Wednesday, July 16, 2008

Can You Afford NOT to Advertise?

Do you do advertising?

Where, and how often?

Advertising can be a leap of faith. It is often hard to measure the effectiveness of an ad, at least in the short-term. And ads will often need to have repeated exposure to maximize their effect.

I am relying more and more on advertising now that I have focused on wholesale, and have virtually eliminated the retail side of my business. With a disciplined approach, and some effective images, ads can definitely work.

I do most of my advertising through Wholesalecrafts.com. They offer a few options. One is their Buyer's Guide, which is like a catalog of craft artists. It has ads ranging in size from full page to 1/12 of a page. I have run 1/12 , 1/6, 1/3, and soon will be running a full page ad in the Guide. And I have found, size matters, as does repetition. The most recent guide went out a few weeks ago, and I came back from New York with three messages on my machine, and continued to get calls through the week. Not all are placing orders, and the orders placed have been conservative. No surprise there.

But part of what has helped me is that I am sticking with the advertising, in spite of being fully aware of how bad the economy is right now. The last Buyer's Guide was the thinnest I can recall seeing. Especially for that time of year. I had a third of a page ad, and it got noticed. People are asking for information, visiting my page on Wholesalecrafts.com, and placing orders. Three good measures of an ad's effectiveness. With less ads, it is easier to be seen. With pictures that I know work well, it is easier to get a good outcome.

I debated whether I should run another ad in the next issue which will go out in September. I finally decided that I should. People will place orders for the holidays, although they are likely to be smaller and later. And from the sounds of it, fewer artists will be running ads. I was offered the chance to bump up to a full page ad at a terrific price. It was a no-brainer. Yes.

The biggest obstacle to the decision is truly psychological. Am I the type of artist who would run a full page ad? In other words, had I crossed some imaginary line in my head that gave me permission to be so bold? No, but I decided I needed to do it anyway. Act as if. The best part is that I had fewer creative limitations. I could design the ad myself. I love doing that sort of thing, and spent too much time this weekend designing and refining my ad.

In addition to the Buyer's Guide I often run a co-op ad in Niche magazine. Niche goes to galleries across the country who purchase handcrafted work. My target market. I get a better price by doing a co-op ad with Wholesalecrafts.com. And I get exposure to the market that would be most interested in buying my work. It has led to some terrific accounts.

How can I afford it? I guess I have come to see I can't afford not to. If I hold back from advertising, I will disappear into the ether. Visibility matters if you want to sell your work. It is about seeing your work as a product, rather than an extension of yourself, and then doing what it takes to make sure that your market sees your work, and knows about it. I have said this before, and I likely will say it again. Marketing your work is a bit like dating. Sitting at home waiting for Prince Charming to come knocking on the door is about as effective as making your work and waiting to be discovered. Might happen. But, probably not. It takes effort. It takes putting yourself out there for others to see. Simply listing your work on Wholesalecrafts.com, Etsy, or Trunkt is not enough.

Sellers on Etsy rely on the Showcase, and Treasuries to be seen. Flickr users will often join many groups where they can post their pictures to increase their exposure. I have come to look at the expense of advertising as the equivalent to the booth fee at a retail show, with less wear and tear on my body and my work. It takes time to build an audience for your work, but given enough patience and time, and yes, money, it is possible.

What do you do to have your work seen?

Friday, June 27, 2008

Origami Convention in New York

Origami USA will hold their 50th annual convention in New York City this weekend, at the Fashion Institute of Technology. On Saturday and Sunday, there will be an exhibit of origami works open to the public. I will have several items in the exhibit. Sadly, I did not take pictures before shipping them off to New York, but, there are several items made from polymer clay, a crane made from felt, held together by needle felting, and a wire mesh flower. If you are in the area, and have the time, pop on over to the exhibit for a look. You will be amazed at what people are folding these days.

I will be in the vendor area on Saturday and Sunday with cranes, happicoats and cicadas. I will also be doing a demonstration of folding polymer clay on Monday morning.

If you come by, be sure to say hello!

Tuesday, June 24, 2008

Digging a Hole with a Teaspoon

You have heard the expression of a death by a thousand cuts. This idea is similar. Digging a hole with a teaspoon is slow and you don't really see the progress you are making until suddenly you look up one day and wonder, "How did I get here?"

This is a lesson in not doing as I have done. Heed the warnings.

The problem is, you may, like me, not see how bad it is until the hole is much deeper than you intended. I am talking about pricing. Specifically underpricing. The biggest part of the trap for me, was the idea that "people won't pay more than $xx for this." And I let that idea guide my decisions for too long, even while seeing warning signs along the way.

Cranes. Of course. I seem to live and breath cranes. Cranes to sell. Crane to memorialize. And in this case, the intersection of the two was part of what made me wake up. Let me begin by saying I had increased my crane price three times in the last few years. The wholesale price had doubled over that time.

But....and this is a very big but....the product I am selling today is not the same product I was making and selling then. At first the surface design was fairly simple. And they were not sold in any special packaging, But, I added the packaging and informational inserts, and increased the price significantly. Sales took off. I was a happy camper.

Then, I started playing. I started to do more involved canework on the surface of the cranes here and there. And the customers loved it. "Send more of those ones with all the detailed patterns. Everyone loved them!" I would be pleased with the feedback, but also sigh a bit as I realized it would be more work. Soon that was nearly all I was selling. Meanwhile, the price had only gone up by about a dollar, but the labor was about fourfold more. Folding cranes for the Crane Project put into sharp focus for me just how long it was taking me to make these intricately patterned cranes. I saw what I had been trying to ignore.

Initially when I would ship the cranes across country, I could ship to California or Washington state, Priority Mail, for only about $6 or $7. I offered free shipping. I figured I could easily absorb that into the price structure. Last summer though, the Post Office revamped their price structure, and suddenly it was more than double that cost to ship across country. Ouch! This spring, the prices took another big jump. I had added a shipping surcharge to crane orders west of the Mississippi, but it was not going to be enough.

Then, the breakage started. I had shipped for two years with not one crane breaking. Now, changes in clay formulation have presented challenges. I have had to revamp my packaging, adding further costs. Not to mention the credits or re-shipments I had to make each time a broken crane was reported.

Can you feel my pain?

I had no room in my price structure for all of these problems to converge. But converge they did. With six more crane orders still to ship under the old price schedule, I knew I had to take action. It was time to begin to fill in the hole, and the teaspoon was not going to work. It was time to put things back in order quickly.

My prices have nearly doubled for the intricate cranes that everyone wants. If they want to pay the old prices, they will have to purchase the "Elemental cranes". Solid colors, to represent the five "elements", air, water, earth, fire, and metal. In between those prices I have cranes with crackled leaf.

I am now shipping FedEx Ground, at a much better rate. And I seemed to have solved the problem of breakage for now.

The reaction is unclear. But, in the end, I could not continue on the path I had been traveling.

Lessons, summarized:

1. If you add to your product, acknowledge that. It is a different product. Change the price. Rename it if you need to. Not all cranes were created equally, but I was pricing them as if they were. Some of you will be saying, of course. I would never do that. I hope you are right. But sometimes we do things that don't make sense, because they will be "easier".

2. Don't undervalue your labor. I was doing what I hate. I had gotten myself into a place that all I was doing was covering the costs of my materials and overhead, so I could make more cranes. Don't do that. It does not respect you. If you find yourself saying, "people won't pay...." Stop. If half the people will pay the new price, I will have the same dollar business, for half the work. I can definitely live with that. Too many people have also told me stories of raising prices, and losing their "high maintenance" customers. Another potential benefit.

3. Sometimes we need to re-evaluate suppliers. I had gotten comfortable with shipping my work by Priority Mail. I knew the drill. It was convenient. I didn't want to have to research alternatives. But in the end, I have a good service, for a much lower cost. And, my husband has a FedEx center right near where he works. I don't even have to leave home!

4. Things will change. At some point something you depended upon, and thought you knew will change. You will have to figure out a new way of doing things. I tried to avoid dealing with these issues for too long. I wanted them to go away. I did not have time. (Can you hear the two year-old tantrum welling up?) Once I decided on a plan of action, it was actually less stressful than trying to pretend the problem was not there, or that it would go away on it's own accord. It is not easy to own up to it, but I really did not want to have to deal with this. But being in business for yourself, there will be things that you have to do that you do not want to do. Unless you have employees, there is no one to delegate responsibility for these tasks. So buck up, and deal! And remind yourself how much you are happier doing what you are doing now...in spite of these kinds of stresses. And if you are not, then maybe a bigger change is in order......

Thursday, June 12, 2008

Too Busy

Have you missed me?

I have missed the time I had been spending writing here, but lately it seems like that is a luxury for which there is no room. I thought I worked a lot before. Now I have had to cut out lots of little "extras", .... like writing in this blog.

So what have I been up to?

First, cleaning out space. A few weeks back I rented a dumpster. Nothing is more satisfying than clearing out lots of clutter, and ending up with space. Our basement was filled to the gills and beyond. It is gratifying to finally have begun to re-establish order where before it was sheer chaos.

Part of the motivation to do this was I was desperate for space. The Crane Project is taking up more and more room. Both storing the cranes, and work space to string cranes up on cables. My work spaces were becoming unworkable. The change has made a large space available to me in the basement, and now I can safely have them out of danger, and more easily do the work I need to do with them.

I also decided it was time I admit that my dining room had stopped being a dining room several years ago when I started selling lots of cranes. It had become my crane packaging and inventory area, and shipping area. But I never fully admitted that. Even though hosting a meal in the room would have been impossible.

So the hutch was cleared out, the table moved to a wall, and a second table brought into the room. My computer came downstairs, along with all my paperwork. Getting an order out the door has become more efficient. It is still chaotic because I have not had the time to organize my office "stuff", but already, it is feeling much better than what existed before. And my husband has taken over the office space upstairs. He has a place to read, to play his guitars, and do yoga.

I have set a tough schedule for myself to complete cranes for the Crane Project. Sixteen cranes a day. Seven days a week. Right now, I am two days behind schedule, or thirty-two cranes. I hope to make eight more before I go to bed tonight so that the deficit shrinks just a little. But it is gratifying to watch the number climb. I just crossed 800 cranes tonight. It is also stunning to see how many that is. And to realize that is it only a year and two months of a war that is already over five years in length.

The motivation for staying on schedule is because it may put me in position to "catch up" at about the time of the inaugural in January of 2009. I like the idea of that deadline. A karma shift of sorts.

The waxed paper cranes are getting folded here and there. I bring a bag with paper squares with me where ever I go. I have folded over 500, and received nearly 100 from other folders. Last night, about 15 to 20 were folded before and during my daughter's band concert. I even taught my dentist and her assistant how to fold cranes last week. I have a new idea that I will be working on in the coming days to recruit more folders.

I still don't know where this project will be installed. It is one of the first questions I get, and all I can say still is "I don't know." All I can do is trust. I am continuing my search for a place, as well as funding options. Filling out applications, and learning.

I have also been dealing with some difficult choices in my business. I will write more about that soon. All I can say for now was once I made the choice it felt better than it did when I was avoiding the inevitable. Once I crossed the dreaded line, answers and solutions seem to fall into place. I don't know how it will work out, but I do know I feel comfortable with my decision, regardless of the outcome.

For the time being, my posts will probably continue to be sporadic. This post is more scattered than I like, but I guess that is a reflection of my state of mind right now. A bit like a pinball bouncing around. Time to bounce back into my studio, and make a few more cranes....