#2 WHAT PRICE GLORY?

It's the million dollar question--how much should you charge for your work? You need to answer three basic questions:

• LABOR: How much time does it take to make one item?
• COST: How much does it cost to make one item?
• MARKET VALUE: How much will people pay for the item?

  Time is money. You must know the cost and extent of your labor if you're going to make a profit. Time yourself when you create your next work. Keep a log of your hours, especially if you can only work now and then. And keep totals for each kind of project you make. If you make only one-of-a-kind placemats or one-of-a-kind jackets, you should know the amount of time it takes to make each item. Even if you make only chairs in one size, the time you spend stenciling different designs may vary. Even if you only make quilts in one size, variations in patterns or fabrics may effect your work time.

  In order to appeal to a wide range of shoppers, you should develop a range of products with a range of prices. People who balk at your $300 sweaters may grab up your $75 scarves or your $35 hats. And consider the time you spend versus the profit you make. If you make little angel dolls that sell for $15, see how long it takes you to make a larger or more elaborate one that you can sell for $50. It may be worth your time.

  Cost is more than just the price of fabric paint. Determine what percentage of indirect costs, or overhead, you use to do your work. Include utilities, phone and rent, and don't forget postage for promotions or cards advertising your next show. Keep accurate records of all expenses related to your craft, whether with a ledger book or a computer software program such as Quicken. Keeping accurate and precise expense records will be your saving grace at tax time.

  Work through the following formula to see how labor, costs and profit are used to get a basic price. Then we'll tackle the final and toughest stage of pricing--determining market value.

  Fill in each component below to determine your minimum price:

  Labor + Costs + Profit = Minimum Price

  Eventually you will also need to figure in show fees, travel expenses and other such costs into your formula, but for now let's keep it simple. For example: You make polymer clay beads, and then from those beads you make necklaces. It takes you 2 hours to make, bake and string the beads. You'd like to make $10 an hour. Each necklace costs you $2.00 for the clay, cord and clasp. You make a guestimate that you use $5 worth of utilities for each item because you work at the kitchen table using a single overhead lamp and only use the oven for a few minutes at a low temperature. In the future, you may want to talk to an accountant for a finer estimate of overhead costs to work into your expenses.

  Now your formula looks like this:
  $20 (2 hrs x $10)
  + $5 (materials and overhead)
  +$10 (your intended profit per necklace)
  =$35 (minimum price to charge per necklace)

  Surprised at your production costs? Consider these cost-cutting tips:

  • Re-evaluate your process. Find technical shortcuts.
  • Pay someone else $6 an hour instead of doing yourself for $10 an hour.
  • Find a cheaper source for raw materials. Locate wholesalers. Buy in bulk.
  • Set up an assembly line to increase your efficiency. Make three items at once instead of just one at a time.
  • Invest in better equipment to help save time or ease production.

  Keep in mind that the formula price you tally is your wholesale price. When you sell to galleries or shops, they will "keystone" your $35 price, which simply means they will sell your work at double what you've charged them. This 100 percent mark-up ensures they make a profit too. Their new price of $70 will be the retail price.

  Your prices at most shows or fairs should always be at the "keystoned" retail price. While it may not seem fair to have to sell at that price when you could charge less and still make a profit, you should never undersell your retailers.

  Part of pricing is perceived value, or what people think your efforts are worth. To get an idea what people will pay for your work, go to local craft fairs or galleries and find work similar to yours in style and materials. What do they cost, and are they selling? Do people whisper that their purchase was a steal, or do they put down an item they admired and leave the booth as soon as they learn the price?

  Now for the final question. Will people pay $70 for your necklaces? If not, why not? Consider these ways to make your work have a higher perceived value:

  Make one-of-a-kind items. Uniqueness adds value.
  • Cash in on a trend or niche market.
  • Use a material with a higher perceived value. But be careful here--this may add to your cost, if not your labor or overhead. Yes, sewing a silk jacket takes the same time as sewing a wool jacket, and you'll be able to charge more for silk. But remember, the fabric may cost you more.

  Perceived value is wholly subjective but a fact of life. Different materials and styles are considered more valuable or in greater demand for many reasons, especially if they represent popular trends and fads in home d�cor and fashion. Pay attention to trends and you may be able to hitch a profitable ride. But be careful about putting too much of your line into a fad. While trends are usually enduring, a fad is a gimmick, and often short-lived. Pet rocks, hula hoops, Cabbage Patch Kids--they were all just fads. A trend is more a long-term phenomenon.

  In the end it will be your careful management of time and expenses, your artistic skills and your sense of the market that will determine the value of your work.

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  #3 PICK THE RIGHT SHOW

  Ready for a show? You know you�re ready to do a craft show when:

  • You have a sizeable body of work.
  • You have a consistent style.
  • You know your market and find your work in demand.
  • You have a range of price points.

  A little research will help you find the right first show, one that is close to home, has reasonable costs and fees, and is run by experienced, media-savvy show promoters who will make the show a pleasure and a success.

  Finding Shows.
  There are many trade-based source guides that list shows and fairs, both in print and on-line. Most are basically lists of shows, each broken down into itemizations of all aspects of the show from booth fees to show attendance in previous years. In this column we'll examine some of the vital aspects you need to know about any show you consider entering.

  The cost of these show source guides is a business deduction, and if you want to sell your crafts you should subscribe to at least one. The details listed in source guides are vast and varied, and include juried and non-juried shows, wholesale and retail, national and regional.

  Where To Find Source Guides.
  You need look no further than the Internet for a gold mine of show sources. Choose a good search engine like ixquick.com or goto.com and key in "craft+shows+your city". Top sources include Sunshine Artist (www.sunshineartist.com), Festival Network Online (www.festivalnet.com) and The Crafts report. (www.craftsreport.com). Craft magazines also have ads about shows and fairs. Local Chambers of Commerce and Arts Councils have information.

  Types of Shows
  For now we'll put aside wholesale or trade shows and focus on selling directly to the public. Here's are several of the most common types of retail craft shows.

  • Private craft fairs at schools, churches, synagogues and civic places. LI> Regional festivals and seasonal fairs : Octoberfests, Spring Flings, Holiday Bazaars etc. LI> Theme shows : Wine Festivals, Horticultural Shows, Home Shows, Renaissance Fairs, boat, pet or other specialty shows. LI> Juried art and craft shows: a show where a panel of experts selects what they consider to be the best from a range of applicants, who submit slides of their work for consideration. Higher price points and production pieces, often open to the trade, or wholesale market as well as having public days. LI> Mall shows: usually produced by individual shopping mall management. LI> Flea markets LI> Home shows: Host an open house for friends, family and everyone you can think of to come and buy your work. (More on doing a home show in another column.)

  What to Look for in a Source Guide
  Researching a potential market for your work sounds overwhelming, but show source guides have almost all the answers. Look carefully for answers to the following issues before you jam the van with your bubble-wrapped creations and head over to the nearest Arts Festival to set up camp.

  Choose a show close to home. Avoid travel costs, hotel bills and eating expenses until you're sure the show is right for you. If possible go to a show before you enter it yourself. Talk to the artists. Ask why they do or do not like the show. Show source guides will tell you lots of things, but nothing beats seeing firsthand what a show is like.

  Learn the basics about the show.

  • Indoor or outdoor show. This impacts everything from whether you need a canopy to the type of lighting you might need.
  • New show or with an established history. Find out if the promoters are experienced and have run other shows.
  • Previous year�s attendance. Look for realistic but high numbers. Remember the number is spread over the entire show duration.
  • Number of exhibitors. Large shows can bring large crowds, but may also present major competition.
  • Variety of crafts for sale. You need to know how many artists do what you do. Some source guides will even compare what different crafters earned according to their genre.

  Determine all your costs. When you study a source guide, look for the following expenses you may incur:

  • Entry or application fees. Expect to pay any where from a non-refundable $10 to $40 just to apply. Don�t forget to add in postage for the return of the applications and slides, if required.
  • Booth fees. Booth fees buy you the usual space of 8�x10�, with corners or doubles spaces costing extra, of course. You�ll find shows can cost anywhere from ten bucks for a table space, right up past a thousand dollars. Most well known shows with a track record range between $200 and $500 for a space, but there are many shows which charge far less.
  • Display. Learn whether your show considerations allow a simple table or require an entire booth with three walls. If you don�t have a display, add in rental charges for your needs. Outdoor shows require a canopy or umbrella and often walls for wind resistance. Additional amenities can add up, such as carpeting or fresh flowers.
  • Lighting. A crucial issue indoors or out, you should count on needing more than daylight, so figure in lights and lighting with your display expenses. Find out if electricity is provided, and how much it costs.
  • Travel. Estimate tolls, gas, and hotel and meals if necessary. You need to figure in a meal or two even when doing a show close to home, whether or not you pack a cooler or eat out.

  Learn about show security. If there isn't night security, be prepared to pack everything up at the end of the day and set up everything all over again the following day. Learn if there�s a locked room for storage overnight, and if insurance�yours or theirs�covers any losses from theft to fire.

  Determine display requirements. Learn if you can use a simple table display or if you need walls on three sides. Determine much actual floor space you�ll be allowed. Most spaces are only 8 feet by ten feet. Prime corner spaces are often available on a first-pay-first-serve basis or by lottery, always at extra cost, as are double spaces. Rules for displays are in your favor. If a show does not have booth requirements, you could be setting up next to someone with a bare folding table and packing materials lying about.

  Check out admission price to the public. Shows that are free tend to attract more strollers and day-trippers than shoppers, but large crowds can mean better revenue.

  Consider other fair offerings such as live entertainment and food. Though these types of fairs attract more families out for a day in the park than serious shoppers, other attractions will bring in terrific crowds. Just be vigilant with food and small children in your display area. Mount a clearly visible sign to caution parents they will become the proud owners of anything their children break.

  Be sure your type of craft is acceptable. Does the show refuse crafts made from kits? Is your work far more or less expensive than most? Will there be loads of other artists working in your genre? Will you be the only one?

  Learn about the show promoters, Get the inside story on the folks who organize and run the show. Contact a few artists who did shows with them. Did the promoters do their jobs, placing plenty of media ads and radio spots? Were they available during set-up and show hours for any problems? Ask former exhibitors why they like the show. Ask them to recommend other shows.

  Review the application process. Contact the show you'd like to enter and obtain their application form. Note their deadlines and fees. Expect to pay an application fee, which can run from a mere ten bucks to forty dollars for some of the juried shows--and that's a done deal even if you are rejected from a show. High-end juried shows charge hundreds or even thousands of dollars as a "booth fee", but most smaller shows are very affordable. This is a major cost to consider when selecting the right show for you.

  Make friends with a professional photographer. Slides are the most important investment you can make in your business because most shows require them as part of the application process. Unless you are a really, really good photographer with the right equipment, DON'T TAKE YOUR OWN SLIDES!! Have a professional take slides of at least five of your very best pieces, with different views of one or two top works. Don't worry if a show wants a booth shot and this is your first show. Send a sketch or description.

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  #4 DESIGN A DAZZLING DISPLAY

  The way you display your work is every bit as important as your work itself. if you crowd your pieces onto an old table and post a sign scribbled in marker, dont be surprised if your sales are miserable even if your work is terrific.

  To get started let's focus on a simple table. There are basics that anyone can follow and create a nice attractive display.

  Table displays
  Folding tables are perfect. Use a long one for your work and keep a smaller one behind the display for your business processes. Cover any tables to the floor.

  A covering is functional. Allow it to drape to the floor on any side which face the public. Taping it to the floor or weighing it down provides security so you can store things underneath the table. Allow yourself access on the side facing you. Store packing boxes and other supplies out of sight, keeping your limited floor space clear and tidy.

  A covering is decorative. Choose wisely, considering your art. Use tablecloths or bedspreads from home that compliment your work. Andrea Hallmark of Merion Station, PA makes lovely, floral-print pillows that feature old lace and antique pieces of embroidery. She uses damask bedspreads and an old bedspread from her house whose rich colors and patterns reflect the charms of her work.

  IMPORTANT NOTE: Fire-proof all your booth fabrics and display fixtures. Hardware stores often sell spray-on chemicals around Christmas time for people to use on their trees and decorations. Fire-Nix is widely used, and is available in convenient spray bottles as well as economy-sized jugs for dipping large fabric such as backdrop or space divider curtains. Artwork does NOT need to be fireproofed.

  Background
  You never know what your space will look like. Luck may provide a wonderful clean wall to set up against, but chances are unlikely. And even a blank wall may detract from your work. Here are a couple simple ideas:

  Folding Screens
  Purchased home-decor screens provide an inexpensive background that can be customized by changing tor altering the panels and frames. They also offer a place to clip on lighting, drape decorative swags or even display your work.

  Large, strong pieces of corrugated cardboard can be decorated, latched together like a folding screen and propped up behind you for a crafty backdrop.

  But be warned. Screens topple easily unless precautions are taken. Kate Greenhalgh of "Leave it To Weaver", Yarmouthport, MA uses screens to display her jewel-toned, painted silk scarves and accessories, but had hers custom-made with special bases to prevent them from tipping over easily.

  Hang-ups
  Neatly tape up a mural behind your table, after checking with the show promoters for permission.

  Run a clothesline between two stable uprights and drape or pin up an appropriate piece of fabric. If the uprights can bear any weight, you can use the line to display your work. This is the perfect place for your sign, too!

  Walled in
  While walls are not necessary for smaller local shows, many shows require them, and they must be at least 6 feet high. If you or someone you know is handy with a hammer, you can create your own portable 3-walled room. Try using sheets of garden lattice-work that hinges together with simple velcro strapping so it stands by itself. The plastic lattice sheets work too, and weighs far less than wood. Both can be painted or covered, and can be used to display lightweight unbreakables like baskets or fabric work. You may consider hanging something on the outside of these panels to create a more private space for yourself.

  Take Your Display to the Next Level
  Don't make your customer look down at everything. Raise your work up on pedestals, commercial displays or objects from your home that reflect your style. Drape fabric over stacked milk crates, but keep an open side facing you to use for storage. Almost anything can be stacked and draped to bring your work up to the customers' eye level. Group your work in complimentary clusters.

  LIGHTING
  Maybe the most crucial of all display issues, lighting can be a challenge. Painted silk needs different lighting than glass, jewelry needs different fixtures than furniture. Some things to keep in mind:

  • Clip-on lamps are inexpensive and can be moved around as your display changes.
  • Stock up on extension cords and a multi-outlet power bar.
  • Consider bringing in real floor lamps or table lamps from home if their style suits the style of your work, but only if they give off enough light. Picture frames grouped under a table lamp makes a great display because it evokes the buyer�s sense of home decorating. Jewelry needs more intimate lighting.
  • Gooseneck lamps are usually a good size to be able to re-position in smaller display areas.

  Overhead lighting provided indoors may not be adequate, so be prepared. You can create your own overhead lighting with a framework-type booth by spacing clamp--on lamps around the perimeter, You can also affix horizontal supports across the top of your walls and using clamp-on lights. Tape all exposed cords against the bars or spiral them around so they don't hang down.

  There are many companies that sell components to create an enclosed space, but these can be expensive. Abstracta (see list of companies below) sells modular tubes in chrome and black of varying lengths that connect with unlimited design possibilities. If your neighbor behind you at a show has a booth with walls, perhaps they'll let you hang your own fabric from their framework.

  MD Enterprises (propanels.com) Versatile modular free-standing panel system, canopies and accessories. Strong, light-weight. Van Raalte & Co. (driveonline.com/EZUP/) "The #1 Best selling Instant Shelter� in the World. Canopies and tents that set-up in seconds. Abstracta Structures (www.consortcorp.com/abstracta.htm) Modular system with infinite designpotential. Dealers Supply (www.dlrsupply.com/tables.htm#folding table) Huge supplier of all types of show supplies. Worth checking out.

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  See Leslie's handwoven fetish dolls

  See Leslie's beadwork