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The Art Festival Plan, Part 2

9/17/2015

13 Comments

 
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If you have read Part 1 of this series, hopefully you have marked your calendars with shows you plan to visit in the next 12 months. Before you apply for them, right? Good. Now don’t get discouraged by what I say next … getting yourself juried into a “good show” does not equal instant success. It’s just the first step. Even at good shows, there are plenty of artists who are bombing. There are still many factors to consider. This post is about some factors that can be managed through good planning and objective analysis. The recurring theme of everything takes time will be apparent again. 

(side note: I got a lot of great feedback for my last post, publicly and privately. In the few instances where someone thought my advice was not applicable to themselves, I noticed that they ignored the everything takes time theme.)


Part 2: Inventory and Pricing

In my last post, I mentioned a show that was 3-days long, where I grossed $9000 in sales. I have done this show for the last three years. I grossed $5200 in 2013 (which thrilled me at the time), then $7700 in 2014, and $9000 in 2015. The show was essentially the same for these three years, so why the steady increase in sales for me? Because the beginning of 2013 is when I started using an inventory tracking system. I suppose a business school professor would call it basic market analysis. It’s not that complicated, the tools required for this system are a spiral notebook and a pen. 

Years ago I would make a written list of my inventory before each show. This was not in a proactive planning way, it was just so I knew how much work I had. This was the beginning of my system, but as the years went by it grew more robust, and my attitude switched around completely. Now, I am not just recording how much work I made, past-tense. Instead, I decide far in advance how much work I need for a particular show, plan my production schedule to meet those needs, then write down the inventory list before each show to make sure I’ve met my target. And here’s what I started doing in 2013 that turned this into a complete system: At the end of every show, before I start packing down, I make a list of the leftover pots. 

Here are my spiral notebook pages from the $9000 show. These are the pots I packed:
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And these are the pots I brought home afterwards:
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If you were scratching your head at my above statement “I decide far in advance how much work I need for a particular show” here is the explanation. The “before” and “after” lists that I am accumulating over time are telling me the answers. Sales patterns become clear. Bring more of this, less of that, stay steady with this, eliminate that altogether. I use all of the lists together to see general trends. And when planning for a specific show, I will study the lists for that show from the previous year for guidance. 

Here’s a specific example: In 2013, I packed only 12 mugs (which seems so clueless to me now) for the show that I’m using as an example here. Based on sales, I increased the mug inventory every year. In 2015, I packed 27 mugs, and brought home 3. At $35 per mug, that’s an additional $420 in sales, just in mugs alone. 

Everything takes time, because when you start doing this, you can only make broad guesses. That’s ok. Once I started really paying attention to this, I did maybe 20 shows before I started to feel some clarity. And I am not done with this process. It is an ongoing slow march of improvement. 

..........

Now on to the subject of pricing. I know this is a subject that new sellers find confusing and distressing. It’s not supposed to be easy, and there is no “formula.” Just like inventory planning, proper pricing can be figured out over time. 

When I am offering a new design for sale for the first time, it will start out with a low “prototype” price. If sales are poor, the item will be eliminated (hey I thought an individual pie dish was a great idea, nobody else agreed). If it sells well, then it will go through a feeling-out process to arrive at the right price. I will keep inching up the price, sometimes even raising the price in the middle of the show. In my experience, sales will screech to a halt when I’ve overshot the right price. Even by a few dollars, it’s funny how sales will stop cold. When I notice that happening, I will back the price down to the last price that sold well, and call that the “sweet spot.” This process takes several shows, sometimes up to a year. 

If a new design makes it this far, then it progresses onto another level of analysis. Does the “sweet spot” price match the amount of material, labor, and kiln space that this item consumes? Sometimes the answer is “no,” and therefore the item is dropped, even if it’s a good seller. An example of this is my now discontinued Personal Teapot. It’s “sweet spot” was $48, but that was not enough to make its complicated production worthwhile (the pot consisted of three parts that had to fit together, and one of them was prone to breaking).

Once a new item has made it through all of this vetting, and officially added to my inventory, that doesn’t mean its price is carved in stone. I am always open to tweaking the prices. In fact, the system that I use for inventory planning is also how I make ongoing decisions about pricing. When I notice trends in sales, my first reaction is to “pack more” or “pack less.” But sometimes “charge more” or “charge less” is the better choice. For example, my dinner plates were always selling out. But plates are hard to stack into a kiln, and I did not want to dedicate more kiln space for these. Therefore, producing more was not a attractive option, and prices went up instead. 

Are you getting the sense of how long this takes? Just like with inventory planning, it’s ok that you can only make broad guesses at first. WIth time and experience, the answers become clear. 

My final point about pricing … everyone has the right to choose their own prices. Respect that boundary, and defend your own. Don’t let anyone tell you that your prices affect other potters. This is complete baloney. Why? Because pottery customers are not shallow people. They shop based on quality and appeal, not by price. When I am figuring out the “sweet spot” prices for my work, I am not figuring out “the going price of mugs in general” but rather I am determining “the appeal value of my mug.” If I’ve done it correctly, I’ve learned that it doesn’t matter if a nearby potter is charging half as much for the same item. Conversely, if my mugs are cheaper than a nearby potter’s mugs, I know that I am not affecting that person’s sales, as long as they have figured out the correct appeal value of their mugs. (And if they have misjudged their appeal value, that’s not my fault.) So don’t spend a minute worrying about anyone else’s prices. It’s much more productive to worry about making the most appealing pots you can. 

..........

I combined inventory and pricing into one blog post because these two subjects are two halves of the same thing, otherwise known as a line of work. You’ve probably noticed by now that I don’t make random pottery designs, pack a random inventory, slap on random prices, and shrug my shoulders at the results. I don’t really make individual pots at all. I make a line of pots, which includes about 40 different designs and their “sweet spot” prices. The designs and the prices are developed over a long time. It’s rare for me to make changes to my line, and these decisions are made with a great deal of analysis and proof. All of this time, effort, and commitment means that I show up for every festival with a booth full of proven good sellers, all priced correctly. 
13 Comments
Sara
9/17/2015 08:01:06 am

Thank you for the detailed and excellent advice/info. You explain things very well!

Reply
Teera Losch link
9/17/2015 09:09:08 am

I love your posts! Sometimes they don't apply to my business but I love learning about other strategies that artists use. Pottery new side hobby/business (very small scale) of mine and I find that I don't have to time (or patience) to figure out my 'sweet spot". I use a computer algorithm to determine my price instead of finding out what market price is for my work (not ideal but it works for me). I use time, materials, kiln space, and other factors for come up with a price. If a piece does not sell for what it costs me to make it, I discontinue that item. I save a lot of time (and energy) not focusing on prices! Thanks for being so open about your methods! I love that there are other artists like me that like to track, create spreadsheets and analyze EVERYTHING!

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joan scott
9/17/2015 09:20:27 am

Fascinating and very clearly thought out thanks for this post.

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Teena
9/17/2015 05:09:01 pm

Thank you very much appreciate your willingness to share your methodology. I am getting ready for 2 festivals myself and not confident I have enough . . . plan to utilize you theory and methods to be more prepared for next year.

Cheers,

Reply
Mike Martin
9/18/2015 05:46:55 am

I have been following your blog from the beginning and have enjoyed and been educated each time. Most of us don't have the background or complete knowledge to look at selling our pots as you have. You are so right about the trail and error approach. What works for others doesn't always work for you. Over the next few months I'm making the big change to go full-time selling. I've been teaching in Calvert County for the last 6 years in a church studio and love it. In the process of building a pole barn studio (30 x 48) on my farm in Southern Maryland, gas kiln and all. Space for teaching and renting space to anyone needing a studio. I've seen you at shows and hope I didn't come off as one of your old guy's hitting on you. I love your work and your approach and as a fellow potter enjoy talking with you. Please keep sharing and hope to cross paths soon.

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Angie
9/18/2015 01:41:33 pm

Thank you for sharing your expertise in this! This is ver valuable information.

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Sherri
9/20/2015 08:42:45 am

Mea,
Thank you for sharing your knowledge and experience. The main things that stood out for me in this post is that there is a big difference between pottery as a "hobby" or a "business" operating your business requires a lot of attention and planning w/ an eye on key elements to detail which affects the overall experience.
I appreciate your system of inventory before and after shows. I have gone so far as to note what the weather was like,cash vs card sales, and how, who and where did I advertise. Also key is that you've developed a "line of pots" something that customers can come back to again and again and build upon. Not to mention your branding and consistent visual image. Your system Is a template for anyone looking to build a successful business.
Thank you,

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Shawna link
10/6/2015 04:24:27 am

Loved this post! Excellent breakdown and reasoning behind your personal pricing strategies and how determine which products work best for you! Very informative! Found ya through the Clay Blog Review, by the way. And I am so glad I did!!

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Monica Guerrero link
11/16/2015 06:54:25 pm

Excellent post! Thank you so much for sharing your experiences. I am a new potter. I agree with you about shows, it had take me some years to figure it out that cheap shows bring cheap customers. Finding one's niche is the hardest part. I have been fallowing you for some time now, and your blog always help me. Thank you!

Reply
Patrick link
3/18/2017 08:03:02 am

Very enlightening post Mea!
I was somewhat perplexed by your second to last paragraph ("My final point about pricing …"), about the divergence of prices between potters not having an impact. I know from experience now that someone who will want one of my pots will buy it whether it's 25$ or 30$. However I've heard many times the arguement from other artists that a lower pricing strategy affects everyone in a negative way. I'm in Quebec, Canada, and I suspect it's different than in the US. We don't have many big cities as there are in the States. We have the dollar stores and Walmarts and cie selling wares at way lower prices, which makes it very difficult in an already difficult market, so the arguement is that we need to collectively "stick together" pricewise so that competition can be based more on the quality of the wares (and the fact that they're hand-made). Obviously people going to a quality art show expect to see hand-made pots, but being an already heavily taxed people here in Quebec, I think the price factor does make a certain difference even if the wares between potters are of comparable quality. You mention earlier in your post that sales can "screech to a halt" if prices are even a few $ higher and I agree. However economic context is something that has not been adressed and greatly influences sales, regardless of one's pricing strategy. It would be interesting to have other potters' feedback on this point (potters who have similar experience level as you have) as I think it's quite important. I know nothing is set in stone whereever we potters sell our wares, but I think economic and social considerations need to be taken into account re: your final point. Let me just finish by saying that I have found your post very encouraging as, being an "intermediate-beginner" potter, I have been taking inventories before each show and have started noticing trends which has helped guide me in my production schedule.
Thank you!

Reply
Mea
3/18/2017 08:23:23 am

This is a 100% valid point. My experience comes from the mid-atlantic region of the US. Other regions will supply different economic factors that artists need to consider.

The thing about "sticking together" with other artists pricewise is that every potter is making work that has a different value. For anyone to say "all of our work should be priced the same" is forgetting that. I am thinking of one big show that I really like, where the art quality ranges from "student" to "professional." My pots are probably the most expensive there, and I sell like crazy. Even when surrounded by bargain priced pottery. Customers will buy what they want, not what's cheapest. That's why I don't care what other potters are charging. People who buy handmade pottery are not ordinary people. That's why dollars and walmart don't matter either. We have lots of them here too!

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Bonnie Ann Burnett
7/10/2018 07:36:42 pm

I submitted a question only a couple hours ago. You can ignore it. I've now read the remaining articles in this series and found my answers. You are generous with your knowledge and experience. Thank you.

Reply
Eileen
12/27/2020 01:24:06 pm

I know this is an older post, but I just wanted to say thank you. Whenever my inventory is completely depleted and I am staring at my lists and empty shelves, doubting my own logic, I return to your inventory and production lists. Somehow it helps everything make sense again.

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