Lamenting the cost of doing business, and who do you do business with? Happy #NeedleworkMonday!

in needleworkmonday •  7 years ago 

So, my fellow needleworkers, last week I was all excited about the prospect of consigning my latest batch of placemats in a local store. Unfortunately, I had the bad luck of going to the shop when the owner happened to be unavailable, twice in a row. BUT, I learned from the employee I talked to, that they mark up consigned items 25% as their commission. What?! So I walked down the block and asked at my coffee shop hangout. They mark stuff up 30%!

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You know you want this rainbowy cheerfulness on your own table...

Maybe that's normal everywhere, I don't know, and the downtown shop owners have to pay the (well known to be exorbitant) rent somehow. But yikes! That puts my wares above what I think most folks would be willing to pay. Has anyone else run into this experience?

Hmmm. So I could either consign them locally, or put them on Etsy. On Etsy, both the site and Paypal take bites out of the seller's money and shipping also inflates the cost to the customer...but shipping is almost half of what the local consignment fee would be, so it ultimately is more affordable to the customer. The upside is a bigger audience, too. It's a shame because I want to support local business (and have them support me), but when local isn't as affordable...! :(

As an informal poll, for those who sell or consign their items, who do you use, and why? When I was doing research on avenues for selling what I make, the loose breakdown on fees was:

  • Etsy -- .20 listing and renewal fee per item, and 3.5% on sales
  • Ebay -- around 10% of sale price
  • Amazon Handmade -- 10% of sale price
  • Then with all 3 of the above options, you throw in shipping charges (costing the customer more) and Paypal taking .30 plus 2.9% (costing you more)
  • And now I know that locally the consignment fee will be 25-30%
  • Steembay is an option I know...but there's a lot of "no bids" on there and I'm not sure placemats are a niche that folks using Steembay are attracted to!

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And here are the other sides!

Bottom line: Etsy is looking like what I ought to stick with. So here is my Etsy link, for anyone interested in checking them out :) https://etsy.me/2H5bQEl

Now that I've listed this set, I've got a hankering to start on another set and maybe change up the pattern this time.

As for the egg apron...it's still a yarn ball, LOL. Last week was busy and non-routine and I didn't have leisurely coffee shop time to curl up on the couch and crochet. I'm hoping this week will be better!

Happy #NeedleworkMonday to all, as usual I'm looking forward to making the rounds of lovely handmade items and seeing how everyone is doing on projects this week <3

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They are very pretty. I have a booth at a flea market with anything I want to sell. It's only $40 a month. If you had a bunch of stuff to sell, it's an idea?!

What do you sell there?

Small pieces of furniture, pictures, decor, primitives

You should do a post on that sometime. I’d love to see pictures!

Ditto!!

Hmm, I've mulled over trying out the local flea market when they do their "Giant Flea Market" event. I'd just need to get a whole lot more inventory made up and find out what they charge for a tent! Thanks for reminding me! :)

I sell most of my stuff at an artisanal shop I run with 10 other artisans. We each pay 30€ a month to cover the rent. If you work a shift at the shop you don't pay commission if you don't it's 20%. Most shops here (in France) charge 20-30% commission. You'd be surprised to find people are willing to pay it (depending on the shop). I sell a reasonable amount of stuff at the tapestry museum gift shop (they add 20-30% on). I used to sell on etsy but it was a lot of work and stress (and once you add postage on it bumps the price up higher than the 30%shops charge). I may sell some of my brooches on etsy again soon, but not bigger items. :)

I like the idea of pooling resources with a bunch of other people to put a brick and mortar shop together. Who were most of your Etsy customers? Were they also in France or were you having to deal with a lot of international shipping?

Mostly USA actually! A few UK (one a real pain in the A) and some one in Spain (who bought two sheep brooches on two separate occasions wrote a nice review in Spanish, but only gave me 4 stars out of 5 each time). As long as I sold things that could be packaged under 3cm in depth the postage costs were only 7euros to USA (including tracking) but went up to 20euros if over 3cm. I am not sure what you make, but my felt stuff looks better in real life than in photos and I get better results when people can pick it up and feel it. So, in the flesh sales work better for me. My best year on etsy I got about 200euros from it. If you are in USA you might do better, and depends what you sell too. The artisan thing works well, but is a lot of work to organise, and depends on your local laws about pop-up shops etc (Edit: and costs vary too. Our little town has a few empty shops and rents are cheap 300-400€ a month. But I know some artisans in other areas who pay 100€ a month, each, and have to work a day a month there too. So can be expensive in time and money) . Try putting some things in local shops at an increased price (as long as it is a sale or return policy and you don't have to pay anything), you have nothing to lose. Also you can tell people on you facebook page (or whatever you use) that things are available in such and such a shop, but they can buy direct from you and save 30%. That way people can go look at the items, and touch and feel them and if they want it cheaper can buy from you (make it sound like they are getting a special deal)

Edit: make sure you have a label, or business card attached so people can contact you directly if they have bought your item, or had it as a present. Someone contacted me via facebook after being given one of my brooches as a present. She runs a shop and she bought 14 brooches from me to sell in her shop!!!

Wow, thanks for those ideas! I'm pretty sure the local merchants do consignment on the sale-or-return basis, and I'd never thought of advertising that my stuff could be viewed in the shop with the option of getting it cheaper directly from me!

I have business cards but had totally forgotten to attach any to my latest set of placemats, so I'm glad your suggestion reminded me to get them out :)

I feel your pain @mtnmeadowmomma! I, too am feeling crushed under the weight of all the fees: web hosting fees, Square, Paypal, shipping. It really does seem like Etsy is the best bet for your beautiful place mats.

Oh, I forgot about Square! I haven't sold in person since the "free" period elapsed!

I don’t sell, but I’m a consumer, so maybe my input is worth something? Just last month, I quit subscribing to Amazon. (I thought about doing a post on it.) I personally am willing to pay a little more for something I really want/need. I prefer buying in person (no shipping, plus the gratification of having it that day).
Are you able to try a little of each out, to see which gets the most traffic?

Of course it's worth something :) You unplugged from Amazon?? (gasp!) I want to know why! ;-))) It would cut us off from so many things we simply can't get around here, I can't imagine kissing them goodbye, though Walmart has been luring me away more lately since they don't have an annual subscription fee and Amazon has been lagging on delivery to us.

That surcharge percentage they bump the price up by seems about right for what I've seen around the states. It certainly makes it hard to sell anything in small stores that way.
Etsy might be your best place, or finding out if there are regular farmers markets or craft markets you can attend. I saw some similar placemats at a craft show last Christmas and the seller had quite a few different colors available and patterns. And she seemed to be doing brisk business.

Oh, that's good to know! I tried a craft show two Christmases ago with just my small quilts and paid twice as much for the booth as I made in sales...hard lesson learned to have more "stuff"! The farmers market might be an option, too, especially once tourist season hits :)

Smaller pieces seem to sell best at craft shows and markets. Things in the 3-10 dollar range.
Over the years I have bought table runners and hot pads and dish towels that were made to hang from drawer pulls at various markets and fairs.
There's some folks at our farmers market who have some amazing quilts and I lust after them but I can't drop $90-$250 in one unplanned expense. Someday though...

That was the same thing my craft fair neighbor told me...have a bunch of stuff in the ~$5 range to keep people hanging around your table digging through baskets and bins so that other people would be attracted over to join them :))) Hot pads are something a friend suggested so I probably will make some up if I ever try a craft fair again.

I like how you used the phrase "I lust after them but". Yep, I can exactly relate to that!

The one local shop I consigned copies of my book at marked them up 100%! I'm not kidding. It's crazy expensive to get my paperback novel there. They haven't sold a single one, and no wonder. And I thought the $5 increase in price from Amazon just from me listing it as available to indie bookstores and libraries made it crazy expensive. Sigh!

100% is outrageous! I can't figure out that reasoning at all...why should they make as much money as the person who actually wrote the book?!

They are making more than me, actually.
I pay about $7.50 per copy to the printer, wholesale. I get $11 for a sale at the shop, so, I profit $3.50. The store profits $11.
That is, if anyone pays $22 plus tax for a novel!

That....I have no words. Wow!!!

😯😯😯!!

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Love these! They are totally adorable and I know they would look great on any table!! I think etsy probably is the way to go. You could always sell them to the consignment place and lower your price so when they mark it up, it's more appropriate... But then you're losing out. You should see if your church or something would have a craft show. I set one up one year at our church and it wasn't bad. I got a lot of people to sign up to come (make up, jewelry, at home businesses) and charged each of them $10-25 for their booth space which went to the church ministries. Anyway, maybe there is a craft show in your area where you could sell them at some point during the year too! :)

Aww, thank you! I thought about dropping the price for consignment just so they'd be reasonable enough to tempt people but that's not exactly sustainable for me! Not if I want to use nice fabric, anyway. With all the suggestions for craft shows or flea markets I'm leaning toward giving it another shot if I can get enough inventory made up to make it worth it. I'm a little gun shy after my one and only craft show selling experience (dismal) a couple Christmases ago, but I did come away with lessons learned and I might as well put them to use sometime!

I never had much luck selling at craft shows either, but I always enjoyed going to them. ;)

Oh gosh, at the one where I tried selling, I wandered around and spent way more money on everybody else's stuff than I made! (facepalm)

wonderful mats for the table !!!! I do not sell my products so I did not know what difficulties are connected with this. I read with interest the comments: this is a general problem. I also think that it is better for the sale to have small, bright and inexpensive projects. as a buyer, I rarely buy expensive things. but something small, beautiful and inexpensive for the soul I buy more often.

"something small, beautiful and inexpensive for the soul I buy more often" ooh, I love that description! It's very true--I realize that I do the same thing at craft fairs and flea markets. And, thank you! I really need to make some for ourselves to use, too!

Those placemats are beautiful! I have an Etsy shop but mostly only sell vintage items. It seems like my handmade items get lost there. I have also tried to sell handmade items on consignment and they charge 30% to 50% so Etsy is definitely the best route but like I said, my handmade items seem to get lost. Good luck!!

Thank you! I appreciate that. It's unfortunate for everybody else in the same boat, but I have to say it helps to see that I'm not alone in this boat!

50% is pretty standard around here. California.

Remember who your target audience is. YOU wouldn't pay a certain amount for a placemat. Why? Because you can "just" make it yourself.

If I were to try to duplicate your style to try to make it for myself, it would take me at least 2 weeks per placemat. That makes placemats like this that much more valuable to me.

Beautiful work.

I appreciate that insight...I didn't think of it that way, that I might be shortchanging myself based on "well I can just make it myself." Thank you so much! :)

I’m so glad you asked this question to the group and shared some of the numbers you found. I’m also glad you’ve gotten some pretty good feedback and advice.

The hat store that I sell my sets to makes it pretty easy for me. As long as she makes a $10 profit she is good to go. She buys my hat and scarf sets for $45 and sells them for $55 and it has worked for the both of us thus far.

I’ve thought about selling on Etsy before and if I do end up selling on line I would pick them over any other site. I hope these beautiful mats sell for you real soon~ 😊

See, your arrangement is exactly what I had had more in mind with consignment--a more reasonable flat fee instead of a price-based percentage.

And thank you for the compliment! :) I hope they sell soon too because thanks to Etsy's seller metrics, I've seen far more interest in my "made to order" placemat listing than on all my other listings put together. It's why I'm veering away from quilts as my focus...I'll probably slowly work to reduce my stock of kid themed flannel and put more focus on kitchen items.

Yes it does help to have a flat flee.

You are very welcome! Keep us posted on what happens and when your items sell!! Kitchen items are definitely a need!

I directly resteemed your post, because I think this is such an important topic for many crafters. It's an important topic for me. As you now I knit and crochet and I have got some friends who try to convince me to sell my projects on a craft market. Up today I alway refused, because I cannot think of a way to make it profitable for me: I work so many days for an item and the wool is not cheap on itself... I cannot compete with fabric made clothes or handmade items which are imported from poorer countries. On a craft market a crochet or knitted cap with fleece lining is sold at 10-20 € - how yould you make profit with this? I have no idea.
I never researched the fees of etsy or dawanda (I have never heard of amazon handmade), so your work is more then welcomed. The fee for a market stall is here between 100-250 € per day... So I have still no idea how to sell a knitted or crochet item with profit.
I hope your post will initiate a informative discussion on this topic.
Thank you <3

Up today I alway refused, because I cannot think of a way to make it profitable for me: I work so many days for an item and the wool is not cheap on itself... I cannot compete with fabric made clothes or handmade items which are imported from poorer countries

I think this is what I've run into with baby quilts. I actually practically give away the custom made ones by only charging the customer for the material and maybe tacking on a few extra dollars. If I paid myself for the labor I'd price myself out of the market so I've been contenting myself with figuring my pay comes in the form of the enjoyment I get from creating things. BUT that approach doesn't pay bills and keeps my crafting stuck in the hobby realm rather than the official business one.

I did meet someone at the craft fair I attended who got together with a friend to share a booth and split the fee. I've heard another idea is to approach someone with an established booth and see if they'd let you add a few of your items to theirs...I'd have to know somebody well before taking that approach, I think.

I think this is an extremely important topic to deal with. I agree with @jamethiel re where to sell, sizing and how much.

Re that mark-up... it doesn't seem unreasonable if they have paid you in advance because 'they are taking a risk stocking what you made'... If it's sale or return, I would say they're making it hard for your work to be sold...

I have considered selling in the past but I just tend to give things away; or give to a friend who then invites me for lunch...I haven't sold on Etsy, Ebay or Steembay though - and you also then need to consider packaging and sending costs... I will be reading with interest what others say...

I know someone who started doing embroidered pieces locally. She goes to craft (Xmas) fairs / markets every week . Lots of time involved...

The time involved is what stops me from really pursuing the flea market or craft fair approach. Then you have to factor that in to paying yourself back, too! Maybe as the kids get bigger I can try it again. The one time I took time off from being a mom to do a 5-hour craft fair the Husband was worn out afterward, haha :)))

Postage, oh my. I save those plastic clothing shipping bags from other stores and reuse those to mail stuff because then you're not paying even more postage for the weight of cardboard--you'd be amazed how much the box itself can add to your cost.

Indeed @mtnmeadowmomma ! It's all those costs that add up in the end...
Children grow up faster than you think... This is perhaps the time to make contacts / network with others and show what you can make so 'when the time comes' you'll be able to cope with those demands... I say that a bit out of experience... though in my case I'm not that good at networking and am still doing way too much driving / taxing teens - the wonders of living in the countryside...


Hi @mtnmeadowmomma, I just stopped back to let you know your post was one of my favourite reads and I included it in my Fiber Ramble. You can read what I wrote about your post here.

Join us on Mondays for Coffee Hour at 3pm EDT in the Steemit Fiberartists on Discord.

Thank you so much! I really appreciate that :)

The mats are amazing, the patterns are so cool 😊

Thank you!! It's always heartening to get feedback like that!