Silver Gone Crazy!

Nope.  I don't get to write a great blog about terrific new designs -- this one is about the price of silver and what it may mean for my business.  Like many other jewelry designers, I'm feeling the pinch. 

Winter is my "slow time" -- I'm not doing craft shows and because I don't need to replace my supply as quickly, I haven't been buying silver lately.  I bought some silver at the end of January to do a couple weddings and now that I'm preparing for my first craft show (in May), I'm checking my stock and browsing at my favorite sterling supplier.  Needless to say, I was SHOCKED to see how the price had risen!!  When I last purchased silver, the price per ounce was hovering around $27.  Today it's over $45.  This is going to necessitate some price increases -- I wonder if my customers are going to understand?

I have an excel spread sheet that I've devised to track the costs of making each jewelry design I offer.   There is a list of the supplies I use and in the next column the individual cost of each item.  Because most of my designs use multiples of some supplies, I also have columns that multiply the individual cost by certain quantities -- x2, x4, x6, x8 and so on with a few larger quantities to allow for making necklaces which use larger amounts of some components.  (This may seem a bit complicated, but when I was setting it up, I couldn't figure out how to multiply a single component within the formulas I was going to use.)  In this sheet, there is also a list of the designs I make and in the column next to that, each design has a "cost formula" -- a list of the components needed using the cost of each.  For instance, if a pair of earrings uses a 6mm pearl, I'll need 2 (1 for each earring) -- in the formula, I list the box number (column letter and line number) for the cost of 2 pearls.  Each component is listed using the cost for the quantity used and all the component costs are added using the "sum" function to give me the actual cost of making each individual design.   I hope this is making sense -- it sounds a lot more complicated than it is.  This system becomes very effective when I need to change the price of a component.  Today, when I changed the cost of a sterling silver headpin, the cost of every piece of jewelry using headpins was appropriately adjusted.  I can now determine what price I should charge for each design, with the full knowledge of exactly how much the design will cost me to make. 

Unfortunately, today, I had to change a lot of silver prices.  From here, there are different thoughts on how and when to change the prices of my jewelry -- and maybe I can get some feedback from you. 

1.  Even though I haven't purchased silver at the higher price, I should raise prices now to accommodate the new costs.  While on the surface, this may not seem quite fair, it should be noted that I like to keep my prices the same throughout the entire craft show season -- if I raise prices now, I probably won't raise them again this year.  Because I suspect that silver prices are going to continue to increase (the prices are tied to the value of the dollar and as long our government continues it's current course of printing more money and huge spending, the dollar is going to continue to decline), later I will be absorbing additional increases without raising my prices. 

2.  I can raise prices as I purchase new silver.  The upside is that customers buying from my old supply would be paying my old prices.  The downside is that it will also cost me time and money to re-label every time I use more expensive silver.  My craft shows all fall into a certain geographical area so it's entirely possible for a customer to see me at more than one show -- if prices rise between shows on an item they were considering, will they really understand?  Or will it deter them from making the purchase?  

Anyone have any thoughts?  

I've been reading some forums .. it sounds like a lot of jewelry makers are going to increase their use of copper.  I haven't decided how I feel about making such a change for myself ... and maybe we'll explore that on another day.  I also have some concerns about even doing craft shows this summer -- we'll save those thoughts for another day too.

Spring Observations

It's been an interesting month in my craft show world.  The first Saturday of the month, I did a show that was awful for most vendors.  For some odd reason, the organizers had placed most of the jewelry vendors in the same general area, and the show was very poorly attended.  The gal across the aisle from me, who sold jewelry, didn't have her first sale until half hour before the show ended.  The couple next to her, also selling jewelry, had only 1 sale.  The guy next to me, selling photography, had 1 sale for the day.  The guy behind me, selling foodie stuff, had the worst day he'd ever had.  I didn't.  It wasn't a spectacular day, but it wasn't bad either -- given the attendance, I'd say my day was "satisfactory".

Week 2, I was selling again .. well, sort of.  I don't know how much advertising the sale had and it wasn't a big show (maybe 20-25 vendors).  And as it happened, it was perhaps the worst weather for any show I've ever done.  Winds were blowing very hard -- probably 40-45 mph -- and temps were low with a threat of snow mixed with bitter rain.  It wasn't a good day to leave the warmth of your kitchen -- so not such a good day to be a vendor.  The upside was that I was "back home" in a town where I'd lived for 6 years and some of the people who did show up were old acquaintances -- I got to do some fun catching up!  But I didn't make much money.

The Week 3 show was the worst show I've had since my second show ever (almost 5 years ago) .... the one where I didn't even make my modest booth fee.  I made my fee this time, but little more.  It was a first time show, and the organizers realized during the course of the day that they had made a couple serious mistakes.  We had no customers in the afternoon and several vendors sat with the organizers and there was great communication and brain storming.  We vendors shared some of our experiences ... what worked and what didn't at other shows we've done.  The organizers took us seriously and took notes.  Next year will be different.  The organizers had done some things right too -- they had attended several other nearby shows last fall and made contact with potential vendors, gathering a list of 200 sellers.  They sent out an email invitation to their list, but the show only ended up having 11 vendors (6 of whom sold jewelry).  I wasn't one who had received their email -- I found their application online.  The event sounded like fun and there was no mention on the app that it was their first year.  I'm suspicious that it was mentioned in the email -- and vendors didn't want to take a chance on a first year show.  Part of the problem for sellers was their location in relation to other activities -- next year, vendors will be placed between parking and other events so customers have to pass through the vendor area.  It also didn't help that we'd had a week of rainy cold weather and Saturday was gorgeous -- people wanted to be out in their yards and gardens, not out at a craft show. 

It's sounding pretty grim so far, isn't it?  It gets better .... I promise!!

So last Saturday, I was at another show.   This one, well established.  The weather couldn't have been more perfect ...mid 70's and partly sunny with a very light breeze.  The show was a mix of craft vendors and plant vendors and done at a beautiful Art and Garden Museum facility.  There were at least 150 vendors and it was our first outdoor show of the season.  It was well attended and  I had my best craft show of the year ... woohoo!!

So it made me wonder ..... is everyone having a tough spring with low sales, or is there something I should be doing differently?   I don't lack confidence in my craft -- I hear too many positive comments and I personally feel good about it -- so I'm not questioning that.  Is it the economy?  Is it the show?  Or is it me?  Have I missed some little factor that would make a big difference? 

We had a few minutes to talk to a foodie vendor, who has also been a craft vendor, doing both for many years.  She said that she was having the best year ever.  That was a little discouraging at first .. but as we continued talking, she made the observation that while her customers are still buying, the size of their individual purchases is getting smaller.  She used to sell a lot of "large" size product, but lately she's selling lots more "medium" size.  As I thought about it, I realized that's also been my experience this spring as well -- most of the sales were from my $5 trays and I haven't sold many necklaces, which have higher price tags.  The two shows where I'd done very poorly were also very poorly attended -- so there just wasn't the quantity of people to compensate for the smaller size sales.  And the two shows where I've done moderately well, it's been because I've sold a bunch of my smallest earrings. 

So how is it going with you?  How are your spring shows?  Are you finding your sales lower .. or maybe smaller?   I'm optimistic about my summer shows.  I think as more people feel more secure about their jobs, they will "loosen up" and begin spending.   A lot of people are more relaxed with their spending because they don't have to pay high heat bills.  And a lot of people have been very careful for quite a while -- they are ready to throw off caution and do a little shopping.  I hope they shop with me!!

Whew! The Roller Coaster!!

Have you ever felt like life was a roller coaster? That feeling that you're going WAY too fast? That you don't have much control? And you're hoping the hardware holds out?
That's been my last couple weeks!

Lets' see ... on Thursday, the 23rd, two days before the craft show, we were still in MI working on our daughter's house (they had a water problem in a house they're trying to sell and they've moved away). We had hoped to head for home in WI that morning .... but there were glitches (aren't there always?) and we didn't leave until after midnight. The 7-hour drive was a killer but actually, it was great driving through Chicago -- there was NO traffic at 3 am!! We got home in time to go to work Friday morning. My husband did all the driving but I was afraid he would fall asleep -- so I only got a couple 20 minute catnaps all night.

I was actually pretty amazed how well I did Friday -- hung in there pretty well without sleep -- until about 5 in the afternoon. Then I started really dragging. By the time my husband got home at 9 that night (he had to work out of town that day -- poor guy -- more travel for him!) I was done in. I told him we weren't going to do the craft show Saturday -- I didn't feel prepared and I was totally exhausted. The idea of getting up the next morning at 5 was just too overwhelming! So we went to bed -- nothing packed in the car. Originally, I figured we should leave for the show about 6:30 am to allow us plenty of time to get there and get set up --haven't done a show since December and knew we would be "rusty" about our set up.

So Saturday morning, at 6:20, I got up for a nature call ... felt a whole lot better .. so woke my poor hubby and said "let's go!!". He had been really disappointed that we weren't going so I didn't even have to ask twice -- he was out of bed like a shot. By 7, we were on the road. Given that we had to dress and pack up, that's amazing!

The show went ... ok. It wasn't great but it wasn't bad. We didn't know what to expect but we did expect more people to come. It was a rainy day -- I know that didn't help. And when the show organizers planned the date, they had checked on road construction -- they were told that the road would be resurfaced from June - August. Somebody's calendar was really screwed up because it was all torn up in April! And we expected that the economy would have some impact -- didn't know how much. This show last year had about 2000 attendees -- we figured there were only 700-800 this year.

The show itself was really pretty neat. Some fun vendors -- someone was selling decorated hula hoops -- their booth was really bopping!!-- the booth across from us were selling their own dip mixes (oh my goodness ... SOooooo good!!) and there were just some interesting things being sold. The guy a couple booths down from us was selling metal lawn sculptures -- they were amazing! One lady was selling hair pieces -- sort of for an instant updo. Another was selling bras -- she had her own little booth for trying on. There were some wonderful handmade soaps. Lots of jewelry, but none of it like mine. And the chocolatiers -- yes, there were choclatiers! and the samples? almost heaven!!!

I had a couple of fun sales -- both ladies wanted very custom made pieces. One lady was probably in her late 40's -- she picked a pair of earrings she liked, then pointed to a necklace and said she'd like something like that, only a little different. We talked about what she had in mind, then I made up a couple samples -- she loved one of them and bought it! Later, a younger gal came by -- mid 20's -- getting married in July. She had the jewelry picked out for her wedding party but hadn't been able to find anything she liked for herself. She chose a pair of earrings in white/clear but wondered what they would look like if one of the crystals was sapphire instead (the color of her wedding) -- I made it up for her -- and she LOVED it! But then she wanted a necklace -- I made one similar to a style I have but, like the earrings, substituted a sapphire crystal for a clear in part of the necklace. It came out perfect! It was so cool to do wedding jewelry -- it's an area I want to work in to -- and it was SO fun!!

As for the marketing mix, there were more young women at this show than at the typical craft show -- and I had a lot of attention from most of them. It confirmed that my work has a bit younger appeal than I've been thinking -- which should help with my marketing strategy.

And my shop is open -- it was pretty slow getting things listed and I have LOTS more listing to do -- but that's a story for another day. Come check me out:
www.gentleadornments.etsy.com
So far, the feedback I'm getting is very positive. Most of my photos are pretty decent. No sales yet but I really didn't have enough listed until yesterday. It's really a relief to have it open and be able to list. I've been working on it for so long -- taken SO many pictures! And getting them edited and cropped. Woohoo!! This is me doing the happy dance!!!