High
Frequency Marketing
PR & Media Relations in Spanish - Website positioning
A "CRAFTY" BUSINESS STORY
They were housewives and mothers of young children. Now they are
also budding entrepreneurs, Ellen Meehan and Mary Walker
discovered a way to remain at home with their children, continue
in their roles as homemakers, while contributing to their family
incomes and broadening their own horizons. "In Stitches" is a
small home-operated business featuring quality hand-crafted
items. Their line of crafts, which initially consisted of ribbon
baskets, macramé plant hangers and a variety of Christmas items,
has now expanded to include fabric frames, quilted wall
hangings, a variety of other decorative items, and a seasonal
line for spring/summer and fall/winter.
"In Stitches" began with a $400 joint investment, funds each of
the women took from their household "pin" money. Six months
later, not only has their original investment been returned, but
they are showing a profit! Initially, to launch the business and
cover the costs of supplies, inventory and advertising, Meehan
and Walker had reinvested all of their profits back into the
business. At the six month mark, however, they began to enjoy
the monetary results of their venture. The percentage of the
profits farmed back into the business has now be drastically
reduced from 100 percent to 40 percent, or 20 percent for each
woman! And prospects for the future look still brighter.
What makes Meehan and Walker's success story so exciting is that
neither of these women were formally trained in their skill;
neither had ever had experience in establishing or operating a
business; and neither relies on day care services to provide for
their children's needs. They are, rather, average homemakers,
different only in that they had the courage to invest in a dream
and work hard to make it become a reality.
The first step Walker and Meehan took prior to investing any
capital, was to attend a free lecture offered at the local
library. The speaker was a women who outlined the appropriate
steps to take when considering any small business venture. "We
had not started at that point, so it gave us a lot of things to
think about; how to determine whether there was a viable market
for our crafts; how to determine the selling price. These were
several points requiring careful consideration. The speaker told
us that home craft is a booming business. There is a large
market of people interested in well-made home crafted items
rather than store-bought items. We were also told about the
different ways to sell home-crafted items in shops outright,
wholesale, or on consignment. But the speaker indicated the best
way was through home parties. And that's what originally gave us the
idea and the impetus for home parties."
Incorporating many of the ideas they had heard and read about,
Meehan and Walker were ready to begin their business. Initially
a parallel venture, Meehan's line was called "Ribbons N Things,"
and Walker's "Not Just Knots." Each women had her own line of
crafts, was financially responsible for only her line, and
received profits only from those items she sold. Within a short
time, however, both agreed to merge, and "In Stitches" was born.
As Meehan points out, there are many advantages to this. "It
cuts our time in half. Depending on the item, we make it either
in assembly line fashion or one of us takes total
responsibility. Division of labor is determined simply by who is
more talented in each particular task. For example, I might
design, sew and stuff a satin balloon, but it is Mary who will
personalize it because her handwriting is more professional.
Selecting their craft line was not a problem for the women.
Simplicity patterns and craft books were carefully scrutinized,
and a wide variety of salable crafts resulted. There is an
emphasis on usable decorative items such as quilted tissue
boxes, macramé towel holders, and door stoppers. The women avoid
fad items because of their short selling life. They concentrate
mainly on seasonal items; they've learned through experience
that there is a ready market for them. There is no pat formula
for determining which items will be the best sellers or the most
lucrative. Thus, they offer a variety of items at prices they
feel are affordable.
At the onset, both women agreed that selling via home parties
was the most logical and viable route for them. To launch the
business and exhibit their crafts, their venture was an "open
house" conducted at Meehan's House prior to the winter holiday
season. The open house was conceived with a dual purpose; to
formally introduce the business and market its craft line, and
to initiate the booking of home parties. It was successful in
both respects. Not only was their entire stock sold out but,
perhaps still more important, additional orders were taken and
several buyers agreed to host a home party. Now they were truly
on their way!
ADVERTISING
A business cannot succeed without advertising, and both women
stress the importance of professionalism. Printed business cards
are highly recommended as they are impressive and readily
available upon request. They can help to gain entrance into
discount houses selling needed materials and, upon presentation
at retail stores, can often result in a 10 percent discount off
the total purchase price. Fliers should be neatly typed and
professionally printed for distribution. However, both women are
quick to point out that neither flyers nor business cards are
distributed indiscriminately. Initially, their mailing lists was
composed solely of relatives and friends. By word-of-mouth,
their business, and their mailing list, has greatly expanded.
Guests at each home party or open house are asked to sign a
"guest book" and the names are included in subsequent mailings
as well. There is no blind advertising, by mail or through local
publications. As Meehan wisely points out, "Since we are working
out of our homes, we want to know the people who come into the
house. There is, one thing, the liability factor to be
considered in the event of an accident. We also want to prevent
access to our homes by "undesirables" who might have ulterior
motives."
PRICE
Determining the selling price of the craft items becomes
difficult and involved. To avoid confusion, the women follow a
simple formula: they double the cost of the item and add $1.00
for overhead. This was the method suggested at the lecture they
attended, and they find it works well for them.
Although they are sympathetic to the taste, needs and purse of
the buyer, Walker and Meehan above all are business women. For
orders to be filled, they must be paid for, in full, the day of
the party. This is true for side orders as well. They take their
business seriously and are careful to live up to their
commitments. To ensure this, they schedule their parties
carefully, allowing adequate time in between events to replenish
their stock. Seasonal open houses are prepared for months in
advance. Samples are designed and produced in sufficient
quantity to ensure that they have not overextended themselves
and can meet their production schedule. Both women take great
pride in their work and are not willing to sacrifice quality for
quantity. "It's easier when you have inventory," Walker says,
"because you can choose from it rather than go home and fill a
hundred orders in two or three weeks."
She also advises that you make sure you live up to your
commitment. When people place orders with us, we have to fill
them. If you're not going to be committed from the start, then
don't bother. And be careful not to bite off more than you can
chew. If you do, you'll fall behind, get a bad reputation and it
will be a bad experience rather than a good one.
Both women point out that their major commitment remains to
their families and their work schedule must be flexible to meet
the demands of their children who range in age from two to
seven. But their business has taken on a personal importance.
"It gives me something else to think about," says Walker. "I
have to feel I can accomplish something other than housework.
This is for my self-fulfillment, my own self-worth."
Meehan agrees. "I feel like a functional adult gain," she says,
"rather than just a caretaker. Yet I don't feel I'm depriving my
children either."
In less than one year, "In Stitches" has emerged as a small but
profitable business. Not only has its line of crafts expanded,
but in order to increase the line, Meehan and Walker have
engaged other women to make crafts for them. These are sold on
consignment. As Walker explains, "We can only produce so much.
At home parties, we've noticed people want not just a variety,
but a multitude of things. They don't want one or two picture
frames to look at, they want to see frames made up of just about
every fabric."
"We're still a pin money operation," Walker says in describing
"In Stitches." "we're not big bucks yet. But we want to keep it
small for a while if we can and not overwhelm ourselves." But,
Walker continues, "If this craft business continues in the
direction it's going, the possibilities are endless. Perhaps
once our children are in school full time we can sell to stores
or open our own."
"I'm a new person," Meehan adds, as Walker nods her head in
agreement, "and I'm much happier with my life now. The extra
money is great, but it's more than just that. It's the feeling
of self-worth I get, and the pleasure I derive out of seeing
what I have thought was only a "pipe dream" become a reality.
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