The Introverted Detective: How Selling Homemade Goods Work

Have you ever thought "I'd like to sell my homemade (insert item here) someday"? You may find it a little harder than you thought, but it isn't impossible to do. What you have to understand about it is this; it takes consistency to make it a business and takes work to make an object worth buying (unless you are an adorable child).

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So, you want to sell your handmade whatever for extra money. Before you rush into making ten million handmade whatever and expect major sales, you first need a vendor's license to go to craft fairs. You also need to take into account that there is sales tax to turn in at one point in the year, another thing to keep track of based on county and state. My dad does this as a side business, as a carpenter who makes toys, cabinets, and doll furniture. It paid for some of my wedding and the rental of his tux, as well as giving an extra boost to the family finances. Is it worth it? Absolutely, but depending on what you sell and where you choose to sell your wares success varies.

One factor in success is how often you show up to craft fairs. Your first go at selling at a farmers market or flea market, when nobody knew you were going to be there, may not be the most successful. What you want to do is give it a month or two before you expect more sales. Again, it depends on your product, too. Also, your audience makes a difference. Some craft shows there are people who literally walk around and buy nothing, while other times you see people come to buy. Note the craft shows that few show up to and avoid getting involved with those shows. The more foot traffic, the better your chances of actually selling your wares.

How To Get Started

First, the vendor's license. How do you get that? Let me help. Click here to go to the online process. This is for Ohio, because I write from Ohio, but I'm sure that you can easily find other states' licensing websites via google. Make sure it is a legitimate website before you put in all your information.

Next, set up a way to track sales. Excel, notebook and pen, word document......As long as you have a way to track what you sold and for how much you are in business. Sales tax should be calculated after every craft fair based on county and state. If you need a basic guide on what sales tax is, start at this link.

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To get into some craft shows you have to get on a waiting list (if it is a crowded, big show) or just keep your eyes open for the advertisements that say "vendors wanted". Keep in mind that foot traffic is a must if you intend to sell anything at all. If no one walks through everyone is in the same boat, and no one is happy at the end of the night. You can start with flea markets and farmers markets every weekend if the option is open to you. Once people start noticing you are there often they may come back to you. You have to pay a fee for doing a show, farmers market, or flea market to use the space. Keep that in mind.

Pricing is another point that makes a big difference. How much do you charge for an item? As a general rule, it is this; pricing is how much time you spent and the resources it took to make the item. Keep in mind sales tax takes some of your gains away from you. It is a good practice to have some expensive items out, but to keep the less expensive items out on your display so that those with only a limited supply of money can still get something from you. You can negotiate prices if you want, just don't cheat yourself. You know how much time it took to make that. You should be paid for your time.

What To Make and How Much

The items you are making may cost more to make. You could also take a long time to make something. Don't short yourself because one person thinks it is too expensive. The truth is that a lot of people will go by your stall or display and not intend to buy anything, or worse, say they can make it themselves. The majority of the people probably won't and you should never give them the pattern if they ask for it. You are selling it fully made. A lot of patterns also aren't free and forbid you from giving it away for free.

That being said, what you make can either make you blend in or stick out as interesting. The more common the item you are selling, the less likely the people you are trying to sell it to will be interested. The unique items get more sales. Anything that someone can't commonly handmake is also a major plus. Is it hard to handmake and not many people have the time or tools? Then you should sell it. Given that, you can still sell your crocheted cats, hat and glove sets, wreaths, and knitted sweaters to your heart's content and make a living. It is more how you sell it in the long run, not what the item is. Sell what you want to sell. It may take trial and error to see what sells better. Determine whether you are doing custom orders or not and stick to your decision.

Sell what you want to sell. Keep in mind that people want something that improves their lives. If it is easy to carry out the door (minus furniture that people get at flea markets), has a reasonable price, and is either a need or want you will do well. Reasons someone buys usually have to do with self-improvement, how we are seen by others, and purposeful products. It may benefit you to sell something easy to carry or offer to take it to their car when it is heavy. They can also pick it up from you at the end of their shopping trip. Again, put a range of prices out there. Some people only have a twenty left in their wallet or have bills to pay later. Focus on your specialty and go from there. You'll want to create a brand for yourself and not hide behind your table. Make your display look good and welcoming. Grab attention with what you put out in your space.

What Crafters Hear and What Is A Problem

As someone who has several family members who sell craft items and someone who has put out crochet for sale, you hear a lot of things people should keep to themselves. This includes those that decide to say out loud that they could make it themselves or their friend could make it. Do they mean to insult you? Maybe not, but it doesn't come across well. Most crafters feel anger toward the ones that say it out loud and have to hold it in.

Some people ask whether they can get a discount because they got there before opening, according to madeurban.com, but I haven't ever heard that one. Still, it isn't a good thing to ask. This scenario is when you aren't set up yet.

When asked whether you could copy another vender's work, please don't. Anyone saying this should be pointed in the direction of the vendor that has that product made. It is insensitive to say the least. If you need someone to stop taking pictures at your booth say something. If they don't stop, you might want to get your hand in the way of the picture and warn them again. Keep getting in their way and they may give up.

If someone wants to know how you made it, hesitate to answer unless you can give vague descriptions (ones that aren't enough to make it). If they are curious and don't intend to make it themselves it is not a harmful question. If they push for detailed descriptions, well, say you can't reveal all your secrets and stop talking. Also, speak up when they take pictures with intent to copy, even put up a sign that says please don't take pictures.

Complaints about price are common. Some lowering of price may be okay. For instance, if a small child only has so much money to spend and you can lower the price slightly to allow them to buy it (without devaluing your item) it is probably okay. Manners also go a long way toward whether someone gets a discount. That is a scenario that depends on the item you are selling and the attitude of the customer. An adult trying to haggle lower than the lowest price you are willing to present is a problem. You can say no. You can say that is the price and it goes no lower. Your stuff is worth the money, if the price is set correctly. Don't let someone devalue your work or you.

Requests such as whether you deliver, last minute shoppers asking how soon it can be done, and general discount questions are what you will find in the craft shows everywhere. Define what you won't and will do. Stick with the discounts you'll be willing to give and whether you do or don't do custom orders. The scenario and item being sold will adjust what you are willing to do.

Another issue highlighted by many people is touching and breaking merchandise. Do exactly what the stores do in this scenario. "You break it and you buy it" will probably keep people from touching it, too. Speak up. It is your booth and not theirs. Touching with intent to buy is one thing, but touching with intent to break in order to get a discount is whole new issue.