Handmade Goods and Craft Business

Start with who will buy and why, not with what you enjoy making. In this module you pick one craft you can repeat and describe the buyer for it. You finish with a one-page product idea and a price band.

• Pick one craft you can make well and repeat at the same quality.
• Describe the buyer by age, need and price level, in two or three lines.
• Visit five sellers or listings and write down price, material and quality for each product.
• Compare the prices, find the range and choose a band where your costs can still earn a profit.
• A common mistake is to copy the cheapest seller, so decide on value first and price second.

Activity. Write a one-page product idea with the buyer, price band and three products.

Standard to meet. Name the buyer, price band and three products; note five sellers.

A prototype is a cheap first version that you make to learn. You test it with real people and change it before you make a range. A design log keeps each change and the reason for it.

• Sketch three options and choose one with the help of two or three people.
• Build a prototype from the real materials, not from scrap that behaves differently.
• Test it with five people and ask them to use it, not only to look at it.
• Write each change and its reason in a design log with a date.
• A common mistake is to change many things at once, so change one thing and test again.

Activity. Build two prototypes and write a design log with at least two changes.

Standard to meet. Design log with at least two dated changes and their reasons.

Quality is repeatable, not lucky. A short written standard lets you judge each piece the same way and shows you when a supplier or a method has changed. You inspect every piece against it.

• Write a one-page standard for size, finish and fault limits, with numbers wherever you can.
• Buy materials in batches and keep receipts so you can trace a fault to a batch.
• Inspect each piece against the standard and record pass or fail with the reason.
• Calculate the reject rate each week and act when it rises.
• A common mistake is to sell second-rate pieces without telling the buyer, so mark them clearly or remove them.

Activity. Build five pieces and inspect each against your standard.

Standard to meet. Record an inspection for each piece and calculate the reject rate.

Most makers forget their time and sell at a loss without knowing it. In this module you add up every cost for one piece, including your time at a fair rate, and set a price from a target margin.

• Cost = materials + packing + fees + time at a fair hourly rate.
• Price = cost divided by (1 - target margin), for example divided by 0.6 for a 40% margin.
• Check the price against the band you found from five sellers.
• Test the price with five buyers and note who says it is too high.
• A common mistake is to add margin as cost x 1.4, which gives a smaller margin than 40%, so use the division.

Activity. Build the cost sheet for three products and set a price for each.

Standard to meet. Time included; margin calculated twice with the same result.

Online buyers cannot touch your work, so the photos and words must do that job. You learn a simple photo method and write a listing that answers questions before they are asked.

• Use natural light, a plain background and three angles: front, side and in use.
• Show size with a hand or a ruler in one photo.
• Write size, material, care and who made it in the first lines of the description.
• Tell one true story of the product in two or three sentences.
• A common mistake is to use filters that change the colour, which leads to returns.

Activity. Photograph and write listings for three products.

Standard to meet. Take clear photos, give size and care, and tell a true story.

Using two channels lets you compare. An online listing reaches many people slowly, while a stall or friend sale gives fast feedback. You track each channel for two weeks and learn which suits the product.

• Open one online shop page or listing and one market, stall or friend sale.
• Track views, questions and sales for each channel on one sheet.
• Reply to each message within one day.
• Note which products sell where and what buyers ask.
• A common mistake is to compare channels by total sales only, so also compare sales per visitor.

Activity. Run both channels for two weeks and keep the sheet.

Standard to meet. Show both channels with views or visitors in the sales log.

The parcel is part of the product. A good pack protects the item and shows care, and a clear postage and returns note stops disputes. You test with one parcel before you sell.

• Pack to survive a one-metre drop, using double wrap for glass or ceramic.
• Weigh the packed parcel and check the postage price before you list.
• Show postage clearly at checkout or in the listing.
• Write a short returns note with the number of days and who pays, and check the legal minimum return period for online sales with your local authority.
• A common mistake is to ignore postage in the price, which can wipe out the margin.

Activity. Pack and send one test parcel and record the weight and postage.

Standard to meet. Send the parcel so that it arrives undamaged, and show postage in the listing.

At the end you decide which products to keep, change or drop, using numbers from your own sales. You also ask buyers for feedback and plan the next batch.

• Compare sales, margin and effort for each product.
• Calculate profit per product as profit per piece times pieces sold.
• Ask three buyers what they liked and what they would change.
• Plan the next batch with quantities that match recent sales.
• A common mistake is to keep a product because you like it, so let the numbers lead.

Activity. Present results and a plan for the next batch.

Standard to meet. Decide on each product with numbers. Meets the standard when your record shows: compare sales, margin and effort for each product; every number has its currency or unit; a peer has read it and a mentor can follow your reasoning.