DirtRoads Posted December 29, 2014 Report Share Posted December 29, 2014 I'm really pleased with my bottom line this year. October 1st marked my 4 year anniversary in the clay business. This was the 3rd Christmas in my free standing destination location. Last year was okay but this year ... I feel like I was adequately compensated for my time and capital investment (ROI is highest I've seen in any business) Changes: -10-20% price increase to meet 30% retail price/labor ratio -Kiln consistently stuffed with small items -"the spoon" -Production increased by experience about 15-20%. Everyone got a little faster. -Increased jewelry production that subsidized retailing costs and used labor selling cost to produce instead of just standing around waiting for a customer to make a sale (2.5 employees) - Kicking out those 80%ers, focusing on 20%ers and introducing a couple 1%ers. 80/20 rule... 80% of your sales come from 20% of your line. Managing the 80%ers is the key to profitability. A 1%er is one of those rare products that are on almost every sale. This year I had a pottery spoon, 1 bracelet and 2 earrings that hit that mark. My brother said "you've got a pretty good business here now". Year end profit was about 3X that of 2013. I had 14K of expenses that I could have amortized 3-5 years but took a direct write off. I would say I'm about 80% marketing and finance and 20% artistic ability (please don't take that 20% as bragging ... might not be that much Thanks to all the contributors on the board. I've taken a lot of advice here. Thank you thank you. Link to comment Share on other sites More sharing options...
Chris Campbell Posted December 29, 2014 Report Share Posted December 29, 2014 Congratulations! First of all for growing, changing and getting more income .... And Second, for knowing you did this because you kept good records! Hope 2015 brings more fun and challenges. Link to comment Share on other sites More sharing options...
Babs Posted December 29, 2014 Report Share Posted December 29, 2014 Hey, great analysis. A lot of us do this thro' a little observation but you've cracked a whole new, to me, way of looking at sales. I just know I have to make a lot more bleeding pots with pelican stamped on them to keep the supply up, and get frustrated if time does not allow me to pursue a dream. Do you allocate time for this? Babs Link to comment Share on other sites More sharing options...
Stephen Posted December 29, 2014 Report Share Posted December 29, 2014 Congratulations! I hope you continue to see the same upward trend in 2015! Link to comment Share on other sites More sharing options...
Roberta12 Posted December 30, 2014 Report Share Posted December 30, 2014 That is great! I am making note of what you just posted. I hadn't thought of things in that way! r Link to comment Share on other sites More sharing options...
Marcia Selsor Posted December 30, 2014 Report Share Posted December 30, 2014 Yes, excellent business analysis. And congratulations. Marcia Link to comment Share on other sites More sharing options...
clay lover Posted December 31, 2014 Report Share Posted December 31, 2014 "80% of your sales come from 29% of your line" Provocative statement. Do others see this in their sales? Much to think about here, may need to be a new thread. Link to comment Share on other sites More sharing options...
Cavy Fire Studios Posted December 31, 2014 Report Share Posted December 31, 2014 I noticed that people were a lot keener on spending their money this year. A convention where I usually earn around $1500-$2000 per year got me freaking $3600!! I tell you, that was insane. Businesswise, 2014 was a pretty good year--still broke, but that's okay. Personal life-wise, though...2014 was an F5 tornado of fire and literal death. So...hoping and praying for happy things in the Year of the Sheep. :3 WHY NO YEAR OF THE GUINEA Link to comment Share on other sites More sharing options...
Chris Campbell Posted December 31, 2014 Report Share Posted December 31, 2014 "80% of your sales come from 29% of your line" Provocative statement. Do others see this in their sales? Much to think about here, may need to be a new thread. It is the good old 80/20 Rule that is in play and I bet most of us would see it if we kept as good records as DirtRoads. I confess that I do not. 80% of customers want your ordinary product.They are the bread and butter of your life. That lovely 20% are the ones who come in and ask "What's new?" They challenge you to grow and surprise them. The big group pays the bills but the second group keeps me happy. Link to comment Share on other sites More sharing options...
bciskepottery Posted December 31, 2014 Report Share Posted December 31, 2014 80% of customers want your ordinary product.They are the bread and butter of your life. I have a small group of items that comprise the core of my sales; however, I do not consider those items to be "ordinary". They seem to fit a price point that is attractive to many customers who attend the events where I sell. Customers who buy them often comment on their uniqueness and how different they are from other potters' work. Most of my work for sale are vases (ikebana), containers, and garden/floral items; I seldom bring cups, mugs, bowls, etc. to sell at a show. At any given show, there will be multiple potters selling . . . cups, mugs, bowls, etc. and I willingly cede them that general market. I try to focus on a more specific line of work that others most likely will not carry. Link to comment Share on other sites More sharing options...
Chris Campbell Posted January 1, 2015 Report Share Posted January 1, 2015 Ordinary was perhaps the wrong word ... What I meant was more along the lines of your usual work, or your recognizable work. Link to comment Share on other sites More sharing options...
Marcia Selsor Posted January 1, 2015 Report Share Posted January 1, 2015 It is odd that one gallery sells wall pieces and another sells orbs. Similar price range.i had a good year. Developed my web site. Had a large solo exhibition, my first in Texas. Feel good about where I am with my work currently and want to develop it further. Happy new year and may your plans be achieved. Marcia Link to comment Share on other sites More sharing options...
oldlady Posted January 1, 2015 Report Share Posted January 1, 2015 bruce is correct when he says his work is not at all ordinary. it is beautifully done, of course, and not something a buyer could find just anywhere. we may all make similar things but each of us has something that says who made it without a buyer looking for a name on the bottom. i have not seen the work of any of you except bruce but if it has wild horses i would expect marcia made it, if wonderful colors running together, mark, if brightly colored clay is involved it is chris. guinea, i don'tknow. Link to comment Share on other sites More sharing options...
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