I mentioned in the last blog that I have a mind which is constantly trying to apply logic to this world and failing. I hope with this near constant disappointment by trying to get my life as organised as possible. So I’m a bit surprised that I haven’t done a business plan before. It’s practically on page one of my well thumbed copy of The Handmade Marketplace, my bible and touchstone on my way to becoming a successful small business.
I worked through The Prince’s Trust workbook (which got a mention last time) and do you know what I found? I have been seriously under charging for my cushions.
In my previous calculations I’d rounded up here, down there, not included Etsy fees, zips, etc, and finally plumped on a price for my cushions that I think people wouldn’t mind paying, rather than what they should be prepared to pay for a quality product.
Doing a business plan made me realised that realistically I was making only £3.00 on each cushion, which was quickly swallowed up if the postage went over what I charged, or if the buyer wanted to return the item.
So now I have to be brave and put my prices up. I will sit at my computer screen and wait for the cries of horror from my followers, but they will hopefully not come. It comes at the right time. I am going to close my Etsy shop for a few weeks to give me a chance to build up stock for The Handmade Fair which I’m attending in September, and when I return there will be new prices and a new business head on my shoulders.