If you don’t know the answer to this, or if you are unsure, you need to read this article. The sad story from Handmadeolgy does not list an author, but I would like to give him/her credit for being honest and sharing their misfortune with the crafting world. Consider this a wake up call for all of us ….
My business did not make any money in 2011.
I made the mistake of waiting until January (tax time) to sum up all of my totals. After ringing up all of my supply receipts, totaling my Etsy and PayPal fees, alongside with my booth fees for craft fairs, etc. the conclusion became clear: my business expenses were near DOUBLE what I grossed in sales. I shouldn’t have been shocked, but I was. …
Pricing is a very important factor to consider when turning your hobby into a business. I have seen too many folks who desperately want to wholesale, but do not have the appropriate price structure in place.
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