The Smart Way to Start a Crafting Business

Pricing Can Be Tricky

Ling-Yen Jones has taken many classes in her 15 years as a jewelry designer to figure out how much her pieces should cost. Why is it so hard? Not only does the price have to cover the cost of your raw materials, it also represents your salary. Your time is money, too.

Jeweler Laurie MacAdam agrees, adding, "You have to produce everything so you have to pay yourself for producing it. If you are going to go wholesale, you have to count in things like cost of electricity, studio rent, any other overhead. So typically, you need to add up your per-hour rate and the cost of your materials, then multiply it by three. If you are doing the art shows and retailing, you have to sell this yourself so you also have to pay yourself as if you hired someone else to do it."

The better your reputation, the more you can charge. After all, crafting can be serious art. But given these tougher economic times, says Craft & Hobby Association CEO Steve Berger, successful craft retailers are ones who "look to their key strengths that separate them from the big box stores and the other local competitors, and focus on providing those services to their customers."

Where's the Market

Besides thinking about your audience, you need to figure out where your designs will be available. Will you go the wholesale route or travel-show circuit? Wholesale can be easier because you're selling year round to retailers. You also save on time and travel expenses since you won't need to take time off to travel to a show and set up a booth. You also don't have to worry about getting approval from the organizers to even pay for a booth. Most shows are juried, say the experts, and juried fees can start at $25. But the drawback: You miss the interaction with customers.