The Cost of Hand Made Items

I'm pretty new to the whole crafting and selling market (aka Etsy) but I have learned so much on the way. I have been open since October 2013 and every step is a new learning experience for me and my shop.

One experience that I have to learn to grow a thicker skin with is the reaction of people when I talk about the cost of hand made items. Some craft fair attendees are pretty aware of what they are looking at when they pick up a $50 crochet blanket with roosters on it. Others will not only think $50 is expensive, but that those roosters are ridiculous. Unfortunately, there are people who associate (and mistake!) craft fairs with flea markets or swap meets. Although these are not horrible venues to sell products, sellers have to be aware that shoppers are looking more for bargains than great quality hand made items.

My first experience at a "craft fair" should have been more of a flea market. Although there were genuine crafters there (I made a few friends), about 90% of the venue was taken up by the hosting party's knick knack pally whack items and old costume jewelry. With the exception of one seller who made caramel covered apples and other tasty treats, the majority of the other sellers were quite upset with the hosting party.

Any way, I digress. Their table took the entire center stage AND was next to my table. It got worse....they were selling jewelry for $1!!

All I had was a killer sales pitch, a decent display, and the gift of gab (well, I was personable). People still scoffed at me or walked away from my "too expensive" items. My most expensive item that day was my "2 for $20" deal and I had some $5 earrings. If anything, I was undercutting myself!

I was hoping that my first experience would be ground breaking, fun, and a learning experience. Nope, I could not wait to pack up and go home. I was considered lucky to have made my table cost plus $30 in profit.

I must say that I've learned quite a bit with how to close my sales at craft fairs. Without being pushy, I show my knowledge with my products and not bash any other jeweler at the show. I've even set up shop next to another jeweler friend of mine at my third show. We both did well, even with being next to each other.

"Do these bracelets tarnish?"
My reply has always been,"Most metals will tarnish over time. My bracelets are made of iron and have long lasting color." Then I'll show my own bracelet that I have made for myself, along with a sterling silver plated bracelet I had purchased at a large retailer (already tarnishing), and another bracelet that I had purchased at another craft fair.

Top: from popular retailer.  Bottom left: from a craft fair. Bottom right: my bracelet

This is supposed to be sterling silver....and my little crystals have already begun to fall out.

This is my own bracelet from my shop

And then, the golden question...."Why would I pay this much when I can get the 'real thing' for a few dollars more?"
I try to keep my chest from imploding. I used to have cold sweats because I did not know this answer in the beginning. I would seize up and my mouth would be drier than sponges left out in the desert.

And the honest answer is that my love for my craft goes into each piece and it's evident. I spend hours not only crafting, but doing the usual Etsy routine of photographing, editing, listing, then promoting on social media. It covers the cost of materials used and some profit for myself. Each one of my items are all hand crafted by me (I'm a one woman shop) and most are unique in design to my shop. I try to explain that what I'm selling is a part of me and my ideas put into physical form.

Now for the technical part. A fellow Etsian has been so nice to provide me with a spread sheet with formulas to help determine what I should be charging versus what I was charging. I was comfortable with what I was charging because I was making a tiny profit, but he had told me that my time working should be factored in as well (with the creating, and the photographing, and the listing, and the promoting, etc)

After entering the numbers of material costs and my hourly pay (I pretty much gave myself minimum wage for what I do - poop), my prices are supposed to be doubled what they are. It was also mentioned multiple time in the Etsy forums that increasing prices also helps with sales because the shoppers on that venue are looking to pay for great quality items. So far, I hear crickets ever since I've raised my prices.

When it comes to my shop, the important thing to me right now is delivering a quality item in pretty packaging :)
I'm sure I am going to keep learning along the way. In the mean time, CRAFT ON!

Visit www.etsy.com/shop/julemijewelry to visit the shop or scroll down for a sneak peak of what I have to offer.