If a show was just okay, would a 50% drop-off in sales this time around be okay with you? Do you seem to have a following in the area of that show? A following may be worth taking a chance on a show.

Have you tried placing your items with local gift shops or galleries? Like a craft fair, having your items out in front of potential customers is great way to advertise your creations. Allowing a customer to use their sense of sight , touch, smell, etc is a sure way to help you make sales, and gift shops/galleries are a great option. You will need to factor in a consignment fee (usually anywhere from 30-50%) as a trade off to have the opportunity to show your items 5, 6, 7 days a week without you being present.

The economy is the caveat with this selling opportunity. Again due diligence is highly recommended. The type of questions you want to ask is how long the shop has been in business, how many "like" vendors are they planning on offering in their shop and where will your items be placed (and is that location permanent)? Always get everything printed into a contract. A good shop will already have a contract worked out, and it should explain everything the terms of the contract, how and when you'll get paid, etc. I cannot stress checking out a shop before signing any paperwork...there is nothing more awful than finding a shop owner has gone out of business and your inventory/and money has gone with them.

With the current shape of the economy, it is probably best to have your items available for potential buyers to be able to hold them up, examine your work, and physically see if this item is everything they want. At a show, you are the saleswomen...make suggestions, let them know if you are open to making custom pieces, and promote yourself!
The same goes for a consignment opportunity... sell yourself to the shop owner. Ask if they are open to allowing you to have a trunk show at their shop, perhaps at the end of their business day. Stop in and say Hi, and ask them if there is anything that customers have requested, or maybe ask them if there is any inventory that can be switched out for newer inventory. Work with them, and you'll find they are more receptive top working with you. After all, they want/need to make sales to help them pay their bills also. Let them know your committed to your business, and you might find yourself with a prime display area in future months.

Remember, things are tough for people all over. Factor in the how the economy is affecting the people in your area before choosing to do a craft show. If shows and shops are not the right answer for you at this time, you can always hit the promotions forum at Etsy and promote, promote and promote your shop some more. There is always something you can do to improve your shop and increase your sales in this economy!

'til next time...
R

Keeping My Eggs In One Basket, Sea Glass, Holiday Sales & Shows

With only 3 more delivery days until Christmas, it's safe to say my holidays sales have come to a close. I have a few packages in transit and I hope they get there on time... even with Priority shipping, it seems the mail is moving pretty slowly.

With the end of the holiday sales (except for a last minute multiple scarf order later today) I've been contemplating how to approach 2009. With the current economy, I wonder if keeping all my eggs in the Etsy basket is a wise move, or should I broaden my horizons and expand my limited amount of OOAK jewelry to other ventures?

Back in mid November, I opened up a shop at 1000 Markets. I liked that the site is juried and found the site to be visually appealing. At the same time, it has been tough to promote the site much and there seems to be very little traffic outside of those registered on the site. To this point, I haven't made a sale... but at the same time I have only listed 6 items and currently have only 4 listings in the shop (2 of the items sold at craft shows) Right now I don't know exactly how I'll use 1000 Markets in the coming year.

The reason of my future use of 1000 Markets is because I also signed up for ArtFire. ArtFire seems to have quite a bit more outside traffic than 1000 Markets and they have been advertising in the trade magazines. The site does offer a few ways to promote outside of the site when compared to 1K Markets. I signed up for the $7 a month plan (which is scheduled to go up to $20 sometime in 09) I like the idea of ArtFire offering decent stat info and I'm intrested in seeing how that info can be utilized to improve my promoting.

Most of my "eggs" will be kept in the Etsy basket. To think that in 2007, almost no one had ever heard of the site and now just 12 months later, a great deal of my craft show customers not only knew about Etsy, but several claimed to have visited the site. Many others had heard of Etsy, and had questions about what the site was about. I did notice a couple of "follow-up" sales the week or two after a show.

All of this leads me to believe that the branding of the etsy name, in the publics eye, is underway. People are more secure in ordering handmade items from the site and in my opinion, Etsy may have a huge year in 2009. Since I feel I've done very well with Etsy, my main focus will remain on my shop there.

I don't see the popularity of any of the online sites coming close to rivaling the Etsy name in the coming year. I have been building a nice little following on the site, especially in the Sea Glass category. So while i may spread my "eggs" out a bit more this coming year, the bulk of my work will remain where the public seems to be looking...Etsy.com

I just received a new batch of necklaces, so I will probably be adding a few more wire-wrapped sea glass creations over the next few days (as long as I can get one semi-sunny day to photograph the finished product) I'm also experimenting with sterling silver bracelets and I have several pieces of sea glass drilled and ready to go.

Yesterday was a bust for sea glass hunting. My hubby hit the beach at low tide and found the combo of wind and cold to be too much. Beach reconstruction during the week buried whatever was lying on the beach and blowing sand covered up whatever the tides left behind yesterday. I wish we had the money to spend for a trip to Puerto Rico...it would be nice to do a little sea glass hunting on a warm sunny beach (not to mention lying in the sun, soaking up some warm rays) but I think I'll have to wait for spring and summer to hit any warm sunny beaches this coming year.

Holiday sales were very good compared to last year on Etsy. I seemed to have follow-up sales right after shows and a couple repeat customers and word-of-mouth sales. New listings sold quickly compared to last season. All in all , a big improvement compared to 2007.

To all of my followers... if i don't get back to my blog this week... have a Happy Holiday and a happy and healthy New Year!

'til next time...

R