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Crafts

Craft Market Predictions 2009

by CraftyCoach - Norm Lanier on December 23, 2008

It’s time for me to pull out my crystal ball and take a peek at what lies ahead for the craft market in 2009.

Prediction one - The economy will recover but slowly in 2009
The down economy is going to make it harder on crafters in two ways:

  1. People are going to think a lot harder before they pull their wallets out especially on non-essentials like craft items.
  2. People are going to be looking for extra ways to make money and anybody that’s ever been in a craft store is going to think to themselves “I could make that and sell it.” The crowded craft market is going to get a lot more crowded in 2009

Prediction two - This will be a crucial year for Etsy
2008 was the year that Etsy really gained traction with consumers. Traffic went through the roof so those that were in on Etsy early really prospered but all the attention brought a lot more shops which meant more competition. Etsy filled the gap as crafters abandoned eBay because of competition from foreign mass-produced merchandise. Rapid growth has caused growing pains as Etsy tries to keep up with increasing demands from consumers and shop owners. Etsy found the shoppers now they need to focus their attention on shop owners. Etsy needs to uphold the guides they created which made their site so attractive to crafters to begin with. They need to hold shop owners accountable for breaking the rules. There seems to be little penalty for breaking the rules even when pointed out and as competition increases more shop owners will break the rules to keep afloat. If Etsy can’t deliver on this they will lose increasing numbers of top shop owners.

Prediction three - Artfire will gain substantial traction in 2009
Artfire has only been open for about 3 months but they have grabbed the attention of the crafting community. Artfire is hungry - they want a piece of the pie Etsy stole from eBay. The question in 2009 is will they be able to catch up. Etsy has a good three year head-start and Artfire has the proverbial chicken and egg problem - how can they attract crafters if there is little traffic and how can they attract traffic if there are few crafters. They are listening to what crafters want and are spending heavily on advertising so if they can survive the start-up they will be a serious contender in the craft market.

Prediction four - The CPSIA will have little affect on the hand-made market
I’ve already shared my thoughts on the  CPSIA and I hold true to those beliefs in 2009. One of two things is going to happen in 2009 with regards to the  CPSIA:

  1. The law will be changed and small manufactures like crafters will be exempt.
  2. The law will go into effect but it won’t be enforced on one-man shops. As I stated in my previous article the government has a lot bigger things to do than to bust Aunt Martha for selling onesies at the church craft show.

By the same token Etsy can’t keep up to blatant violations on it’s site so I can’t imagine them investigating whether or not it’s shop owners are in full compliance with this super vague law.

So that’s it, the year will tell whether I’m right or wrong. So what can you do to prepare for 2009:

  1. Provide massive value
    People are going to be more cautious with their money so offer awesome products and take the risk away from buying by offering generous guarantees.
  2. Invest in your education
    Competition is only going to increase in 2009 so you need to have every advantage you can. It’s not just what you sell, it’s also how you sell it. The $9 investment in my Prosper on Etsy Guide might be the best bargain in 2009.
  3. Teach or offer a supply in 2009
    As more people are looking to make some extra money the real winners will be those that sell training, patterns or supplies. During a gold rush the people that make money are the mining supply vendors and not the miners.
  4. Check out Artfire
    Here’s my blatant Artfire affiliate  link which if I get 10 people to sign up gives me free listing privileges there. Here’s their direct link if you don’t want to use my affiliate link. Either way check them out.
  5. Diversify
    All the fuss over the  CPSIA should point out how important it is not to put all your eggs in one basket. Regardless of what type craft products you make, hedge your bet by diversifying.

Here’s to happy and prosperous 2009

Norm Lanier - The Crafty Coach

Post your craft predictions here

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A or B - It’s All About Testing

by CraftyCoach - Norm Lanier on November 4, 2008

I had a conversation with someone on Twitter asking for advice on craft sales. I went to their site and looked at their products. I thought the site was very nice and the products looked nice but I thought the colors were unattractive. Now please don’t misunderstand, this was just my opinion and I don’t claim to know their niche. I wrote back to this crafter and I asked him if he had ever done a test where he made to versions of the same product but in different colors to see which sold best. He responded by telling me how much his customers loved the colors and that they were all natural, etc… So I wrote back and said “But haven’t you ever been undecided on which color to go with and that if he did a test your customers would tell you which they preferred. To this he responded that he didn’t understand my question because his product had been in several magazines and he really wasn’t expecting this type of advice in response.

Are you getting tired yet, there’s more?

So I wrote back that he was missing my point all I was saying is that he should test. I said try it once, if I’m wrong they will both sell the same, if I’m right his customers would tell you what they like best. I didn’t get any other responses.

So this conversation brings up two points:

1. Don’t you think it’s really arrogant to assume you always know exactly what your customers want? That even if it improved your bottom-line you wouldn’t do a simple test because you know best. Seriously do you think Proctor and Gamble comes up with one package design, ships millions of items daily and doesn’t do A/B testing to see if a variation would sell better. It’s a never-ending cycle I can assure you.

2. If your not open minded enough to consider a response to your question ……. don’t ask, it’s a waste of everybody’s time.

That being said, the back and forth banter had a silver lining because it inspired me to write this article. I hope it will inspire you to do some simple testing of your own. Remember you can test all kinds of variables, price, size, fragrances, etc. Use your imagination, test and reap the benefits both financially and with happier customers. Isn’t that’s what it’s all about?

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Are You Closing A Sale or Opening a Relationship?

by CraftyCoach - Norm Lanier on October 27, 2008

When you make a sale is it the beginning or the end of sales process? If you aren’t developing relationships with your customers by continuing the conversation after the sale then you are missing a huge opportunity. One of the common questions I get is how can I get more sales. To this I often respond “Do you send updates to your previous customers?” The response sadly is usually “No”. So let me ask a question, do you think it’s easier to sell to new customers whom have never heard of you or to sell to someone that owns a piece of your work and already knows the quality you produce?

Now what I’m talking about is not spamming people but asking each of your customers “would you like to hear about my new work”. Only when they have requested that they want to get updates from you should they be put on a list. Also they should be able to remove themselves from the list easily.

People like doing business with people they like so make the conversation fun. Talk about your work, your family, what makes you tick. If you’re a faceless website with no personality then why would they buy from you instead of from some big-box store? If you really want to blow your customers away, call them about a week after they’ve received their purchase and asked them how they like it. When was the last time that happened to you? What would you think about the crafts person that did that?

In this day and age of isolation people are starving for interaction with real people. Let the conversation begin with the sale, not end.

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