Pricing Challenges

I recently had the good fortune to be invited to speak to the Vermont Craft Council. I taught two classes; one about using the Internet for publicity and promotion, and the other about pricing. I was frankly a little surprised by the invitation, but also flattered.

But, I also wondered what I had to say about pricing. I struggle with pricing....like nearly everyone I know. I have yet to meet the crafts person who declares, "I love to price my work!"

It is a task that is put off to the last moment for many of us, or agonized over for too long. As I prepared for this presentation, I reviewed some of my earlier posts about pricing, and in particular the ones about pricing the pear. I had learned a great deal in the process of writing those posts, and once again, I found preparing to teach a class brought forth new understanding.

First off, I recalled that I have always hated pricing. When I was selling oxygen, nitrogen and other industrial gases, I hated pricing. It was nearly always a challenge even then to come up with the right price in competitive bids. When I was a product manager in several companies, and I had to review price deviations with sales people, it was always a stressful process. When I had a business making window treatments, I really felt challenged by coming up with the right price. So, why should this be any different?

If anything there is the added challenge that we are pricing something that we have made with our hands and often our hearts. A piece of us goes off with each piece. How can we value that?

Then there is the challenge of trying to figure out how much will someone else pay for this item? Can we cover our costs...if we even know what they are?

As I reviewed my presentation with my husband, we began to talk about the many factors that go into pricing. That was when I realized how I had always hated pricing. But I also began to see a new challenge that exists in the world of an artrepreneur. The marketplace is dysfunctional. Both the buyers and sellers can play a role in that dysfunction.

Let's look at the sellers first, since this is the easiest...but not easy!....to control. As I reviewed the past posts on pricing, and the many ideas I gathered from readers about how they approach pricing it was clear that not all sellers are pricing in a way that will create a sustainable business. In order to continue to be in business for five years, ten years, or more, a seller must consider all their costs of being in business...not just their cost of materials. Or maybe the labor. If a seller is selling their work in the retail market at wholesale prices, they are doing themselves, and the market, a great disservice.

We need to price our work with the idea of sustainability. That means our overhead, selling expenses, and a profit that can be reinvested into the business in new equipment or other capital purchases, are incorporated into the price, along with labor and materials.

What if you think, "Oh, I don't want to do that. I just want to have fun making things and make enough money to buy materials."?

Okay. What about your cost of display equipment...even just a table....or packaging? Are you including those? Are you declaring your income and expenses with the IRS? Can you honestly say you are in business if you are not pricing your work like it is anything more than a hobby?

Maybe you have moved past that. You can comfortably say that is not me. I don't do that anymore. I price my work so that I can make a fair wage, and a fair return on my investment in my business. But then you go to a show, and you find yourself surrounded by people who are pricing it as a hobbyist. Do you think the customer can understand the difference in pricing, and why the higher price is actually more rational? Does the average consumer at a local craft fair care if you are in business next year? How can you keep your head when everyone around you is losing theirs?

This is where I began to realize part of my underlying motivation to move up to higher quality shows, or to wholesale. The markets are more rational. You are more likely to compete against artists who understand the cost of being in business. They are in it for the long haul. Likewise, the consumer is likely to be more educated as well. They are willing to pay a fair price for handcrafted work. They want you to be around in five years, so that as a collector or as a shop owner they can continue to purchase from you. They understand that you do not need to price the work so that every single person who wants to own it can afford it. You are one person. There is only so much that you can produce.

I am not dissing the local craft shows, or the on-line shops full of dysfunctional pricing. I am just describing the landscape. I did a terrific little show last year at some local art studios. There were people there who had fair prices. And there were plenty with just crazy pricing. But, I did not allow the people who have are pricing too low make me question my own pricing strategy. And I had a great show.

There are also times that you can reasonably lower prices. If you have old inventory that you want to clear out. Or if you have seconds that are saleable. Go ahead and discount those items and convert them into cash.

If you hate to price your work, you are not alone.

If you think it is way too hard, you are right.

But just because other people around you are losing their heads, doesn't mean that you need to lose yours. Hold on tight. Breath deeply. Know what your true costs are, and know what a fair price is.

You may find that a fair price for an item is just not saleable. You may need to redesign the product, resource your supplies, or perhaps even come up with a new idea all together. But continuing to produce it, and sell it for less that is reasonable for the costs you have...that is just crazy. And you know that.

Sustainability. That is the word to hold onto. We want a sustainable planet. And we want an sustainable business. Neither is easily achieved. But both are well worth the effort.

Is It All About the Venue?

Lindly Haunani recently sent me a story.

Watch this video.



Did you notice the protective bubble that seems to exist around the violinist. Even the few who finally stop to listen, keep a "safe" distance away.

The violinist, Joshua Bell. A world class musician. The violin, was worth $3.5 million. He played six beautiful and complex Bach pieces over 45 minutes. Six people stopped and listened for any length of time. About twenty people gave him money, but kept walking.

Just two days earlier, he played a sold out show in Boston. The tickets cost an average of $100. You can image that the audience paid full attention to every piece played.

Same musician. Same instrument. Different setting. And an entirely different response.

It certainly made me think about the many shows I have done when people have walked absent-mindedly through a show. Chatting on the phone, or with a friend. Half looking at the work. At these very shows, there are artists showing work that is worthy of being in a museum....or who have work in a museum.

I have yet to see someone walking through a museum, chatting on their cell phone, and munching on popcorn. Why does one setting invoke respect and focus, and another half-hearted attention? I do not expect people at a craft show,...even a high caliber show....to be looking at the artists and their work with reverence. But, if you do come to see beauty, then why not see the beauty?

It also made me think about how the context in which we sell our work, creates a perception of value. If you sell your work on a bare table in a school gymnasium, don't expect people to value your creative genius. If you put mediocre pictures of your work on your website, don't expect to have anyone see what you see in the work. Sell your work at price that is too low to reflect the work that went into it, and people will look to see what is wrong with the work, to solve the apparent contradiction. Put thought and effort into the design of a piece, and neglect similar attention to the finishing, and don't be surprised that the design is not fully appreciated.

Attention. Attention to where and how is essential to success. Neglect that attention, and you will have an even harder challenge to get your audience to pay attention, appreciate...and buy...your work.

Another Reason to Find YOUR Voice

Once again, the issue of voice arises. What makes your work identifiably yours, and belonging to no one else? And why in the world is it such a big deal?

When you first start out, voice is hard to grasp, or develop. Technique takes center stage. But you know you are seeing it when you can look at a picture and immediately identify it as belong to a specific person. Or, your mouth drops open when you see something for the first time, and you gasp. Or you just feel compelled to touch. You can't stop the "oooohhh..." from floating out of your mouth.

Why am I bringing it up again? I was listening to the radio this morning in the car on the way to an appointment. The conversation was about our dependence on oil from other countries, and whether or not we could become energy independent. At one point in the discussion, a light bulb clicked on in my head. The guest on the program spoke about how oil is a commodity like iPod's, flowers, or rice. And people will buy a commodity based on price, availability and convenience.

The question that immediately popped into my head was, "Can craft be a commodity?" And, I am sure you know the answer, "Yes." Without a doubt. I instantly thought of the many, many jewelry artists I have seen making fused dichroic glass. At one time, there was a "wow" factor to it. But now, unless the artist has created a unique way of incorporating the glass into the piece of jewelry, there is no compulsion to buy from one artist versus another, unless it is based on price, convenience, or perhaps personal relationship.

The same can be said of so many other craft objects. If you go to enough craft shows, you will see many of the same things, again and again. But, at that same show, there will be a few artists that pull you in. They are doing something that is different and unique. As I write about this, I can think of several artists right off the top of my head whose work has that flavor. They range from ceramics to sculpture to jewelry. Their work stays in my head because it was so fresh and unique, and their style speaks to me on some level. I have to stop, and look and maybe even buy.

My daughter is beginning to dabble in photography. We have had lots of conversations lately about photographs, and one thing she has said repeatedly, is that a picture of a sunset is not art....unless you are somehow looking at it in a new and fresh way. We were at the New Hampshire Craftsman's Guild Show last week, and she saw some pictures of boats tied up to a dock. Four or five rowboats of various colors. You know the picture, I am sure. She loved it. I preferred the picture of the sole boat, white, tied to a buoy in a mist. Monochromatic, and definitely one with a mood. It was a twist on the boat picture. I pointed it out to her. She loved the one with all the colors. This was in the first tent we visited.

As we walked the show, she started to notice several other photographers with essentially the same picture. That image had become commoditized. Buying one versus another would likely be based more on price than on anything else. She now looked at that picture as just another sunset shot.

Is that why you want someone to buy your work? Because you have the best price on this object. An object that can be found in subtle variations, from multiple sources. I don't. I want them to buy it because the love it. Because if they don't buy it, it will stay in their head. They will wish they had it.

There are times that the commodity item fills the bill nicely. And there are plenty of successful businesses built on making and selling commodity type items. But, if you are going to be in that market, recognize the competition will be fierce, and you will always be squeezed on price. Your creative energy will likely be focused more on cost cutting than on design innovations. If the business side of things is what excites you the most, that might be just the right fit for you. If, on the other hand, it is the art, or creative side that makes you get out of bed in the morning, then avoiding be just another commodity is essential to your success.

We all have a voice. A unique set of experiences and inspirations. How does your work reflect the path of your life? Does it? If it doesn't, then perhaps it is time to spend some play time in the studio. Experimenting. Asking "What if?" When you find it, you will know. It will be singing to you loud and clear, asking, "Where have you been? I've been waiting for you!" And then, the party will really begin!

Are You Running a Non-Profit?

Back to the issue of pricing.

I recently wrote about how I had to make a dramatic increase in the price of my cranes, and I want to explore a little further one of the traps that caught me, and I think sometimes catches other people in a pricing bind.

Have you ever said something along the lines of, "I want people to be able to afford it."

I have.

When I have talked about the crane pricing with people, who were often encouraging me to raise the price, I would say something along the lines of, "It's just an ornament. How much will people really pay for it? I can't really charge more for it."

Maybe. Maybe not. I had raised the prices incrementally a few times, but never as much as I really should have been.

The question that is being ignored in this type of market focused pricing is, "Can you afford to sell it at that price?" Are you essentially subsidizing your product? And is that really your intent?

When I finally started to look at the grim reality of the time I was putting into the cranes, and how much I was charging, I began to realize I was underwriting people's desires to own a crane, without taking fully into account my time and expenses. I am usually pretty generous, but even I saw the extremes of the situation I had created. I responded to the market demand for more intricate patterns on the surface of the crane, without adequately compensating myself. There was important information that I refused to see. Looking to the market is important, but not all the important information is found there.

Prices are often based on "How much would someone pay for this?" It can be easier than figuring out actual costs. And, it is easier than trying to determine how much our time is worth.

But, is it sometimes translated into, "How much am I comfortable asking someone to pay for this?" "Will people think less of me if I charge too much?"

Some people might. But some might also think less of you for charging too little. Guess what, it doesn't matter. What matters is what you need to earn to make a reasonable wage for your efforts. You are the one with the best information about what that might be. Not the people with all the opinions. They might also think that your hair is too long or too short. Or that you should wear blue more often. People have opinions. It does not mean we have to tie ourselves up in knots trying to satisfy everyone's perceived opinions and needs. We need to take care of ourselves, and respect our time and effort. Setting a fair price...for you, as well as for the market, is where to begin.

What if the product is just too expensive if you make a fair wage?

There are many options at this point. You can stop selling, and decide you want to just make things for the joy of it. You can consider how to make the product for less. What steps or elements can you eliminate? Think about what are the essential elements of your work. Can you focus more on this, and eliminate the extraneous? Can you purchase your materials for less? Exercise your creativity in a new way. Brainstorm about how to make your product affordable and profitable.

Since I have raised the price of the cranes, I have not received any new orders. But it is summer, and it is typically slower. New jewelry orders are more than taking up the slack. In the end, I am fine with whatever happens. I could not afford to continue to wear myself out. I showed one of my accounts the new solid colored cranes this afternoon, and she liked them better than she thought she was going to. She said she will order some of them in the fall.

The joy of doing work you love is quickly erased when you work your fingers raw, and find your bank account is not reflecting your energy expenditure. Making art is doing something wonderful for the world. But, you still need to make a living. Don't lose sight of that essential truth.

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......

Whose Job is it Anyway??

Negative reports began to surface within hours of the end of the ACRE show. There were not enough buyers. They were not placing orders. The promoter should have done more.

And yet, there are voices out there of people who did well. People who made connections and placed orders. What does one artist do that is different and works from another artist who struggles?

This eye-catching display belongs to Judy Belcher, shown here setting up and hamming it up. It could not be more simple, or more effective. Her palette is primarily black and white, with touches of color.....just like her booth. To reinforce the medium of polymer clay and the location of the show, she made some poker chips with her name and booth number for people to take with them. She was prepared with support material, and had a special offer for those who placed an order. She had strong work and a positive attitude. Her "be-back's" came back.

Another artist who did a terrific job of reinforcing a message with their work was Joyce Fritz. Joyce makes bugs that you want to touch and to own. Whimsical, beautiful, colorful bugs, with enough realism to amaze. And, she wears several of them at once, strategically placed, as a bug would land. On her shoulder, her back, here and there on her sweater or jacket. She had beetles that had beautiful landscape canework on the wings. And it was all displayed in cigar boxes on tables with green netting. In a simple way, she created a magical space in her ten by ten foot space. When someone placed an order, they got a little bug to wear on their badge. Advertising that traveled the show. More brilliance that worked.

These ladies did not spend time in the aisles griping about the lousy turnout. They were in their booth and ready to greet anyone who stopped by their booth. Their work was strong. It had fresh elements. Their displays worked to complement their work. And they knew they were their to sell, not to socialize or complain. That was for non-show hours, if at all.

There were many other artists who had positive experiences. I do not know those stories as well as these two. The economy is awful. Galleries are going out of business. Others are hanging on, but their business is down. It is effecting all of us. But, those who do more than complain, who work a bit harder and a bit smarter will come out of this period stronger and wiser. That is the side I am working to be on.

How about you? This is a year to survive. To hang on and bring your best game forward. Complaining has never gained anyone business. Complaining has never made work sell.

What do you need to be doing?

Advertise. Ads, postcards, e-newsletters, etc. Stay in the consciousness of your customers and potential customers. Over and over again, I heard people tell me about how they had seen me at other wholesale shows....which I did not attend. Why? They had seen my ads at about the same time period. Advertising can work. But it has to be sustained, and with strong images.

Innovate. Is your work stale? Is it time for some new designs?

Story/Theme. Does your work have a story or a theme? Have you shared that? Are you thinking at all about the kinds of things that are going on in the world right now, and how your work might tie into that? Environmental issues....is your work green? Price points for a soft economy....do you have work at a lower price point? Peace was a theme I saw frequently in artist's work.

Do you need help? with your booth, with your sales technique, with your marketing materials? If people are going to wait to place orders after the show, do you have materials to send them off with, or to reach out to them with after the show? If you don't know where to begin, find someone to help.

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.

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!

"Time, Time, Time....is on My Mind..."

"Yeess, it is."


If there is one commodity I could use more of, it would be time. And that scarcity of time is what is driving some of my decisions and choices in the coming year. It is easy to lose track of time when I get engrossed in my work in the studio. Or to have a relatively simple task take much longer than expected for any number of reasons,....interruptions, distractions, equipment or material problems,...you name it.


In many ways, time is one of the main ingredients in our work. How we value that time depends upon the skills and experience we bring along. But ultimately, for many artists, (excluding those working with metals these days!), the cost of materials can be insignificant compared to the time put into creating their work. Yet, it can also be the most undervalued component by the new artist starting out.


Several things got me thinking about this issue of time. There was a great post I found through Alyson Stanfield's ArtBiz blog about tracking time spent in the studio. I have tracked how much time it takes me to do a particular task, but I have not tracked my overall studio time quite the way it is described by Lisa Call. She has been writing down her hours in the studio each day, in her sketchbook. I love the sketchbook idea, but I am afraid I would fall into the judgement and evaluation of the numbers if I had them. Knowing this about myself might be why I was particularly struck by her goal to not judge the hours she had spent (or not spent) in the studio. But instead, her goal was acceptance that the hours spent there were the right amount for her.

Too often we are looking externally for cues and measurement comparisons. How much time do they spend in the studio? How many hours? Days? How many shows? The probem with these comparisons is that they are always missing essential information. No one else is where we are with our work, or lives. We all bring different experience, and baggage, to the party. And we all have different styles of work. Trying to adapt yourself to another person's work style or schedule so that you can perhaps achieve what they have done will only end in frustration.

Several other discussions in on-line forums have caught my attention when they touch this issue of time. One was about how people track time to price their work. One artist had a price per minute that she factored in for labor. Another had calculated how many pieces she could produce during a week. By adding together a weekly overhead cost, her materials, and her "weekly salary", she could then calculate a wholesale price without worrying about her hourly rate, or the exact number of hours it took her to produce an individual piece of work. One person was more exacting, and another more global in their calculations. Both had figured out what worked for them.

Another discussion centered on retailers' concerns about artists undercutting them on websites or at retail shows. This has become more and more of an issue as there are more and more direct outlets available to artists to sell their work. Without getting into the pricing discussion, a comment made in the thread resonated for me. I will try to paraphrase the comments. One retailer commented that many artists she represented had stopped doing retail shows after they did the math and saw the true cost of the retail show...beyond the booth fee, ...and found that it did not pay. An artist chimed in with her experience that reinforced this observation. She had found that she made more money, and had more time at home, and in her studio when she went to two wholesale shows a year, supplemented with on-line wholesale sales.

This reflects where I am coming to as I look at my goals for the coming year. Sales at retail shows, with just a few exceptions, have been dismal for me this year. I am not ready to write off retail entirely, but I am backing away from it. I like the idea of making work to fill an order. I like the idea of more time at home, and less of my time spent selling. I want to spend my time in the way that is most efficient and enjoyable for me. Too often this year I would spend three or four days away at a show while I had wholesale orders waiting to be filled. This just added to the frustration of a disappointing show.

As I make this choice to focus even more on wholesale, I know that there are many others out there who are leery of wholesaling their work. We all need to look and find the right combination for our time, our temperament, and our work. The balance or approach that works for me might feel completely out of balance for you. But maybe, like me, analyzing the mix in the context of time might just be what you need to help make a decision that feels right.

Enough time out of the studio.....it is time for me to get back to work!

I Stole a Pair of Kathleen Dustin Earrings

Got your attention, huh? I didn't literally steal them of course. But it felt like it. Family Services of Greater Boston is the organization who puts on the Crafts at the Castle show each year. It is a fantastic show....gorgeous work by extremely talented artists. And like many non-profits who run craft shows, they look to the artists to donate items that they can auction off to generate more income for their organization. Kathleen Dustin donated a pair of earrings to their auction. And I won them in the auction for only $50. These are a pair of her new pod earrings that would normally retail for $150. A steal!

So here is the thing....what are the consequences of these auctions? Beyond some great bargains. Are they really a benefit to the artists or to the organization? If you go and look you will see plenty of beautiful work.....all going for substantial discounts to the retail value of the items. A gorgeous Natalie Blake vase, I wouldn't mind owning, went for under $300, versus a retail price of $425. A lovely necklace of sterling and polymer clay by Mary Filpek and Lou Ann Townsend did not even get a bid. A sublime scarf by Jeung-Hwa, knitted, felted and hand-dyed, went for less than half it's retail price in spite of a bidding war, which I watched from the sidelines, debating whether I should jump in. I could go on,.....a basket from JoAnne Russo, a museum quality piece. NO bids.

What is going on? For one thing, not enough people who might be interested in the work of the artists are aware of the auction, or participating in it. When you have a small pool of people engaged in an auction, prices will not be bid up enough to get to a price that reflects the true value of the work. Add the emergence of the online services that will enter a bid for someone at the last minute....which happened on two items I was watching in this auction,.... and you get less bidding overall. It drives the bargain.

And there is that bargain mentality that people approach an auction with. They want to get a deal. The deal that no one else could get. So they can brag about it over cocktails...or in their blog!

But it seems to me that it is doing a disservice to the artists and to the organizations. What if, instead of auctions, they raffled off the art work? It might increase the participation. A raffle could increase the pool of people who are willing to enter the competition. The show I am doing at the Fitchburg Art Museum this weekend is doing this. They asked each artist to donate an item with a value of approximately $25, and then they are raffling off the work.

Or, Craft Boston sells gift certificates. Each artist can donate a certificate worth $50, $100, or maybe $250 dollars. The show organizers (The Society of Arts and Crafts), then sells the certificates, and the buyers can redeem them with the artist. I had two people vying for the certificate I donated on the first night of the show. It does not diminish the value of the work, the organization gets a better value, and it has better tax implications for the artist.

When we donate a piece of art, we are only allowed to deduct the value of the materials. Our labor is worth nothing in the deduction. Insane. But if we donate a gift certificate, it is more like cash. We can deduct the value of the gift certificate.

But, here is the thing. How many of the people who are getting steals in these auctions can afford to make a substantial donation to the organization....as opposed to the artist being able to afford making a donation of their work?? The artists are already paying a fee for the booth space. Artists are more typically living at the economic edge. Should they be the ones who are making the greatest sacrifice to support these non-profits?

It is sometimes argued that the auctions are a way to generate publicity for your work. Exposure to people who could become collectors. If they truly are potential collectors, why do so many things go for so little money?? Aren't collectors usually people who appreciate the work of the artist? And, is this the kind of publicity we need for our work?

I used to always donate items when asked by organizations. I no longer will donate to an auction, unless it is an organization I would happily support otherwise. I will donate a small item for a raffle. I will donate a gift certificate. Or, if the booth fee is high, I may just pass. We can say no. It does not make us a bad person. Just because someone asks, we still need to evaluate if it makes sense for us and our situation. How much does it benefit the organization? How much does it benefit us? And what are the potential risks? This requires careful consideration, and there is no one answer that will fit every situation, or every person.

Reading Tea Leaves

I don't know if it is reading tea leaves really, or being hit over the head with a mallet! But my current approach to retail shows is not working. Looking at the numbers, the average cost per show has increased, and the average sales per show has decreased. I am approaching a dangerous intersection.

I am not sure exactly where the problem lies, or if perhaps it comes from many places, but I know I need to rethink my approach. The show this weekend in Providence was a beautiful one. The work that was on display was a visual feast. There is so much amazing talent out there. And yet, many artists at the show struggled to cover their show expenses. Lately, I feel like I am making more of an investment in the business of the show promoters, and the collections of the craft buyers, than I am in my own business.


Is the overall craft market in need of a new model? Look at the radical transformation that has occurred in the music industry in the last decade. Does the world of craft need such a reformation? Will craft shows be replaced by Etsy and the Guild.com? There are fewer and fewer shows that have the following, and buyers, to sustain the $1000 or more booth fees that some of the "better" shows are charging. Perhaps two day shows, rather than three? Perhaps more affordable venues? I am not sure. I do know that I am not alone in my struggles in the retail craft world.

In the meantime, I know I need to reform my approach at a show. I have to rethink my merchandising strategies. My knowledge in retail merchandising and display is very limited and needs some rethinking. This is my Achille's heel.


I had the input of a good friend, Sandra McCaw, this weekend about problems with my display. She helped me start to see some of the pitfalls of my current set-up. Buyers need to be able to assess things quickly and easily, or they are on to the next booth. I had grouped things by color. I thought that people would be drawn to certain colors and could gravitate to that area of the display and focus in on that. The order I thought I had created felt chaotic to others. Different styles of jewelry here and there. When I rearranged the work by style, rather than by color, I saw the difference. Light bulb moment.

One of the things that you learn with interior design, and I had also been told was true with booth displays, was to have things at different heights. It helps the eye travel. But, when you have a pedestal and case display for jewelry, things are displayed more or less on the same level. The variations in height are more subtle. But, it works. Perhaps the process of shopping for jewelry is one that needs a more quiet and studied reflection. The levels might work better for larger objects. I am going to be going away from my current booth set-up, and look into cases with pedestals, or hanging my work on the wall in framed shadow box type displays. Cleaner and more elegant. Likewise, Elise Winters made the suggestion to rethink the background for my work, moving from black, to a white background.


The craft market is soft. There is no room for anything less than being spot on in this business, right now. I have not hit the mark. I am rethinking everything right now. Will I continue with retail? Where and how? Will I continue to make and sell my vessels? And of course, where am I going with those displays??



I had scaled back on retail shows this past year. I will cut back further still this coming year. My wholesale business has more than doubled this year, and is looking better all the time. I will spend more time nurturing the development of that part of the business. Right now, the retail side of my business is on life support. Changes are in order. Stay tuned......

Wholesale Shows; When?

For this third post, we will take a look at "when". When do you decide that it is time to do a wholesale show?

There is no definitive answer to this question. For each person/business/artist the answer will come at different times and different ways. Some artists will jump right into wholesale from the very start of their business. Others may never take that step. What kinds of questions might you want to ask yourself about whether or not you are ready to take this step?

1. Are you interested in selling wholesale? Are you interested in growing your wholesale business? Do you have some reason that you do not want to sell wholesale? Have you made a list of the pros and cons of selling your work wholesale?

2. Do you have a price structure that can support selling your work wholesale? This may seem to be a no-brainer, but I am serious. Have you priced your work so that you can sell it wholesale and still make a profit? It is not unusual for an artist who is starting out to sell their work at a retail show at wholesale prices. These days, many retailers are looking to mark up the wholesale price by more than 2 times. A mark up of 2.1 times or 2.3 times the wholesale price is not uncommon today. Some retailers, in high rent areas, or catalog companies may be looking to price the work at three times wholesale. Can your work sell at those kinds of prices?

3. Have you developed a distinctive style or look to your work? If you are still trying to figure out where you are going with your work, it is probably too soon to jump into wholesale. I was guilty of this. The only work that I still sell from when I first started selling wholesale just four years ago is my polymer clay cranes. These pins were some of what I was making back when I started out selling wholesale. While they are both inspired by collage, that is where the similarity ends. I had not really worked out line before I jumped in. I don't recommend this approach.

4. Do you have the financial resources to do a show? There is the booth fee, potentially shipping and travel expenses, marketing materials, displays, .... You may feel like you are hemorrhaging cash. You've heard the expression, "you have to spend money to make money." When it comes to doing a wholesale show, you will definitely have to spend some money. Are you ready financially and psychologically?

5. Are you ready? Are you ready to take the risk, and the challenge of doing a show? Are you ready to accept whatever outcome may occur? Just as with a retail show, there are no guarantees that you will have a great show. You may do gangbusters. Or, you may not see the response you expected. You may have more competition than you anticipated. You may have priced yourself out of the market. You may have work that takes time to build an audience. Your display may not have worked. And on and on, and on. Are you ready to go into it knowing the risks, and willing to do an honest assessment of why things worked,.... or perhaps did not.

Any time I am faced with making a big change in my business I find I have to look inside myself. Sometimes I make the jump before I am really ready, but I learn and adapt. Or, I sometimes let fear hold me back from taking a step. At times I may want to do something, but just do not have the financial resources to make that move. I usually need some time of thinking, weighing my options, and sleeping on it, before I can come to a decision that feels right for me. I may still have some uncertainty.

Uncertainty is a given anytime you are doing something you have never done before. But, there is the counter balancing cost of hesitating when you know you are ready. Is that something you can comfortably live with? I find that I have more regrets with opportunities missed, than opportunities taken. But we all have to figure out our own comfort level, and do the best and most honest assessment of how ready we truly are. And then, accept our choice as the right one for us. No matter what everyone else chooses. Because in the end, it is our business to run.

Lessons and Adjustments, Part 2

My changes to the booth on day 2 lead to a significant improvement in sales, but still not a great day. So I decided on day three, I had nothing to lose. I had to totally rethink my display and my work.

I had been looking at my work as if it was reflected in a fun house mirror. My perception was distorted. Loretta Lam put it well, "sometimes we fall too much in love with our work." I had been working hard in the previous few weeks, making changes, and new designs. I was excited about the changes and thought I was heading in the right direction. And I still believe that I am. But it takes more than good work to make a show work for you. In today's economy every aspect of presenting and selling your work matters. And I had gotten a lot of things wrong.

I started by moving the tables further forward. I moved everything onto two tables, and moved them as far forward as I possibly could. Seeing my work from the aisle became much easier.

Next, I began looking at the work I had out. I had a necklace that I loved as a focal point on one table. I loved the play of colors, and the way the pods were spaced out on the necklace. But the colors said spring or summer, not fall. And the weather was turning crisp and cool. While I might wear any color, any time of the year, not everyone else will.

So the necklace went back into stock and another piece that had more fall colors was moved into the prime spot. All the pinks, lavenders, and peaches went under the table, and all the earth tones, greens, silvers and greys came out.

I took a look at my prices, and "sharpened my pencil". All this work made a difference. The last day sales were higher than the first two days combined. It was not a good show overall, but I salvaged what I could from it, and learned some lessons in the process.

And today, I got a call from the manager of the gift shop at the Peabody Essex Museum. I had a customer on Sunday who mentioned she worked there. I had been trying for nearly two months to get in there with my polymer clay origami cranes. They have an origami exhibit there now that runs through till June of 2008. I thought my cranes would be a perfect fit for the gift shop. I just could not reach the gift shop manager.

When I found out that this person worked at the museum, and knew the woman I was trying to reach I was thrilled. I had brought some of my small cranes to give to people as gifts or "thank you's." I generally do not sell this size crane. I gave one to this woman to bring to the gift shop manager. It is packaged the same way as the larger cranes, but is quite a bit smaller. I gave one to my new customer, her sister, and one to her mother, while I was at it!! Why not build a little good will...

Today the gift shop manager called, and we talked for a bit about the cranes. And I got a nice size order. My show was salvaged. The order was for more cranes than I would normally sell at a retail show. Even though I missed some sales by not having cranes at the show, in the end, I was better off with this new account that could result in some great sales in the coming months.

As they say, "It ain't over, till it's over"....but even then, it may not be over!

A New Fold

The origami cranes from polymer clay have been a decided hit, both in sales, awards. It took me nearly three years to commit to them as a part of my product line. Last year I made the commitment, came up with suitable packaging, an insert, and started promoting them. It was the best business decision I ever made,...even if I had to be dragged to that decision!

My resistance came from several places. In part they were different than the rest of my work. Part of me looked at it as a party trick of sorts, and not a lot more. I would sell them at the holidays, but without packaging or information. I was afraid it would take over my life. I would do nothing but fold cranes. And last fall that was largely true. But supply and demand eventually come into play. I raised the price, and things have reached a more manageable level.

At several shows, I have had conversations about the cranes with origami afficianados. They have belonged to Origami USA, a national organization to promote origami. The organization helps to promote exhibits such as the one currently on display at the Peabody Essex Museum, in Salem, MA. At the Guilford show, I had such a conversation. And this time I went and signed up to become a member of the organization. Poking around on the website led me to play around with a few new designs, first on paper, and then in clay. The one I love is the 8 Point Star. I modified the folds of the design by Michael Shall to fold it from polymer clay. And here is the result....

I think I will be seeing stars in my future......

Michael Shall, by the way, worked as an assistant to Alice Gray at the Museum of Natural History in New York. She was the first to decorate a 25 foot tree at the museum with origami ornaments. She had to enlist the help of other museum workers, scout troops, and members of Origami USA to complete the task, but it has become an annual tradition now. Mr. Shall spread the tradition to the New York offices of Japan Air Lines, and eventually to Britian as well. He helped with the decoration of a 45 foot tree in Eindhoven at a shopping center in 1993. Origami Christmas trees have spread worldwide, and are the best advertisement for paperfolding. Michael Shall died in 1995 at the very young age of 45. But his contributions to building the tradition of the origami Christmas tree will live on.

The Price, Is the Price, Is the Price....

One of the surprising things that came out of the pricing survey I just went through was the perception by many that the price is dependent upon where you are selling the work. In particular, there was the idea that the price would be higher if you were selling it through a gallery than if you were selling it at a show.

"I am not sure where you are, but that will make a big difference in price. As will type of show. How you place the piece will also determine the price. If I appreciate a piece I would willingly pay $30-50 for it. At a craft type show $10-14 would probably be the limit. At an Art/"One of a kind Show" it could fetch more, depends on your following,..."

"In the right high end gallery in NYC, Beverly
HIlls, Santa Fe/Taos, or Miami, I think it would easily sell for $350,
maybe more. I'm being conservative. In a gallery in a smaller city it
might be priced at $250. In a very high end competitive juried arts and
crafts show with the artist selling it in their booth, I think it might
be priced at $150. At a regular local arts and crafts show maybe it
could fetch $75."

"to sell this piece directly to the public would be $180. If sold through a store, it could be priced at $300."

"I would expect something like this to sell in a nice
artsy shop or at a gallery type show for as much as $75-125. At a
craft mall or craft fair, I'd suspect somewhat less - perhaps $50 to
$75."

It seems as if there is a perception that the price for work at a show should be lower than the price through a gallery. What is missing in this analysis? The cost of doing a show. The cost for the space, and your time. The cost of the display equipment, the cost of a tent, or similar set-up. The prices suggested above for craft shows are essentially wholesale prices, and the prices for galleries or shops are the full retail price.

Are you making this mistake in your pricing? I often hear artists say they cannot sell their work wholesale, or by consignment. They could not make enough money. These are artists who are probably selling their work to the public at wholesale prices. They are not considering their cost of selling their work on their own. Galleries are not going to be interested in working with an artist who was going to undercut them on pricing. If they found out you were selling your work to them at the same price that you were selling it to the public at shows or on the internet....how can they possibly succeed in representing your work?

I can hear it already...."but I can't sell my work at that price!" Maybe you won't sell as many pieces, or sell it as fast...but you may end up making the same amount of money, or even more, by selling your work at the right price. If you are truly at the maximum price for your work, then it may be time to reevaluate your costs, your process, or your product.

My vessels are labor intensive. This drives the price up, and limits the market for them. But there is also a limit to how many I can actually make. If I was to price the pear from the survey at $75, I would probably be able to sell them faster. But could I make them fast enough? Would I be covering my costs....even just the overhead, and selling expenses, at that price? Probably not. While there is something to be said for cashflow....there is also something to be said for the bottom line.

Remember, the price is the price is the price. Sure, different stores will mark up work at different levels. But if you are selling work to the public at the same price that you would sell it to a gallery or shop....you need to reevaluate your pricing strategy. The only people who should be getting wholesale prices are those who are buying wholesale quantities....or maybe close friends! A good relationship with a gallery can help your business in countless ways. But it is not likely to ever get off the ground if you are undercutting them with your retail prices. And you are not doing yourself a favor either if you do not recognize what it costs you to sell your work directly to the public. End of lecture! :-)

Will That Pear Ever Have a Price?

You have been so patient. I have recieved several e-mails wanting to know....How much was the pear? I have not shared my price yet, because I wanted to share all this other information first...perspective if you will. But we are getting so very, very close. Perhaps today.

We have gone over all the elements of cost in the formula found in Wendy Rosen's book, Crafting as a Business. We have looked at some of those costs relative to the pear. But what do you do when you are just starting out? How do you begin to figure out what price to charge when you are so uncertain about costs such as overhead and selling expenses? Calculating your materials and labor is manageable, but what about the rest of the package?

First, make sure you have the lowest costs that you can for your materials and labor. If you are buying your materials at full retail, you will not be able to fully recoup your costs. If you are making your work, one piece at a time, from start to finish, you are going to have to revise that approach. But let's assume all those areas have been addressed. Now what? Get out the dart board, and slap on a price? Sometimes that seems to be the way we go at it, doesn't it?

A few of the e-mails I received with pricing suggestions for the pear included formulas to calculate the price.

"cost of materials + time + 10% = wholesale
(cost of materials + time + 10%) x 2 = retail"

"I personally triple my materials cost, add my hourly rate and depending
on how much of myself is in it I may double the total, then again I may
multiply by four."

Then I receive the latest issue of Crafts Report this weekend, and lo and behold, there is a piece on pricing. They quote a glass artist from Florida, Marcie Davis,

"A third, a third, and a third. Your materials equal one-third, your labor is one-third, and your profit is one-third. Or simply put, multiply your costs by three."

Finally, we can turn back to Crafting as a Business. There is a section in the pricing chapter by Thomas Mann, the reknown jeweler from New Orleans. He offers some guidelines for pricing:

"1. Labor/materials should not exceed 1/6 of retail or 1/3 of wholesale.
2. Wholesale is 3 times materials/labor
3. 1/3 wholesale is for studio, overhead, and marketing.
4. 1/3 of wholesale is profit."

So we have several approaches. Let's apply these to the pear. If you remember, I said there was about $10 of material in the piece. And there was about 5 hours of hands-on labor. This does not include time for the oven to preheat, time in the oven, time cooling, etc, etc. Let's use $10 per hour for labor.

Based on the first formula, the wholesale price would be $66, and retail $132.
The next approach gives me a price between $180 and $360.
The formula from The Crafts Report article gives me a price of $30.
And finally using Thomas Mann's guidelines, I end up with a wholesale price of $180 and a retail price of $360.
Is it any wonder there was such a range in the pricing suggestion, and there is so much confusion out there?

What price did I have on the pear at the show? $325. After doing all this research, and the calculations, I think it is a fair price. I have learned a great deal in this process. I hope you have too. But I am not completely done with this topic. I still want to write about the prices and venues....how does where a piece is sold affect the price? This was something that came up several times in the emails so I think it is worth looking at to clear up some confusion. And I may revisit the other side of the equation again...what will the market bear. Knowing what we know now, that is worth looking at again.

Thanks again to all who sent in their suggestions and comments. It was a treasure trove of information and insight.

Selling Costs and Pricing

So that poor little pear still seems to be lacking a price. We talked about a formula for calculating your price, and started to look at some of the elements. But we left off at the topic of selling expenses.

It costs money to sell your work. This is part of that old axiom, "You've got to spend money to make money." If you do not factor all of these costs into your pricing, you will be like the gerbil on the wheel. Running and running, and never seeming to get anywhere.

So what makes up the selling expenses?

Shows: If you are doing shows, you have an application fee to many shows. Then there is the booth fee, electricity for an indoor show, or even some outdoor shows. There is the cost of displays for your work. And your time. Time spent packing and unpacking for a show. Time away from the studio to do the show. If your show is a distance from home, you have travel expenses.

Marketing Materials: These range from the simple business cards, to the fancy brochures or even DVD's sent out, or handed out to help tell your story or make sure someone knows how to get in touch with you should they want to buy your work. They can be simple. They can be stunning. But you cannot successfully run a business without some investment in this area.

Packaging: If you are selling at shows, or on-line perhaps, you need to package your work in a way that compliments and protects your work.

Photography: Even if you are doing it yourself, you need equipment, skills, and time. Good photographs are essential.

Time: It takes time to create the sales materials. It takes time to maintain your mailling list. It takes time to apply to shows. To package your work if you are selling wholesale and need to ship it out. It takes time to go visit galleries, or shows or explore options on-line to sell your work. Or promote your work. All this time is time out of the studio. Time you are not working on creating new designs. Time you are not refining your skills. But time spent to help grow your business.

So, lets look at some real numbers. Since I was just doing the Craft Boston show, let's look at how much it cost to do that show.

Application fee(s): I apply in two categories,jewelry and mixed media. At $40 each that comes to $80.
Booth fee: 10 x 10 space, including pipe and drape. $950.
Electricity: 500 watts (base level) $100.
Mileage, tolls, parking: $243.
Time: Packing, unpacking, set-up, tear-down: about 11 hours
Show hours: 28 hours
Travel back and forth: about 11 hours
Total: approximately 50 hours, over five days.

So, we are looking at $1373 and about 50 hours. Let's do a minimal $10 per hour for the time, and we are at $1873 in expenses, just to do that show. The time does not include the time to apply to the show, the time to price my work, etc, etc, etc.

Are those "high" prices starting to make sense?

The other expense that needs to be figured into the price calculation is Profit. This is not the money that is left over that you pay yourself. This is the money that is reinvested in the business. The equipment that will help you be more efficient and grow your business. This is the cushion that will get you through the slowdowns in business. A healthy business generates a profit, beyond the salaries or wages of it's owner.

So now we have looked at all the elements of cost that need to be included into the pricing calculation. Next time we will look at it from the other direction. Or what to do if you do not have the history of costs to calculate your overhead or selling expenses. Stay tuned.

Nitty Gritty of Pricing

You cannot price your work without getting down to the nitty gritty of the numbers at some point. You can try and fake it. But without really looking at the numbers, you will probably wonder where all the money is going.

Wendy Rosen’s book, Crafting as a Business, starts the chapter on pricing this way, “ Correct pricing separates the amateur from the professional craftsperson. As an amateur, you may simply hope to make enough to replenish materials and cover costs.” She goes on to say, “pricing like an amateur is a really good way to go broke.” Her formula for pricing is:

Materials Costs + Labor Costs + Overhead Expenses + Selling Expenses + Profit = Wholesale price.

So, let’s take a look at that pear again. Materials costs are relatively low. Polymer clay is an inexpensive medium. The cost of materials is probably around $10 in this piece, including waste.
Labor, however is a big component. This is where some assumptions went awry in the pricing suggestions people sent in. The time it takes me to make each of these vessels varies. It will depend upon the size of the piece, how detailed the drawings are, how involved the top layer is, and how much detail is added in carving and back-filling the piece. Each piece goes in the oven to cure for at least five times, sometimes more. The range of time for a piece this size is approximately 4 to 8 hours of actual time in my hands, not in the oven. This piece was about 5 hours of hands-on time, from forming the basic pear shape, to the finishing details. This time actually transpired over two days. Although I was working on other pieces during that time, the five hours represents time spent just on this piece. I could probably only make 5 or 6 in a week, working full-time plus, and not making jewelry or cranes.

One person was very close in their estimate of how long it took to make this piece.

“I'm going to base my price on the assumption that you do these in an assembly line fashion and it probably doesn't take more than 5 hours (10 per week) to do any one piece once you've done a prototype..... So I'm going to say between $180 to $240 depending on the time for the artwork and amount of detail. “

The only problem was that there was no time in her calculation for running the business. Making 10 per week would not leave time to attend to the many other obligations of keeping the business up and running.

Overhead: These are defined as the month in, month out, predictable, flat costs. They include things like rent, phone, web hosting and/or access, credit card processing, utilities, insurance, etc. In my case, these are not too high, since I work at home. Last year, my overhead costs were about 8% of my total sales.

In my next post, we will try to tear apart the hairy beast that is selling expenses. Too scary and too much information for one post. Till then....

The Pear Saga Continues

This survey in pricing has been fascinating. I heard from over forty people, and all looked at the same pictures, and had the same limited information. This lack of information frustrated many. But I wanted to start there. Why? Because when you go to a show you will probably not have all the information you are seeking before you make a judgement about the price. You will see the price and react if you think it is way out of line. If it is perceived as low, you may buy it right up without asking many questions. If the price is perceived as too high, you will also not ask questions about the amount of time that went into it, etc. It is probably only when the price is within the range you think is appropriate that you will begin to understand more about the process, and examine the piece in greater detail.

Formulas exist for calculating price, and they are a good place to start. But understanding what the market will bear is also important. But, this does not mean that you need to price your work so that every person who desires your work could afford it…..you can’t afford to do that! It is a handcrafted item. In most cases, it is one person, in their studio, making the work. There is a limit to how much can be produced. If the price does not reflect this fact, you are shortchanging yourself.

I had the pear in question at the Craft Boston show with a price on it. For those of you who went to the show, you may know what that price is. I am going to hold off on sharing my final pricing decision with the rest of you until a later date. I want to take this journey without that distraction. First, let’s look at some of the ways people calculate prices, or assumptions made about the pear, and how that was reflected in the final price.

The range of answers, and associated conclusions was wide. I hope you can read these without judging another person’s approach or answer. Look at it as a way to get inside the head of someone passing through a show, and assessing the work. Everyone comes from a different set of experiences, and those experiences are what lead us to our conclusions. We will not all agree on the “right” answer. But I hope as we move through this discussion about price, we can start to close that range of a fair price, a bit, and that we will gain a better understanding of why one person thinks the prices on work are too high, and another gets frustrated by people's reactions to their prices.

Here are some excerpts from some of the emails I received:

“I personally triple my materials cost, add my hourly rate and depending
on how much of myself is in it I may double the total, then again I may
multiply by four. In order to compete in the market, you must also
consider "perceived value"”

“I'd say you have about $50 worth of clay in it. Add 3 hours to condition clay at $10 an hour. ($30). Then, for your creativitiy, drawing the Koi and the cane embellishments, and your originality, I'd add $100. So, my total, to sell this piece directly to the public would be $180. If sold through a store, it could be priced at $300.”

“I have taken into account that you must have quite a bit of clay, paints, and assorted other materials involved in this project. I'm sure you also have hours of loving labor involved. Unfortunately, unless you sell your work in galleries, I think it is very difficult to get paid for all our time. But in fairness to art and the artist, I am putting $49 on the pear.”
“I come up with a price, then I would hear my crafter friends say:"double it." And it usually works! “

“it appears to have some transfer work, back carving etc. I have no clue what it was sculpted over, and if that was more than a "free" find I would raise the price a bit
above this, but woud say about $45 (mind you, I wouldn't pay that, I am with your mother, and if I loved it would try to do something similar myself.....”

“you didn't mention how much time you spend on the pear but I would imagine that you spent at least many hours if not days on it. The drawings on it have to be considered art. Considering that and all of the materials I would put the estimated price at $250.00 US. Sounds like a lot of money but if you don't value your work no on else will. “

“This looks like a fine museum piece! I would probably price it anywhere from $59 to just over a hundred depending on the market area.”

“a great formula which has become my mantra:
cost of materials + time + 10% = wholesale
(cost of materials + time + 10%) x 2 = retail
I'm going to base my price on the assumption that you do these in an assembly line fashion and it probably doesn't take more than 5 hours (10 per week) to do any one piece once you've done a prototype.”

In my next post, I will share some information about time, details, costs, overhead, etc. We will do some math. That will fill in some of the holes that frustrated many.