You Have To Spend Money to Make Money: True or Flase?

[Former_Member]

I have heard this saying many times and can find millions of ways to spend money to make my art and shop "better" but is it always "profitable?"

-Professional packaging, business cards, etc.
-Booth fee at a local craft or art fair
-Renting studio space with other artists
-Advertising online
-New Supplies
-Spending that $25-35 for Artist Calls for various shows.

What do you think? What things have you spent money on that have been profitable (or at least extremely helpful) for you?

[BespokeKnitsbyCinzia]

Business cards...I have started giving them out shamelessly! I also booked a booth for my first craft fair on Long Island in May! Here's to hoping it works to get the word out..... don't know what the outcome will be but my hubby keeps telling me :"Gotta spend money to make money...." LOL

[justweddingbouquets]

I agree business cards. Yours with your artwork on them. I looked at your store. If you contact the people in the yearbook art they would probably buy it all to keep their pictures secret. But spend money wisely. If you can do your work at home. Do so. Your profits can be eaten up by studio space, phone bill,and all the expenses that go with that.

[Former_Member]

Craft fair booths can definately pay off bit time. For me, it has taken 3 years to discover what areas and types of fairs work best.

I have a top 3 list and all 3 keep beating last year's sales record every successive year. I've put together a mailing list for those areas and send out notices before I go to the area with a discount coupon. I will also offer a very nice free gift basket (customer's choice from 7 options) in return for their mailing or email address. Then they will receive a yearly or twice yearly promotional mailing with the discounts.

These are craft/art shows where my overhead is minimal (fees and traveling expenses) and where customer appreciation and repeat customer business is high.

Some area booth fees and travel costs will be too high to justify lower sales due to bad traffic or perhaps too much competition from more established and popular vendors.

I've found that the offers to rent studio space with other artists and selling by commission is not profitable. Especially, if you are trying to offer more reasonably priced products for your customer. These usually eat up any profits margin.

[Former_Member]

tools, tools and more tools... I am a tool junky! I too have to watch myself though and make sure I don't slip past the point of diminishing returns

Which actually reminds me I left somethings in my shopping cart with a supplier... I need to go checkout lol

[Former_Member]

oops. the free gift basket promo is an entry drawing at each show.

[KubaremBaby]

I agree with that saying. You have to spend money to keep items in stock, business cards, ad space on blogs/ websites, development of new products, and also I think professional photos is a good investment.

[TheSilverBranch]

If you can find a very cheap studio with other artists, I highly recommend it. I'm in an old mill in a little town full of artists. And between the support and the friendship, I've become more well known in my area and have gotten better connections than I ever would have alone.

[NutfieldWeaver]

Business cards were a waste of money for me.

[Former_Member]

Hysterical, LauraPrentice!
LOVE it!
http://www.etsy.com/listing/48190575/high-school-graduation-card-colllege

[Former_Member]

Business cards have been useful for me, but not earth shaking yet, though I give them out like candy... Craft sales, HORRIBLE! I have been to about 10 shows in the last 2 1/2 years, and maybe it was the shows around here (Edmonton Canada) but I didn't even cover costs of being there and have had only 1 sale from after a show. It seems to me like everyone who goes to craft fairs are looking for 2 things: 1. inspiration-so they can go home and make it themselves, or 2. something cutesy under $20. Maybe it's the economy? I don't know! Just be careful... there are a few wildly succesful ones here to, but the all cost more than $500 for a space, which I can't afford yet.

What has worked? Giveaways on facebook/blog. Coupons for returning customers. advertising online and word of mouth.

[Former_Member]

TheSilverBranch says
If you can find a very cheap studio with other artists, I highly recommend it. I'm in an old mill in a little town full of artists. And between the support and the friendship, I've become more well known in my area and have gotten better connections than I ever would have alone.
----

I would definitely be after the space, exposure and community. Thinking about living in an artist co-op as well.

[Former_Member]

I ordered some free business cards on Moo, which are great, but I can't justify the price. Since then, I love to make my own. I print them on my computer on colored cardstock and they work perfect for me.

[Former_Member]

I'm currently dishing out some cash to have a professional artist website. That seems highly worth it to me.

[EviesToolEmporium]

lauraprentice-

Hi and hope you're doing well! Your shop is looking great!

A professional artist website is a great investment! I was just talking to someone about this very topic this morning! It is working out really well for her and yes the upfront investment was high! She is now reaping the benefits!

Enjoy your day,

Michelle-

[Former_Member]

I've found craft shows to be pretty hit or miss. Sometimes, I do well enough and at others I barely sell enough to cover the cost of the booth rental. I'm finding etsy to be easier to deal with since I can do things on my time rather than spending a weekend at a craft show where I might not make a profit.

And thanks for the tip on homemade business cards @lauraprentice - my husband's a designer, so I can get him to do a custom design and create brand recognition rather than buying the cheap one-size-fits-all cards :)

[Former_Member]

For more speed and consistency, I would have to say money ...more so time plays a big picture. Better packaging, wrapping, and of course better quality materials all come from somewhere! But at the end of the day, I do appreciate someone's effort the most and even though the entire presentation of something I buy may not be perfect, I always love to see the thought and effort in the item purchased. Hence... time is probably needed more. But the thing is.. in order for you to have free time, you need money if you are off from work or spending the days at home perfecting something... it's a big circle.

[Former_Member]

I agree that investing money helps a lot, but I also agree that time is crucial! And yes, it definitely feels like a vicious circle! haha

The dilemma I’m facing right now is this:
I’m not making a profit off my sales yet, and I don’t have lots of money to set aside for a webpage (which is what I would spend it on first if I could!). I’m dying to get out of my day job, so I’m hoping to save up enough to be able to quit in the next few months (the company is horrible to its employees and I'm at the end of my rope). So do I save up for quitting my job, but stick to using the multiple web pages scattered all over (etsy, flickr, facebook, blog…)? Or do I use the money I’ve saved up for a webpage and suffer through a miserable job for longer?
There’s personal family stuff that I’m also helping out with financially, but I’m trying to really focus on saving so that I can get free from this darn office job!
It seems like a catch 22 to me…

I’ve thought of getting someone off craigslist to do a webpage for me, but I’m scared of getting scammed. Have any of you hired freelance people like that before?

As an alternative for now I'm considering having some postcard flyers printed so that I can send to some local companies and distribute around town. But I'm just so hesitant to spend some of the little money I have on something that's not making me anything right now.

~Natalia

[EweBabyPropShop]

I print real simple business cards, nothing fancy, at home for handing out at shows. I can't see giving out cards to everyone since they are not cheap, so I have a basket on my table and people can help themselves. I've seen kids just run around and pick up cards from all the tables and who knows where they end up. My preference is to limit myself to 2 or 3 shows a year. I've been doing them for a while and people expect to see me there. I enjoy the contact with people and now that I'm on etsy, I'll be passing out ETSY info.

[Former_Member]

@Evie: Hi! Good to hear from you!
@Natalia: Just convo'd you.

I'm not sure that I'm ready for the craft show scene, I don't have a tent or booth so that would be huge overhead. It's also so interesting to read all of these "quit your day job" articles, so many of them already had a house, have a spouse with a steady income, are out of debt, "scaled back" with their spending to make it work for them. Hard to quit that day job and plunge full-time into art when you are living paycheck to paycheck.

[Former_Member]

I would say you need a lot of time, or a lot of money. I haven't had a lot of money to start with but have found most of these things for free all over the place.

I got free business cards with a promo deal on Vista Print. I found a designer (Andrea Larson Photography) who is currently making me a logo and a whole unified web presence all for free. This sunday I have a free professional photo shoot of all my items. I will be doing a total overhaul of my shop. I am so excited. Andrea Larson Photography will also be doing my local shoot but Olive Smiles is a photography group that is always offering free photo shoots for crafters. You can find Olive Smiles on Facebook. Tell her StitchesByJeni sent you.

Students are a great resource. I am a stay a home mom and I have found lots of other stay at home mom's who are starting a little business just like me. We connect, share what we can do and help promote each other. It is an amazing marketing campaign with a life of it's own. Word of mouth is a great seller.

[Former_Member]

Craft shows and magazine features have attracted most of my customers.

[Former_Member]

Yes you have to spend money to make money. You need supplies to be well stocked, Business cards are a big one for me and I usually do 10 plus shows per year. I do a lot of small shows that are close by so travel isn't too high We camp or rv instead of motels and if on the road try to book shows that are close together.

[Former_Member]

There's no way around it you have to spend money to make money. Online advertising has worked for me, also relisting:)

[Former_Member]

@StitchesbyJeni you are getting all kids of free stuff! Good for you!