Amanda Kezios, from Mojo Spa, recently shared her tips for how to brand you handmade business successfully with HandmadeMarketing.org.

“I have been making handmade beauty products and cosmetics for ten years,” Amanda told our team at HandmadeMarketing.org.  “I understand the power of branding.”

Mojo Spa began with Amanda’s quest for the perfect lip balm. Amanda began as a personal chef, and then turned into a beauty product innovator.  She quickly made use of her talents in the kitchen to create a unique and natural lip balm.

When she first started her business, Amanda said she wanted two things:

1. Make products that were natural
2. Make sure those products were fun to use for customers

“On one hand, I noticed that natural beauty companies had plain generic packaging,” Amanda told us.  “On the other hand, the fun and trendy beauty companies produced products that were based in artificiality.”

Amanda set out to combine natural with fun.  She created the slogan “Get Your Mojo On” for hear handmade beauty product line.

“I used “Get Your Mojo On” to spark interest in people whenever I was talking to customers, interviewing, and selling my products,” she said.  “I used it on labels and packaging. Soon people were remembering the slogan more than my name!”

For Amanda, branding was a simplification of what her company embodied and what the average consumer would remember about her products.

“I took a picture of myself mixing a batch of lotion and from this created a cartoon-like two-color image that was made into a stamp, t-shirts, and signs,” she said.  “I put this image on the sign outside of my store in Chicago, on my website, everywhere. When people thought we were a large franchise, this served as a visual reminder that all the beauty products were handmade.”

For those new to selling handmade both online and office, Amanda shares her valuable advice.

“Write down what you want to be known for and what you want people to know about your products,” she suggests. “Create everything around the intersection of these ideas. Also, keep adding to and improving these ideas.”

Amanda tells sellers to always remember that things change, and your shop’s branding should be able to accommodate and improve with changes.

“In the past 2 years my slogan changed from “Get your Mojo On” to “Where Beauty Meets Comfort”. I opened the comfort spa in at my store in Wicker Park and the products I was developing created a cohesive idea of comfort. It only made sense to modify our slogan to incorporate this,” she says.

Amanda’s business has grown over the years.  Today, Mojo Spa sells over 200 innovative bath and beauty products inspired by comfort foods and nostalgic treats. Each of her products utilize natural food ingredients, aromatherapy blends, positive affirmations, healing crystals and sound therapy.   Even after her success, all products continue to remain handcrafted in small batches.

You can learn more about Mojo Spa by following their Twitter feed @MojoSpa or by visiting Mojo Spa’s website.

Share your tips for expanding and growing your business!  Why share? Our team publishes ideas from handmade sellers, artisans, and crafters.  Don’t forget to include links to your social media sites or handmade shop site in your article.  Sellers receive free press for lending their knowledge, and both new and experienced sellers alike get new ideas.  Share with HandmadeMarketing.org here.

Jackie, from the Etsy blog called Etsy Item of the Day, featured handmade seller Rebecca D. Dillon, famous for her soaps listed at SoapDeli on Etsy.com.  In this feature on Etsy Item of the Day, Rebecca shared ten tips she has for handmade sellers.

Rebecca is 35 years old and has a Bachelor in Fine Arts from Roanoke College, where she studied a bit of everything from photography and screen printing to art history and poetry.

“I enjoy reading, shopping and making soap. I have a 13 year old son who enjoys playing soccer and running track. He currently wants to be a psychiatrist when he grows up though his career path seems to change from year to year. I am bipolar and my business is the one thing that I have been able to do to help keep my life on track and allow me to support myself,” Rebecca told Jackie from Etsy Item of the Day.

Rebecca shared an impressive list of tips for sellers who are selling their handmade items on Etsy.com. “Be sure to read these over and a big thanks to Rebecca for sharing all this info!” Jackie said in the Etsy feature blog post.

1. Branding. Rebecca told Jackie that she thinks branding for Etsy shops is very important. “It shows you are serious about your business and helps to promote familiarity. It also adds cohesiveness to your business and your shop and makes you appear professional,” she said.

2.  The Basics.  Rebecca tells handmade sellers they should have  the following for your Etsy shop:

• An Etsy shop banner
• Etsy shop avatar
• A logo for your handmade shop
• Business cards
• Related or matching labels and tags for items
• A description of what you are offering that tells consumers why your products are top notch.
• Clear policies on shipping and refunds for those buying your goods.

3.  Great Photographs of Items. Rebecca tells handmade sellers to be sure to have clear pictures of items sold in your Etsy shop, in order to give consumers the best perception of your products as you possibly can.

Rebecca says a focus on the item’s thumbnail is crucial.

“Always carefully consider which photo will be displayed in thumbnails for online venues. I’ve seen lots of photos that I often simply skim over because it’s hard to tell what is being sold in the photo due to the size of the thumbnail and a busy background,” she told Jackie in the feature.  “I’ve found that photos that highlight the item in detail or the most interesting feature of their item as the first thumbnail draw the most attention and encourage click throughs.”

If selling clothing on Etsy.com, Rebecca suggests including a shot of the product on a person or mannequin if possible so the shopper can see how the clothing is going to fit.

“I’ve seen clothing online and in stores that I thought looked horrid in the photo or on the rack, but when seen on a model looked fabulous. Consider how you shop and how others shop,” Rebecca said.

4. Purchase a Domain.  Rebecca tells handmade sellers that it may be a good idea to create a central location for your Etsy shop by purchasing your own domain.  If you are worried about the cost, Rebecca reminds sellers that there is no need to pay for hosting.

“You can have your domain point to a free blog such as blogger,” she said.  “This .com can then be placed on all of your business cards and on product labeling. On your .com be sure to list all venues that you sell on along with dates and locations where you will be selling in person. This makes it easy for your customers to find you even if you change venues and sell at different markets and fairs. They can’t buy from you if they don’t know where to go.”

5. Sell at Craft Fairs.  Rebecca encourages sellers to establish themselves locally or at craft fairs if at all possible.

“It really is in your best interest to sell in person if you can. Consumers enjoy touching products and looking them over in person despite how clear your photos are,” she says.  “It gives them a better sense of the quality.“

“Bath and body is especially important to sell in person because people not only like to see and touch, but they really want to smell as well,” Rebecca said on Etsy Item of the Day.  “Buying scented products online is difficult as everyone has different ideas of what things should smell like and describing scents is difficult and subjective.”

In addition, selling locally or at craft fairs gives handmade sellers an opportunity to tell potential buyers more about the work.

“Put your best foot forward when selling in person,” Rebecca advises sellers.  “Consider your display and make it as attractive as possible. Use a business sign if possible as well. We have bars above the tables at my city market for hanging signs so I had one painted to match my branding. A local artist was willing to do it for $100 and I thought that was a deal. It was a great investment. It makes finding my booth easier in addition to attracting attention.”

When selling crafts in person, be sure to remember those business cards!

6.  All Business (Cards).  “Always have business cards with you,” Rebecca reminds Etsy sellers.  “If someone walks away without buying, ask if they’d like a business card for future reference and let them know you are available online as well.”

Rebecca says she also includes business cards in the bag with every purchase at a local craft fair.  Although she knows not everyone keeps business cards, Rebecca thinks it’s still a great idea.

“You’re doing this for the few that will keep that card for later when they are looking for a specific gift or want an additional product from you. And if some of your customers are not local to your area – I know we get a lot of out of town visitors to my market – if they love your product, that business card makes it simple and easy to order from you again online,” she says.

7. Promo Items.  Rebecca says a goal of handmade sellers should be to get product into the hands of buyers on the Internet.  She says one of the best ways is to create “promo” items.

What is a promo item?

“Generally promotional items are samples of your product or a useful item that represents you shop – such as a magnet – and reminds a consumer that you are there and where to find you,” she says in her feature on Etsy Item of the Day.

If you’re lucky, these promo items will be saved or used, whereas business cards are often lost or thrown out.  Referring back to her fourth tip above, Rebecca reminds handmade sellers to always include your established .com on any promotional material.  That way, the potential buyer has an easy path to purchasing your items.

If you’re looking for tips on distributing your promo items, check out the ideas Rebecca shared in this article “In Buyer’s Hands – Distributing Etsy Promo Material“.

8. Engage the Handmade Community.  “The amazing thing about the handmade community is that there are many talented people who love other talented people and are happy to help by offering them a little free exposure,” Rebecca said.

She recommends sellers look for opportunities to get their business published online.  Many sellers, crafters, and artists have blogs where they feature interviews of Etsy sellers.

“Request an interview and be sure to follow up in a timely manner if possible,” she says.  “You may also be able to “swap” interviews or shop write ups as a form of cross promotion with other sellers. Many artists are very happy to cross promote especially if they like your work. But you don’t know what additional opportunites are out there unless you ask. The worst they can do is say, “no.” And if that happens, it happens. Don’t take it personally.”

9. Connect with High-Traffic Sites.  “There are a number of high traffic handmade targeted shopping blogs happy to take suggestions about the products they feature on their blogs,” Rebecca said in her feature.  “Review the guidelines for submission and then send a brief email highlighting your best work. It’s easy to find blogs more specific to your market with a simple Google search.”

10. Get Social! Rebecca, along with many Etsy sellers, recommend social networking to get your products out there for potential buyers to see.

“Social networking or marketing seems to be something a lot of people don’t understand or give up on too quickly,” Rebecca explains. “I’ve seen time and again where people have said they don’t “get” Facebook or Twitter.”

However, when Rebecca hears this from sellers, she brings up a great point.

“The thing is, it doesn’t matter if you don’t understand it right away because millions of others do,” she advises sellers.  “The key is to build your network. The larger it is the more effective it becomes.  The bigger it gets the better the chance your posts and tweets and updates will make rounds not just within your network, but within your follower and fan networks as well. That is where you start to see the effectiveness of social marketing.”

Rebecca advises sellers to take the time to get to understand social networks and pick at least two to get started on, whether it be Facebook, Twitter, MySpace, or a host of other social networking sites.

“It takes some time to build a good network, but your hard work will be worth it in the end,” she says.

Rebecca said there are lot of communities specifically built for artists and crafters on the Internet that are worth checking out because they are effective.

“There are many general and specific communities with a number of tools to help you market your product and get seen,” she says.

In fact, Rebecca says one such growing community is Ning.

“Ning offers users the ability to create communities around specific topics and offer resources such as blogs, picture uploads, forums, etc. to discuss similar interests with others. Ning recently reached 1M communities created through their software. One of the Ning communities you may be familiar with is Indie Public,” she said in her feature on Etsy Item of the Day.

However, keep in mind that not all communities are for everyone.  In the same way, not all communities work for marketing.

“My advice is to pick the ones you are interested in. Participate as much as possible. Then go back after a month’s time and look at your site statistics to see where your traffic is coming from. You can then start to weed out communities that aren’t working and put more focus into those that are,” she said.

You can connect with Rebecca by visiting her shop’s Facebook page, Twitter feed, or the seller’s website.  You can also visit SoapDeliNews to see the newest things happening at her Etsy shop.

Visit Etsy Item of the Day to see her full feature, including Jackie’s favorite item from SoapDeli.  You can submit your shop for a feature on this Etsy blog here.

Share your tips for optimizing your efforts on Etsy, ArtFire, or other handmade selling site!

Why share? Our team publishes ideas from handmade sellers, artisans, and crafters.  Don’t forget to include links to your social media sites or handmade shop site in your article.  Sellers receive free press for lending their knowledge, and both new and experienced sellers alike get new ideas.  Share with HandmadeMarketing.org here.

Hannah Piper Burns, a video and multimedia artist, art writer, and curator, shared her five tips for writing an outstanding artist’s statement with TheAbundantArtist.com.  Hannah serves as Communications Director for the Museum of Pocket Art and Research Club, and as Social Media Outreach Coordinator for artist and filmmaker Lynn Hershman Leeson.

“Artist statements: the bane of almost every artist’s existence!” says Hannah.  “Maybe it’s because artists are such visual thinkers, or maybe because it’s literally impossible to translate between mediums. Whatever the reason, writing a new statement is enough to make anyone pull out their hair. Am I right?“

Below is a quick overview of the five tips Hannah provides for improving any artist statement.  You can read more about these tips at TheAbundantArtist.com.

1. Start Off With a Bang.  Hannah suggests avoiding starting out with the words “My work is”, “My painting/drawing/sculpture/video/performance is inspired by”, or “In my work”.  She suggests taking a risk and standing out from the pack!

2. Less is More.  Hannah says her artist statement is six sentences long.  “If people need to read paragraph after paragraph, they might think your work can’t hold up on its own, and that is a big-time kiss of death,” she tells TheAbundantArtist.com. “So keep it short and sweet!“

3. Learn to Love Language. “Short doesn’t have to mean content-less,” Hannah says.  “Maximize your impact with unique, fascinating verbiage. You’re an artist, after all!” Hannah provides valuable tips for how to use onomatopoeia for effect, and also has recommendations on varying sentence length at her article on TheAbundantArtist.com.

4. The Words Should Match the Work.  Hannah suggests making sure your prose reflects the qualities of what it describes.  “Using verbs and adjectives that really match the qualities of your creative output will create a statement that both excites and informs,” she writes.  She recommends looking for inspiration online from those you admire or influence your work.  Artisans could also look to the art theory books gathering dust on shelves.

5. Get a Second Opinion.  “Just like when we make artwork, sometimes we are so involved in the process of writing a statement that it can be hard to be objective,” Hannah says.  For tips on how to make the most of a second opinion, be sure to read her article on TheAbundantArtist.com.

Looking for an example of a well-written artist’s statement?  You can see Hannah’s artist statement at her website.

A special thanks to Cory Huff (@AGoodHusband) for sharing Hannah’s article with the HandmadeMarketing.org community!  You can read more of the articles published by Cory at TheAbundantArtist.com.  Articles include website advice and outstanding interviews.

Get your tips and tricks published on HandmadeMarketing.org!  Tell us what you have found works best when writing an artist’s statement.  Our team publishes ideas from handmade sellers, artisans, and crafters.  Be sure to include links to your social media sites or handmade shop site in your article.  Sellers receive free press for lending their knowledge, and both new and experienced sellers alike get new ideas.  Share with HandmadeMarketing.org.

Although it may seem difficult at first, new handmade sellers should consider looking to family and friends for feedback and those initial much-needed sales.

“Some of the best business is through referrals of family and friends,” said Cami Dettmer, from Summer Page Press.  “It was tough marketing to those I knew best.  However, they are the ones who send me big jobs, recommend me the most, were the first to become a fan on Facebook, and more.  Friends and family are so excited for you and want to see you succeed and can be the best (free!) marketing team you can have.“

When selling handmade, Cami recommends coming out of your shell both online and offline.

“My number one tip is don’t be shy – and coming from a shy person this has definitely been something I have had to learn!” she told HandmadeMarketing.org.

Looking for ideas from other sellers for how to market your crafts to family and friends?  Check out the following HandmadeMarketing.org articles for tips and tricks:

“Email Blast – Advertise to Family and Friends“

“Make Your Own Catalog – Ideas From Sellers“

“Private Sales – Use Social Networks to Draw Buyers“

Tell us what works for you!  If HandmadeMarketing.org publishes your information, we’ll link to your shop or website.  Sellers receive free press for lending their knowledge, and both new and experienced sellers alike get new ideas.  Share with HandmadeMarketing.org.

The team at HandmadeMarketing.org is always on the look out for ideas from handmade seller’s for how to stay balanced while keeping up an Etsy shop or ArtFire studio.  Seller Michele Gallagher shared her tips in previous articles (”Press Outlet – Get Your Craft Noticed on Blogs” and “Get Noticed – Promote Handmade Online“), and is back with some awesome tips for focusing your energy.

“Managing three Etsy shops keeps me pretty busy,” said Michele, HandmadeMarketing.org reader and handmade seller behind the Etsy shop craftychick101.  “Not only does it take time to photograph, list and then package my goods (when I make a sale) I spend hours upon hours a week marketing my shops and trying to get my name out there. Like many other Etsy sellers, this is all on top of a full time job working for someone else.”

One of the most important tips Michele has found for people who are marketing their handmade creations online is to focus their energy.

“From spending time in the Etsy.com forums and chatting with other Etsy sellers,” Michele told us, “I can see that many people have the same problem I used to have – Where do I focus my energy?“

“Marketing your handmade products online can often make you feel like a dog chasing its tail,” she said.  “It’s an endless cycle of checking your email, responding to threads on forums, checking your email, tweeting out a link to a new product you have on Twitter, checking your email, listing a new product on Etsy or Artfire, checking your email – you get the point. A lot of this time and energy can be focused into creating and listing new items and finding more creative ways to get your items seen.”

Michele tells our team at HandmadeMarketing.org five simple steps for when you’re in a rut:

1. Focus Outside Forums.  “Don’t waste your time replying to Etsy forum threads just to be seen,” she tells handmade sellers. “These responses add no value to the conversation and will often be overlooked my potential customers. Only respond when you have something interesting or of value to say.”
   Michele explains that time spent in forum threads should be focused on either learning something or teaching something to someone else.
   “When you are a valuable player in the forums, that’s when people will take the time to visit your shop and see what it is you sell,” she told HandmadeMarketing.org.
   Need some additional tips on how to make the most of the Etsy.com forums?  Check out “Connect With Handmade Sellers – Etsy Forums“.
2. Check Craig’s List. “Creating an ad on Craig’s List is free,” Michele says.  “List your handmade item in your state and include pictures. Let people know they can contact you for more information.”
3. Visit Relevant Blogs. Michele recommends handmade sellers look to blogs for press.  “Is the blog owner willing to write a feature about you or your shop?” she says. “You won’t know until you ask.”
   Michele says getting featured on blogs is a great way to get different people looking at your handmade items. 
   “If they don’t want to do a feature, maybe they will sponsor a giveaway of one of your items for you. This will bring more traffic to their blog and will get potential buyers looking at your shop. Just make sure that the blog has a lot of followers and/or readers to make sure this venture is worthwhile for you too,” she says.
   For more ideas about how to find advertising and press opportunities for your Etsy shop, be sure to visit HandmadeMarketing.org’s “Advertising and Press” section.
4. Explore Twitter.  “Tweet, but don’t spend too much time on Twitter,” Michele suggests.  “Add new followers – find people who have similar interests and follow their followers. This will get new people looking at your shop as well. Tweet out new items you have in your shop with a link and tweet to a few people who are talking about things you can relate to. Then get off Twitter.”
   You can follow Michele on Twitter @craftychick101.
5. Keep Updating.  Michele says her most valuable tip is to keep updating your craft. 
   “Most importantly, keep updating and improving your craft,” she tells HandmadeMarketing.org.  “Oftentimes, we handmade sellers take so much of our time marketing our items, we can often forget to look for new and interesting ways to create. Look for inspiration in local stores, online, and around your house. It may be an interesting color combination you want to use, or even a new crafting technique. Just make sure you keep it new and interesting. This will keep people coming back to your shop and will make your marketing job a little easier!”

Thank you for the great tips Michele!

Interested in paid advertising spots for your shop?  Our HandmadeMarketing.org team likes one resource for sellers in particular.  If you are interested in paid advertising spots for your Etsy or ArtFire shop, check out Tara Shenson’s Ad Directory.

“The Ad Directory is a list of all the Etsy bloggers who sell advertising space on their blogs direct,” Tara recently told HandmadeMarketing.org. “You as a buyer can feel good about your purchase because you know you are not only getting prime ad space with your target audience, but you are supporting the handmade movement and everything it stands for by avoiding a big company like Google AdSense or Project Wonderful.”

Do you have tips for focusing your energy while selling on Etsy.com?  How do you make sure you are using your time online wisely?  How do you promote your handmade crafts?

Share your experience and tips by writing an article for the HandmadeMarketing.org community.  Submit your thoughts here! Be sure to include your social media and shop links so we can give you credit for the fabulous tips!

HandmadeMarketing.org reader Melissa Hamel-Smith shared why she sells handmade on ArtFire in a previous HandmadeMarketing.org article, and is back to tell sellers her 3 tips to success.  Melissa sells handmade at the ArtFire studio KaoticEkkosCuriosities and has wonderful ideas for new and seasoned handmade sellers alike.

1. Establish Your Brand.  Melissa’s first time is to establish your brand for your handmade business.  “Decide on a business name and logo that you love and won’t want to change,” she tells our HandmadeMarketing.org team. “Consistency is very important. Remember your ‘brand’ will be on everything: business cards, banners, online shops, etc. You really want people to be able to recognize your product. And the first thing you should invest in is business cards. They’re inexpensive, effective and versatile. But remember, make sure you love your ‘brand’ first. Otherwise you’ll end up with 250+ cards you can’t use and lots of trees crying.”
2. Start Small. She recommends sellers don’t invest too much in advertising at first.  “Don’t go crazy with the advertising just yet. Start with free directories such as Shop Indie Online, Indie Collective, and Handmade Directory. Advertise on your social networks. There are some awesome sites that have cheap ad spots such as Blockhead Radio. Don’t overspend. There’s no point in spending $100 per month on a site that doesn’t reach your target audience. That’s a very expensive lesson to learn!” she tells us.
3. Team Up.  Most online selling platforms have some way for sellers to connect.  Melissa sells on ArtFire, so she recommends finding an ArtFire Guild that works for you.  “A Guild is a group of artists whose art is along the same theme, same medium, etc. You’ll be promoting other artists, but remember they’ll be promoting you too!” she said.  “You can learn a lot from your fellow Guild members, especially those who have been selling longer than you. Guilds also set up promotion opportunities such as samplers, giveaways, sales, etc. What’s better than a group of like-minded people promoting each other?!“

Finally, Melissa tells handmade sellers to remember their passion when the work gets overwhelming.  “Never give up!” Melissa tells sellers. “It is a lot of work, but if you love what you do it’ll be worth it!”  Need more inspiration when promoting and marketing become time-consuming?  Handmade seller Amy Vander Vorste shared her advice on how to market your online handmade shop effectively without losing your life.

Thank you for sharing your 3 tips to success Melissa!  You can learn more about Melissa’s ArtFire studio by checking out her recent post, titled “Why Artfire is Awesome”, found on her blog.  You can also connect with her on Facebook, MySpace, Twitter, Plurk, her blog, and Flickr.

Share you thoughts with HandmadeMarketing.org!  If we feature your tips in a future article, we’ll link to your shop, blog, or social media as a source of the information.  Simply tell us what advice you have for selling handmade online under our “Join” tab!

April Stanley Njari, seller behind the Etsy shop AprilMist, tells HandmadeMarketing.org that networking with bloggers and other crafters is vital to increasing sales online.

“I’m a huge Etsy fan and had thought about opening a shop for some time,” April told us. “After months of creating my handmade paper beads and studying the resources links and forum posts, I took the plunge and opened AprilMist on June 25, 2009.  I listed several of my funky and sassy handmade paper bead jewelry creations and decided to offer free shipping for as long as I am able because as a customer, I don’t like paying for shipping.”

April says her Etsy business took off quite quickly. “In 10 weeks, I sold 15 items! I’ve really enjoyed the process of creating and selling, meeting amazing people through Etsy and my local craft community, and learning a lot about maintaining my business throughout the process.”

April says two things have helped her have success on Etsy.com – connecting with bloggers and being active in an Etsy Team.

April says her strategy to connect with bloggers has been to really get to know the style of the blog and interest of the blogger. She also focuses on posting helpful comments on interesting posts.

“This is the best way to start getting involved and connect to the community, plus its lots of fun! When I discover a blog that resonates with me and my business, I add it to my favorites and subscribe to the feed and start to interact by leaving comments. I do need to get organized in order to decrease the amount of time I’m spending online,” she told HandmadeMarketing.org.

Currently, April does not yet have her own blog. “I have lots of respect for those who can maintain their business and frequently post interesting articles. Myself and many others enjoy reading, so keep on blogging!” she says.

April’s favorite blogs are Modish Biz Tips, HandmadeMarketing.org, and CraftNouveau.

What makes a great blog in April’s eyes? “I’m especially drawn to bloggers who share their knowledge and expertise, offer advice and suggestions based on their experience, share their challenges and highlight the success of others in addition to their own successes,” she tells HandmadeMarketing.org.

Looking for a way to connect with bloggers, but still have time to craft? April recommends a Modish Biz Tips resource for getting organized, researching blogs that pertain to your work, and documenting your correspondence with them.

“I have yet to completely implement these suggestions, but it’s on my “to do” list!” she says.

April also tells new sellers to think about joining an Etsy Team to connect with others.

“I would absolutely recommend joining an Etsy Team to connect with like minded crafters! I joined the regional EtsyCREST (Capital Region Esty Street Team) since I live in the DC area and wanted to become part of my local craft community,” she says. “Being an active member of this team has afforded me the opportunity to get involved in awesome local crafting events such as volunteering at the Ballston Arts & Crafts Market, and meeting up for monthly crafting and happy hour with Crafty Drinks DC. The friendships I’ve made and advice and encouragement I’ve received through this community has been totally amazing and quite helpful in developing my handmade business.”

Being a member of an Etsy Team has also directly increased April’s Etsy sales. “Through my Etsy team I have met a few friends who have blogged about my jewelry designs and my process of creating handmade paper beads. A fellow member of an Etsy Team (Capital Region Etsy Street Team) posted a photo of one of my listings on her blog and my page views for that item really shot up,” April told us.

Although April’s Etsy shop has slowed a bit, she continues to develop her business. “Recently, business on Etsy has been a bit slow for most sellers, so I’ve used this down time to continue to create fun new designs, research the Etsy Forum posts for ideas on improving my shop, connect with local crafters and prepare for the upcoming holiday season,” April says.

Thank you for the networking advice April! Readers can connect with April by following her on Twitter or via email (aprilmist.etsy@gmail.com). You can also learn more about her craft in her DC Craft Mafia feature.

How do you connect with bloggers? Are you a member of an Etsy Team? Which networking opportunities have been best for your Etsy shop?

In another HandmadeMarketing.org article, Simone Walsh, jewelry seller from the website SimoneWalsh, walked readers through how to determine their wages in order to price their handmade items correctly.

Next, Simone shared her tips for performing a breakeven analysis for handmade product businesses.  Simone also documents these tips in a recent article on her website.

“A major step towards realistic and professional pricing is to do a ‘breakeven analysis’ for your business. This will give you a big picture view as to how you need to price your work in order to make ends meet – and hopefully more,” she writes in her website article.

Simone explains that many handmade sellers forget some of the hidden costs of business.  “The one thing that so many design/craft pricing methods seem to forget is that your business must cover all of its costs – not just materials and labor. Every tool you use, every advertisement you buy, every business card you have printed, etc. must ultimately be paid for by your business,” she writes.

Simone explains that proper item pricing depends on these costs.  A handmade seller needs to know what these costs are and how they at least should be impacting upon an item’s price point.

To determine this “cost of business”, Simone suggests step one is to determine overheads.  “Make a list of all of the overhead costs which must be covered by your business, and calculate them out into annual figures,” she suggests.

Simone says these overhead costs should not include costs relating to the cost of individual sales, such as materials, your labor, shipping costs you charge to customers, etc.  “Your overheads are all the other costs that cannot so easily be accounted for in pricing for individual items,” she tells readers.

To help readers brainstorm overhead costs, Simone suggests the following could be included:

* Wages.  See Simone’s previous HandmadeMarketing.org article about determining wages.

* Rent/mortgage. “Perhaps a portion if you are working from home – or none if your personal income covers this – it’s up to you,” she writes.

* Electricity.

* Subscriptions and memberships.

* Advertising.

* Printing.

* Office supplies.

* Internet connection.

* Phone charges.

* Travel expenses.

* Depreciation of tools & equipment.  “If you need to replace your computer every three years and it’s an essential business tool, put in a third of its replacement value,” Simone explains.

* Insurance.

* Postage (which is not paid for as part of a sale).

* Accounting fees.

* Exhibition costs.

* Research and development.

Simone says the next step is to determine profit/contingency.  “Profit – beyond the wages you have already calculated – is an important element of growing your business and I strongly recommend coming up with a figure to add in to your calculations,” she suggests.  “A profit figure will also help you to have room for error if anything goes wrong with your other calculations, so you can also think of this figure as a contingency. It could go towards covering missing deliveries, breakages, unexpected fees, etc. We all need some room to move when things go wrong or change, as they invariably do, so be sure to factor this room in.”

Simone tells readers to add the final figure of the annual overheads cost to the additional profit/contingency figure which you would like your business to make as a minimum on an annual basis.  “You’ll now use this final figure to come up with a margin to add to your item costs,” she explains.

The next step is to determine the margin required to break even on your small business.  “To earn enough to pay for your business overheads plus profit/contingency figure, you need to determine a margin percentage to add to the costs (labor plus materials) of every item you sell,” she explains to readers.

Simone says if a handmade seller does not add a margin, there’s no way they will be covering basic operating overheads, let alone making any profit.

“To begin with, give yourself a profit margin of 50% just to get your calculations started. Divide your total overheads plus profit/contingency figure by this percentage to determine the total value of annual sales you must make simply in order to cover your costs and make some profit,” Simone says.

Simone gives an example to help explain how to determine the margin required to break event.  “Don’t worry if your figures are wildly different either way – they will be different for everyone,” she tells readers.

* Overheads: $15,000

* Profit: $5,000

* Overheads + profit (total amount needed in addition to labor and materials) = $20,000

* Margin chosen to be added to labour and materials costs per item to cover this figure: 50%

* Divide $20,000 by 50% = $40,000

Simone explains that in this example, the total sales value needed in order purely to cover $20,000 overheads and profit is $40,000, with the extra $20,000 covering the seller’s materials and labor.

“To help make more sense of this,” Simone explains, “let’s say the average wholesale price of your items is $20.00: $40,000 divided by $20.00 = 2000. This means you have to sell 2000 items per year at your average wholesale price simply to break even and make some profit. That’s around thirty-eight items sold every week of the year. Does this sound reasonable based on what you do and your capacity to make and sell items?“

“If not, go back and do the same calculations, but this time look at increased margins – 60%, 70% … all the way to 100% and beyond. Note the different outcomes as to how much less you have to sell in terms of volume to break even as you increase this margin.”

Simone assures HandmadeMarketing.org that sellers will find this exercise to be a very enlightening, whatever margin sellers eventually settle on.

The next step Simone recommends is determining wholesale and retail pricing.  “Once you’ve settled on a profit margin that you’re happy with which will cover your overhead costs and some profit, you should then regard this margin as the lowest you will sell for,” she writes.  “In other words, this should be you minimum wholesale margin.”

Once you have determined that figure, Simone suggests adding at least another 50% of margin to reach your minimum retail price.

“This might seem scary, but it is realistic: your wholesale prices must cover your overheads, labor and materials. And your retail prices should aim to be about double the wholesale amount so that there is room for the retailer to make profit,” she says.

Overwhelmed?  Simone says this process can all seem a bit complex and daunting, but in practice it’s not.

“The hardest part is getting the figures nutted out to begin with and from there it’s just a matter of putting it all into practice and updating it occasionally (ideally annually),” she writes.  “Best of all, you can feel confident that your pricing is reflecting the true costs of running your business and the true income you need it to bring in. That’s a lot better than doing materials + labor x 2, hoping for the best and probably coming nowhere near!“

Simone says it’s a great idea to create a working spreadsheet to help with calculating pricing.  “Learn how to do so if you don’t know already. You’ll find it will make your life considerably easier,” she suggests.

To get started, Simone suggests keeping track of the costs of your materials and labor for every handmade item you make, whether finished pieces or components.  Keep in mind the labor rate can be determined by using the calculations in Simone’s previous HandmadeMarketing.org article.

“Add these two costs together for one item you make and you have your base cost for an item,” Simone says. “Next, add in the overheads margin.  You then need to add on the total overheads margin you have decided upon (see above) to come up with your wholesale prices.  From there you need to add the additional margin for your retail price – remembering to add any sales tax if appropriate.”

This figure will give you your minimum selling amounts for both scenarios.  “Don’t forget to also take into account any other per sale costs which are not paid for separately such as selling fees, etc.,” Simone says.

So what does this final number tell handmade sellers?  “You can make a judgment about what people will actually pay for each item or ‘what the market will bear’.  Generally speaking it should be no less than the minimum figures you have come up with, unless you feel any lost margin on one item will be made up by other items which you can sell for a higher margin than your minimum,” she says.  “Flexibility is good!“

“It’s also a great idea to round out your figures to whole dollar amounts to make them more ‘attractive’, especially for retail prices,” she writes.

What if you determine your final figure for your handmade items is too expensive for the market?

“If you honestly don’t believe that the market will bear the price you’ve come up with for an item based on the above method, then a serious step back is required,” Simone says.  She recommends asking yourself the following questions:

* Are you being realistic? Maybe the market really will pay what your item is worth. Make sure it’s not just yourself who is under-valuing your work!

* Is there any way you can streamline your costs and labor?

* Is this particular item simply never going to sell for the price it needs to in order to pay for itself and your costs? If so, should you try something else?

The next step is to make adjustments where needed.  “Keep an eye on your overheads and materials costs as time goes by. Of course you can go back at any point to revisit and adjust your calculations.  It’s a great idea to schedule time to do this at least once a year to make sure you’re still on track,” she recommends.

Have you taken these steps suggested by Simone?  What were your results?  How did you make adjustments where needed?

Share your thoughts with HandmadeMarketing.org by commenting on this post, or telling us more detail under our “Join” tab.  If our editors like your ideas, we’ll publish your tips in a future article (and link to your handmade shop!)

Simone Walsh, the handmade jewelry seller behind the website SimoneWalsh, published an article on her website about professional pricing for craftspeople and designers.  The article was written for emerging makers who may find pricing their work to be a very daunting prospect.  In fact, these crafters may have no idea of where to begin.  Simone offers practical and proven tips.

“It’s well worth spending the time to understand how to price properly and to lay the groundwork to make sure you are doing so,” Simone writes in her article.

Simone helps sellers with two parts of this process – determining wages and determining overhead costs.

The first step to pricing your craft is to calculate your wages.  “Your business should pay you a realistic wage for the amount of time you spend working in the business, including tax,” Simone suggests.  “If this makes you feel uncomfortable, think about how much you might need to pay other people to do the work that you do. Also think about how much you’d want to be paid if you were employed doing the same work you do in your business.”

Simone reminds crafters that they are just as entitled to earn at least a living wage from what they do as anyone else in the working world.  “Even if you love what you do!” she adds.

The next step is to calculate non-chargeable wages.  “Most makers are at least aware of incorporating a labor rate into their pricing for the items they make to sell. However, wages shouldn’t usually end there.”

Simone tells handmade sellers to consider the time they spend in their business over the course of a year – time which is not chargeable as part of creating an item.

“This might include time spent photographing, promoting, doing admin work, researching, sourcing materials, etc.,” Simone says.

Simone suggests sellers start by estimating the number of hours per week or per month they think are required for this type of non-chargeable work.  Next, determine an appropriate hourly rate for this work.  Stuck on a fair rate?  Simone says try asking yourself what you would pay someone else in your economy to do it?

The next step is to calculate the time and wage into an annual figure.  “This annual ‘non-chargeable wage’ figure should then be included in your overheads calculation,” she writes.  Simone explains the overheads calculation in a later article.

Next, determine your chargeable wage.  “Your chargeable wage is the income generated by the labor rate charged for each each item you make to sell,” Simone explains.

Simone explains that every handmade piece a seller makes should have the amount of labor factored into it.  “It doesn’t have to be timed down to the last second – I just make an educated guess as to what a piece will take me to make on average once I have it in production,” she tells HandmadeMarketing.org.

Simone has a simple way to determine a crafter’s labor rate.  “A great place to start is to think about the annual amount of income (on top of the above non-chargeable figure) which you need or want to be earning from your business,” she writes.  “Then determine how many weeks a year you will work in your business (allowing time for holidays, illness, etc – 48 weeks works for me). Finally, work out how many hours a week you estimate you’ll work specifically on making items which you will be selling. Remember to allow time for all of those other business-related things you need to do – and don’t forget you need to have a life, as well!”

To determine your chargeable wage, simply divide the annual amount you wish to earn from your labor by the number of weeks you intend to work per year.  Next, divide that figure by the number of hours per week you estimate you’ll spend actually making work to sell to get your hourly rate.

To help readers through this equation, Simone provides an example in her website article:

“So, as a fairly outrageous example, let’s just pretend you want to make $500,000 a year in wages (!). $500,000 divided by 48 weeks = $10,416 a week. Let’s say you intend on working just 5 hours a week making what you sell: $10,416 divided by 5 = $2083 – that’s your hourly labor rate!” she writes.

Simone suggests that if your final result looks unreasonably low or high, sellers should take a step back to the big picture and reassess.  “Keep doing this until you have a figure you’re happy with,” she recommends.

“Of course it’s entirely up to you as to the final wage figure you decide upon and you can always adjust it at any point,” Simone reminds readers.  “This is just a method to help you come up with a realistic figure, based on your own life and needs, along with your own economy (almost every country will be different as to what an appropriate labur rate looks like).”

“Use your final hourly rate figure to calculate costs for your time for everything you make. This figure does not get added to your overheads,” she writes.  Simone details how to determine your overheads cost for your business in a later article.

What did you determine your chargeable wages would be?  What do you think of Simone’s step by step process for determining how your wages impact your product pricing?

Do you know the power of your handmade item’s pricepoint?  HandmadeMarketing.org reader Cindy Lietz, from the website Beads and Beading, gave insight on her blog as to how an item’s pricepoint could be a marketing tool.

“I gathered a bunch of interesting facts and figures I’d like to share with you!” Cindy writes in her Etsy Tips for Your Jewelry Business blog post.  “For example, did you know that out of their 590,898 jewelry listings, that 24,341 are for Polymer Clay Jewelry? And the prices of those poly clay listings range from a $900 beaded polymer clay necklace to a 20 cent pair of Fimo earrings?“

“Or, did you know that over half of those polymer clay jewelry listings are for pendants? Do you see a trend there? Those pendants range in price from $450 to 20 cents.“

“And about those 20 cent items! Who can afford to sell at 20 cents when the listing fee is 20 cents + a 3.5% sales fee on top of that? Turns out, lots of people!” she writes.

Cindy explains that those 20 cent Etsy.com listings are “‘Pay It Forward”, or PIF, items.

“You see, shoppers can view listings on Etsy in several different ways… High-to-Low-Price, Low-to-High-Price, Recently-Listed, and Least-Recently-Listed,” she writes.  “If there are 12,707 listings for polymer clay pendants, your pieces could get “lost in the pile” if you don’t think creatively.”

Etsy sellers can work to not end up “lost in the pile” by focusing on the power of their pricepoint.  Cindy writes that PIF can be used as a strategy by some Etsians to get their shop seen.  By posting a 20 cent “loss leader” item, Cindy explains that the seller’s whop will show at the top of a lowest price sort.

“When buyers click on these 20 cent listings, they also get to see everything else that this handmade seller is offering,” Cindy writes.  “They “come into their store” so to speak. Really when you think about it, 20 cents is not a bad price to pay for some business exposure!“

“This loss leader strategy is referred to as doing a good deed, and buyers are asked to “Pay it Forward” by doing someone else a good deed in return,” she writes.

For more behind the PIF concept, read a past HandmadeMarketing.org article about what “Paying It Forward” entails.  Handmade seller Mary Bence, from Etsy’s Purbliss, recently shared what Etsy’s PIF listings are and why “Pay It Forward” can be a great marketing idea.

Cindy also thinks focusing on the item’s pricepoint can also work by pricing an item high.

“I think a few sellers have done a similar thing by overpricing an item to get visibility at the beginning of a High-to-Low search listing sort. However, this strategy can backfire and tarnish your reputation very quickly if the item is obviously not worth the price it was listed for,” she explains.

Thank you for sharing the wonderful tips Cindy!  To read more of Cindy’s suggestions for selling handmade online, check out her recent HandmadeMarketing.org article about how to conduct craft market research.

How do you use your pricepoint as a marketing tool?  Have you ever received exposure from PIF or high-priced items?  What do you think of Cindy’s thoughts about how a pricepoint can draw potential buyers to your Etsy shop?

Tell us your thoughts!  Post a comment to this post. If you are interested in seeing your thoughts in a future article, share your ideas about selling handmade online by clicking “Join”.  If our editors like your tips, we’ll publish you in a HandmadeMarketing.org article and link to your shop, blog, or website!