Country Homes & Interiors – September 2019

POPPYLEARNTABOUTPRICING

EARLYONwhensettingupherhome

accessorybusiness.‘I appliedfora loan

fromthePrince’sTrustanda business

guruhelpedmedefinethewhole

financialstructurefromthebeginning,’

saysPoppy.‘Beingcreativedoesn’tmean

thatyoucan’tthinkfiscally,andshe

helpedmenarrowthingsdown.’

HOWTOPRICEUPYOURBUSINESS

Bemathematicalandpracticalabout

pricingup.It removestheemotional

stringsandreallysimplifieshowtowork

outwhatyoucouldearn.Listandsumup

whatyoucanliveonorwhatyouwantto

liveon.Addupwhatit coststorunthe

business,includingrates,rent,staffand

materials.Workouthonestlyhowmuch

timeis spentcreatingproductsperweek

anddecidehowmuchyouwanttohave

asprofitandhowmuchyouwantto

investbackintothebusiness.‘I addedall

thisupanddivideddownintoearnings

versustimespentandI couldseethe

businesswasviable,whichwasreally

important,’saysPoppy.‘Rememberthe

minimumwageexistsforall,notjust

employees, and if you end up working all

hoursforlittlereturnthenmaybeyour

productsshouldjustbekept as a hobby

ratherthana business.’

BEREALISTICABOUTPRODUCT

PRICINGIt’sreallyimportanttobeaware

ofhowmanyhoursarespentmaking

versusthecosttopurchaseanitem.

Beautifullycreatedpieceshavetobe

commerciallyviable,too.Bestpracticein

businessis tobehonestwithregardsto

worthandeffort.If a projecttakestoo

muchtimeandthepricepointspirals,

thenit mightnotbeingworthpursuing

froma businesspointofview.

TREATWHOLESALECLIENTSTHE

SAMEASRETAILMatchingwholesale

pricemark-upsfortradeclientswith

thosethatPoppysellsinherownshop

keepsthingsclearbetweenallsales

methods.‘Itwouldn’tbegoodto

undercutandit’sallaboutsupporting

eachotherandhavingrelationships

betweenbuyers,’saysPoppy.‘I lookat

wholesalerslikeNotonthehighstreet.com,

whohostmanyothercrafters,asa good

gaugewithregardstopricing so that

I know I am being fair.’

THEVALUEOFDISCOUNTSAND

SALESOfferingitemsforlesseramounts

is a goodwayofclearingoldstockor

slow-sellingitemsbutshouldbea

short-termandsuccinctactivity.It might

conjureupinterestandproducesales,but

long-termpromotionsdevaluethebrand

andproducts.Thinkabouthavinga

loyaltysystemforregularcustomers.

Poppyrewardshercustomerswith

stampsona card.Incentivescouldbe

vouchers,a discount,ora freeselected

itemwortha certainamount.

MANAGINGSTAFFPAYMENTS

Bandingis a goodwaytoprice

employee’sroles,especiallyif a member

takesonlotsofjobs.Workouthowmuch

timestaffshouldbespendingoncertain

taskstheymanage.Payanymakersa

pieceworkratewiththeexpectedquality

standardsofhandcraftedproductsclearly

stated.Settinga goalforthenumbersof

productsexpectedmeansmakerscan’t

overdeliverif a businesscanonlyafford

somuch.Formorehelponrunninga

business,trythecreativebusiness

network.comandprincestrust.org.uk

for information.

FOLLOW OUR GUIDETOTURNINGYOURPASSION INTO PROFIT

HOW TO PRICE UP

your products

The one lesson I’ve learnt...

FEATURE

AND

STYLING

SARA

BIRD

PHOTOGRAPHS

DAN DUCHARS

BOTH THE CONTENTED NEST

❝

THE SMALLESTTHINGSAREIMPORTANT, SUCHAS

PUTTING ALL YOURCONTACTDETAILS ONEVERYTHING

YOU SEND AND GIVE OUT. NO DETAILS MEANS NO DEAL

❞

MY COUNTRY BUSINESS

COUNTRY HOMES & INTERIORS 65