Coming up with a good business plan
Part 2 of our suggestions for you to become a profitable fiber business person
Hopefully you have read through part one of our ideas on this subject and we are sure you have come up with other things that we have not thought about. But now on to more figuring....
Processing Costs:
Cost to process my fibers
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If you process your own fiber, this will not help much, you can determine your own costs, and will probably not get the hourly wage you might want.
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________ Total Pounds Raw Fiber to be processed - best done by 1 fleece
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$________ Cost per pound to wash
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$________ Cost per pound roving or batts
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$________ Cost per pound to spin into yarn
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$________ Total of Cost lines for Processing
Fiber Processing Actual Costs
Actual cost of my processed fibers
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Now let's do the math
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$________ Total Cost of Fiber ( from part 1)
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$________ Plus the Cost Of Processing
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$________ Total cost per pound or ounces depending on how you figured
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Now.......
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$________ Divided by Your Total Cost per pound by the
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Total Number of pounds returned to you
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$________ This is your actual cost of fiber
Value Added
Value your products-
When figuring your price on finished items, include your time
Take an old fashioned plug in clock and set it to 12. Every time you sit to knit, crochet, weave, felt, etc., plug in the clock. When finish or when you take a break , unplug the clock. Do this every time you craft and when you take a break. You will probably be surprised that the project you " do while watching TV" actually took you 3-4 hours!
So the actual cost per ounce of fiber times your hourly wage should tell you what to charge.
Selling a knitted hat for $12 because your yarn cost you $9
gives you $1 an hour for your time.
While you are the only one who can put an hourly price on your time, remember that there are people who are trying to make a living with their art and craft.
Like I have often said to many who will listen,
" Our wage in the country demands I make more 50 cents a day and a loaf of bread."
Where to start
Places to sell your wares
Now that you know your actual prices, you are ready to enter the world of the markets. This is where it can get tricky, but having a plan and a story to tell will help you in the long run. What separates you from the pack? Why should I buy from you and not the big box stores? Creating your unique story will show to the world who you are and why we need to support your passion.
The times have changed in selling. The world of social media is one to tackle.
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look for local farmers markets. This is a great opportunity to meet your local community and help educate them.
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If you can, create a website. This is a daunting affair, but one worth the work and money, but if you do not want to, try the next suggested things....
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Open a Facebook Page for your unique business. There are 2.33 billion active members monthly. We choose to keep our regular Facebook private and business for well...business.
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Create an Instagram page and begin to follow other people who do what you do, or things you also enjoy. There are 1 billion monthly active users here. Learn to use your photos to show more of your story, and find the best hashtags to help viewership.
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Create a platform on Pinterest where there are 250 million monthly active members. Start showing off your wares and saving posts from other places.
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Try making a few videos for YouTube. There are 1.9 billion active members there and you never know if you might create the next viral video!
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If you are selling yarn , you might want to try Ravelry- open up an account and see where that leads. Ravelry has 8 million members.
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Try your hand on Etsy, who has 39.4 million buyers. Or maybe Shopify with 1.2 million users.
A checklist .....
making sure you are headed in the right direction
OK- you have thought about where to interact with your adoring public. But lets make sure your T's are crossed and I's dotted.... or at least the beginning paragraph.
At the Markets, whether farmers markets, bazaars, craft shows.....
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I have great signage with my logo
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I have cards that include all my contact information as well as
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my Website url
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my Facebook page
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my Instagram account
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my YouTube Channel
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A sign up sheet for possible e-newsletters
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Make your booth inviting. Create one that if you were a shopper, would make you want to walk in. One thing we learned from a professional is to make sure your booth is not too "straightened". A Basket set on its side, filled with soap or yarn, is an inviting one. People love to "fix" things, and once they touch it, they will think about it more.
Another thing to remember is, people think if they walk into a booth, they are committed, so do not feel badly if people stand at bay.
Having something free to hand out, a button or trinket with your name on it goes a long way!
Use this guide to help you determine added value items such as felt, weaving, knitting, and etcetera.
Most people in the art/craft industry will not make an hourly wage.
Our wages are often determined by what the market will bear. So many times crafters do not value their craft, selling items that just pay for them to get more yarn or fiber to spin. This creates a depreciated value for our items !
Never sell yourself short ! Knowing your true costs can help explain to the general public why our items are higher than the “You know what store” mentality.
The public needs to understand the real costs behind the item/s in question.
We, at Spinderella’s Fiber Mill, hope this has helped you.
We wish you much success as you sell your precious fibers to a waiting public.