Replies

1. 
   byhammerandhand | Apr 22, 2008 11:11pm | #1

   Welcome to the world of people who putter in their shop, have no meaningful measure of what their true costs are, and end up with a surplus of goods to be disposed of at any price, as long as they think they're covering their material costs. That's the supply side, your competition.

   On the demand side are people who have come to believe that bric-a-brac are cheap and won't pay more than a few dollars for it (see supply side).

   Add to that the Chinese labor who can make and import stuff cheaper than your materials.

   Tough way to make any money.

1. 
   blewcrowe | Apr 23, 2008 02:46pm | #3

   That sir, is the God's honest truth.

2. 
   JohnWW | Apr 22, 2008 11:57pm | #2

   Consignment percentages are usually set by the shop so if you need $6.00, and they take 40%, then the retail price is $10.00. For you to get $6.75 the piece would have to sell for around $11.25.

   If they are buying it outright, you just give them the wholesale price and they'll figure out what they will charge for it, that's their problem. It used to be double, called a 100% markup, so they would buy it for $6.00 and sell it for $12.00. These days a larger markup seems to be the norm so they might buy it for $6.00 and sell it for $14.00. Your $6.75 item would probably be marked up to $15.00 in most shops.

   Quantity price breaks can help sell the product but you need to be able to gain some efficiency when making quantities to earn back the money. If it costs you just as much time and materials per piece to make ten as it does to make one then you will just be making less if you give quantity discounts.

   The big problem is getting paid, cash on delivery is king, and that is worth a discount. You have made no money, lost a lot in fact, if the shop doesn't pay you, and that is very common.

   With consignment, in addition to getting paid, which when it comes is in uselessly tiny checks months apart, you also have the problems of "lost" or damaged pieces which the fine print usually says are entirely your loss. A final point, consignment craft shops have a bad habit of going out of business suddenly and disappearing into the night, merchandise and all-guess who loses?

   I was in the a high end crafts business for years, and loved every minute of it, but in the end I could probably have made more money pumping gas for minimum wage. The main requirement to survive in the business is to have a highly paid spouse with a real nice health insurance plan. Lacking that, win a million dollars in the lottery and keep making stuff until the money runs out.

   John White

   
   

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   Edited 4/22/2008 5:06 pm ET by JohnWW

3. 
   tkluck | Apr 23, 2008 04:36pm | #4

   All too true. Best bet is to get a wood stove. Heat your shop with the projects you've grown tired of looking at. Unless you can brake into the upscale market and can sell ether high end or artsy goods to rich people, just do it for the fun.
   I gave everyone some rather nice pens for Christmas one year. Consensus was that I was too cheap to buy gifts.
   Used to make one of a kind custom wound fishing rods. Could sell them for $150 in a local tackle shop. Net profit approx. $3 per hour, if I didn't hand make the handles.
   Had a friend ask me to make a TV stand "because they're so expensive in the stores". Ditto book cases, shelves, kitchen cabinets, towel holders, and a nice box for my wife's uncle's ashes.
   The fancy box for cremains does still hold some promise, if I can hook up with a local funeral director...