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'
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“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
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Sewing & Crafts For Profit
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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
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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? »
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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
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