Saturday, May 5, 2007
Start a Boutique Business Website Now Open!
The articles and resources formerly located at this blog have been moved to my own website. Visit at: Start a Boutique Business. I have added a directory of web designers, a directory of WAHM owned sites, and a generous affiliate program. Enjoy and talk to you soon, Christine
Sunday, April 22, 2007
Why is this blog not be updated?
The Start a Boutique Business blog is not currently being updated while we are looking into a copyright infringement. We hope to get it back on track shortly.
Saturday, March 31, 2007
Pricing Your Handmade Items
Before you can actually sell any of your products you need to first decide how much to charge for each one. We will show you one simple two-part formula for pricing, followed by an example.
A + B = C
"A" stands for the cost of supplies utilized to make your product*
"B" is the hourly wage you wish to receive for making your product
"C" is your break even point, or the minimum selling price with no profit
*The cost of your supplies should include the materials you made your product with, shipping supplies, tools and purchased instructions you used to make your product, fees from online auction or payment processors, rental space for your studio or store (if you do not have a brick and mortar store, but do have a website, then make sure you include fees related to your website!) as well as portions of telephone, internet, water, and electricity bills.
After you have reached a break even point (value of "C"), we then use our second formula:
C + D = Final selling price
"C" is the value you reached from the first formula
"D" is the profit you want to make off of your product
An Example
To further illustrate this method, we will use an example of a bracelet we made to sell at our store.
The total cost of supplies for my bracelet are: beads $2.45, 8 inches of wire $0.40, clasps $2.99, shipping envelope and tissue paper $0.14, and I charge $1.89 per product to help cover rental space and utilities. (Note: I figured out this value by averaging my total monthly rental bills into the amount of products I sell per month.) After adding them together, the value of "A" becomes $7.87.
I wish to receive $8.00 per hour for creating my products. This bracelet took me 20 minutes to make, therefore the value of "B" becomes $2.67.
Let's plug these into our formula:
A + B = C
$7.87 + $2.67 = $10.54.
Now, we use our second formula:
C + D = Final selling price
We already know the value for "C" since we just figured it out.
The profit I want to make off of this bracelet is $6.00, which becomes the value for "D."
So, after plugging values into our second equation, we are left with a final selling price of $16.54. Since this is an odd amount, we will round up to $16.99.
An important aspect of determining an appropriate price that many won't touch on is the importance of knowing your competition. If one of our competitors is selling a similiar bracelet for $9.99, they may get more business! In that case, we would need to adjust the values in our equation. Possible solutions could be finding cheaper sources for supplies or lowering my hourly wage.
In closing, this is only one method of pricing items which has worked well for us for years. For further discussions, we recommend Pricing Guidelines for Arts & Crafts: Successful, Professional Crafters Share Their Pricing Strategies to Help You Set Profitable Prices for Your Arts & Crafts
or The Basic Guide to Pricing Your Craftwork.
Since this is a long article, why not bookmark it now or subscribe to our blog and and return to it for reference at a later time!
Copyright, 2007, Boutique Auction House
No part of this article may be reproduced, either fully or partially without prior written consent from Boutique Auction House.
A + B = C
"A" stands for the cost of supplies utilized to make your product*
"B" is the hourly wage you wish to receive for making your product
"C" is your break even point, or the minimum selling price with no profit
*The cost of your supplies should include the materials you made your product with, shipping supplies, tools and purchased instructions you used to make your product, fees from online auction or payment processors, rental space for your studio or store (if you do not have a brick and mortar store, but do have a website, then make sure you include fees related to your website!) as well as portions of telephone, internet, water, and electricity bills.
After you have reached a break even point (value of "C"), we then use our second formula:
C + D = Final selling price
"C" is the value you reached from the first formula
"D" is the profit you want to make off of your product
An Example
To further illustrate this method, we will use an example of a bracelet we made to sell at our store.
The total cost of supplies for my bracelet are: beads $2.45, 8 inches of wire $0.40, clasps $2.99, shipping envelope and tissue paper $0.14, and I charge $1.89 per product to help cover rental space and utilities. (Note: I figured out this value by averaging my total monthly rental bills into the amount of products I sell per month.) After adding them together, the value of "A" becomes $7.87.
I wish to receive $8.00 per hour for creating my products. This bracelet took me 20 minutes to make, therefore the value of "B" becomes $2.67.
Let's plug these into our formula:
A + B = C
$7.87 + $2.67 = $10.54.
Now, we use our second formula:
C + D = Final selling price
We already know the value for "C" since we just figured it out.
The profit I want to make off of this bracelet is $6.00, which becomes the value for "D."
So, after plugging values into our second equation, we are left with a final selling price of $16.54. Since this is an odd amount, we will round up to $16.99.
An important aspect of determining an appropriate price that many won't touch on is the importance of knowing your competition. If one of our competitors is selling a similiar bracelet for $9.99, they may get more business! In that case, we would need to adjust the values in our equation. Possible solutions could be finding cheaper sources for supplies or lowering my hourly wage.
In closing, this is only one method of pricing items which has worked well for us for years. For further discussions, we recommend Pricing Guidelines for Arts & Crafts: Successful, Professional Crafters Share Their Pricing Strategies to Help You Set Profitable Prices for Your Arts & Crafts
or The Basic Guide to Pricing Your Craftwork.Since this is a long article, why not bookmark it now or subscribe to our blog and and return to it for reference at a later time!
Copyright, 2007, Boutique Auction House
No part of this article may be reproduced, either fully or partially without prior written consent from Boutique Auction House.
Wednesday, March 28, 2007
Choosing a business name
So, you've decided what you are going to make, your products are ready to go, and you are ready to move forward with your business. Now you need to choose a business name. Here are some guidelines and tips to help you along:
1) Choose your name wisely: After you establish a client base, if you were to change your business name it may be difficult to get the word out to returning customers or for them to remember your new name. (This especially applies to Internet sellers.)
2) Be creative: New sellers often revert to things that easily come to mind. Princess Creations, Lovely Bows, and similar names. While these might be great names, they may be too similar to existing businesses. Try to think of something that has never been done before.
3) Inspiration: Use your name, your children's names, things that you like, your favorite past times, your pet's name, or an item that details what products you will make as part of your name.
4) Don't use creative spellings: Using a creative spelling of a common word may seem a good idea to help set you apart from other designers, but it will only hurt you in the end. For example, if I name my business "Great Dreamz" and I decide to create a website, it may be hard for future customers to find me since they may search for "Great Dreams."
5) Think about possible logos: As you are choosing a business name, think about items, pictures, and words that could represent you. For example, if I stuck with the business name "Great Dreams" I could use a child laying in bed dreaming about my products. This possibility is cute and catching and I can envision the logo that might accompany it.
6) Consider the customers that will be buying your products. Will your products be targeted to first time moms, parents of older children, or grandparents? Is the business name you choose likely to appeal to your audience?
7) Use an Internet search engine to search for the business name you would like. (Note: It helps to put your business name in quotes, such as "Great Dreams.") This will help you determine if the name you have chosen is already in use by someone else.
8) Ask for feedback: Before committing yourself to a name, ask trusted friends and family about the name you have chosen. Do they have thoughts or images of what your names implies? Do they like the name? Maybe even write the potential name of your business on a piece of paper in large letters and hang it on your refrigerator. After one week, do you still like your business name?
Remember, choosing a name for you business is an important part of your overall image. Take your time and choose wisely!
Copyright, 2007, Boutique Auction House
No part of this article may be reproduced, either fully or partially without prior written consent from Boutique Auction House.
1) Choose your name wisely: After you establish a client base, if you were to change your business name it may be difficult to get the word out to returning customers or for them to remember your new name. (This especially applies to Internet sellers.)
2) Be creative: New sellers often revert to things that easily come to mind. Princess Creations, Lovely Bows, and similar names. While these might be great names, they may be too similar to existing businesses. Try to think of something that has never been done before.
3) Inspiration: Use your name, your children's names, things that you like, your favorite past times, your pet's name, or an item that details what products you will make as part of your name.
4) Don't use creative spellings: Using a creative spelling of a common word may seem a good idea to help set you apart from other designers, but it will only hurt you in the end. For example, if I name my business "Great Dreamz" and I decide to create a website, it may be hard for future customers to find me since they may search for "Great Dreams."
5) Think about possible logos: As you are choosing a business name, think about items, pictures, and words that could represent you. For example, if I stuck with the business name "Great Dreams" I could use a child laying in bed dreaming about my products. This possibility is cute and catching and I can envision the logo that might accompany it.
6) Consider the customers that will be buying your products. Will your products be targeted to first time moms, parents of older children, or grandparents? Is the business name you choose likely to appeal to your audience?
7) Use an Internet search engine to search for the business name you would like. (Note: It helps to put your business name in quotes, such as "Great Dreams.") This will help you determine if the name you have chosen is already in use by someone else.
8) Ask for feedback: Before committing yourself to a name, ask trusted friends and family about the name you have chosen. Do they have thoughts or images of what your names implies? Do they like the name? Maybe even write the potential name of your business on a piece of paper in large letters and hang it on your refrigerator. After one week, do you still like your business name?
Remember, choosing a name for you business is an important part of your overall image. Take your time and choose wisely!
Copyright, 2007, Boutique Auction House
No part of this article may be reproduced, either fully or partially without prior written consent from Boutique Auction House.
Deciding on the products you will sell
Before you do anything with your new business, you have to decide on what products you will sell. We have compiled a list of common boutique products:
Hair Bows
Headbands
Barrettes and Clippies
Tutus
Custom Made Outfits
Ribbon Tees and Jeans
Embellished Socks and Shoes
Embroidered Items
Jewelry
Nursery and Bedroom Decor
Gift Baskets
Car Seat and Shopping Cart Covers
Baby Shower Decorations
This list is by no means a complete list of all the possible boutique products. It is meant to give you some ideas to help you begin your own list.
When first starting your boutique business, choose a few products that you have practiced making and you feel comfortable making for other people. Do not try to carry every boutique product that could possibly be made. Remember, your business is a growing entity, there is plenty of time to add more products in the future.
Copyright, 2007, Boutique Auction House
No part of this article may be reproduced, either fully or partially without prior written consent from Boutique Auction House.
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