Showing posts with label entrepreneur. Show all posts
Showing posts with label entrepreneur. Show all posts

Tuesday, June 24, 2008

Digging a Hole with a Teaspoon

You have heard the expression of a death by a thousand cuts. This idea is similar. Digging a hole with a teaspoon is slow and you don't really see the progress you are making until suddenly you look up one day and wonder, "How did I get here?"

This is a lesson in not doing as I have done. Heed the warnings.

The problem is, you may, like me, not see how bad it is until the hole is much deeper than you intended. I am talking about pricing. Specifically underpricing. The biggest part of the trap for me, was the idea that "people won't pay more than $xx for this." And I let that idea guide my decisions for too long, even while seeing warning signs along the way.

Cranes. Of course. I seem to live and breath cranes. Cranes to sell. Crane to memorialize. And in this case, the intersection of the two was part of what made me wake up. Let me begin by saying I had increased my crane price three times in the last few years. The wholesale price had doubled over that time.

But....and this is a very big but....the product I am selling today is not the same product I was making and selling then. At first the surface design was fairly simple. And they were not sold in any special packaging, But, I added the packaging and informational inserts, and increased the price significantly. Sales took off. I was a happy camper.

Then, I started playing. I started to do more involved canework on the surface of the cranes here and there. And the customers loved it. "Send more of those ones with all the detailed patterns. Everyone loved them!" I would be pleased with the feedback, but also sigh a bit as I realized it would be more work. Soon that was nearly all I was selling. Meanwhile, the price had only gone up by about a dollar, but the labor was about fourfold more. Folding cranes for the Crane Project put into sharp focus for me just how long it was taking me to make these intricately patterned cranes. I saw what I had been trying to ignore.

Initially when I would ship the cranes across country, I could ship to California or Washington state, Priority Mail, for only about $6 or $7. I offered free shipping. I figured I could easily absorb that into the price structure. Last summer though, the Post Office revamped their price structure, and suddenly it was more than double that cost to ship across country. Ouch! This spring, the prices took another big jump. I had added a shipping surcharge to crane orders west of the Mississippi, but it was not going to be enough.

Then, the breakage started. I had shipped for two years with not one crane breaking. Now, changes in clay formulation have presented challenges. I have had to revamp my packaging, adding further costs. Not to mention the credits or re-shipments I had to make each time a broken crane was reported.

Can you feel my pain?

I had no room in my price structure for all of these problems to converge. But converge they did. With six more crane orders still to ship under the old price schedule, I knew I had to take action. It was time to begin to fill in the hole, and the teaspoon was not going to work. It was time to put things back in order quickly.

My prices have nearly doubled for the intricate cranes that everyone wants. If they want to pay the old prices, they will have to purchase the "Elemental cranes". Solid colors, to represent the five "elements", air, water, earth, fire, and metal. In between those prices I have cranes with crackled leaf.

I am now shipping FedEx Ground, at a much better rate. And I seemed to have solved the problem of breakage for now.

The reaction is unclear. But, in the end, I could not continue on the path I had been traveling.

Lessons, summarized:

1. If you add to your product, acknowledge that. It is a different product. Change the price. Rename it if you need to. Not all cranes were created equally, but I was pricing them as if they were. Some of you will be saying, of course. I would never do that. I hope you are right. But sometimes we do things that don't make sense, because they will be "easier".

2. Don't undervalue your labor. I was doing what I hate. I had gotten myself into a place that all I was doing was covering the costs of my materials and overhead, so I could make more cranes. Don't do that. It does not respect you. If you find yourself saying, "people won't pay...." Stop. If half the people will pay the new price, I will have the same dollar business, for half the work. I can definitely live with that. Too many people have also told me stories of raising prices, and losing their "high maintenance" customers. Another potential benefit.

3. Sometimes we need to re-evaluate suppliers. I had gotten comfortable with shipping my work by Priority Mail. I knew the drill. It was convenient. I didn't want to have to research alternatives. But in the end, I have a good service, for a much lower cost. And, my husband has a FedEx center right near where he works. I don't even have to leave home!

4. Things will change. At some point something you depended upon, and thought you knew will change. You will have to figure out a new way of doing things. I tried to avoid dealing with these issues for too long. I wanted them to go away. I did not have time. (Can you hear the two year-old tantrum welling up?) Once I decided on a plan of action, it was actually less stressful than trying to pretend the problem was not there, or that it would go away on it's own accord. It is not easy to own up to it, but I really did not want to have to deal with this. But being in business for yourself, there will be things that you have to do that you do not want to do. Unless you have employees, there is no one to delegate responsibility for these tasks. So buck up, and deal! And remind yourself how much you are happier doing what you are doing now...in spite of these kinds of stresses. And if you are not, then maybe a bigger change is in order......

Sunday, May 25, 2008

What Does Survival Mean to You?

The current economy has put many small business people, including artrepreneurs, in a survivor frame of mind. Some businesses have shut down. Those of us who are still in business want to survive, with the hopes of thriving when times are good. The e-mail lists that keep members up to date with funding and grant opportunities have been reflecting the hard times. Less money is available to support the arts. News reports tell us that people are spending more on energy and food, and paychecks are flat. It is any surprise that people are spending less on art and craft?

So, what does survival mean to you?

Does it mean hunkering down, and not spending a dime unless your life depends upon it? Does it mean looking for ways to cut down on your expenses? Are you doing more shows in the hopes of generating more income? Taking a second, or heaven forbid, a third job?

On one discussion board there is a lot of discussion about spending money on advertising. Should I or shouldn't I types of discussions. There is also regular discussions about how bad business is right now.

I find myself going against the grain in many respects. I don't know that I have this figured out for anyone but myself.....and I am not even so sure I have it figured out for myself, but I will share with you some of my thinking, and strategy. Rather than copying exactly what I am doing, I hope that it just provides you another way to think about your own business, and what is working or not working for you. How can you make it through this time, and do even better in the future?

1. Shows. Do more shows and you will make more money. The thinking is that even if you are making less money than you used to at a show, you will make up the difference in volume.

This could be dangerous thinking. It is the same type of logic used when someone claims they covered their "booth fee" at a show. Anyone who does a show knows there are many other expenses related to doing a show beyond the booth fee. Mileage would be right near the top these days, even for a fairly local show. An hour commute each way may not make sense at $4.00 per gallon. But then you may have a few hundred dollars for three or four nights in a hotel, plus meals. Did you have to pay extra for electricity? What other expenses do you have when you do a show? Flowers for your booth? Time out of your studio? Or at the very least, the cost of the goods you sell at the show.

Does it make sense to do more shows, if the bottom line is already very thin? Are the shows you are adding going to be better than the ones you already have on your schedule, or will they just make the bottom line even more strained? In the end, more shows may just mean more wear and tear on you, your work, and your displays, without doing anything to increase the bottom line.

My own strategy this year was to eliminate retail shows. It just was not profitable enough over all for me to continue to pour more money into doing retail shows. I have not completely ruled them out, but for now, there are none on my schedule. In spite of this, my sales are up a few percent, and my bottom line is significantly better than a year ago. If you are doing retail shows, recognize this is a tough economic climate, and it will not take much for a marginally acceptable show to move into financial drain.

2. Advertising. One strategy that many small businesses have in tough times is to cut back on the extras....like advertising. Artists in particular it seems, struggle with advertising dollars. It is hard to spend money on advertising when you are not seeing the direct and immediate result of your expenditure. When you do a show, you can immediately see if the investment paid off.
Advertising is much more slippery.

First, you have an endless pool of choices as to where you will advertise. You need to figure out where the best fit for your dollar lies. If you have not thought about who your customer is, and how to best reach them, you could be throwing good money down the drain.

Secondly, advertising is expense that has to be considered an investment. I am using business school jargon here to make a point. Let's dissect it. Expenses are things that you spend money on to keep the business running. They include materials, rent, show fees, jury fees, etc. Investments are often made for a longer time horizon. It is the money we spend on capital equipment, or assets we purchase for the long term growth of the company. That camera to take better photos of your work. The spot welder to make you more efficient welding jump rings. The new kiln that is more energy efficient. Even though advertising is classified as an expense when it comes to our taxes, we really need to think of it as an investment in the long term growth of our business.

The money I have spent over the last two and a half years on advertising has not been spent without a lot of angst. But, it seems to be making a difference. The orders are trickling in. I am not swamped, but I have had a steady stream of orders since the beginning of the year. Orders from ACRE are planned for delivery right into the fall. I know I will have income to take me through the summer, and into the busier fall months.

What if I cut off the advertising to save money? I suspect I would also cut off the flow of orders. Out of sight and out of mind. And when the economy got better and I decided to spend on advertising again, I would be rebuilding. Looking at it another way, if more people are cutting back now, any advertising I do in this environment will have greater impact because there is lesser competition for the eyes of the buyers. I will be the first to tell you this is a hard spent dollar, but I have also seen the fruits of the steady investment in a targeted advertising program.

3. New Work. I have beat this drum before. If you are not continually offering a fresh take on your work, then you may find that your sales will suffer. This does not mean complete reinvention, unless you are so inspired, but rather continual innovation. In terms of the toothpaste model, what is new and improved with your work? Nothing seems to capture the imagination of buyers of art and craft as much as the new. Something they have not seen or imagined before. Keep them surprised, and you will be more likely to keep them as customers.

I have also found, nothing keeps me as excited about my work and the direction it is taking as that continual exploration of the new. If I am excited about my work, buyers will be more likely to connect with me and my work.

4. Cutting costs. Yes, cutting costs is important. Where can you spend less? Are there shows that you would be better off not doing? Is there a more efficient and cost effective way to put together a catalog? Is there a way to find multiple uses for one marketing tool? This year I have started using my postcards as the color images for my catalogs. It gives me a high quality image, a lower overall cost, and more flexibility.

Are you being as efficient as possible in your energy use? Are you running partial loads in a kiln, or curing? Is your equipment energy efficient? If not, how much would it cost to upgrade, versus how much you would save?

Are you taking advantage of bulk discounts? Sometimes when money is tight we hesitate to buy anymore of an item than we need right now? What if you bought enough for six months to a year? How much would you save in quantity discounts?

5. Are you out looking for new customers? Are you waiting for customers to come to you? Or, are you doing everything you can to try and find a few new customers?

When you are doing a show, are you making sure you are reaching out to your mailing list before the show to maximize your chance of success? Have you followed up on leads? How do you stay in touch with your current buyers if you sell wholesale or through galleries? There are many options; phone calls, postcards, newsletters, perhaps a combination of these.

If you have come up with some new work, what are you doing to publicize that work? Press releases, submitting images to magazines related to your media, entering contests. Right now if you have more time than money, it is important to get creative about how to create some "free advertising" for your work.

These are just a few things that I have been considering as I try and navigate these difficult times. I have heard a few say that the problems are because of people saying times are bad. If the media wasn't reporting so much bad news, things would not be so bad. I would call this ostrich thinking. Others are so focused on the bad news they can't think straight. Burying themselves in the reality of the bad news.

Once again, I find myself trying to carve a path somewhere up the middle; recognizing the challenges, but trying to optimize my chances for success as I make my way forward. It means holding two opposite points realities simultaneously; the economy is bad, and we can succeed. It is almost like patting your head, and rubbing your belly. Difficult, but with practice, we get better at it.

Here is wishing you success in spite of.... In honor of the Phoenix landing on Mars successfully, imagine your business as the phoenix rising from the ashes of a tattered economy. Going against the tide.

Sunday, May 4, 2008

What Can You Do After A Bad Show?

Throw in the towel? Decide you were crazy to even think this could work?

Those are possibilities, but maybe not the best ones.

First, sit down with a pad of paper. Divide it into two columns. In one column, write down everything that went wrong. Everything you wished you could have a do over on. Everything that you felt 'in over your head' about. For instance, you did not cover your costs. The weather was horrible. You had work stolen. You heard people whispering about how high your prices were to their friend as they walked out of your booth. You were sick as a dog, and you had no choice but to do the show anyway. You forgot half your work, and your were hours from home. Your neighbor kept coming into your booth and complaining about everything. Your booth was in the worst spot in the world.

In the other column, write down everything that was positive about the show. The people who bought your work were in love with it. The weather was gorgeous. Your neighbor at the show was a gem. You made a connection for a possible new outlet for your work, or two other shows that might be a good fit for your work. You found out about a great display at a reasonable cost. Someone gave you a great idea for a new product to try and work on.

These are just a few of some of the good and bad things that have happened to me at shows....and a few fictional ones for kicks! No matter how bad a show has been, I have always walked away with a bit more knowledge or insight. Some of the insight came from what went wrong, and some was gained from a positive experience.

Without looking at the experience, good and bad, we are leaving the outcome of future shows to chance. The more we understand why something is working for us, or what needs to change, the more we can move towards the success we want.

If a show is bad, it is easy to blame the weather, the price of gas, or the promoter. But at every bad show I have had, other artists have done well. Actually, there was one show....I guess you could call it the exception that proves the rule, where no one did well. Many different things can contribute to bad sales at a show. A recent survey by the NAIA (National Association of Independent Artists) is a real Buyer's Beware wake up call for artists about trusting the reputation of a show before investigating further for yourself. Artists who had participated in the Coconut Grove show in Florida were surveyed and it was fascinating to see the effects of charging a gate fee, or inviting other "attractions" to a show can have on the artists' sales. The group also has a survey of the Artists' Landscape on the website, and it is a bleak one. Artists are aging and retiring. Collectors are no-shows at shows. They too are aging, and less interested in acquiring more "stuff".

Are we back to throwing in the towel? That might seem pretty attractive after reading either or both of these surveys.

I think rather than throw in the towel, it is important to look at your approach from the ground up, and start thinking about what is working, and what is not. Thus the list.

Look around at how people are buying luxury goods these days. After all, craft is a luxury good, isn't it? If the way you, your friends and associates, your neighbors, you or your spouses co-workers are indulging themselves, is at the mall, or on the internet, is it any wonder that sales are down at a craft show? If people are spending $25 in gas, $30 in admission fees, and another $15 to $20 on food at a show, is it any wonder that many in the middle class are feeling too pinched to spend another $50, or $250 to purchase a hand-crafted treasure? Is it any wonder that they might feel as if just looking is what is in their budget?

And yet, some people are selling. Some people are succeeding.

It is time for a critical eye on every aspect of what we do. Is our display the best it can be? Is our work priced right? Is this the right show for our work? Have we done anything new lately? Is there another, perhaps better, way to reach your customer? What have you done to add value to your work? This could be through building your reputation in your media, to packaging, to advertising, to adding context or story to your work.

Sitting in the corner of your booth, engrossed in a Sudoko puzzle is not the path to success. Go to a show as a customer. Walk the show and observe. Which booths draw you in? Why? Which artists make you want to buy from them? Why? Which booths do you walk right past without barely a glance? Why? Visit shops and galleries that carry handcrafted work and notice the same thing. What makes you enjoy the experience? Which work draws you in, and why? Is there any work that makes you say...if only they would do, "x", then that piece would be amazing! Now, think about your own work, your booth, your selling style. Where can you improve? What can you do differently? No matter how long you have been in business this type of exercise can be helpful to shake you out of your routine. It can help you see what else is drawing the eyeballs and dollars of your potential customers.

What if you do all that, and you still feel stuck? Then it might be time for outside help, paid consultant or artist friend. If your blindspots seem to be unmoveable, it might be worth the investment. But doing the work on your own first, will make any time spent with a consultant more effective. They will better be able to get a grasp on where you are struggling. The more efficiently you can help them get there with you, the faster they may help you find some solutions. And we all know, time is money.

The same old, same old, is not going to work.

What will you do differently at your next show? Or will you do shows anymore? Maybe your answer will be to find an entirely different route to reach your customers. We can't just wait out the bad economy. We have to work smarter. Things are changing, and what worked ten, twenty years ago, may not work for anyone anymore. It may be time to forge a new path.

Thursday, March 27, 2008

Maybe, This Stuff Works...

Just about five years ago, I started down the path of playing with polymer clay, and not long after, learning everything I could about the business of being in craft. You might think that someone with an MBA, would not need to learn much. But I have never in my life presumed expertise. And, after working in so many industries in the past, I knew I would have to learn what made the business of craft tick.

What have I learned in the last five years? LOTS! Some things the hard way, some the traditional way. But I certainly know more now than I did then. I'll try to summarize a few of those lessons here,

1. Doing matters. In the end, without action, it is nothing. Talk truly is cheap. Acting takes guts and often funds. But without taking action of some sort, nothing happens. And even when things go wrong....there is always an opportunity to learn, or to gain experience. Nothing has ever been a complete waste of my time. A few things came close. But I never came close to making those mistakes again.

2. The most successful are those who are usually just plugging away. You seldom see them complaining about much. Not because they are successful, and have nothing to complain about. No. It seems to me, that more often it is because they see little is gained from the complaint.

Complaining about ignorant or irritating customers, wholesale or retail, seldom does much except allow you to spend more time in a time drain. Complaining about artists who rip off others seldom is a well-spring for creativity. Complaining about how lousy the market is does not help you find new customers.

The successful are not Pollyannas. If anything they are hyper-realists. They realize that the only thing that is going to get them closer to their goals, whatever they might be is themselves. And no amount of complaining ever moved anyone forward. Usually it keeps them firmly planted in place as the rest of the world moves forward.

3. Perfectionism can be a crutch. It can be a way to avoid trying. It can be an excuse for item number 1. Good enough really is good enough. Don't get me wrong, craftsmanship matters. But, there is a line. Cross that line and you will never have anything leave your studio, and you will never be able re-coupe your investment in time if you try to sell your work.

4. Craftsmanship develops best in volume. Make something over and over and over again, and you will learn it and understand it in ways that are not possible in the first, the fifth, or possibly even the 100th piece.

5. Pricing never ever gets easy. You just reach a point of peace. You know you are covering your costs. You know your work will sell at a price. You are not selling it faster than you can make it. An equilibrium of sorts is reached, but it never maintains itself indefinitely.

6. Packaging matters. The best work in the world is enhanced with good marketing support materials. Some sort of packaging that tells your story or presents the work to best advantage will nearly always help sell the work a bit better than without it.

7. Understanding your customer is essential. It will help you answer so many other questions about how to bring your product to market. What shows to do? Pricing. Packaging. Colors. Designs. Where to advertise or publicize.

8. Even in a good market some will fail. Likewise in a lousy market some will succeed. Our success is more often influenced by our own actions than by those of the general climate. Those things matter, but they are not the only factor.

9. The world keeps moving, and so should you. New designs. New markets. New ways of getting your work out into the market. The internet is going to play an integral role as we move forward. If you are reading this you probably already sense this, if not know it and live it. Stay still and you will be left behind.

10. Going it alone is lonely. I love time on my own. But I can't say I would ever have learned as much, or gone as far as I have so far without the company of others.....virtually or in person. That new person at the show that you have been doing for years may know just the web guru that you need. The craftsperson who seems to be able to set up his booth with his eyes closed, because he probably can....will probably have some good advice if you are willing to listen. Sharing your dreams with others may mean that when they see the opportunity that is perfect for you, you will find out. Be a friend and make a friend. Your business will benefit, and so will you.

The title? It seems as if I should be in a lull right now. The economy is faltering. I had a large order with a catalog company cancelled. And yet, I am working like crazy. Orders are coming in. Opportunities dropping in my lap.

Why? Luck, perhaps. But maybe because I am working to stay focused on these essentials. I don't know. But I do know that the more I do that is alignment with the things I profess here, the more success comes my way. I get it wrong, like anyone. But I allow myself the error, and move forward. I hope that you can do the same with your business, and that it brings you the same satisfaction and success. I am looking forward to the lessons that the next five years will bring.

Monday, March 10, 2008

Asking

Can you ask for what you need or want? I don’t mean ask in the hypothetical sense, but really ask.
When I met my husband, it was love at first sight. We hit it off immediately. Within six weeks, he made a hypothetical proposal. Not the most romantic proposition, but he clearly wanted to know where he stood before he took the risk of asking for real. “Hypothetically” he asked, ”if I was to ask you to marry me, what do you think you would say?” Finding out what someone is likely to say before you ask the question makes it much easier to decide if you want to take the plunge for real. If the answer looks iffy, it is safer to avoid asking for real.
So what does this have to do with being an Artrepreneur? Well, let’s say you get people to your booth at a show. Or you get a gallery interested in your work. Can you close the sale? Can you ask for the order, or, do they walk away saying they have to think about it? And as they walk away, are you left saying, “What did I do wrong? Why didn’t they place the order?”
First, ask this. Did I ask for the sale?
Or, did I find out what the obstacles are to placing a sale? Did I ask, “What else do you need to know about my work to make a decision? Is there any questions I can clear up for you?”
At this moment, you are asking them to move from being on the fence, to making a choice. You are giving them a chance to voice their objections, if they have any. They may have a few issues that remain in their head. But, given the chance to verbalize these objections, they may, given a bit more space to talk, continue to talk themselves right out of their objections, and right into an order. If they had been able to leave the booth first, to think about it, the next thing they think about might be the work they are considering by another artist. You and your work are out of sight, out of mind.
The response might be, “I just want to be able to think about it a bit more. I think I have all the information I need”. At this point, you could thank them, and ask them to be sure to contact you if they have any questions.
Or, is it possible to create a sense of urgency? “This product line has been doing very well. I just introduced it, and already it is selling very well. As I receive more orders, my lead times will get longer. I know you are excited about this work, and I would hate to see you have to wait an excessive amount of time to get it for yourself.” Then wait. They may still move on. But, this new piece of information might just be the thing that helps them make a decision.
Asking for the sale is difficult. It is like asking for a date, or for another’s hand in marriage. We are risking rejection. So, we need to feel a degree of confidence to do that easily and comfortably. If we feel unsure about our work, our prices, our ability to satisfy the expectations of a potential customer, those words may not be able to comfortably fall out of our mouth. We rationalize our hesitancy by saying we don’t want to be pushy.
If you read through these scenarios, and say to yourself, “I couldn’t do that.” Maybe, you need to stop and ask why? Why not? Is there something about your work that feels uncertain? What is it? And, what can you do about it? How can you feel more confident about the work that you are putting out there so that you can comfortably have this dialogue with a potential customer? Answering this question may be what is needed to help eliminate the roadblock to asking for the order.
If you still feel like you can’t do it, ask yourself this, “Could I sell someone else’s work?” Think of another artist whose work you admire. Could you sell that work? Could you comfortably tell someone what is wonderful and unique about their work, and why they would want to own a piece for themselves, or place an order for their gallery? If you can, then your ability to sell is not where the problem lies. You need to fall in love with your own work. You need to believe that someone would want own your work, or carry it in a gallery. When you get to that point, these scenarios will naturally happen.
If you believe in your work. If you know your prices are fair and reasonable. If you know the customer loves the work. If all of these things are true, there is no reason in the world that you should not ask for the sale. You can deliver a value to the customer in return for the money they are spending. But, if you do not ask, do not assume that having good work is enough. Sometimes it is, but sometimes, people want you to ask!

Wednesday, February 13, 2008

A Chance to Vote for American Craft

George W. Bush has apparently signed the bill that will send tax rebate checks out to most Americans in the coming months, with the intent of stimulating the economy. The checks will vary in amount, from $300 to well over $1000. Since this idea came up, there has been much discussion in the media about how people will spend this money, and whether or not it will benefit the economy. There has been people concerned that it will go to purchasing electronic equipment that is made overseas, and the money will quickly leave our economy.


I have a suggestion. Take a pledge. A pledge to buy American Craft.
With at least some portion of your rebate, buy something made by hand, by an American artist. I am not normally one for jingoism. But, I can't imagine anything that could do more to get the money into the economy that will have so many benefits. Small business, the artist who works alone, or with a small number of employees, will be a direct beneficiary. That money will go right back into circulation, in our economy, probably to purchase more supplies, or services to support their business. You will bring a bit of beauty into your life, and you will be a patron of the arts! You don't have to make donations of millions of dollars so that a wing can be added to a museum to be a patron of the arts. All it really takes is buying the work of artists. Large or small, it all adds up, and begins to make for viable careers.



Do I have a personal interest in seeing this happen? Maybe. But I feel like I am part of a community of talented people who make the world a little more beautiful with the work they do. But, they face an uphill battle to stay in business. I want to see them succeed. If I didn't, I wouldn't write this blog. My motivation is to see the world be a bit more beautiful. To be surrounded by more art, wherever I go. And if it means asking people to make a pledge to buy some art with their rebate, I am willing to do that!
Take the pledge.

Copy one or more of these images, and add it to your blog, or your website. Print it out as labels, and put it on postcards, or envelopes, or wherever you can use it to remind someone that they have the power to take an act in favor of beauty. Let's make this a contagion on the internet., and beyond. Around the holidays, there was the Pledge to Buy Handmade. Let's build on that idea. We can make a difference in the world. And it starts with our actions. Act on behalf of beauty. Put aside the whole check if you can, or a portion of it you can manage, and buy American Craft. And if you have enough "stuff" in your life, perhaps someone you know would be cheered by a handcrafted gift.
Does the world need more plasma TV's, or more art? You have a choice. You can make a difference.

Thursday, January 24, 2008

A New Focus

I have made a decision to focus on selling wholesale this year. My decision has come from several vantage points. First, I have seen terrific growth in this area of my business, and I want to be able to continue that growth. Second, retail shows have been more problematic for me.

Retail shows are a terrific way to get a first hand reaction to your work. This can be misleading and confusing though. I have had shows where the work flew out of my booth, and another show with the same work was dismal. Which information was correct? Both, most likely. Demographics, flucuations in the economy, weather, and many other factors can effect the outcome of a show. My energy level, or my display can also have an effect.

And retail shows are time consuming. Before the show I typically will do a mailing. This means updating my mailing list, printing out labels, and stamping postcards. A day to pack things up and organize. A day to travel and set up. Three days at a show, tearing down and traveling home on that last day. Crash and burn for at least a day. A week out of the studio. If the show was great, this was a week well spent. If not, it was a week away from family, and out of the studio. Then there are sales taxes to be paid, credit card sales to be entered, unloading the van, and putting everything away again. And more names to add to the mailing list.

In the past, I have felt unable to really think through, and follow through on developing a consistent and cohesive marketing plan for my work. It has been catch as catch can. Part of why I want to try focusing just on wholesale this year is because I want to be able to give enough attention to marketing that it can be more effective, and opportunities are not dropped or lost for lack of follow through.

Here is part of what I want to do;

1. Mailings. I still will do postcard mailings, but now they will be to galleries, and planned to promote some sort of special offer. A call to action, if you will. I also plan to mail out my new catalog to anyone who as ordered from me in the past or has asked for information. It will build on the past interest, and perhaps generate some sales. Too often in the past, I would send out a catalog after an inquiry, but leave it at that. I will make use of the mailing list of galleries I have built up over the last three years.

2. Newsletters. This is a step I have already begun. I sent out my first e-newsletter this week using Mail Chimp. They have a 30 day free trial, and flexible pricing plan that works for my volume and frequency. And it works! I had an order within 12 hours of my first mailing. I plan to send one out every other month, alternating with the postcard mailing. Not all galleries even use e-mail. But for those that do, it is a great way to stay in touch and let them know what is new with your work. These newsletter services would work well for retail as well. The nice thing about services such as Mail Chimp, or Constant Contact, is that they tell you how many people opened your email. How many times, and which links people clicked on. They clean up the list automatically, removing bounced e-mails. You could do this your self with a standard e-mail, but the background information is helpful to gauge the success of your newsletter.

3. Advertising. One of the tenets of effective advertising is repetition. Some people will contact you with the first advertisement. But others will have to see your ad repeated times before they take action. In the last year, I focused my advertising dollars on the Buyer's Guide put out by Wholesalecrafts.com. It is open to anyone who is on their site, and it goes out four times a year. I had planned to only do two ads last year, but ended up going with four. I also increased the size of my ad. The results were well worth the expense.

This year I plan to run ads in at least one, maybe two periodicals on an on-going basis. I am starting with Niche magazine, put out by the Rosen Group, and sent to galleries. I can run a co-op ad, again through Wholesalecrafts.com, and gain broader exposure for my work.

What I have learned in the last year of running the ads in the Buyer's Guide is that I get a different clientele contacting me as a result of these ads. I get phone calls from galleries who do not visit the Wholesalecrafts.com website, and do not want to place an order on-line. They prefer to talk to me on the phone. Perhaps have a catalog to peruse at their leisure. Some customers love the flexibility of ordering on-line, but others prefer a different approach. Being able to respond to all the various styles of your clientele is important.

4. Wholesale show(s). I will be doing the ACRE show in Las Vegas again this year. This show gave me exposure to buyers who like to come and see and touch the work in person before placing an order. Doing the show last year took me out of my comfort zone, but was well worth every minute of anxiety.

My approach to this is pretty much like it has been all along with my business. It is a trial. An experiment. I will allow myself this year of focus and see what happens. I may even do a retail show or two this year. But maybe not. I like the idea of traveling only once this year to do the wholesale show. I like the idea of taking the money I would have spent on retail shows this year, and using it to boost my advertising, and exposure.

I will let you know how this experiment works out. I am sure I will have more adjustments to make next year, but I feel like I have a map for the coming year. Each time we try something new, we learn new things. We may learn that it doesn't work for us, but we know it with certainty rather than fear.

Tuesday, January 15, 2008

Does Being in Business Make You a Better Artist?

I am teaching a class at the Synergy conference in Baltimore next month, called "Should I, or Shouldn't I?" The class is about how to decide whether or not you should try and make money with your craft. In preparation for that class, I sent out some surveys to various artists to get a sense of how being in or out of the business side of art has affected them. What did they learn? What did they wish they knew? How do they make money with their art/craft?

I received an e-mail back from Elise Winters that was full of insight. One of the things she said that has had me thinking all week is that is that sometimes artist believe that they must be in business to be taken seriously as artists. It is Elise's belief that sometimes, the business can become a diversion to developing as an artist.

The subtitle of my blog, "the collision of business and art" implies that there is not always a comfortable alliance between these two worlds of commerce and creation. Many firmly believe that you cannot be true to your art, and be successful in business. I guess I would like to believe that there are no hard and fast rules in this regard. In fact, while being in business did not make me a more authentic artist, it did help me develop as an artist in other ways.

For one thing, it got me in the studio on a regular (daily) basis. And I absolutely believe that you must spend time in the studio to develop you skills, and to develop your voice. Neither of those happen without time in the studio. You can hone other skills, like your powers of observation, without being in the studio. But ultimately your hands need to connect with your medium. You need to be able to know intuitively the limits of your medium. You don't learn this by reading about it, or by spending a few hours a week creating. You learn it by getting your hands dirty.

It also forced me to pay attention to details. Details that are often referred to as finish. Present your work to a gallery owner, or at a craft show, and the first thing someone does is pick it up and start turn it this way and that. Inspecting the finish. How does the back look? How does it feel? How does it fasten? What types of materials are you using? It is easy to ignore these details when you are starting out. Stopping work on a project before attending to these details. Hoping no one will notice that glob of glue on the back that you used to attach the pin back. Under the scruntiny of another person's eyes, you will look more critically at your own work.

But business can become a trap. You can find financial success with work, and get stuck in that style for too long. Long past the time that the public interest has peaked, and your own inspiration has faded. You may find yourself looking too much to external sources of inspiration....fashion, someone else's success....rather than internally to your own creative well spring.

Time spent building a business can be time out of the studio. If you want to create "art" for "art's sake", selling your work can be a distration. But financing that pursuit might be a bit more challenging.

In my own case, I had been looking around for what I was going to be doing in my life. I was half-heartedly trying to enter the world of children's book publishing. So when polymer clay fell into my lap, and I fell in love with the possibilities of this medium, I was soon thinking that I wanted to figure out how I could do this as a business. I had already run a business. I had a business background. I didn't know what form the business might take. But I knew that eventually that was my goal. Perhaps as someone who has a degree in business, and not in art, it was more comfortable terrain.

But first, I had to learn as much as I could about what I could do with this material. At one point my husband referred to this time, and money, spent on experimenting and learning as my art school tuition. I guess you could say I was "home schooled in art". A business professor might have looked at this time as one of research and product development. I probably dove into the world of commerce prematurely. But, as many have said before me, I would rather regret the action taken, than the opportunity passed. And once I dove in, I learned far more than I would have continuing to work away on my own. Even if what I learned was that I was not ready for prime time yet!

It is a delicate balancing act, juggling commerce and creation. And each person has their own tipping point where things go too far one way or another. We must know what our own motivations and goals are before we know if we are in balance.

If your in my class in Baltimore, I have much more wisdom from Elise and others to share. I hope I see you there!

Thursday, December 13, 2007

You Know you are an Artrepreneur When....

1. What others call "world craft", you call "cheap imports".

2. Your designs take into consideration production and efficiency.

3. You know what a knucklebuster is. (A credit card imprinter, used to manually record credit card sales.)

4. You are on a first name basis with your UPS person, the FedEx person and the people at the post office.

5. You know what keystone means. (Two times the wholesale price.)

6. You know what someone is talking about when they talk about Zapplication. (Zapplication is an on-line application for various shows and competitions.)

7. You have gotten packing your car up for a show down to a science.

8. You know what a CVV2 code is, and why it is important. (The three or four digits found on the back of the credit card. Getting these numbers when you use a knucklebuster can save you about 1/2 of a percent in fees.)

9. When someone asks for "terms" you have an idea of what they are talking about. (Usually means they want Net 30,..... or, delivery of goods and thirty days to pay.)

10. You know the joke about the artist who won the lottery....and you are not sure whether you should laugh or cry. :-)

The joke: An artist wins the lottery. They go to the lottery headquarters to cash in their ticket, and they are asked what they will do with their winnings. Their reply,....."I will probably just keep doing shows till the money runs out."

If you have any more to add to the list, please feel free to put them in the comments.

Monday, November 19, 2007

What Risks Are You Willing to Take?

No, I am not talking about chemical risks this time, but personal risk. How much are you willing to step outside of your comfort zone to succeed in your business? It is inevitable if we want to move our business forward from it's current state, we need to take some risks. Discomfort is required.

There was a lot of discussion recently on a forum about a very competitive craft show, and how hard it was to get in. There was some cynicism about the verity of a letter that some received saying they were in the top 25% of entrants. The griping was about the cost of entry, and the near impossibility, or so it seemed, to get into these shows.

Finally, another artist, who has done many of the top shows chimed in. He gave some frank, no nonsense advice, based on his own experience. The piece that stuck with me the most was if you want to move into this top circle it comes down to doing what 97% of the people are unwilling to do. It involves taking some risks. Putting yourself in the position of having to hear some hard advice or opinions. Risking rejection.

I think this is true for any entrepreneur, but perhaps more so for someone in the business of craft. There are many opportunities open to those who step forward and make an effort, go the extra mile. Maybe nothing will come of every effort you make. But if you don't even try, you are guaranteed nothing. And each time you get your work and your name out there, you are building your brand.

Elise Winters shared in a recent interview that she enters the Niche awards every year to gain exposure for her work, and polymer clay in general. The people who are judging this competition are very influential, and the potential exposure from exhibiting your work as a winner or finalist at the Rosen show is invaluable.

The artist who posted on the forum suggested making an appointment with the curator of at least one, preferably several, of the top museums in the world of craft. You may have to call several to find one with the time or inclination. Or visit with a gallery owner who is often a juror at top shows. Pay for their time, or make a donation to the museum. His suggested donation, $500. Before you gasp, recognize what it could mean to get the type of advice you could receive from such a person. He suggested that you ask them to look at several of your images and give you feedback. Ask them what they look for in the jurying process. More good advice, was to leave a packet with some images, artist's statement and bio, and your CV. And dress appropriately for the meeting. This is all about making a positive impression, not just with your work, but with the rest of the package. You are not only getting advice. Your work is getting seen and better known.

Are you willing to go the extra mile? Are you doing what you can to network? Does every person you know, or that your spouse knows, know that you are in business as an artist? I recently went to a reception for alumni of my business school. I came armed with a crane for my former professor, who is now the dean. It was a gift. But it was also about letting someone who is connected to many others know what I was up to in a very real and concrete way.

This summer I joined the Origami Society because of the cross over of my work. Several members had approached me at shows, and I finally investigated it, and joined. It provides me with a wider audience to network with, and to learn about more opportunities that might be a good fit for my work. Recently I emerged from lurkdom briefly on the discussion list, and was received warmly. I am back to lurking, but perhaps I won't stay there quite so long next time.

The business of craft is competitive. It takes stretching yourself, and reaching outside your comfort zone to succeed. It takes getting up and starting again after you get knocked down. It does not mean you have to go after the top, top shows to reach your goals. But, have you set goals for yourself? Have you thought about the steps you need to take to reach those goals?

Not everyone has to, wants to, or can be that 3%. But if you are aiming to reach far with your work, it takes more than time and effort in the studio. How badly do you want it? How far outside your comfort zone are you willing to extend yourself? Do you have the resiliency to pick yourself up after a rejection, and try again? Are you making every effort to be professional in your encounters with others?

In the next few months, it is a good time to start considering where you want to go, and what you need to do to acheive your goals. Or at least take the next baby step towards accomplishing your goals. This time is invaluable. It helps us see the progress we have already made, and can motivate us to aim for a new target in the coming year.

Wednesday, November 14, 2007

Different Title and Theme??

Business and art are seen by some to be the antithesis of one another. Not just by artists, either. It is hard sometimes for others to recognize us as business people as well as artists. We are passionate about what we do, and what we create. But we may also need, or want, to make a living, just like any other working person. Business and art must intersect if we are to do this for a living. Helping other artists wrap their head around the business side of this equation is something I try to do here.


But my real world also includes kids, a husband and a dog. The kids are a little older now, so it is a bit more manageable,....but sometimes it feels like a three car pile up rather than a your more ordinary collision. The collision of art and business....and life!


Yesterday I was rushing around trying to get three or four orders out the door. I can't make the cranes fast enough right now. One of the orders was sent in by email, so it was easy enough for me to track down and double check quantities, styles, address, etc. No problem. Two others were phoned in. This is where I run into problems. And I know some of you will come up with some helpful solutions like a notebook and pen by the phone, or a white board, or immediately filing the paperwork, and updating my contact and order info when I get these calls. You are absolutely right. I should do those things. I sometimes even try to do those things. But then reality intervenes.

The call comes just after the kids get home from school. They are trying to signal to me, wanting to know if they can have ice cream and potato chips, and I am trying to signal they should go away, I am trying to talk. The signal is of course interpreted to have free rein on anything that is not tied down, or otherwise claimed. Or, Nickelodeon is on the TV in the background and I am trying to signal to them to turn down (or better yet, off!) the TV. I walk away, ...thank goodness for cordless phones....., kids left looking at me like I am losing my mind. Meanwhile, I am trying to take in every word they are telling me, but actually my brain is freaking out trying to remember the name they gave me in those first few seconds of shifting from mom to artrepreneur.

Inevitably there will be a need to write down information....an address, product, dates, etc. But in order to get all this down I would need a piece of paper and something to write with. If anyone goes through my files they will find way too many notes scribbled on the back of my kids homework, a bill, or the comics....whatever I can find in those panicked moments...in crayon, or dry erase marker...or again,....whatever I can find! Pens, pencils, normal writing utensils, enter our house on a regular basis. But somewhere, there is a black hole or vacuum. It may be the same one that absorbs socks. I don't know, but normal writing tools vaporize. Yet I manage, or at least I like to pretend I manage, to sound somewhat coherent, and copy down the information, do a bit of a plug for another product they might want to try, or a style that might work for them, and hang up the phone.

This is when I should do that filing, organizing, etc. But first, I have to pull my kid's head out of the potato chip bag, or turn off the television, and get them focused on doing some homework. If I am lucky, I will at least enter the quantities, and business name for the order onto the computer so I don't lose track of it. Then it is off to take the kids somewhere, or pick them up. No time to file that piece of paper away for easy retrieval. Goes into the "Later" pile.

The piece of paper with all that valuable information now may make a journey throughout the house. How else can I play scavenger hunt when it comes time to ship the order? I will remember seeing it on the dining room table. Nope. Maybe it was in my studio. Nope. Maybe it is still on the ottoman in the living room. Nope. Okay. Panic is beginning to set in. The order needs to go out, and it is now approaching noon. I have two hours to finish packing the order, print the invoice, and get it to the post office. Should be easy. Doesn't feel very easy right now. One more time around the cycle. Dining room. Studio. Living room. Looking paper by paper. Finally cleaning up the area as I go. Must be upstairs in the office. Four piles of paper sit on the desk waiting for filing, sorting, or entry. I am vowing to get organized.

Find it! No time to celebrate. Call in credit card. Print out invoice. Finish packing the box. Oh wait. They wanted a bio. Back upstairs to print it out. Ooops. Laptop now downstairs. Go get the laptop, and bring it upstairs to the printer, and print out a bio. Daughter number one will be home in half an hour. Write a note. Should be home before daughter number two. Rush to the post office, zip over to Staples for ink cartridges, and to send a fax, and it is back home to juggle.


It is crazy. But it is also wonderful. I have never worked under such challenging circumstances, but I am also lucky to be able to work at home. My older daughter has agreed to work a few hours a week for me, on a trial basis. My other daughter wants a piece of the action as well. They get to make a few dollars, I get some help, all the while getting to be there with my kids. They get to see what is involved in running a business. They are as excited as I am when good news comes. They have been living the business with me, my (not so) silent partners.


When I am racing around the house looking for that pink piece of paper that I swear I used to write down that order, I am questioning my sanity. But once the order is shipped, and I go home, and bounce between working and parenting, I know it is working as best as it can, for now. They will grow up, move out and move on. But they will carry with them a little bit of what they learned. I may be able to find pencil and paper more easily then. But, I may miss flipping over the order I just wrote down to see that it was the rough draft of someone's essay. Just because it is hard, doesn't mean it isn't worth it.