Making Spreadsheets is So Fun!

OK, not really. At all. But it is eye-opening and useful. Shall I tell you about it?

Why yes, I shall. While I feel like I got way behind in preparing for holiday orders and fairs this summer (yes, that kind of work starts in the summer), I was able to do several shop-related non-sewing projects that are normal business tasks but that I had not yet done in my, shall we say, organic business development. Etsy is fantastic at enabling people with not a lot of business expertise to open a shop. But if you want to actually turn a profit you do have to buckle down and do some nitty gritties eventually.

So I did two things this summer along those lines. First, I developed a file of spreadsheets which help me to better calculate my shop's prices for profit. Second, I actually did a sales matrix, listing the fabrics I've used on one axis and the products that have sold on the other. Both these tasks were time consuming, not exactly fun while I was doing them, but quite helpful afterward.

I read a huge number of blog posts, Etsy administration newsletters, and various websites to prepare for the pricing spreadsheets. I also had a very helpful conversation with an artist friend who used to be a buyer for a boutique in our town. Different people recommend different formulae for calculating the end price, most of which led to crazy outrageous prices for my very labor-intensive products. I came up with my own sensible numbers instead.

I tackled this issue in a pretty data-driven way. First off, I went and measured how much fabric and velcro and elastic and bias tape and even thread (OK, that one I estimated) go into each type of item I make. Yes, I measured with a tape measure. I made a sheet for each item and put in some calculations that I could cut and paste for each type of item. Every time an item uses X amount of mill fabric, that's X dollars worth. That was all very straightforward, though it was quite time consuming to go through all the measuring. I had to look up how much I pay for everything as well, from machine needles to interfacing to zipper pulls to fees that Etsy charges.

The other major element of pricing is labor. I started timing myself when I made things. Yes indeed I did. In my labor costs I included photography, product promotion, and product design as well as the time I spend actually constructing items. The end result of the pricing spreadsheets are product prices that are both fair and reasonable. I implemented them early in the summer. The new prices allow for some business growth, such as the purchase of a new sewing machine, as well as an occasional sale, promotion, or giveaway. They also accurately reflect the care I put into each item.

The other terrifically fun project (no, not really, not at all) was the sales-by-fabric matrix. While my shop is too small and carries too many one-of-a-kind items to benefit from a traditional inventory analysis, I looked through all my sales and figured out, through my matrix, how many of each type of item I've offered, how many have sold, and which fabrics have been most popular. The unexpected big sellers? While I was certain that aprons would top the list, I didn't realize that pencil rolls and capes were so successful. So on my to-do list very soon is to make more capes. But it was the top selling fabric that really surprised me. It turns out that my most popular fabric is the crazy purple and white one from Unison. Who knew? The next day I went to the mill and bought four more yards, because they still had some. Knowing that that pattern, and the three or four others that topped the list (all Hadley and Sister Parish prints), are so successful is helpful when deciding what to use next for whatever I'm making. For instance, I'm in the middle of sewing new snack bags with that purple fabric.

Here's that crazy Unison purple on a smock. 

Now my question is, should I make a cape in this fabric? I've held off in the past because it doesn't seem to me that it would work so well as a cape, but I'd love to hear any of your thoughts.

To be honest, making that matrix was so dreadful I don't think I will be keeping up with it. I might perhaps add to it every year or something, but having to record daily what I've posted in the shop and what has sold is way, way too time consuming. Since I am also the accountant, photographer, copy writer and copy editor, designer, marketing manager, shipping manager, customer service rep, purchaser, and oh, sewer, some tasks are just going to be left undone. 

It's Official! I am an Artist!

I got the great news the other day that I am now officially an artist, according to the state of Rhode Island. Woo hoo! This year RI started exempting sales tax from galleries and artists across the state, which means that once you're certified, your items can be sold tax-free. It also means that the gain on the sale of artistic works (to use the Department of Revenue's wording) is also tax free--in other words, I don't have to claim any profits on my income tax. Right now I am deciding if they gave me the certification based on my winning arguments for why I qualify as an artist or whether it was because they saw that my sales in RI are so low that it didn't matter. 

This artistic works program came into being because the state is attempting to be known as a "State of the Arts," which is a fantastic and, I think, very appropriate goal. Rhode Island is home to one of the foremost art schools in the country, the RI School of Design, and the history of the arts in RI is also quite strong, from jewelry-making in Providence to textile milling in Pawtucket to the dozens of galleries in our oceanside communities. There has been for many years an exemption for artists in particular communities in RI, especially ones that have transitioned from industrial areas to artistic hubs. Now the law covers the entire state. Here is some more background on the decision. 

And here is the scintillating legalese, if you're interested. I have qualified under the "traditional/fine crafts" subheading. I am actually fairly surprised that I qualified as the people I spoke with on the phone at the Department of Revenue were quite discouraging. This is one argument in favor of the "she doesn't provide enough tax income for the state anyway, so let's just give it to her" reason for my qualification. But I don't really care about why they accepted me. I just think it's so neat that they did, since I am a completely self-taught traditional/fine craftsperson and my entire education and previous employment as been, shall we say, unrelated. 

Here is what I wrote on my application:

I consider myself an artist. I work in fabric and thread sewing mostly one-of-a-kind accessories for children, women, and the home. My items include art smocks and colored pencil rolls, handbags and belts, table linens and pillow cases. I use locally hand-screened fabric in my pieces and sell them on Etsy and at arts festivals, making each item one at a time. I personally craft all of these items and do not wish at any point to take on employees or to manufacture on a larger scale. Approximately half of my orders are custom requests and the remaining are either one-of-a-kind or extremely limited editions. The time consuming nature of my work and the limited availability of the fabric I use means I am unable to sew more than three or four of any one type of piece. The artistry and creativity involved in designing and sewing each piece is why I do what I do. My work would be far less valuable if I were simply tossing off dozens of a single product. My customers appreciate the fact that what they purchase from me will be either the only one ever made or one of a very, very few.

Here are some examples of one-of-a-kind items in my shop right now.

women's apron (comes with matching kid one if you want too)

child's nature walk bag or shoulder tote

kids play cape

youth apron