I’m not going to sugar-coat things. 2024 has been a tough year. Prices on essential goods are going up, pay growth for most people isn’t matching the growing cost of living, and the first thing that most people need to sacrifice when going through these tough economic times are non-essentials. This includes art and home decor. So, as a small business who exclusively makes art and home-goods, how do you keep your company viable in these times?
Finding the right markets
We’ve done a lot of markets in the past several years. Sometimes doing two markets in a weekend every weekend of the month. The intent is to get our product in front of as many people as possible. Although this may seem like the best course of action when trying to sell your product, remember, quantity is not a substitute for quality. Instead of trying to get into every available market, prioritize which markets cater best to your audiences. Do you sell a lot of low-cost, small items? Look for farmers markets and shows with lower entry fees. Are you looking to sell your work as fine art. Look for markets that cater to people who can afford fine-art prices. Remember, in addition to the entry fees for each market, you also have gas, food, and other expenses that come with doing these shows. If you are not making that money back it doesn’t pay to invest in them.
Price Point
I always say: as an artist you should charge what you are worth. If you are creating pieces and selling them for razor-thin margins think about how much it translates to what you are paying yourself. For instance: That piece you created on a $20 wood blank that you spend 5 hours on which you just sold for $30. That netted you a $10 profit or, in other words, $2 / hour. And that isn’t even taking into consideration the overhead costs of being at the market. Keep tabs on how much your raw materials cost, how long the piece took to create, and set an hourly rate for yourself. That $30 pieces, if you are paying yourself $10 / hour, should have been priced at $70 instead. If you can’t sell your pieces at that price then you need to consider if you are at the right venue.
Passive Income
Find local shops that are willing to carry some of your products. Look for craft stores, art stores, book stores, restaurants, anyone who strives to support other small businesses. Consider the fees they charge and make sure that you are earning enough net-profit from those locations with your monthly sales. Consider places that offer month-to-month leases so that you aren’t bound to an annual contract in case the locations doesn’t work out. Remember, also, some months are generally slower than others. The money you make around the holidays could very well compensate for those summer dog-days.
How are you weathering these tough economic times? Do you have some suggestions for how to keep your business out of the red? Share them with us @bz_furfur and, as always, stay unique.
