Selling Handmade – Ways to Combat Economic Slow Down

Many of the HandmadeMarketing.org readers have been impacted by the world-wide economic slow down.  Our team looked to Cindy Lietz, from the website and informative blog Beads and Beading, to hear her thoughts on selling crafts online during the recession.

“With uncertain economic times happening in the US and some other countries, your financial situation may be tightening up a bit,” Cindy wrote in a recent article on her site.  “But this doesn’t mean there aren’t things you can do as an artistic person to help make things better for you and your family. Here are 6 tips for making money with a part-time, home-based jewelry business during bad economic times.”

Cindy suggests handmade sellers make their own products.  Specifically, she calls for jewelry sellers to make their own polymer clay beads.

“If you love original handmade beads and have been buying them to include in your jewelery making projects, make the beads yourself instead!” Cindy writes.  “Some customers love the look of authentic coral, turquoise and bone, but aren’t willing to pay for it right now. For them you can create very convincing replicas at a fraction of the cost using polymer clay. You’ll save on expenses while creating truly one-of-a-kind designs that will sell. This translates to happy customers which means a profitable home jewelry business for you.”

Cindy also tells handmade sellers that they should shop regularly at dollar stores for discounted craft supplies.  “Just because it is in the dollar store doesn’t mean it is low quality,” Cindy tells sellers.  “Businesses go under all the time and their liquidated inventories get sold in these types of places. There are 6 different stores I frequent regularly. However, learn the difference between good and bad quality materials. Dollar stores can also sell crappy stuff that isn’t worth buying at all!”

Second, Cindy suggests that handmade sellers focus on a certain group buying online – gift givers.  “Don’t forget that even when the economy is tight, people still need to give presents. No matter how bad it gets, people will still give gifts,” she writes.  For tips to market to this market, have a look “Gift Givers – Post Items Geared Towards Giving” from HandmadeMarketing.org.

Cindy says that if you are finding it hard to sell your current jewelry designs to your regular customers, you need to ask yourself a two questions:

1. Are my jewelry prices too high for these long-time buyers?
2. Do I need to find new customers?

“You will either have to find a way to reduce your costs and make lower ticket items… or market to a higher income bracket,” Cindy tells handmade sellers.  “You should understand that a person who once bought diamonds, may now settle for buying higher end art jewelry. People still buy during hard times. They just buy differently.”

Cindy also suggests wearing your handmade craft (if possible) at all times.  This will help your advertising efforts in a down economy.

“It is by far the cheapest and most effective advertising you can do,” Cindy explains.  “I have received many custom jewelry orders simply by just wearing the stuff I make. In fact just this week, I have requests for 6 custom beaded lanyards just because I wear one to hold my membership card at the YMCA. You may remember me writing about a similar situation when someone else bought the pirate crossbones jewelry lanyard I was using that day. Wearing your pieces also gives your product good real life testing, so you can always be improving your designs.”

In the end, Cindy says selling handmade online will help your household with combating the effects of the recession.

“Whether you just need a few hundred extra dollars a month to offset high gas and food prices, or a home jewelry business to help compensate for a lost job, you can turn your beading hobby into a source of income if you get creative with it. Education, supplies and a dream is all you need!” she writes.

How have you cut your business costs in the recession?  Has your business been effected by the recession?  What tips do you have for sellers struggling with the bad economy?

Share your ideas with HandmadeMarketing.org!  Tell us what impact the recession has had on you by clicking on our “Join” tab.  If we publish your tips for selling in a recession, we will include a link to your shop, blog, or website.  Talk about an easy way to get your shop’s name out there!