Starting Out with Arts and Crafts Shows

[Dave]

Hello All!

My name is David. I'm a high school teacher in Arizona. I teach Culinary Arts.

Due to budget cuts, decreasing enrollment, and other concerns, my district has decided to switch over to a four day school week for the coming year. Doing this will save a considerable amount of money in transportation costs and utilities.

Several of my colleagues have expressed an interest in earning supplemental pay by working as substitute teachers for Friday only for neighboring districts. Instead of becoming a substitute teacher, I've given some thought to turning a home hobby into a small business. I thought I'd start out as simply as possible by first attending a local arts and crafts show in November.

As a chef instructor, I have an interest in food. As a home hobbyist, I've pursued this interest by learning how to sculpt and mold candles that look and smell like food.

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I currently have a modest line of homemade candle products ... cinnamon rolls, fruit tarts, slices of pie, blueberry muffins, burgers, and pizza. I've even begun the production of some votives ... stir fried vegetables around a mound of steamed white rice and various flavors for two scoop ice cream sundaes.

I tried getting initial start up advice from the local Small Business Development Center but this local resource has not been very helpful. I have also had no replies to emails or voice mail messages.

I am hopeful that someone out there can give me some useful constructive advice for getting started.

First and foremost ... does a home hobbyist who wants to attend an Arts and Crafts show simply to see if these products sell actually need to get a state and Federal taxpayer ID? At this point, I'd simply like to test the waters by attending one show.

A friend suggested that instead of attending a local Arts and Crafts show, I should start a small business using a website. I understand that if I did this, I would certainly need a state and Federal taxpayer ID ... but having an internet business would raise additional concerns.

Shipping and Packaging:
A) It's triple degree weather in Arizona. If I were to pack my candles to mail off, they'd undoubtedly melt prior to arrival. Is there a cost effective solution for summer shipping or should my candle business be seasonal?

B) I'm worried about getting bogged down in the "mail room" and don't want to spend a lot of time packaging and shipping. Is there an easy way around this? I know that USPS has an assortment of prepaid boxes i.e. if it fits, it ships. Would this be the most convenient way of shipping?

Inventory Supply:
Is it unreasonable to worry about being too successful? To me, the nice thing about an Arts and Crafts show is that you arrive with what you have and you sell what you've got. I worry that an internet business could put me in touch with a much broader market than I'm capable of handling and that if this business was successful, orders could conceivably exceed my ability to produce, package, and ship these candles.

If I were to launch an internet based business, is there a way to limit sales? Perhaps there's something to be said for this being a seasonal business.

I'd appreciate any constructive advice that you have to offer.

Regards,

David

[KHooten]

Hey Dave, those candles sound amazing. I would buy one!

If you're planning on starting a business with this I would probably go ahead and get a taxpayer ID. It's a pretty simple process to obtain one.

If I were you I would probably do a combination of both trade shows and starting a website to sell your products. I think you would be selling yourself short if you didn't utilize the internet as well. As far as shipping is concerned I'm really not sure how you would go about shipping candles to ensure they wouldn't melt. Maybe check out some other websites that are selling candles and ask them how they do it. Someone may be kind enough to fill you in on that info.

If you're worried about having too much business that's a great thing! You could always hire someone do package and mail your products for you. I'm sure you could find a high school or college student that would be more than willing to take on those tasks for minimum wage. And you can always set your inventory levels. So, if you run out of a particular candle you can show it as being out of stock.

[BNB]

I would think you could attend a craft show and sell a few candles without doing all the legal jumbo. If you see some success in the business, then get an accountant and do everything the right way.

[Dave]

Hey Dave, those candles sound amazing. I would buy one!

If you're planning on starting a business with this I would probably go ahead and get a taxpayer ID ...

Thank you so much for your reply. I appreciate the thought about hiring someone to package and ship. I suppose if I was overwhelmed with orders, I could also hire someone to help with production as well.

Regarding the shipment of candles during the summer, I'm leaning towards making this a seasonal business. A friend also suggested the possibility of a minimum order which would then include the cost of an insulated foam box packed with dry ice.

Here's a picture of one of my burger candles. The "flame grilled" burger patty actually smells like a burger. The lettuce smells like lettuce. The tomato smells like a tomato. The bun smells like freshly baked bread. I have even included a pickle fragrance! :)

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[AlexMc]

Wow! Those candles look fabulous! I think maybe seasonal would be your best bet if you're having the issue of how to ship it without melting. I'm not sure if the insulated foam box with dry ice is very cost effective. I personally don't like the idea of having a minimum order. Your business would most likely be best for craft shows, but utilizing the internet is a good opportunity. You could always do special orders with that as well, take ideas for future candles, keep people updated with what craft shows you'll be attending, etc.

[KristineS]

Hi David,

I don't think you'd have to bother with a tax i.d. number just to try selling at one show to see what happens. You might want to check the regulations of the show though. Some do require certain things before someone can become a vendor.

As for shipping your products in hot weather, I did a simple Google search for the phrase "how to ship candles in hot weather" and came up with a bunch of results. One was from eBay and several were from already established candle companies. You could go through those results and see how other companies handle the issue, which could give you some insight on how you might handle it.

Packaging and shipping will take up time. That's simply part of doing business and it's also part of being successful. USPS does have Priority Mail, and the mail carriers will come and pick up packages, so that does save having to make a trip to the post office.

I think the decision you have to make here is what you want to do. If you're just looking to make a little extra income, you could probably find enough craft fairs or art shows within a reasonable driving distance where you could sell your products. That allows you to sell only when you want to, enables you to sell only the inventory you have on hand, and let's you limit the amount of sales. If, on the other hand, you think your product has potential, then you will want to take it online and expand the business. It's really a question of what you want to do.

[BP Writer]

Looks like a great product. I've only bought one candle in my life, but I'd buy a cinnamon roll just to check it out. I think these would also be great gifts.

Regarding taxpayer ID, you already have one - that being your social security number. You would eventually need to get set up for collecting sales tax for in-state sales, but I wouldn't bother with that just to start with a few craft fairs (unless the fair organizers require it). Starting out at a few craft fairs is a great idea - not just for selling your product, but it is also a good environment for getting feedback about which candles people prefer and why, which ones they don't, pricing, etc. (sort of like an ad hoc focus group). I would advise you to spend some time thinking about how you will display your products.

If your results are positive then selling online would be a natural progression. HOW to do that would be worth doing a good bit of research - simply launching your own website may not be the best way. There are a few things to think about in making your choice of a business entity at that point, but I'd certainly consider protection from potential liability since you are selling something designed to burn/melt. A good option might be to establish a sole member LLC (inexpensive to do in AZ) and designate it as a disregarded entity with the IRS. You can easily obtain an Employer ID Number (even though you won't have any employees) - and this can serve as a "taxpayer id" for opening a bank account for the business if you don't want to use your ss number.

As far as shipping you should definitely find out how others ship candles from hot places - part of the answer might be in the packing materials, part might be in the product materials (the wax). This is where you become a mad scientist and experiment with different combinations. Anyway, good luck, I think you have an interesting product line that has a ton of potential.

[KHooten]

Wow Dave that burger candle is impressive!

I definitely agree with some of the above posts. I re-read your post and seen where you talk about attending an arts and crafts show to test the waters. You probably wouldn't need a tax id in order to attend a couple shows to see how well your product sold. But, if you see that it's going to be more than attending a couple craft shows here and there then you would need to get a tax id.

I also agree with BP's comment
I'd certainly consider protection from potential liability since you are selling something designed to burn/melt. A good option might be to establish a sole member LLC (inexpensive to do in AZ) and designate it as a disregarded entity with the IRS.

I would definitely check into this especially because your product, as BP stated is designed to burn/melt.

[Dan Furman]

that's a really cool looking candle.

if you don't mind my asking, what's the retail price, and what's your time/material outlay?

I have often found that crafty-type businesses are really bad in a "this is how much you make per hour" sense.

ETA - for some perspective, I make my own wax tarts and can also make votives (but tarts are easier/better.) But I would never do it as a business, because I like to eat. Just no $$ in it.

[Dave]

Thank you all for your comments.



if you don't mind my asking, what's the retail price, and what's your time/material outlay?


Good question. I don't have any retail prices yet. Do you have any thoughts about how to determine a retail price? I can give you an idea of production costs. In this, it helps that I'm trained as a chef since I'm conscious of production costs.

Production cost for a burger candle: $1.63 (includes wax, wick, fragrance, and colorants but not the cost of packaging)
Production cost for a cinnamon roll candle: 52 cents

In thinking about this, I really don't see this as anything other than a minor hobby/business. Dan Furman is right. Candles of this type are labor intensive. Some of this can be offset via making these candles via a production line assembly technique i.e. instead of making one candle at a time, you make a dozen or more once all components have been organized.

Candles like these need a great deal more time to produce than a poured votive or a stick.

With this being said, I'm also a bachelor and don't have a significant other in my life. When I'm not in the kitchen at home testing out new recipes, I like puttering about in my workshop while watching cable news programs or the occasional movie. I really don't mind spending time in production. I find it relaxing. I wouldn't want to do this all day and every day particularly since I am employed as a teacher and also have other projects that I'm working on such as a children's novel and a vegan cookbook for international comfort foods.

[Dan Furman]

In thinking about this, I really don't see this as anything other than a minor hobby/business. Dan Furman is right. Candles of this type are labor intensive. Some of this can be offset via making these candles via a production line assembly technique i.e. instead of making one candle at a time, you make a dozen or more once all components have been organized.

Candles like these need a great deal more time to produce than a poured votive or a stick.

With this being said, I'm also a bachelor and don't have a significant other in my life. When I'm not in the kitchen at home testing out new recipes, I like puttering about in my workshop while watching cable news programs or the occasional movie. I really don't mind spending time in production. I find it relaxing. I wouldn't want to do this all day and every day particularly since I am employed as a teacher and also have other projects that I'm working on such as a children's novel and a vegan cookbook for international comfort foods.

Well, you have to make enough to turn those "off hours" into work hours. You also have to factor in craft fair expenses, gas, etc. Plus your 8 hours at the craft fair.

I wouldn't do this for less than $30 an hour. And that's ridiculously cheap for someone's "off" time (especially someone w/ a full time job and doing ok). And trust me, you don't want to say "well, I enjoy this, so..." That's a bad trap. Unless it's sex, there is no enjoyment discount in business. And I'm pretty sure porn stars want to get paid too.

So, for me, 31 x 8 = $248 (the 8 hrs at the craft show, plus an hour drive time total). Plus your time spent making them... ugh, forget it. I don't see this being viable. That's a $20 item - tops. And that's even pushing it (you're not going to sell many at that price).

There's a reason most craft fair people are starving.

Don't mean to be a wet blanket, but since I make my own tarts, I do know a bit about it (been on forums and the like). Candle people come and go in terms of doing it as a business - I've yet to see one survive.

[BP Writer]

Dan Furman makes good points about the return (or lack thereof) on the labor component of production for sale. But hey - you're a teacher!! What about teaching occasional classes at some of the different places that offer arts and crafts classes? And by the way, where does the scent come from? -- if you create it, is that a component you could sell to hobbyists and/or hobby/crafts stores?

I disagree with Dan's statement that "there is no enjoyment discount in business". I do agree that it CAN be a trap, and people do often fall into it. But by the same token, and using his example, I guarantee you that if someone was foolish enough to offer me $5.00 per hour to star in a porno with a vivacious chick...I would absolutely write off the other $25.00 per hour to an enjoyment discount. If that's a trap....well then, please, trap me!! But more seriously, those arts and crafts fairs can be great - interacting with the people can really be fun - just try one or two and see what you think.

[KristineS]

Do keep in mind that one of a kind and handmade items can be sold for premium prices. If you're products are labor intensive and require a lot of time and effort to make, charge more for them. If you present it the right way, it's likely you'll find a segment of the market that will pay.

[Dan Furman]

I disagree with Dan's statement that "there is no enjoyment discount in business". I do agree that it CAN be a trap, and people do often fall into it. But by the same token, and using his example, I guarantee you that if someone was foolish enough to offer me $5.00 per hour to star in a porno with a vivacious chick...I would absolutely write off the other $25.00 per hour to an enjoyment discount. If that's a trap....well then, please, trap me!! But more seriously, those arts and crafts fairs can be great - interacting with the people can really be fun - just try one or two and see what you think.

heh heh - hell, it doesn't have to be a vivacious porn star. It can be a middle of the road chick at the bar. Hell, I'd even do that for free (wait... I have! ;) )

But seriously, if you were doing it as a "job" - the enjoyment factor would start to wane. I get paid to write - an absolute dream for many. Know what? It's a job. It's a job I like (don't get me wrong), but it's still a job.

[Dave]

I don't think I did a good job adequately explaining my background and/or my intentions with this project.

I'm a high school teacher in Arizona. Unlike places like New York where the average starting salary for teachers is $39,000, Arizona is a right to work state. Even though I have a Master's degree, dual certification as an elementary teacher and Culinary Arts instructor, and 22 years of diversified teaching experience, I currently earn less than a first year teacher in New York.

It doesn't help that I work for a rural district which pays less than a larger metropolitan district. I tried moving to a larger district 3 years ago ... but with budget cuts being what they are, Culinary Arts teachers don't have job longevity and I got laid off after my first year.

It also doesn't help that my district has had a pay freeze since 2007. Not only have we had no cost of living increase, but we also haven't had any step increases which typically occur as teachers accrue teaching experience. On top of everything else, health insurance costs have gone up. The state also reduced retirement contributions to 45% while increasing teacher contributions to 55%. The net result is that I'm actually earning less in net income than I did when I first came to this state in 2007.

Mr. Furman talked about not working for less than $30/hr ... but as a teacher, I'm already doing that.

Since my district is moving to a 4 day work week, some of my colleagues have signed on with a larger neighboring district to work as substitutes on Fridays only. They'll be earning $50.00 per day. When you factor in the length of the instructional day, that's about on par with minimum wage which is well below $30/hr.

Since I'd like to have some supplemental income, I'd be thrilled if my hobby could generate something better than minimum wage after production costs.

Please understand, I'm not looking to get rich making specialty candles. I'm not looking to start another career. I'm not looking to emulate Michael Kittredge, who founded Yankee Candles as a home based business back in the early 70's. I'm simply looking to make a bit on the side. I realize that I'll essentially be doing piece work ... but if I can do this in the comfort of my home, I'd be thrilled.

I'm sorry if this post came off as defensive ... but I was perturbed by the $30/hr comment.

I haven't always been an over educated and underpaid teacher in Arizona. There was a time in my life when I made over $60/hr. I had a 401K plan and access to various corporate perks including an annual $7500 vacation allowance. Although I was making money hand over fist, I didn't really care for my job and couldn't see doing this until retirement.

Life is full of trade offs. In 1998, I turned my back on the corporate world, retrained as a chef, worked in the food service industry for a few years, and finally returned to the field of education in 2007. I've been a chef instructor ever since and wouldn't trade my job for anything.

With this being said, I wouldn't mind having a modest supplemental income.

[KristineS]

If you're looking for a modest supplemental income, I would guess that your best bet would be craft shows. You can only do the ones you choose to do, you have plenty of run-up to get inventory ready, you wouldn't have to mess with a website or shipping, and your costs would most likely be less. Given what you've said in previous posts, it doesn't sound like you're looking to start a business, you just want to bring in a little extra income. I don't know about the craft/art fair scene in New Mexico, but if it's anything like Michigan, you should be able to find numerous shows within driving distance. Also, you can still charge a premium price because you have a unique item.

[Dan Furman]

I'm sorry if this post came off as defensive ... but I was perturbed by the $30/hr comment.

I meant in a business (since that's what we're talking about). $30 an hour in your own biz, and $30 an hour in a job are two very different things.

ETA - further, I also meant "off" hours - in other words, *after* your job. How much are those hours (your time off) worth to you?

[Dave]

Off hours? Not only am I a teacher as well as a professional chef, but I also have a Type A personality. My work has always come first. When I'm not physically at work at my place of employment, I am typically working on work related subjects at home. My social life is by choice, almost non-existent which is also the reason why I'm not married. Having seen so many of my friends get divorced, I have absolutely no regrets in having made the decision to remain a bachelor.

My idea of relaxing is to edit films that I shoot in Culinary Arts. I use these films to create hands-on production demonstration films for future classes which I can show on my classroom's Smart Board. I also use them to highlight what each class does during the year so that I share these films with parents during our annual end of the year Open House. I have a water garden that is home to edible plants like water mint, water lettuce, and water chestnuts. I'm in the process of writing a vegan cookbook and have had a lot of fun coming up with some unique recipes such as a vegan friendly chicken fried steak with country gravy which looks, smells, and even tastes like the real thing.

I enjoy reading and typically read work related books. At this time I'm reading sample Culinary Arts textbooks since I have to find a new textbook to recommend for adoption. Given my growing interest in vegan cuisine, I'm also reading a book about nutrition.

I produce soap and candles for fun and enjoy doing this while I watch the news. (I am not very good about sitting still and have long felt the need to be gainfully occupied).

[mcollins528]

Dave Good luck with your candles. I also have a small business that started out at only craft shows but a lot of people would ask about web sites and such. We added a web site and ship where ever they live. We do hand painted glass so its a little different being they wont melt but can break. I spoke with people at the post office and ups store about shipping ideas to find what worked best for me. When it came to setting prices, we figured out what it cost to make everything with in reason and also compared to what I sale other items like ours priced at. We have since adjusted our prices and feel very comfortable where they are right now. Business comes and goes and I know there is a lot of area where I personally can make improvements but its a learning process everyday. We still find we have a great passion for the art of our business and now have a passion for business. So keep open to ideas of growing and expanding as you go along.

[Dave]

Thanks for your reply, Mel.

Actually, things have changed slightly since I first started this thread. I plan to attend two arts and crafts shows later this year but that's pretty much going to be it regarding my candles. It'll just be a part time business geared towards producing and selling candle products at local annual arts and crafts shows.

Instead of spending too much time with my hobby, I'm planning to use my training as a chef to create a vegan cookbook. Unlike other vegan cookbooks which seem to offer variations on potato, rice, pasta, and vegetable side dishes with textured vegetable protein mixed with beans to form some sort of vegetable protein as a main entree, my cookbook will focus on the creation of faux foods i.e. flame grilled burgers, chicken fried steak with country gravy, and crispy strips of bacon ... all of which will be vegan.

Last night I figured out a way to simulate the look and taste of real scrambled eggs using vegan food products. Having created these eggs, I wrote a recipe for the production of a vegan breakfast burrito. The burrito features faux eggs with soy cheese, home fried potatoes, salsa, and crumbled vegan bacon and sausage all of which are wrapped in a flour tortilla.

At my current rate of progress, I'll have a manuscript ready for submission by this time next year.

Here's a picture of a vegan chicken fried steak with vegan country gravy that I made last week. Also included are a picture of vegan breakfast tacos.

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[tmerrill]

I am a big advocate of testing before investing. I would try out the arts and craft show to see what demand is like. Do not forget to get feedback. Get the feedback of anyone who comes to the booths. Ask the people who bought, why they bought. And ask the people who did not buy why they did not buy. You could also create a survey for this.

Once the fair is over, see if the demand was good enough to continue with the business. Then use the feedback you collected to improve your product or offer.

Once all that is complete, then I would worry about the legal and technical aspects of creating a business.

[Naseer]

Hello dave..

My name is Naseer. I am new in forum and professionally a handicraft merchant in india. I also support the idea of starting a small business. It will helpful to understand the market strategies of handicraft business as well as you will surely find the alternative ways to drive your business and interest in right direction. Thanks

[Mak1178]

Thank you all for your comments.



Good question. I don't have any retail prices yet. Do you have any thoughts about how to determine a retail price? I can give you an idea of production costs. In this, it helps that I'm trained as a chef since I'm conscious of production costs.

Production cost for a burger candle: $1.63 (includes wax, wick, fragrance, and colorants but not the cost of packaging)
Production cost for a cinnamon roll candle: 52 cents



The normal equation is production cost times two is the wholesale price. (1.63x2=$3.26 wholesale)
Retail is double that price so $6.52 or round up to $7. That would be a 92% profit margin at $7 retail price for the cinnamon roll which is great. But like you said you need to factor in packaging which will lower that margin.

[cwillmoth]

I saw your picture of the candle and thought $$$$$ ...Once you figure out the shipping and website thing you need to consider social media. An Instagram account with pictures of your different candles with a link to purchase would work well because they are very unique and appealing. I also see the potential of scaling up and landing a spot in Hallmark stores, your product would fit well. I actually have seen something similar on the TV show Shark Tank and I believe it was very successful.

Best of luck with your endeavors, let me know if you need some help with social media/website info!

[justin-coreassistance]

I think you might get a lot of traction on Pinterest with these.