How can Artisans and Handmade Businesses Grow Fast?
Each one of us has been taught how to make handmade things during our childhood days. From making a greeting card to decorating home on festive days, everybody loves to play around with items that are created with hands. Indeed, there is something attractive about products manufactured solely by hands. They involve love and care from the creator’s side and adoration from the buyer’s.
However, when we reach out to artisans and handmade small businesses, we look out for the best product at the most affordable prices—ever wondered how these businesses work?
But what if you are the artisan? What should you do to increase your business? What should the artisans do to make their living at a faster pace? How should they excel in selling their products in the ever-growing market?
When handmade products are revered, how should the artisans overcome the challenges to expand the market?
Well, don’t worry, we can answer all these questions for you. We have come here with a list of things artisans and handmade businesses should keep in mind to maintain a firm hold over their market and grow at a steady pace.
Develop a Fast-Growing HandMade Business
Measuring the Actual Costs (COGS - the Cost of Goods Sold) Accurately
It’s just like you prepare a dish and calculate the amount of each and everything that goes into its preparation. When a product has manufactured, the COGS gives you the cost of everything that has gone into its production. From raw material to labor charges, everything is added to calculate COGS accurately. Always maintain bills of the materials used.
When you create something on your own, i.e., the handmade products you produce, do not forget to add the time and labor to build it. Many small-scale handicraft businesses neglect this crucial point and face difficulty when they have to produce bulk orders. Adding the number of hours or labor charges that your product needs is a must. Another point- COGS does not include indirect costs such as overhead and sales & marketing.
Price the Products Correctly
This is not just an essential aspect of the online handicraft business, but it is the only thing you need to pay the most attention to! Price your product wisely, not like putting a price on your most precious ornament. We understand that you see your product as the perfect article, the most valuable thing on the planet but put a reasonable price on it.
Do you ask how to price the handicraft? Well, look at the prices offered on similar products as you make. For example, if you make handmade rugs, be it beaded, jute, wool, or made of any other material, the price should fall in these ranges.
Choose an online retailer that is similar to yours. Take the retail list price of a product similar to your product and divide it by 5. Repeat. After you’ve done this a dozen or so times, you should have a target Free On Board (FOB) price point range.
Use Modern Inventory Management Methods and Tools
Inventory management is a step in the supply chain where inventory and stock quantities are tracked in and out of your warehouse. You can adopt plenty of tools and methods for the better functioning of your small-scale handicraft business. One of which is called ABC Analysis. In this method, your items are divided into three categories that heavily influence overall inventory cost.
Even if you operate at a small level right now, but you will reach great heights if you maintain inventory management since the start.
Plan the Production Right
We all have dined at a restaurant, right? Do you think they produce all the gravies and sauces freshly when you order them? If you think so, then you need to reconsider things. The truth is, most food chains prepare a batch of items beforehand to ease the serving process.
Similarly, we understand that your business requires time and skill. You might have the skill to produce it, but you still need your friend- TIME, to produce things in time. So, you batch produce things for future orders. However, to do so, you should know what would be needed the most, which product could attract the attention of your potential buyers the most.
You can do that easily by seeing which products are most favoured on your sites, the ones on the wishlist or the carts of the buyers should be looked at for smooth functioning of your handicraft e-commerce.
Gain insights from customers and incorporate them into your business.
As it is said, the customer is the king in the business. The service provider must satisfy the needs of the customer. Here, it is you who is providing a product/service. Customers become the best critics of your products. If they find anything missing or want you to add something more to the product, think of ways how to add them to your item. After all, needs beget innovation and hence the customer who is using the product would be the best to tell you what more he/she expects from the product.
Hence, take the feedback seriously. Reviews and feedback can help you grow faster in the online business. Improve the service wherever needed, regularly update the product, and try to satisfy your King’s needs as much as possible!
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Online handicraft businesses can grow rapidly if appropriately maintained. You can build a colossal handicraft business and sell your art online at the desired price if you thoroughly evaluate every step of the business. The process could be tedious and might consume a bit of your valuable time, but if you work on these steps diligently, there will be no going back. You could be able to deliver the best quality handicraft products in the market and make amazing profits out of your hard work.
Stay focussed, and you will surely reach the desired heights!