The below article was published earlier
and had a overwhelming response. It is only natural for us to bring
it back here again in anticipation of a repeat performance from our
esteemed customers. Starting and running a jewelry business - Part 2 . In reality, you must also consider a few more (hidden) factors in figuring your true expenses. They include, your: "Costs of running your business," "Costs of promoting your work," and "Costs of selling your creations." Costs of running your business: These can include: Tools; Displays; Stationary; Cards; Licenses; Professional insurance policies; Returns; Repairs; Workspace (a room or space set aside for your work and storage); Lessons and classes; Bookkeeping or hiring a book keeper for your business and taxes; Sales forms; Charge card services and machines; Bank services and fees; Furniture; Maintaining stock and supplies (your money tied-up); Business publications; Telephone expenses; DSL line; Computer and peripherals; Close-up camera and lights; Postage; Delivery; Packaging; Auto mileage expenses; Extra electricity expenses; Employees or assistants (with employees come taxes, unemployment, and workers-comp insc.); Donations; Samples; Wear and tear; Depreciation; Etc.; and don't forget the time it takes you to run your business (if you were someone else's employee, you'd be paid for this time). Costs of promoting your work: Promotion expenses can include: Photos; Brochures; Web site and links; Yellow pages; Contests; Advertising; Donations; Etc, plus your time. Costs of selling your creations: Venues: Direct retail sales: Open a store; Art and Craft shows; Flea Markets; House parties; Mail order catalog; "Trunk shows"; Internet sales; E-Bay; Wear your creations at your "9 to 5" worksite and sell them; Etc. Wholesale to other retailers: Retail stores; Boutiques; Galleries; Beauty salons;Internet stores; "Blended stores"; Etc. Retail: Open a store – Check with your local SBA Art and Craft shows, Flea Markets Venue guide( publications); Tables, Canopies, Table covers, Display pieces, Signs; (Wear and tear on everything); Business cards; Sales books; Packaging; Charge card services and machine (some, plus "air time"); Liability insurance; Booth entry fees; Judging fees; Application package; Donations; Auto mileage fees or truck rental; Hotel (if out-of-town); Food & drinks; Helpers fees; Theft and breakage; Etc.; and don't forget, Your time has value. House parties and "Trunk shows" Tables; Table covers; Display pieces; (Wear and tear on everything); Business cards; Sales books; Packaging; Charge card services and machine (some, plus "air time"); Liability insurance; Theft and breakage; Hostess gift or fee; Auto mileage fees; Etc.; and don't forget, your time has value. Internet sales and E-Bay Computer and peripherals; Site design fees, DSL line; Digital camera and lights; Backgrounds and displays; Packaging; Delivery; E-Bay fees; Hosting fees; Domain fees; Invoices; Charge card equipment and fees; Telephone charges, Sales forms; Employees (+); Etc.; and don't forget, your time has value. Mail order catalog Computer and peripherals; DSL line; Digital camera and lights; Backgrounds and displays; Printing; Packaging; Delivery; Invoices; Charge card equipment and fees; Telephone charges, Sales forms; Employees (+); Etc.; and don't forget, your time has value. Wear your creations at your "9 to 5" worksite and sell them Nothing; OR,Sales forms; Charge card equipment and fees; Your employer is paying for your time. Wholesale: Retail stores; Boutiques; Galleries; Beauty salons; Blended stores. Wholesale discount % ; Sales forms; Sales product sheets; Auto mileage fees; Packaging; Delivery; Displays (sometimes); Travel fees and hotel (sometimes); Blended stores might require you to spend some hours in the store; Etc.; and don't forget, your time has value. Consignment: Retail stores; Boutiques; Galleries; Beauty salons; Same as Wholesale, except a lower discount rate, and a special consignment form to protect you and make sure you are paid and/or retrieve unsold merchandise. This ends the majority of your basic expenses. In the next few weeks we will discuss some of the other things you should consider when pricing your creations. Also, I'll discuss experiences with different pricing methods, starting a business, finding sales venues; promotion; etc. Plus, I will supply you with a few referrals. You can e-mail me with any other expenses you have encountered. |
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