Has Your Craft Product Hit A Saturation Point?

I came across this article from about.com by Maire Loughran on the concept of saturation points- that is when there is too many people churning out the same product, or in other words, when supply far outweighs demand. She goes on to give tips on how to manoeuvre such a situation to your advantage...

  

Working Around Saturation Point by Maire Loughran

      It happens to us all, one day you’re sitting there running the UPS driver ragged shipping your orders, the next, the phone has stopped ringing and while you have good traffic on your website, nothing is moving. What’s up? Could be any number of issues: seasonal, economic or shift in spending patterns. The constant research a business owner must do will give you a heads up when these conditions are coming into play.
However, a major cause for a decrease in sales is that your art or craft has hit a saturation point. By that, I mean that too many crafters are making the same type product or you’ve totally covered the market with your product. Here are some determiners of saturation and what the savvy craft business owner can do to work around the problem.....

For full article, click on this link.

Policy Changes In The Creative/Cultural Industry Long Overdue

As someone who is so passionate about the arts- and crafts in particular- it baffles me that it has taken so long to initiate a policy paper on the creative and cultural industry.
This is an industry that has massive potential for employment creation, national cohesion, social inclusion, foreign exchange, cultural regeneration- the list is endless.
So why is it that we are not giving these industries due attention? I have to be quick to add that this seeming lack of interest is not unique to Kenya- many developing countries around the world are struggling to identify and harness their potential.

We recently hosted a sector (crafts) focus group during an industry mapping process facilitated by the The Kenya ICT board and carried out by an IBM CSC team. Reading through the just released proposal document, it occurred to me that the most important recommendation put forward was "to raise the profile and increase recognition of the creative industries" (theme 1), and to achieve this through "public declaration of support of arts and creative industries sector as a key contributor to Kenya's economic development and Vision 2030".

The reason i think it all starts from here is because our political system is still recovering from decades of top down leadership- which means that a public declaration is sometimes all you need to set the ball rolling. Couple this with a willingness to "implement government policies that support creative industry growth and its measurement" (theme 2), and you score a home run. Everything else will fall into place. Does it sound too simplistic? I dare say no- because the truth of the matter is, we (as practitioners in the industry) have been making inroads in the industry- showcasing at international fashion shows, creating world class games, gunning for top film awards- without this kind of public support anyway. In other words, i believe that if the creative/cultural industry was made a priority sector, Vision 2030's goal of maintaining a sustained economic growth of 10% per year from 2012 and beyond is achievable. Forget the oil and other mineral reserves lying undiscovered in Lokichoggio or some such place. We have a resource that is as much a part of us as is our very being- our creative and cultural heritage.  It is a resource that can never be depleted no matter how much we exploit it. And it is a great equalizer- no nation on earth can claim monopoly. We all have it- and may i go on to add- Kenya and Africa as a whole has trillions of tonnes in reserve. Create the necessary support structures, and watch the industry take off.

Interested in the full Creative Industry Roadmap? Access the full document here.

Are You Running A Business or Pursuing A Hobby?

And what is the difference anyway?
I remember this question during my creative entrepreneurship training at the British Council. It is this question that had me sitting at the edge of my seat. It jerked me straight out of my sunshiny romantic notion of running a business.
So what is it that sets one apart from the other? It is all in our perception. An extremely powerful attribute, perception determines the way we relate to and experience every aspect of life.

When you think about the creative activity you are currently involved in- be it crafting, photography, the performing arts- do you perceive it as a hobby or as a business? The reason why it is vitally important to address this question is that it will literally scale the heights of your success. How, when and where you work, how much you charge, how you track the money you make (or lose)- all these will be influenced by your perception of the creative activity you are engaged in.

Let us take a closer look at tracking your money. IF you are pursuing a hobby, your primary motivation is unlikely to be profit. You could be engaging in it because it is the 'in thing' or to occupy the tonnes of free time you have- either way, monetary rewards don't go beyond the need to meet costs of production. IF on the other hand, you perceive your creative endeavor as a business, there are certain things you need to take into consideration.

 The art is not in making money, but in keeping it

When it comes to passing judgement on whether you are running a business or pursuing a hobby, how you manage your finances becomes the judge, the jury and the executioner. It is the one definitive way to tell if you are dabbling in fantasy or working a business.
I have to say that of every ten creative entrepreneurs i meet, only a third keep financial records. Awareness is apparent, but implementation a challenge. Reasons vary, but here are the 3 most common-

1. Lack of know how: Profit and loss accounts, balance sheets, fixed costs...the list is endless, confusing and yes, plain boring. Creatives find their time most profitably spent creating, talking philosophy and trying to change the world- not jabbing at numbers on a calculator, looking for a bottom line.

2. The bitter-sweet relationship between creatives and money: We are in no doubt about the value of tracking money, but we don't want to seem greedy, hankering after the shillings and cents. As Mark Mcguinness puts it, the starving artist cliche didn't come from nowhere.

3. Ignorance is bliss:  "I don't know if what i am doing makes or loses money, but i have money for my day-to-day running around and an occasional drink with friends. So that is OK Right"? Wrong! The only thing this escapist attitude does, is prolong the sinking process.

These are excuses, barely admissible if you are pursuing a hobby; completely inadmissible if you intend to run a business. The truth is, serious businesses track money. And not in some storage compartment inside the brain. On spreadsheets and balance sheets and profit and loss accounts.
Playtime is over folks- its time to take a long hard look at what we are doing. Otherwise, we will be chasing tails a long time. 

Market AccessII: Craft Fairs Aug-Dec'13

After a relatively quiet first half of the year, the craft/design calender is filling up pretty fast. And as usual, we endeavor to bring you all the details that pertain to these market access events.

P.S These events are not listed in any order whatsoever.

The Christmas Fair- Ngong Racecourse
Since 1976, the Christmas Fair has been showcasing the best of Africa's art and craft- last year hosting exhibitors from as far of as Zimbabwe. It is arguably the biggest and oldest craft fair around- and this year they are back on 7 & 8December2013 at the Ngong Racecourse. Applications are currently ongoing. See website on how to participate.

Bizarre Bazaar
Organized by BizBaz Events, this craft fair happens 16 &17November 2013 at Karura Forest. For details on bookings email info@bizbazevents.com or call 0701 395 902. Look out for the revamped website, as you can register online once it is up.

Spring Valley Bazaar
Organized by Geraldine and Deborah Evans, this is one of the smaller yet busiest craft fairs in Nairobi. All gate and raffle proceeds go to ANDREF, and this year the event will be held at 12 Bendera Lane, Spring Valley on 30Nov-1December2013. The email address you need is zawadiafrica@gmail.com or 0721 307 232, 0722 510 932.

Xmas BoX 2013
This boutique event happens over three days; 22-24November 2013 at Marula Manor in Karen.
With tent charges varying from 30-105,000 shillings, this promises to be an exclusive event.
Applications close 30August.
Email info@thebox.co.ke or see the website.

Kikapu Market
The Kikapu Market is a monthly open air market that takes place every second Saturday of the month from 11am to 9pm. The July market just happened this past weekend at Prestige Plaza.
To get a slot in the August market, contact kikapumarket@gmail.com, 0723 387 134. Also be sure to check out their Facebook page.                                                                      

Fashion With A Difference  This annual fashion is planned to coincide with Kenya’s 50years of independence, with the theme being ‘united colors of diversity',  based on the cultural and ethnic diversity of Kenya.
There will be a number of fashion & arts market stalls for exhibitors. If interested in showcasing- info@fashionwithadifference.com, 0705 607224 or check out website. 

Green Corner at the Village Market 
This is a special themed showcase for producers in the recycled/upcycled sub sector. It happens every first and last Tuesday of the month at the Village Market, Gigiri. For more information on how to participate - pr@villagemarket-kenya.com, 020 712 2488/2490, www.villagemarket-kenya.com.

Yaya Soko 
The Yaya Soko is back after a short hiatus. Curated by Mary Stannah of Inside the Baobab (craft shop at the Yaya Centre), the soko happens once a month- over 4 days (Thursday-Sunday), the third week of every month. Cost for the four days is 7500Kshs.
The July soko starts tomorrow, and inquiries are already storming in for the August one. So get calling...0725 451 155 or email insidethebaobab@gmail.com
Terms and conditions apply.

October Women Festival The one day October Women Festival happens at Karura Forest, 2November 2013, 2-11pm. Put together by Queen Mashie, the event aims at celebrating talent in women. See the website for details on how to apply or call 0726 130 657.

Design Indaba

The playground for the big boys and girls of design... An annual event held in Capetown South Africa, Design Indaba has easily become Africa's foremost design event. Applications are now invited for exhibitors to the Design Indaba Expo 2014, running from 28February- 2March 2014. All details on the how, when, where available here.                                                                                                                        

Driftwood Malindi Christmas Craft Fair 
The Christmas craft fair on the beach is on at Driftwood Malindi, 21December13. Email

reservations@driftwoodclub.com or telephone 0721 724 489/ 0734 747 133

Vipingo Ridge Craft Fair- Kilifi
Vipingo Ridge will once again host a Christimas craft fair on 14December2013, 10am till late.
Price tags for exhibitor space start from 7500Kshs. For more, telephone Gail on +254 732 009 599 or email reservations@vipingoridge.com
Check out Vipingo Ridge on facebook.

German Charity Christmas Bazaar
Once again the German Embassy will play host to the annual charity event. Venue will be at Riverside Drive 113 and the date to remember is 30November13.
Rates for tables start at 3000Kshs.
Get in touch - 020 4443262, office@kirchenairobi.org. The office requests that you observe office hours while doing so i.e Mon, Wed, Thurs [0830-1330hrs] and Tue, Fri [0930-1530hrs].

KSPCA Annual Shaggy Dog Show
The KSPCA dog show is happening Sunday November 3rd at the Ngong Race course, 10am onwards. There will be a craft market running alongside the main agenda of the day- a dog show. Contact info@kspca-kenya.org, 0733-571125.
Look out for the craft market hosted by KSPCA Mombasa as well, 9-10November 2013 at Sarova Whitesands Beach Resort and Spa. Contact details are kspcamombasa@yahoo.com, 0733 728 356. www.kspca-kenya.org

Curated by Christine Gitau|Craft Afrika

I Will Be a Humming Bird

Have you ever had a chance to watch this amazing animated video clip of the humming bird story as told by Wangari Maathai? 

 

Only this morning i came across a quote by Leonardo da Vinci on his conviction that people of accomplishment rarely sit back and let things happen to them. They go out and happen to things. I guess that is exactly what Wangari Maathai is saying in this clip- we must happen to things and therefore make things happen. We must do the very best that we can. And really, that is all there is to it. 

            Take Zachary Kimotho, 44. An ordinary guy who became extraordinary because he dared himself to happen to things.

You know i can only imagine what a strenuously difficult endeavor the whole Bring Zack Back Home campaign was or still is for him. From the onset, it must have appeared as the fire did to the animals of the forest in the humming bird story- insurmountable, unstoppable. Regardless, putting to test his sheer will, he personified the humming bird, taking flight and doing the little he could, the best he could. As i write this, Zack is back home having raised a whooping 73million in the first 60 days of the campaign. He is still on course to raise the 177million difference.

            Come August 25th '12, we will be hosting Kenya's first craft party in honor and support of a man who has achieved more than a few good men put together. We as Craft Afrika are supporting Zack and the campaign because crafts are a natural entry point for marginalized communities worldwide- whether you are talking about People Living With HIV&AIDS, refugees, women, the disabled. The sector has that special and unpretentious characteristic of allowing marginalized groups assert themselves back into society. And so by hosting the craft party, we are not only fundraising for the spinal cord rehabilitation center, but also bringing into focus the inextricable link between crafts and emotional healing, crafts and economic empowerment and crafts and social inclusion.

               August 25th is the day we celebrate the humming bird that Zack has become as well as take up the challenge to do the very best that we can, regardless of who we are or what we have in possession.

Pricing For Success

A question i often like to ask craft vendors is how they arrive at their quoted prices. The responses are varied, but usually have one thing in common-vagueness. The reason, i suspect, is that the vendor does not have a concrete pricing strategy in place, making it a largely arbitrary process. 

Identifying and developing a pricing strategy for creative products and services is often misunderstood and the mere mention will instantaneously elicit feelings of doubt and anxiety. 

Understanding and applying any one of the various pricing strategies can mean the difference between success and failure. In the first of a two part series, i will take you through the various strategies.

Let me start off by differentiating two concepts that often cause some confusion: price and cost. According to Wiki.answers.com, price is defined as what you sell something for, cost is what you paid for it or what it cost to produce it.

There are various pricing strategies, but i have listed the most appropriate in regard to craft enterprises. 

1. Cost plus pricing- The most common of pricing strategies, it involves calculating your cost price and then adding a mark up or profit margin.  Keeping record of all your expenditure as well as time spent on the project is key in this strategy. So long as you have your costs calculated correctly and have accurately predicted your sales volume, you will always be operating at a profit.

2. Value based pricing- The setting of price based on the benefits the product or service provides the consumer. Enterprises that offer highly unique products and services are well positioned to adapt this strategy. It is usually the most profitable form of pricing.

3. Market based pricing- Also known as a competition-based strategy, prices are determined by what similar products in the market are selling for. The price is then set higher or lower than market price. 

4. Psychological pricing- A pricing strategy that relies on making prices appear more attractive to consumers. It is based on the notion that humans are not perfectly rational and that certain prices are more attractive than others. There are 5 basic models in this strategy

a) Premium pricing or "skimming"- The practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers. The practice is intended to exploit the notion that expensive items are of exceptional quality. 

b) Odd pricing- This is a strategy of setting prices in odd numbers just below an even price, for example pricing an item at Kshs 1995 rather than the even price of Kshs 2000. This gives the impression that goods are marked at the lowest possible price.         

c) Multiple pricing- Pricing items in bundles, such as three for Kshs 500 rather than Kshs 200 per item. This strategy creates a sense of value and can help boost sales volume by encouraging the purchase of multiple items.

d) Promotional pricing- Also known as "on sale" pricing, this strategy temporarily lowers prices so as to increase consumer demand.

e) Price lining pricing- A strategy that uses a limited number of prices for all products. This model is best exemplified in the Shop 100 stores where everything costs Kshs 100. The underlying rationale is that these amounts are seen as suitable price points for a whole range of products.
  
Look out for part 2 of  Pricing For Success, where i will use a case study to demonstrate how you can apply the cost plus strategy.

Sources: ehow.com, entrepreneur.com, wikipedia.org, organizerightnow.wordpress.com, 123rf.com

What Has Emotion Got To Do With It?

During the June 14th Jumpstart Thursday session, we got talking about how artists get emotionally attached to their work-so much so, that they are determined to create products that personify them rather than those that respond to market demands. There is much to be be said about the subject - depending on personal experience - but i came across this excerpt from an interview featured in the Design Trust blog on 10 successful designers, crafts people and advisers. They give personal tips and insights on what they wish they had known starting out. This particular one by Sidsel Dorph-jensen caught my attention. For the complete article, click here

 "When I started out I wish I had known … how to feel comfortable selling at shows. The whole experience of exhibiting your work to the public is very intimidating. It is quite paradoxical, really, because you’re at a trade show or craft fair to sell your work, but it’s also a situation most creatives I know feel very ambivalent about. Yes – we want to sell, but no – we don’t believe we’re any good at it, yes – it’s why we’re there, but no – we don't feel comfortable.

There’s a mind shift between being in a designing, making and creating state, and being in a sales situation. They probably live in different parts of the brain – but I’m not going into that.

What I do want to pass on? The most important thing I’ve learned about selling at shows, and being comfortable doing it, is – that it’s not ‘about me’.

Craft Fair Secrets: The hush hush Ps of a great experience

          There was a time when craft fairs were known as "Christmas fairs", precisely because they were held towards the last quarter of the year. Recently however, there seems to be an explosion of sorts and i can count at least 7 happening just between the May-July period. An indication that the sector is growing? Perhaps. One thing is for sure though, the growing frequency of craft fairs signify an increase in craft entrepreneur numbers. It also means there is increased competition for the same customers.

So how do you get to the finish line first? Here are the obvious and not-so-obvious P's of a great craft fair experience.

 1. Product: Understand your product

Sounds obvious? Apparently it isn't. You will be surprised how many craft vendors don't understand their products. Remember that when customers are buying crafts--as is the case when they are purchasing products of cultural value-they are buying your story, your experience, your values. Communicate your inspiration clearly and draw the customer into your world. Ask them what they think of your product. This is especially important if they wow at your work, but don't end up buying. Find out what would otherwise have made them buy. That way, you assure them that you are creating for them, not for you. And remember--stay calm. You may hear things you don't necessarily like!

2. Packaging: Invest in good quality packaging material

How do you wrap your customer's purchase? No matter how beautiful your creation is, unattractive packaging will in an instant put a smudge on all your effort. Look for packaging that adds value to your product. If, for example, you are into recycling, use packaging material that is also recycled and that gives continuity to the product. If you can get your packaging materials customized with your logo design, by all means do so. Either way, the golden rule is to stay away from black polythene bags and old newspapers. Unless of course you are selling donkey meat!

3. Presentation: Appeal to the sense of vision

Your arrangement can attract or repel a customer before they even get to know what you are selling. I have found that vendors often focus too much on the product and too little on its arrangement. Here are some tips on putting together a fantastic display:

         a. Create a sense of height--avoid flat table displays. Think "outside the table". Use props, boxes, shelves etc to create level variation. You could even consider lifting the height of the entire table.

         b.Pick a theme--consider your product and select a theme that will enhance it. I once sold next to a stall selling pickled jams, fruits and cheese. The set up of their stall looked like an Italian kitchen--complete with hanging garlic onions, frilled checked red curtains, color distressed cupboards, Opera music in the background-- I couldn't get enough of it!

        c. Price labels--do you prefer to have price stickers on your items or would you rather tell the customer once they ask? Psychologically speaking, customers feel intimidated when they don't see price tags. They assume it is too expensive to be  displayed, and some may even be too embarrassed to ask. So, wherever possible, display the price and be ready to justify it if the customer does a double take at the price.

        d. Access--do not be so eager to show the customer all your wares that you cram everything into your display, leaving little room for movement or touch. Customers like to touch-and fit- so take this into consideration while you are arranging your stall.

4. Pricing: Have a pricing strategy

A common question i ask crafters is how they arrive at the prices they quote.

How does one cover all their production costs without seeming too cheap--or too expensive? Find a pricing strategy and stick to it. Do not sell your wares at one price at this fair and still another at the next one. Finally, and most important, be confident when quoting the price. And be ready to take the customer through the production process if they feel they are being ripped off. There is nothing worse than a customer feeling exploited.

5. Publicity: Let people find you (and remember you)!

How do you advertise yourself before, during and after the fair?

        a. Over and above the craft organizers doing publicity for the event, do your own publicity using your E-mailing lists, face book and twitter profiles to let people know you will be exhibiting at a certain fair.

        b. As discussed in an earlier article, consider flyers that showcase your designs instead of business cards. The latter don't say much about your product and it is likely that by the time the customer gets home, they have forgotten which card belongs to which business.

        c. Invest in a customized guest book (avoid those used for funeral wakes) and get your customer to give you their legit contact address by assuring them you will not flood them with text messages or worse, share their contact details with another company.

        d. One of the simplest, yet least often used tactics of making sure the customer remembers you is to email a thank you note after meeting them. Whether they made a purchase or not, the fact that they took time to come by your stall and make conversation is enough reason to say thank you. Make them feel they are the reason you are there.

            In conclusion, Let me remind you that craft fairs are not for making crazy amounts of profits. If it happens--sure, why not. But a better way to use the forum is to exhibit. Get people to see your product and understand the value it will add to their lives. Follow up these conversations as you would a business inquiry. You are likely to do more business this way.

All the very best and see you at the next craft fair!

Source: Nicedaydesigns.org

The 5 basic steps of setting up a craft business

Setting up a craft business is exciting stuff. The trend usually goes something like this; you start off by making some pieces-jewellery, clothing, ceramics, dolls etc-for yourself. Your friends and family see them, wow at your talent and proceed to buy some. While they are busy choosing through the assortment, they urge you to not only make more so they can gift their friends, but make a whole lot for sale. In other words, they urge you to make a business out of it. Many of us, buoyed by the recognition others are giving our talents, jump right into "making a business out of it", ignoring the basics of starting a craft business. Soon after however, we realize that we need more than the enthusiasm of friends and relatives to run a business. So, what are the basics?

1. What is your product?
It is quite a different story creating a set of earrings for yourself and those close to you and creating for the wider market. When you are creating for people whom you have probably never met, how do you predict what they want? What colors will appeal to them? How much are they willing to buy your jewellery for? The answer is research. Here is the truth-there is no substitute for research. Just because your sister, her friends and your best friend fanned over your creations doesn't mean the rest of the world will. You must be able to engage your target market in a conversation that will reveal what they are willing to buy and for how much. Which brings us to the next point-who are you targetting to buy your creations?

2. To whom are you selling your product?
A piece of advice that proved worthwhile to me when i was starting out was that there has never been a great brand that appealed to everyone-a great brand must be able to attract and repel at the same time. What does this mean? Simply that you must create your product with a target market in mind. For instance, if you are going to use crystals combined with similarly expensive stones to create your jewellery line, you are in effect defining your market as those who have enough disposable income to buy a pair of earrings for a few thousand bob. So, do not make the mistake of peddling your wares at the local college craft exhibition because it is unlikely that the person you are trying to target shops there. Define your brand well. What do you want your brand to represent? What is the packaging of your brand? Taking all your costs of production, level of detail and workmanship, how much will you cost your creations? In answering these questions, you answer to whom you should be selling your product to.

3. Why are you in business?
I have met three categories of people in the crafting business: those that do it as a side business. This category will usually have a job someplace else but will also work hard to realize supplementary income from their craft. The second category does it purely as a hobby. They create when the mood strikes and will rarely worry about the bottom line. For them, it is a favorite past time and nothing more. Then there is a third category-those to whom their crafting business is a full time job. It is especially important for the first and third categories of crafters  to put systems in place that support their objectives of earning substantial monies from their craft.

4. How will you establish your craft business?
Assuming that you are setting up your business as more than a hobby, here are some considerations into the how-to's of starting a craft business.
Find a name for your creations-this is the beginning of creating a brand. How would you like to be identified? Come up with a few sample names and test them on potential customers. Better still, ask them to assist you in the process of coming up with a name. Whichever way you go about it, the golden rule is to keep it simple. Once this is done, register your company as a legal entity. It is fairly easy these days to register a company-my advice would be to go for a sole enterprise at the beginning and change legal status as the company grows. Of course if you want to go into partnership with someone else, there is provision for that. Make sure to get your book keeping in order right from the start. I cannot emphasize this enough-keep your business and personal finances separate. I guarantee it will be the single most important thing in determining the success or failure of your business. Finally, consider where you will set up shop. There is validity in setting up a workshop at home-if only to keep your overheads low. Convert your veranda or a spare room into a working area. Make sure it is comfortable, well lit, inspiring and cut off from the rest of your home. It is important that customers visit your workshop without feeling like they are intruding into your privacy.

5. Where will you sell your creations?
Once all your friends, relatives and neighbors have bought their fair share of your creations, what next? How do you go about creating awareness of your brand? The first thing (simple enough yet rarely done), is to create some promotional material. The cheapest format is paper and to this end, i see lots of people with printed cards that detail their names, telephone numbers etc. I have to be honest and say business cards will not do much for your business. A business card with your name and address doesnt say much about your brand. Most will argue that these cards bear the URL addresses to their websites or Facebook pages, and clients will automatically find their way there, right? wrong! Most customers--unless they are completely blown over by your creations--will not go that far. Save your potential customers the hassle and give them a peek into your work with an A6 flyer that bears image designs of your work. That way, you will always have your 'display unit" with you and clients can pick a design right there. In other words, turn every meeting into a potential sales opportunity. Reinforce this with a well laid out online studio. There is no excuse why a brand should not have an online presence. With the free and easy-to-design websites such as kbo.co.ke, social sites Face book and Twitter and free blog sites, craft entrepreneurs are spoilt for choice. Establishing and maintaining an online presence is crucial in communicating with clients who do not necessarily have time to physically visit your studio space.
But what about those who do have the time, but will still not come to your studio? How do you make contact with them? Through craft exhibitions. These platforms provide great avenues to sell your work. In a later post, i will go into details of the different craft fairs held in Kenya. But for now, let me say that you have to think very carefully about which craft fair to attend. Most importantly, base your decision on your target market-find out which exhibitions they frequent, and strive to be a vendor there.
You also have the option of displaying your items at the various shops that sell craft items including Spinner Web, Banana Box, Blue Rhino, Goodie's just to name a few.