Are you trying to do everything? And, if so, is it holding you back? This thought occurred to me when talking to one of our
handmade jewellery suppliers at pressies4princesses.co.uk.
I'd always thought of her main job as designing and making the jewellery. Added to that, a handmaker needs to manage his/her brand and develop sales. It's here where it seems there's enormous room for interpretation. Her notion of what she needed to do was very different from mine.
For me, managing a handmaking brand would mean developing an image and sourcing packaging and support materials. So we're talking boxes and leaflets. These are surely the essentials. But, what about PR and websites, I hear you cry? Aren't these essential too? Well, in my opinion no.
Developing sales has an even larger potential scope - there are many options. You can throw a full advertising and PR campaign at your brand. You can cold call retailers or go door to door. You can develop your own online store. Some handmakers even open their own shops - one of ours at pressies' has. The possibilities are endless and can be hugely beneficial and/or hugely expensive and/or hugely detrimental to your success. Yes, detrimental!
Running a handmaking business often means doing everything yourself. And, special as we all are, there's only so much we can get done and only so many things we can be good at. If your talent is for designing and making, why not stick to that? OK, so you'll have to sort a few other essentials, like boxes and leaflets. But, there's plenty more you can avoid, with the right strategy.
What you don't want to do is get sucked into trying to be a great retailer, or e-commerce expert, or PR guru, as well as a great designer. It just won't work. So, set your strategy to sell through established retailers from the start. OK, you're thinking, how do I snare them? Simple - use the tradeshows. All the retailers visit them. And, with more time to design, you'll be able to knock them dead with your biggest asset - your product range!
Think I am wrong? OK, here are my arguments against the most popular distractions:
1. I need a website. Nope, at most you need a blog. A professional website will cost you loads and, most likely, will be out of date before it's launched. A professional-looking template for a blog will cost less than £100 and with minimal training you can update your blog daily. Your blog should be about you and the brand for the benefit of retailers and past purchasers of your stuff.
2. I need to sell online. No you don't - you can't afford to. Established retailers have visitors (and in today's massive Internet, they are hard to grab), enormous expertise in selling online, a bigger range, professional shipping/ fulfilment capabilities, full-time customer service and more. Plus they constantly invest in their websites (at pressies4princess we spend more than £100,000 every year on improving our website and that excludes content). They instill confidence to buy. Having your products on their website creates confidence in your product.
3. I should be on ebay. Not unless you genuinely think that's going to give your product credibility? There are so many handmaking 'amateurs' giving their stuff away on ebay, you're sure to get dragged into this mire. Getting your products into established retailers affords instant credibility; selling on ebay can destroy that in a click or two.
4. I need to advertise. Why? Instead of trying to draw in would be customers, why not go where they already hang out. That's trade shows for retailers and existing retailers for end-customers.
5. PR is essential to my success. Is it though? Is it more important than signing-up retailers? Better to concentrate on getting your message across at those trade shows.
6. I need to get 'out there' and sell. No, save your petrol. Let the buyers come to you. Put your effort into making a noise at that show.
If you still think I am wrong, tell me - drop a comment.
I can already envisage lots of comments about the 'cost' of selling through the trade. The lost margin. I'll answer those with a question: what do you think you'll save not doing 1 through 6? A retailer's margin pays for all that, so you don't have to. Better still, they get to leverage it over hundred or thousands of products and sales. In all likelihood, you won't. So, it will end up costing you more.
Need proof? Ok, take this example. Say Jane spends £1500 on a new website that she can sell at. That's quite cheap. Hosting costs another £50 and there's a standing minimum charge for taking payments of £20/ month. So, she's in for £1670, before she has lured in any visitors. She sells her items for £50 each retail, trade would be £25. She needs to sell 67 before the extra profit (from retailing) pays for the website.
Hang on though - with no investment in advertising or PR, she won't get any visitors. Not the buying kind. Say she can buy Adwords (clickthroughs) from Google at 25p a visitor and 5% of these visitors go on to buy (that's a very high conversion rate for a low-cost website). So, on average, each sale is costing her £5 in advertising/ clicks. Now, her extra profit is down to £20 a sale. She now needs 84 sales before she's better off.
Whoops, but she hasn't shipped anything yet. Just the box and the postage costs are £3.00, without figuring in her time. That included, her extra margin has slipped to £17 and she needs to sell 98 pieces to be better off.
Less than 100, she can do that, I know you're thinking. Yes, perhaps she could. But we've still not included returns, losses on fraudulent orders, her time in packing and sending and managing customer services (not to mention running the advertising campaign). In our example, who would be doing the designing? Jane would be far too busy!
And that's the point. It brings us full circle. Doing it all yourself - the selling as well as the making - just doesn't work. You won't have the time to do it all properly. Spreading your time between the two makes both inadequate. You are not spending enough time designing and making to produce a great range. And, your marketing/ retailing efforts aren't achieving much, because you don't have the time or money to make a difference (or even be noticed) in today's tough markets. Drop the latter - or pare it down to the minimum as suggested - and you'll not only be liberating your time but your success too!
Labels: handmaking success