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Table of Contents:
I. Out with the Old
II. Studio Watch: Pay Attention to Rising Costs
III. Opportunities Knocking
OUT WITH THE OLD...
Did you know that, for craftspeople, Spring Cleaning isn't nearly as important as cleaning house before the beginning of the new year? As year's end quickly approaches, now is THE time to revise and price your 2006 line.
The most difficult part will likely be taking that first step. Ideally, you want to begin rethinking your business approach for the new year around Thanksgiving, but it is never too late to begin the planning process. Start NOW! To help you get started with your New Year revision process, try these 5 helpful steps:
1) Take a long, hard look at reality. Assessing your line should mean pulling numbers from more than one year, when possible. Remember that buying curves can be like roller coasters and basing your line's future direction on your most recent shows, this month, or the last quarter will not give you a clear picture of your line. We're sorry...but you'll have to put pencil to paper (or fingers to a keyboard) on this one. Embrace the art of the SPREADSHEET.
2) Assuming you have a spreadsheet, be sure it includes notations for individual product sales alongside your methods and costs of promotion. For example: analyze if a product sold well at two retail shows because you did more local area postcard mailings or because the show promoter does television advertising and featured an image of your product. You should have (or you should begin to develop) two spreadsheets that you update concurrently. The cost of promotion can sometimes outweigh resulting sales figures.
3) Don't assume that what sold this year will sell next year. Design new work! Bring 30% new work to all shows. Make this your benchmark.
4) Design with determination. Pushing a lackluster product will only put a bandage over the problem. All "new products" aren't winners. It takes a lot to design new items, but it takes twice as much to keep designing them until you find the RIGHT new item. It pays to research first! Review color trends. Study how people spend their money today. Design with these current trends in mind.
5) Review Pricing and Production Costs. Analyze production costs and methods to determine wholesale and retail prices for 2006. Will hiring a part-time assistant for routine tasks in the studio lower costs by allowing you to increase your own productivity? Have you taken energy and shipping costs into account? Are you paying yourself enough in your pricing formula? If you are spending all your time working but still can't pay yourself properly, your production and pricing approach needs some serious re-consideration.
Need help getting started? Click here to download additional helpful information. If you would like assistance pricing for the wholesale marketplace, please contact the exhibits manager for your medium.
STUDIO WATCH:
PAY ATTENTION TO RISING COSTS
Shipping
Keep an eye on your shipping costs! Federal Express shipping costs will rise by an average of 3.5%, effective January 2, 2006. The 2006 FedEx list, rates, and adjusted fuel surcharge index are available at www.fedex.com.
The US Postal Service will raise rates by 5.4% on January 8, 2006, raising the standard, first-class stamp from $0.37 to $0.39.
Research how these rates will affect your business and be sure to adjust your prices accordingly!
Energy Costs
The cost of keeping a hot-glass or ceramics studio running has increased dramatically this year due to the sharp rise in the costs of gas and oil.
Have you planned for rising energy costs in your pricing?
Many artists are finding they need to increase their wholesale prices by about 15% just to keep the fires burning.
Have you brainstormed non-traditional ways to combat rising energy costs by generating additional income this winter?
For example: consider hosting a local group to your studio for a day of demonstrations and/or one-day classes. If you do this two times a month, charging $25 to $50 per person, you can generate between $500 and $1000 to cover some of your overhead. Focus on group participation, instead of individuals, to streamline your efforts.
Have you come up with a novel idea to bring additional money to your studio this winter? Share your ideas with fellow artists by posting them on the American Craft Forum, www.americancraftforum.com.
OPPORTUNITIES KNOCKING
Calls For Nominees: SNAG Lifetime Achievement Award
Any member may nominate an individual, living or deceased, SNAG member or non-member for this award. A nomination should consist of a resume or biography of the nominee and an explanation of why that person is deserving. Additionally, the nomination must be accompanied by at least two letters of support from other SNAG members. Send all nomination packages to Marilyn da Silva at 2615 Alice Way, Pinole CA 94564. Contact Jim Cohen info@jimcohenmetals.net for more information.
Deadline: January 6, 2006
American Jewelry Design Council 2006 Annual Talent Contest
This high-profile competition has successfully launched the careers of several past winners. The winner is awarded a booth in the New Designer Gallery at the July Jewelers of America Show. For more information visit www.ajdc.org or send a self-addressed stamped envelope to Alan Revere - AJDC Talent Contest Chairman, 760 Market Street, Suite 900, San Francisco CA 94102. Deadline: January 15, 2006
Sumei International Juried Print 2006
Curated by Samantha Rippner, Curator, Department of Drawing and Prints, Metropolitan Museum of Art. This biennial exhibition is dedicated to the memory of Cuban artist Belkis Ayon (1967-1999). Open to all artists, original works created within the last three years, and all print media. Giclee prints are accepted in separate category. For prospectus send a self addressed, stamped envelope to: Sumei Juried Print, 19 Liberty St, Newark NJ 07102 OR go to website: www.sumei.org.
Deadline: February 11, 2006
Circus Surreal 2006: Call For Entries
An extravaganza of artwork in all mediums, the theme encourages the artist to interpret this notion with their personal imagination and craft. The exhibit will be on view May 1 to May 31, 2006, at the Micro Museum, 123 Smith Street in Brooklyn, NY. The opening event for Circus Surreal 2006 will take place on Saturday, April 29, 2006. Micro Museum and Reflect-arts will provide all PR and marketing services as well as our own mailing within New York City. Download the prospectus at http://www.micromuseum.com/Jan05/EntryFormCircusSurreal.pdf.
For more information e-mail executive@micromuseum.com.
Deadline: March 1, 2006
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WHY NOT...
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