Selling Handmade Wooden Crafts: A Guide for Aspiring Craftsmen
The idea of selling handmade wooden crafts seems appealing, but it requires more than just a creative touch. This guide will explore the steps and considerations you need to make if you want to start a business in woodworking. We will cover what distinguishes handmade wooden crafts from simple homemade items, the process of setting up a small woodworking business, and the strategies for pricing and selling your products.
Understanding Handmade Wooden Crafts
When promoting and selling handmade wooden crafts, it is important to differentiate between handmade and homemade crafts. Handmade wooden crafts are created with skill and craftsmanship, often requiring specialized tools and techniques. Homemade items, on the other hand, might be rudimentary and mass-produced. In the context of woodworking, you need to focus on creating premium quality products if you wish to build a successful business.
Setting Up Your Woodworking Business
When you decide to turn your woodworking hobby into a venture, you should treat it as a legitimate business. This involves several steps:
Registration and Taxation: Properly register your business and file all necessary taxes. This may involve an application with your state's business registration office, and setting up a business bank account. Insurance: Check with your homeowners insurance company about adding a small business policy. While these can be costly, a 1 million dollar policy is surprisingly affordable. Choosing the Right Wood: Do not use wood from home centers or lumber yards. Instead, find a wholesale wood mill and order your material in minimum quantities (usually 200 board feet). For practical toys, use poplar, maple, cherry, or birch.Quality and Design Considerations
Your wooden crafts must be of premium quality. Avoid using aerosol paints or writing with Sharpies. Ensure that every piece is finished properly unless it is a specific type of unfinished item, like a cutting board.
When designing your woodcrafts, consider both economy and aesthetics. Plan your layout carefully, taking into account the grain direction for strength and the visual appeal of the design. You need to give yourself enough space to cut and assemble the pieces effectively.
Production and Pricing
To start, make a batch of at least 12 pieces. Take detailed time tracking notes for each step of the process. Once you have completed one unit, calculate the total time and divide it by the number of pieces. Add your hourly rate, which should include your salary, utilities, and all overhead costs like insurance and utilities.
Calculate your material costs, including glue, paint, and other supplies. Multiply these costs by at least 8 or 10 to account for waste and add 20% for material waste. This will give you the minimum retail price for your product. To sell wholesale, you need to sell in volume since the wholesale price will be half of the retail price.
It is essential to understand that selling handmade wooden crafts requires precision and a systematic approach. However, with effort and dedication, it is possible to turn your hobby into a profitable business.
Good luck as you embark on this creative and entrepreneurial journey!