Time to Ponder
Basking in that post-holiday glow, looking forward to 2025.
Today’s “17 Step Commute” Dashboard…
Temp: Currently 71 degrees. High of 74 today 😎
Humidity: 1 on the “Soup” scale. (1=light broth, 5=thick chowder)
Today’s Playlist: Peter Tosh (and friends) Mix.
Conditions: Blue Sky!
Estimated Travel Time: 18 seconds
Food: Bacon, Eggs and Toast. Pot roast for supper.
Coffee Level: 1/4 Tank
On the Workbench…
We are getting the parts cut to rebuilt the front porch column that I mentioned last week. I found some beautifully clear and sound boards, already dimensioned and straight, at the big box store. Pine from New Zealand. It was pricey ($180.00 for 2 1x10x96”s and 2 1x12x96”s), but since they will be structurally supportive and exposed to some weather, plywood would not do. Cedar or Cypress would have been a better choice, had they been available.
It only has to survive another 10 to 15 years, then it will be SEP (Someone Else’s Problem). There are certain freedoms that come with getting old.
We also paid a visit to our favorite lumber monger in Lakeland. Hardwood Lumber and Millwork had everything needed to start 2025 off with a bang. The shelves are once again filled and my Etsy store is open!
Time to Ponder
Basking in that post-holiday glow, looking forward to 2025.
Happy New Year to all positive people! Staying optimistic in the face of daily, negative crises can be daunting these days. We have been limiting our intake of national and world news to about a half hour per day. It is sufficient. Working for ourselves from home allows us to control what the outside world serves up. Music is an antidote for us.
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Considering the Coming Year
Every year, for the past five, we have shut down our Etsy store when it was clear that no more custom orders could be carved and received by Christmas day. We get everything caught up and on their way, then set our sights on the new year and reopening anew-ish on January 1st.
Along with having this time to visit with our friends and family, letting shopworn digits heal, and rehabbing the workshop, it is also time for reflecting on our products and directions of business.
New products are considered to replace listings that weren’t popular.
Restocking the shop with our most popular woods, with an eye to offering something new, either in species or as an entirely new product.
During the shop clean-up, efforts are made to streamline the processes we use.
Addressing the dreaded subject of updating our Etsy store with fresh photos and adjusting prices.
Your online business is growing and you are making a profit. However, over time, costs have risen. You can feel shipping, raw material costs and venue fees nibbling at your bottom... line that is.
We include U.S. shipping in all of our Etsy listings and these rates have seen the highest increase, almost doubling what they were in 2020. Other costs have risen as well, but not as much. Maybe 25 to 30% more for wood, sales fees and costs of living.
Although we have adjusted prices on our keychains more regularly, it has been five years since we raised the prices of our personalized chopsticks. They are the most popular but labor intensive items we make. For 2025 these will need to see a 20% ($5.00) increase to keep offering the same quality and service.
Pricing is tricky business. Experience will refine your approach to offering your work at reasonable prices. To be successful, you have to monitor your listings to make sure your profit margins are keeping up with the times. Regular assessments need to be made.
Finding That Target Number
Our target profit margin is 65% (+/-). This is our “magic” number. For us, this goal is determined by knowing and subtracting all costs involved in completing and delivering our wares; i.e., materials, production time, venue fees and commissions, shipping costs, advertising, etc. You need to know what these costs are as well as what your hourly shop rate is, to calculate a reasonable price for your products.
After selling online for 17 years, we have crunched our numbers and determined our hourly “shop rate” to be $60.00. This target, which has been adjusted from $30.00 an hour in 2008, allows us to be as busy as we want to be, to earn a modest living and to keep the bill collectors at bay. Yours is likely to be different, depending on your circumstances, personal needs and overhead. We are fortunate not to have a lot of debt or other responsibilities.
This $60.00 per hour includes all materials used and our time to make our woodstuffs. So, If I can complete two pairs of chopsticks in an hour, their price should be $30.00 per pair. Basic math will tell you what you can reasonably expect to sell your work for. After shipping and fees, we will actually keep about a third of our hourly rate to pay household bills and taxes.
Supply and Demand
Raising prices because of popularity can be a real challenge. If you are consistently selling out of an item and cannot keep up with demand, you may be underselling yourself.
Beware of short term “runs” on a product due to a viral “share” or an anomaly in search algorithms. These can be misleading and drive you nuts, trying to figure out how to duplicate them.
Look at the bigger picture when you evaluate products. Do your diligence in research of similar items made by others.
Are yours unique?
Are they of superior quality?
Are you consistently having trouble keeping shipping deadlines?
If you answer “Yes” to these three questions, it might be time to increase your pricing.
I usually wait until after the holidays to do any drastic changes in pricing or product. If you do it before the season, it kinda looks like you are taking advantage of the upcoming demand. I do remove any “Specials” or coupons from my listings, as they are not needed to drive traffic. Besides, people expect changes in January.
I am a firm believer that when people shop online, they appreciate simplicity. I think that fewer “clicks” and easy round numbers (with shipping included) attract the buyers that we are looking for. So we round our total price to the nearest dollar. It is easier for them to mentally figure out their state’s sales tax for the “Grand Total” of their purchase.
So, it is time to get yourself motivated, cut out negative influences and create product and spread the peace.
I currently sell my work on Etsy ONLY. Beware of spoof sites, using my photos and descriptions. You will be disappointed ordering from them.
DustyNewt World ~ A map of where I have shipped my woodstuffs. See if your town is represented.
If you are enjoying what you see… I like it hot and black. 😉
I always learn so much from you. Have a great and productive year with hopefully no storms. I love you, Mom😘❤️
I like the photos of the shop and the organization of the wood! I built some Christmas gifts this year with some old barn wood, people seem to appreciate the handmade stuff. I like how you broke down what your cost is per item good to think on!