Saturday, October 3, 2009

Occasional Woes of Craft Sales AKA What To Avoid When Making A Sale!

I've mentioned some of these to people before, but I think it would be beneficial to write them down, especially for anyone getting into online craft sales and commissions. These are all things I've personally dealt with, and I hope people learn from my horrible mistakes!

1. Accepting a commission when you're not paid in full up front is VERY risky. You can end up paying for the wool and getting stuck with the finished custom product when the person says they don't like it, can't afford it now, or they just don't want it. You're not being mean when you demand full payment up front, this is a business, and you have to pay for materials to even start. If someone is unable to pay for a product up front, offer to hold a place in your queue for them until they can pay, or explain to them nicely that you need that money for materials before you can begin. Most honest people will be very understanding.

2. Don't undersell yourself! Sure it can give people incentive to buy from you if there's a price break, but don't cut your profits to a minimum. You can always give a discount in shipping, after all. It is hard to justify the cost of handmade goods to some people, especially when they can get cheap things from stores like Wal-Mart, but that doesn't mean you should put tons of time and material cost into something you're making next to nothing for. I'm very guilty of this myself, but I'm getting much better about it. Just remind yourself that it's a business, you're doing this to make money, not friends.

3. Watch out for friends, or people that barely know you, that expect a HUGE discount. Sure if you don't mind giving a pal a break, don't charge them full price, but I personally had a few people that thought because I knit, I'd just LOVE to knit them a hat for free or at a loss. Again, this is your business, they should respect that, and if they're your real friend they will. Or they can wait for their birthday/holiday.

4. Shipping can be a bit tricky sometimes. Packages can go missing or just be incredibly late, and customers usually aren't impressed when either of these things happen. Make your shipping policy very clear, say whether or not tracking is included in your shipping, and how much extra it is for the person to purchase it if they choose. Personally, once it's shipped, I don't assume responsibility for it, and my shipping doesn't include tracking (so I can offer cheap shipping for those that choose). I've only had two shipping errors in three years, but it is something to keep in mind.

I hope some of these tips have been helpful!

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