816-Lancaster Fanning, Saturday, May 28, 1988 The Ins And Outs BY LOU ANN GOOD Pottstown (Berks) For both the seasoned and the novice home entrepreneur, the one day seminar sponsored by Berks and Mont gomery extension services on Tuesday at the Sunnybrook Ball room, Pottstown, was crammed with information. Lectures and workshops by professionals on the subject provided participants with the ins and outs of “Sewing and Crafts for Profit.” Dr. Allan and Judy Smith, co editors of numerous books on sew ing for profit, told how to price and package products for business suc cess. He stated that only 3 to 5% of the women who try to market their handicrafts do it successfully. Many home-based workers are good at producing their product but they aren’t good at marketing. To be successful, you must find a way to do both even if depends upon hiring a business associate. He urged the audience to decide Innovative Ideas never end. Marlon End of Perkiomenvil le plans to market her Super Shopper, a coupon filing and rebate system. jry iter of York attended the seminar to learn how to start their own sewir busing' ' f “Farm women In depressed farming areas often turn to doing contract work in their homes,’’-Or. Kathleen Christensen, left, said. She warned the audience to be aware that some companies take advantage of these. Seated beside her are Gerry Kock, cen ter, Pottstown, and Barbara Trlbett, Boyertown. how successful they want to be. He asked, “Are you prepared to give up your social life and adapt your family life to make way for a sew ing or craft business? To be successful, would-be entrepreneurs must find a need and fill it Consumers are motivated by originality and practicality. If there isn’t a market, no matter how clev er or cute a product is, you can’t make a profit Packaging can escalate sales of products. Labels are important Packaging does many things: pro tect display, mail, advertise and instructions in required. Smith commented that L’eggs derived most of their success from the clever packaging of their panyhose into plastic eggs. On the other hand, some items cost more to package than to produce. Prices are determined by record ing how much the material costs. Decide where you can purchase the best materials at the lowest jr * •' v i Sewing & Crafts For Profit M* - * ■JI mm r f\ 'r H M *5 r Of A Home-Based Business ganlzers of the seminar idgers, Berks County extent jn home eco nomist, center; and Nancy Stevens, Montgomery home economist, right; chat with Judy Smith who with her husband has published numberous books on sewing for profit. prices. Watch for close-out sales. Consider the following: How much time is involved? How much profit is expected and will the item sell at this price? Is your price competitive with similar products on the market? Mark-up for store items is usually 33 'A to 50%, but home-based businesses usually need to be willing to take less, especially when first beginning. Ask yourself, “Does producing the goods make me feel good?” If you don’t enjoy making some thing, it isn’t the business to pursue. Can it be mass produced? After all these questions are answered, it may be evident that some items are not practical for the market. Locating a market What should you know about selling at craft fairs, flea markets, exhibits and on consignment? Freida Terrel, crafts marketing specialist from North Carolina State University cooperative extension, told participants that proper marketing gives the great est return for time and material and converts merchandize into money. Therefore, avoid flea markets because those customers are look ing for bargains. Three markets exist: •Retail selling directly to the customer. Provides location, insurance coverage, liability coverage. Dis plays a variety of merchandize to J J > VI - = *' TL jgprojev y. who questions how much she should charge. attract customers. Has advertise ment and promotion. Mark up not all profit since seller usually requires 50% of the selling price. Stores are relunclant to carry items if they know customers can purchase items from you at a lower price. Fairs, Shows, Festivals Avoid pitfalls by checking out the following: •How long has the fair been running? •Is is a juried show? •From what area do customers come. •Where it is advertised? •Average gross sale of exhibitors 9 •How much does average custom er buy or spend? •Repeat customers? •Entry fee? •Legal requirements, such as sales tax? •Provisions in case of rain? •Is staff available to assist exhibitors? Wholesaling selling indirectly such as to a shop which in turn sells to customers. •Conditions for filling order? •Docs shop expect a discount? •Can you meet delivery date? •Billing procedure? •Read and understand the order form. •Does shop have a tax exempt number or do you need to collect sales tax? » f 4gf Consignment This entails giving your work to a retail shop that reimburses you after the item is sold. Check slate laws for selling on consignment as it varies from state to state. •Craft person gets exposure to market. •Can lead to wholesale sales. •Can test market demand. •Craft person receives higher share if item sales. Retailer may keep only 30 to 40%. Drawbacks; •No money until item sold. •Dealer not motivated to push item since he doesn’t have his money tied up in it. •Dishonest merchant may not pay until long after item is sold. ■Capital is lied up with no assur ance that item will sell. •No control over damage and shopper abuse. Location of market most critical decision. Need traffic and people. Craft guilds can help. Exhibits arc a low cost promotion as arc lectur ing and teaching. Advertising in magazines, catalogues, newspap ers can be costly, but sometimes bring effective results. Some do sewing and crafts by being com missioned to do work for fashion designers, interior decorators, and so forth. Sucessful business requires organizing and using time well. Segments to consider: •Keep quality consistent •Obtain and use finest materials available •Use good designs and marketable colors •Look objectively at product. “We have a tendency to fall in love with our projects we need an unbiased opinion from one who is neither a friend or family member. •Develop skills in design and technique. •Maintain uniformity and (Turn to Page BIT)
Significant historical Pennsylvania newspapers