What's Going On - Why Aren't I Selling?

by Diva Chick
(Georgia)

I'm having a hard time getting away from clients who are cheap and want top items for a giveaway price.

I'm tired of them wanting me to give my jewelry to them (which I never have of course - they just don't get the item if they are not willing to pay the asking price).

They see me wear a nice piece I've made for myself, but when I tell them the cost they freeze up and become nonhearing and nonspeaking or something.

I need to get my business license. And am afraid to get a Tax ID for fear I'll get penalized for any sales - even sales that are under $500 per year so I don't try to push my jewelry or get my style of items out there.

Diva Chick

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What's Going On - Why Aren't I Selling?

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A few thoughts for you
by: Rena

Hi Diva Chick,

First of all, freebie-seekers and bargain-hunters rarely turn into good handmade jewelry customers.

So although folks admiring your jewelry and expecting free samples and rock bottom prices may be the ones who are seeing your jewelry, they won't be the ones buying it.

Simply thank these vultures politely for their compliments on your jewelry, and move on.

To deal with this situation gracefully, see Chelsea Clarey's excellent article, Handling Requests for Free Jewelry.

You also mentioned your hesitancy to really get your jewelry business started for fear of having to pay taxes.

However, you probably won't make those sales until you do get out there and get your jewelry in front of the people who are most likely to actually buy it.

And once you're making sales to customers who aren't freebie / bargain seekers, you pricing will include enough extra to cover any taxes you owe.

For ideas on what to do to get your jewelry sales going, see:

Why Isn't MY Jewelry Selling?

Increasing Sales for Your Jewelry Business.

And if you haven't actually gotten your jewelry business officially started, please see:

How to Start a Jewelry Business.

I wish you every success, Diva Chick! Please keep us posted on your progress. :o)

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Submitted by: Rena

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Hi Diva Chick, First of all, freebie-seekers and bargain-hunters rarely turn into good handmade jewelry customers. So although folks admiring your jewelry and expecting free samples and rock bottom prices may be the ones who are seeing your jewelry, they won't be the ones buying it. Simply thank these vultures politely for their compliments on your jewelry, and move on. To deal with this situation gracefully, see Chelsea Clarey's excellent article, <a href="http://www.home-jewelry-business-success-tips.com/free-jewelry.html">Handling Requests for Free Jewelry</a>. You also mentioned your hesitancy to really get your jewelry business started for fear of having to pay taxes. However, you probably <strong>won't</strong> make those sales until you do get out there and get your jewelry in front of the people who are most likely to actually buy it. And once you're making sales to customers who <strong>aren't</strong> freebie / bargain seekers, you pricing will include enough extra to cover any taxes you owe. For ideas on what to do to get your jewelry sales going, see: <a href="http://www.home-jewelry-business-success-tips.com/why-isnt-my-jewelry-selling.html" target="_blank">Why Isn't MY Jewelry Selling?</a> <a href="http://www.home-jewelry-business-success-tips.com/increasing-sales.html" target="_blank">Increasing Sales for Your Jewelry Business</a>. And if you haven't actually gotten your jewelry business officially started, please see: <a href="http://www.home-jewelry-business-success-tips.com/start-a-jewelry-business.html" target="_blank">How to Start a Jewelry Business</a>. I wish you every success, Diva Chick! Please keep us posted on your progress. :o)

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Lemonade
by: Rita Juhlin

You might try something that worked for a friend of mine who created some really great jewelry.

Tired of having friends asking for freebies this gal challenged the friends. She simply said if you sell 5 pieces of jewelry I will give you 1 piece of jewelry. It worked!! Sales boomed and everyone was happy.

options to consider
by: nupur

hi! its quite challenging to have caviar dreams on a walmart budget but most people think that because it is made by someone they know, and they are maing this in their free time, they dont attach much value to the pieces.

how about doing a smaler item like a cell phone charm or pendant only with similar beads, so it will still have 'the flavor of the original' without the price tag, or
what you can offer is a free beading demo, provided they buy the beading kit from you, that way you can charge them for the materials and make a profit while they will be putting in their own labor, or better still have a beading party where everyone brings their fave beads and you auction the creations for charity.

by the way, i love the idea of giving it as an incentive to selling 5 pieces as suggested by another reader, way cool!
wishing you lots of luck in your venture.

nupur arora
www.mymantraforbeauty.com
what is 'your' mantra?

Just added to my above comment ...
by: Rena

... this excellent article by Chelsea Clarey:

Handling Requests for Free Jewelry.

Also, great ideas, Rita and Nupur!

A Business License-Crucial to Success
by: Patti Leftwich, Patricia Leftwich Jewelry Design

Getting a business license will lend credibility to you as an artist, increase customer's confidence in you, and will allow you to participate in art/craft festivals,etc. And, there's the legal aspect too-you might run into trouble selling without a license.
Most shows require vendors to provide proof of their business licensure/Tax ID, so with that license in hand you can apply for any show/venue that suits you and that will open up all kinds of selling opportunities. A business license and tax ID will also allow you to purchase jewlery-making materials wholesale, a HUGE advantage. Check with your accountant on the tax implications and ask her for help or suggestions regarding setting up your business books or finding local assistance which can be free or very low cost to new small business owners. Being licensed will also open up opportunities to accept credit card sales and that is a BIG DEAL! Half of my sales are by credit/debit. I use Propay (owned by Wells Fargo)for my credit card processing. It is an easy, safe system. See their website for more info. It's not all that difficult to get set up as a legitimate business and you will be really proud of yourself when you get those business cards printed up with your new business name! (I use Vista Print online for my cards, business banners and other business-related goodies)
YOU CAN DO IT !!!

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Submitted by: Patti Leftwich, Patricia Leftwich Jewelry Design

Title

Comment
Getting a business license will lend credibility to you as an artist, increase customer's confidence in you, and will allow you to participate in art/craft festivals,etc. And, there's the legal aspect too-you might run into trouble selling without a license. Most shows require vendors to provide proof of their business licensure/Tax ID, so with that license in hand you can apply for any show/venue that suits you and that will open up all kinds of selling opportunities. A business license and tax ID will also allow you to purchase jewlery-making materials wholesale, a HUGE advantage. Check with your accountant on the tax implications and ask her for help or suggestions regarding setting up your business books or finding local assistance which can be free or very low cost to new small business owners. Being licensed will also open up opportunities to accept credit card sales and that is a BIG DEAL! Half of my sales are by credit/debit. I use Propay (owned by Wells Fargo)for my credit card processing. It is an easy, safe system. See their website for more info. It's not all that difficult to get set up as a legitimate business and you will be really proud of yourself when you get those business cards printed up with your new business name! (I use Vista Print online for my cards, business banners and other business-related goodies) YOU CAN DO IT !!!

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State laws might be on your side.
by: Delia Stone

Check with your local state tax office. In the state of Florida you can operate as a hobbist and sell your wares at up to 3 shows per year without a license as long as you pay the taxes on your sales. Show promoters are required to report the names and addresses of individuals exhibiting at their shows for tax purposes and the tax office either has someone come out and hand deliver the forms to the vendors or they mail them out to vendors. It's not hard ... you CAN do it. :)

You might also consider checking with local churches and schools to see when they have their small craft events. Note that you are not necessarily going to get a bunch of *big* buyers at these events, but a small buyer turns into a repeat customer and buys frequently can add up to a big buyer at the end of the year. :) I also let buyers know that while I do not have a brick and morter store, they can contact me any time for a buyers appointment. I tell them I will meet them at their home or even at a coffee shop if they are more comfortable with that so they can shop for special occasions or if they would just like to browse my new inventory. I got this great idea from Rena ::wink:: Check out her ebook Secrets of a Handcrafted Jewelry Shopping Service. I have earned the cost of this ebook over and over and over again in sales by following the advice she offers. It IS a worthwhile investment!

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Submitted by: Delia Stone

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Check with your local state tax office. In the state of Florida you can operate as a hobbist and sell your wares at up to 3 shows per year without a license as long as you pay the taxes on your sales. Show promoters are required to report the names and addresses of individuals exhibiting at their shows for tax purposes and the tax office either has someone come out and hand deliver the forms to the vendors or they mail them out to vendors. It's not hard ... you CAN do it. :) You might also consider checking with local churches and schools to see when they have their small craft events. Note that you are not necessarily going to get a bunch of *big* buyers at these events, but a small buyer turns into a repeat customer and buys frequently can add up to a big buyer at the end of the year. :) I also let buyers know that while I do not have a brick and morter store, they can contact me any time for a buyers appointment. I tell them I will meet them at their home or even at a coffee shop if they are more comfortable with that so they can shop for special occasions or if they would just like to browse my new inventory. I got this great idea from Rena ::wink:: Check out her ebook Secrets of a Handcrafted Jewelry Shopping Service. I have earned the cost of this ebook over and over and over again in sales by following the advice she offers. It IS a worthwhile investment!

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Another thought on cheap customers
by: Ann Nolen

I ran a local business with my husband for many years, and an excellent seminar gave me some insight into "cheap" customers. Only 20% of customers are actually very price conscious, and of that only 9% feel that price is the only important consideration (the other 11% will purchase if they understand the value of it). So, a smart business person plans their business on the 80% of customers that buy because they like you, you give them a good product or service, or some other practical reason like that. You only notice the "cheap" ones because it is so irritating to deal with.
That information really helped us to create a successful business that kept the 80% in mind. The rest got our stock phrase "yes, our product isn't for everyone. (Which, by the way, caused some people to change their tune and want to buy. Go figure?)

Ann
Ann@AnimalCoin.com

How to handle customer requests for freebies etc
by: Terri

I had a friend in the jewelry business who used the line, would you work for free or if your boss asked you to take a pay cut, would you do it?

While I am not as direct in my approach, I think this person has a point. We are exchanging our life energy to create our work and we should not have to bargain about it or belittle it by offering excessive discounts or freeies.

Something for Everyone
by: Elsie -La Boite a Bijoux

Hi - I registered myself this year as a business and I haven't looked back as once you are "legal", you can do publicity, participate in fairs, shops are more willing to take your jewelery on consignment and it makes a difference in the "fear factor" when you sell your jewelery. Also once you est. youself as a business, people will take you more seriously and you will treat your business seriously as well.

re: people who don't want to spend on jewelery - we have all been there - I have found that there are 2 types of clients - those who fall in love with your jewelery and want to buy it without even knowing the price and those who are more price conscious. We all of course want the former and thankfully they exist! but I have included products in every price range in my collection to cover all types of sales. The cheaper pieces require less work, but will still reflect your collection - i.e., instead of having necklace with loads of beads I have made a bead into a "pendent" and put it on a chain or ribbon or cable wire and people can purchase something from my stall at a lower price range. My best clients at fairs are often young girls with pocket money and they are happy to buy a pair of handmade earrings for 7�. I also keep a box of stickers or cheap jewelery that I offer as gifts for little children so I satisfy the I'm just looking crowd. More often than not the parent/grandparent will stop and either buy something for the child or for themselves as they got a "freebie" from me without even asking. This doesn't work all the time, but I do it often and I know I haven't lost money on this "gimmick" and have made lots of little children happy.

Good luck and please don't get discouraged- there are paying customers out there - you may need to have a think if where you are selling as that will have an affect on whether you have clients who are browers or buyers.

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Submitted by: Elsie -La Boite a Bijoux

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Hi - I registered myself this year as a business and I haven't looked back as once you are "legal", you can do publicity, participate in fairs, shops are more willing to take your jewelery on consignment and it makes a difference in the "fear factor" when you sell your jewelery. Also once you est. youself as a business, people will take you more seriously and you will treat your business seriously as well. re: people who don't want to spend on jewelery - we have all been there - I have found that there are 2 types of clients - those who fall in love with your jewelery and want to buy it without even knowing the price and those who are more price conscious. We all of course want the former and thankfully they exist! but I have included products in every price range in my collection to cover all types of sales. The cheaper pieces require less work, but will still reflect your collection - i.e., instead of having necklace with loads of beads I have made a bead into a "pendent" and put it on a chain or ribbon or cable wire and people can purchase something from my stall at a lower price range. My best clients at fairs are often young girls with pocket money and they are happy to buy a pair of handmade earrings for 7�. I also keep a box of stickers or cheap jewelery that I offer as gifts for little children so I satisfy the I'm just looking crowd. More often than not the parent/grandparent will stop and either buy something for the child or for themselves as they got a "freebie" from me without even asking. This doesn't work all the time, but I do it often and I know I haven't lost money on this "gimmick" and have made lots of little children happy. Good luck and please don't get discouraged- there are paying customers out there - you may need to have a think if where you are selling as that will have an affect on whether you have clients who are browers or buyers.

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Tax worries
by: Anonymous

It would be wise to get your licencing in order, for all the reasons previously given, and remember any tools you have purchased can be written off of your taxes, so you probably won't end up paying much if anything.

tough question
by: margo

I am new to the jewellery selling game, however I do mosaic and stained glass work.

Looking at prices of some work (at craft sales, online etc.) I feel that a lot of artisans don't factor in their time at all when pricing.

It's tough, because you want to sell your work (to at least compensate for other work pieces YOU purchase), but so many people don't see the dollar value.