Your Craft Business: Know Your Costs to Assure Profitability

Mary's question about Tracking Your Craft Business appeared yesterday.]

Product Pricing Worksheet

Refer to the screenshot above. [Ctrl+click (Windows) or Cmd+click(Mac) to enlarge screen view.] The four columns on the far left comprise the Cost List: Component; Cost; Quantity; and the unlabeled column calculates the cost of an individual component.

For example, the first item is plain computer paper. I bought a pack for 118 pesos (since I live in Mexico). The pack contained 500 sheets of paper. So the calculated cost of each sheet is 0.24 pesos. As that pack of paper was used up and I had to buy more, I could change the package price as needed and calculate a new cost of goods.

The remaining columns represent individual products. Some were only used once or twice, like the laminated pocket calendars I made for the Lakeside Little Theater (LLT). Others are very popular items my customers order frequently, like the invitation size Bi-Fold Small Note Card.

Looking down the Bi-Fold Small Note Card column you see that each note card uses a half sheet of cardstock (0.50 pesos). Further down the column are: an envelope (0.77 pesos); B&W ink (0.19); and color ink (0.50).

At the bottom of that section, the total cost of goods for one bi-fold notecard is calculated to be 1.96 pesos.

That only represents the hard costs however, the ones that are very clear and easy to quantify.

For a while, I also tracked the soft cost of goods as best one can. These are such things as: equipment depreciation; proof paper; wasted paper (as when the printer jams or doesn’t grab the paper straight-on; software; time meeting with customers for input and design approval. I only calculated soft costs until I was comfortable that my retail prices would cover EVERY expense I had incurred.

Note along the bottom of the screenshot some of the other spreadsheets I created within this master file: Cash In-Out; Note Kits; Income; Price List; Web and Other Comparison Prices.

Please come back tomorrow for Your Craft Business: How to Track Orders to Keep Customers Happy.

Tags: work from home, craft for profit, price your crafts profitably, craft business tips, craft pricing, craft pricing, how to price your art or craft

Your Craft Business: Profitability and Customer Relations

Hi,

I just read your helpful article on tracking inventory for crafters: Database Software for Your Craft Business: How to Maintain Good Business Records.

Question: would you share the column headers of information you keep in each of the Excel spreadsheets you use?

Thanks very much.
Mary

Hi Mary,

Gladly. I’m happy you found the first article helpful.

The categories and individual worksheets may not be suitable for all crafters, but at least will give you an idea of one way to track and organize your craft business.

I created one Excel file called Product Pricing. Product Pricing is also the name of the first spreadsheet I built within this file. The purpose of this sheet is to calculate cost of goods.

Note that this Excel file is intended to help in pricing your crafts for profitability and tracking customer orders for good customer service. It does not replace accounting records which must be maintained for tax purposes.

Please come back tomorrow for Your Craft Business: Know Your Costs to Assure Profitability.

Tags: work from home, craft for profit, price your crafts profitably, craft business tips, craft pricing, craft pricing, how to price your art or craft

Artsy Bloggers Roundup #208

Here we are again with some choice blog posts from the Artsy Bloggers!

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Tags: art blogs, craft blogs, craft ideas, the crafting life, craft techniques, craft tutorials, mixed media, holiday crafts, craft books

[Image Credit: iStock/thumb]

Saturday Craft Link Swap #118

On Saturdays, a group of my crafting friends gather up our best links to share with each other. The idea is to send our readers to other crafters and artists whose work we admire.

So join in the fun and make the rounds. And if you see something you like, please leave some love (comments) behind.

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Tags: craft ideas, craft blogs, craft tutorials, craft inspiration, paper crafts, jewelry crafts, fabric crafts, sewing

Design Gift Boxes to Match

After finishing the Matching Valentine Card and Envelope I shared last week, I decided to make a matching gift box using leftover scrapbook paper and the handy-dandy Crafter's Companion Ultimate (CCU) Crafting Tool.

Honestly, making small gift boxes with the CCU couldn’t be easier. Here’s how.

Supplies:

• 1 sheet 8 1/2 x 11-inch cardstock which matches your handmade card
• Leftovers of the scrapbook paper from which you cut images to glue on the card
• Scoring tool or CCU
• Glue stick or glue runner
• Paper cutter and/or scissors
• 8 paper clips

Directions:

Measure the gift to be put in the box. My beaded booklet was 7 x 5 1/4 x 1 inch. You know the saying, "measure twice; cut once"?

Note that there are two gift boxes in the top photo. The saying should go on to say, "calculate once; double check calculations". The smaller box on top is one inch too short! Oh well, I'll use it another time.

Since I needed a box 1 inch high, I should have added 2 inches to the length and width. So for a 7 x 5 1/4-inch box which is 1 inch tall, I should have cut the cardstock for the bottom and scrapbook paper for the top to 9 x 7 1/4 inches.

Score the box bottom paper 1 inch in on all sides as shown; and the paper for the box top just a smidge less than 1 inch (for an easy fit).

Cut small notches on the four corners to create tabs to glue the box into shape.

Fold and crease along all the scored lines. Apply glue to the tabs and press the box top/bottom together. Clip the corners with paperclips until the glue holds. Remove paperclips.

Insert gift. Close box and tie with a pretty ribbon.

Tags: review of I Heart Stationery, paper craft artists, Charlotte Rivers book, craft inspiration, paper craft techniques, Valentine card directions, craft book, paper crafts

Where to Learn Shoe Making and Shoe Design

I would like to enroll in a shoe making course or workshop for two people.

Please do give us the details of how to get the invitation to participate.

We have been in the business of shoe manufacturing in Sri Lanka for local sale for 20 years and now we would like to grow and design our products for export.

Please do send an e-mail of the details that you need.

Thank you
Kushan

Hi Kushan,

Please accept my sincere apologies for taking so long to respond.

With twenty years in the shoe making business, you know far more about shoe manufacturing than I!

The Artful Crafter is a website about all types of crafts, whether for fun or profit. We don't offer any craft or artisan classes.

You'll find the latest information we have about shoe making and shoe making design in this article: Shoe Making Courses: Where to Learn the Craft of Shoe Making.

Sincerely,
Eileen

Tags: shoe making, learn online, learn to draw, shoe making courses, fashion design courses, film making courses, learn bead making, find online courses

[Photo credit: StockXchng/Cieleke]

Pearls are the Perfect Accessory

These Gutermann glass pearl bracelets are classic and polished, great for layering with other bangles or wearing on their own. And you can make them for a fraction of the retail price – even if you’ve never beaded before.

No beading tools required!

I made 3 in 30 minutes for under $2 each.

Supplies

• 8mm Gutermann (or other brand) pearl beads
• Roll of 0.5mm Stretch Magic Bead & Jewelry Cord
• Ruler or bead board
• Scissors
• Jeweler’s or Super Glue

Use ruler or bead board to lay out an 8- to 9-inch line of pearl beads. If you're using a ruler, work on a terrycloth hand towel to keep the beads from rolling all over.

Take the end of the stretchy cord and string all the beads. Do not cut the cord to length; just leave it on the roll as shown.

When you've got all the beads strung, pull about six inches of extra cord for two three-inch tails to knot the bracelet. Cut cord.

Overlap the two tails of stretchy and pull the beads close together to form the bracelet. Tie a triple knot. Make sure the first tie secures the beads closely together. Pull the second and third knots tight as well.

For a professional finish, snake each tail back through a bead or two of the bracelet as shown above. Cut close to the bead and tuck in the ends of the tails to hide them from view.

Tip: While snaking the tails back through beads that are already strung, gently push each bead upward to stretch the cord already inside, thus making it thinner and allowing you more room for snaking.

Drop a bit of glue onto the triple knot and set bracelet aside to dry.

Tags: beading, jewelry making, jewelry project, easy pearl bracelet, basic beading project

Happy Valentine's Day from Tara T.

This adorable, clever animation was created by 13-year old Tara Tazehabadi who lives in Armenia.

The Artful Crafter profiled (Budding) Artist - Tara T. over a year ago.

Imagine my delight when I received this animated Valentine's Day card from her yesterday.

Let me tell you, this is quite a complex creation. It is an animated GIF file created with 81 layers separately drawn in image editing software like Photoshop.

Way to go, Tara! Thank you and your parents for allowing The Artful Crafter to share it with our readers.

Happy Valentine's Day and Love to All!
P.S. Tara even remarked that she realized she had misspelled "watching" but it was too late to correct. English is her third language!

Tags: artist profile, art inspiration, art journey, love of art, figure drawing, art education, Happy Valentine's Day, art career

Valentine Card Design and Directions

[See Friday's post, Valentine Card Inspired by I Heart Stationery, for the supply list.]

I think of you ...
and then my heart with pleasure fills
and dances with the daffodils.

Wm. Wordsworth

Score 8 1/2 x 11 sheet of cardstock to make a half fold card.

Cut out images to be glued to the card front. Pointed manicure scissors are very good for cutting into tight spaces.

Glue the pieces in place. Since I used an adhesive machine (Xyron Creatopia), I was able to leave the very fine cutting for later. The adhesive backing paper gives more stability and is easy to peel away once the cuts are made.

Here's where the semi-calligraphy comes in. I can't do fine lettering; plus this saves time.

Design text in Photoshop of Photoshop Elements. Print in reverse onto sheet of acetate. Wipe away any excess ink with a tissue.

Lay the printed acetate sheet ink side down on the card front. Rub over the text with wooden craft stick or similar implement. Lift a corner carefully to make sure you transferred all the inked text. Remove the acetate.

If you're using a bolder thicker font, you may like the stamped look just as it is. Since my fonts are so thin, I used an extra fine black Pitt pen to trace over the text.

Maybe if I do this often enough, I can actually improve my yucky handwriting ;-)

Finally I used a gold metallic gel pen to doodle around the heart and some of the petals and leaves to give the card a bit of sparkle and tie the design together.

Here are Directions for Making a Custom Envelope, whether using the crafter's Companion Ultimate or doing it the old fashioned way.

After scoring but before gluing the envelope together, adding a liner to match the card is a nice touch. I used scraps from the same sheet of scrapbook paper from which I took the cut images.

Tags: review of I Heart Stationery, paper craft artists, Charlotte Rivers book, craft inspiration, paper craft techiniques, Valentine card directions, craft book, paper crafts

Artsy Bloggers Roundup #207

Here we are again with some choice blog posts from the Artsy Bloggers!

Mouse over a thumbnail image to read about the post. Click on the image or caption to go read it.

Learn about the thumbnail tool used above.
Tags: art blogs, craft blogs, craft ideas, the crafting life, craft techniques, craft tutorials, mixed media, holiday crafts, craft books

[Image Credit: iStock/thumb]