640. "How do I turn my creative hobby into a profitable product-based business?" | Coaching Session

I do have four children, so I've been kind of consumed with that. My youngest just started kindergarten, so I'm kind of looking to grow this that fits within our family.

Hi, I'm Jacqueline Snyder and this is the Product Boss podcast. I've helped launch and grow thousands of product based businesses, even one of my own. And over the last 20 years, I've seen behind the scenes of businesses just like yours. Whether they are makers, manufacturers, artists, or food and beverage businesses. I have spent so many hours studying it all. I've discovered what makes them successful, what mistakes they could have avoided, how did they turn their ideas into successful business, and what are the strategies that they have used to make more sales and be discovered by more customers. And this is what this show is all about. Whether you're just starting out or you're looking to become a million dollar product boss, I'm here to give you the permission to chase your dreams, no matter how big or small. All you need is the right mindset, a little courage, strategy and support, and you too can be the next million dollar product boss. Let's do this. Hey, hey, product bosses. Welcome back to another coaching session. Oh my goodness. I am loving coaching you all. I'm loving coaching my students. It is just where I thrive. I hope you can see that come through on the podcast. It's what I've done for so many years, since 2007, seven with my other business. And it's just we're almost at a complete year of me jumping into one on one coaching calls once a week on the podcast. At first we're like, let's just try it. Let's see how it works. And I'm just getting so many amazing messages from all of you saying how helpful they are. So I'm just so glad that they're helpful and I'm seeing it on the podcast reviews. So thank you for leaving those. And it's just really great to dig in and work closely with so many students and so making so many different things in so many places in the world. And you know, as you can tell, everyone has a different problem, but we also have similar things. So it's just really helped me really craft and figure out what you all need and how to help you with the programs that we offer and the education and all the things. So I'm really excited because today I'm chatting with Sarah of Sparky Frames Stitchery. So Sarah has been selling hand embroidered pieces and kits, with most of our sales coming from local markets and workshops. And with Sarah's Youngest. Having just started kindergarten, she's trying to get her business to bring in enough supplementary income so that she doesn't have to find a new job or go back to teaching. So up to this point, her business has been more of a creative hobby because she really hasn't been making a lot of sales or profit. Now she's ready to turn her creative hobby into a profitable business, but she isn't sure how to do that. Not to worry though, because this is exactly what we're going to figure out. So you ready? Let's dive in. Tell me a little bit about your business. So what you sell, if you know your best sellers and where you're selling.

Them at the moment. What I sell is hand embroidery. It's. I design it and I stitch it and I do it on my own. And I have been selling kits as well as completed projects and hoops. So far I've sold more at markets or workshops and then I have really. On Etsy, that's really been my two, I guess, worlds. At the moment. I do have four children, so I've been kind of consumed with. With that. My youngest just started kindergarten, so I'm kind of looking to grow this. Yeah, that fits within our family. Yeah.

Okay. So what does that mean to you for growing it? Like that would fit within your family? Like, what are you looking to do?

I'm looking to. I don't want to. I used to be a professor before having kids and I don't really want to have to go get a job. I'd rather have this be kind of supplementary income we've been getting by just with my husband's salary. But yeah, I would like to. I mean, I don't. I know it's like, what is that? How much money? Yeah, you know, you're like, give me the numbers. But you know, that's kind of hard to. To really say.

Well, but. But I do think. I do think from a perspective of if we don't have a target or a goal, there's nothing we're working towards or aiming towards. Right. Like, so you being a professor, studying for a test and completing the test or going through things. Right. So we do need to have something concrete. Otherwise it's just kind of a hobby. So what would a supplementary. And it doesn't have to be the exact. And it could grow so much higher, but like baseline. What would a supplementary income so that you don't have to go back to work and you can stay home, post kids not needing you around all day. What would that be? For you?

Uh, when, when I taught I was an adjunct, so I mean, I only made like maybe 10,000 a semester, so. Yeah, maybe about 20,000 I could see. Yeah.

Okay. And then do you have times that you. Do you want this to be a year round business or do you want it to be seasonal?

I would like it to be year round, but I do recognize that it has a very strong seasonal aspect.

What is, what is that? The seasonal side?

Christmas.

Christmas. Okay.

And the lead up to it. So just now I'm starting to try to book workshops so that people can either learn how to stitch so that they can make their own Christmas presents for family members. And I'm also working hard on little ornaments to sell at markets.

Okay. Were you in business last year?

Yes.

What did you do? You remember what you did in the holiday season of last year?

I did maybe about 4,000. Three or 4,000.

Okay, okay. Cause I'm just trying to break up your year because if we do this consistently, if you want to do an extra 20,000 for the year, it's about 1600 in revenue a month. Or we can say, you know, 2,000amonth just because that would then have space in there for you. Because when you say 20,000, is that profit from the product? Like it's cash taken home or just you want the business to make 20,000 maybe in profit?

I mean, embroidery isn't too expensive. There is the upfront cost. Like I get the hoops from China and have them shipped in bulk. So that's to get like 200 hoops. That's an investment of maybe $400. And then the thread itself is maybe $100 for all that. So. Yeah, and fabric as well. I mean, that's, it's not that much.

So are you profitable? Like what's profit margins are for that?

It is. I am starting to increase. I did increase. And that's another like big question that I have of like selling the kits versus the actual finished objects, you know, because the finished objects, is it more like a high end art piece? Like is it like a painting? Do I try to market it and sell it like that or do I just throw in on kits? So I profit margin? I don't know that off the top of my head.

Okay, let's see, I'm just. Right now I'm just kind of like in discovery mode of trying to find out information from you to guide you. Then let's talk about bestsellers. So then when you're asking me about those two types of products, is it embroidery kits or or is it finished goods, like something that's an art piece? When you have your high months, like 1500 dollars months, or when you're selling more, what are you selling more of?

Which option Those are the high selling months are when I have a market and then it is the finished pieces. I've been surprised at how much people will buy like a finished. Or I make the necklaces as well, so they'll buy the necklaces and those. Do you know, it might take the actual. This could take maybe $20 to actually make, but I'll sell it for 60, so that kind of gives a good guy the hoop. I might sell for like $80, which I'm kind of challenged by looking at and costing and that that should probably be double because it is a one off original park piece.

And you're doing this by hand?

Yes. Yeah.

Okay, so you're saying that the majority of your money is made because people are buying the finished art.

Yes.

Okay. And you're selling that and is it in person markets that they're mainly buying that at. And are you selling on Etsy?

Yes. Not gotten much traction on Etsy. And the kits also do very well. Like I could have a workshop where I sell the kit and teach people how to do it and I could have maybe take 10 or a dozen people there and they're each purchasing like a $40 kit and then they'll buy another one at the end of it. So that's kind of. I. I could see as being more long term profitable then. Yeah.

What do you like doing for this business? Like, what's the thing that you really like?

I do like teaching because I think that's part of who I am and I am always stitching. So I do like selling the finished pieces and I have so many. Buy it, I'll sell it to you. I. The things I don't like is, is the actual act of stuff selling, if that makes sense. Like I'm not, I'm more of that kind of introvert. Just let me sit and be quiet and stitch and I'll show you how to do it and encourage you to come alongside me and stitch. Yeah.

Okay. So the way for you to, you know, from hearing what you say, you like to stitch, but the amount that you'll have to stitch to make money. And because it's hand stitched, I don't know if people always will pay for the value of your time. So because this could be done with a machine, technically it could be done way cheaper. It could be done in masses and I'm not trying to take anything away from your art, but I'm just saying that if you're going to compete with potentially bigger brands that are out there, it's either you people are buying into the value of like watching you do this and they want that piece of art because they've watched you do it, right. It's, it takes time and they should pay for that time. But does the value or the person that you're attracting like do they understand hand stitching versus machine stitching? Right. So, and then to scale and I know you're saying, you know, $20,000 or maybe it's 24,000 year would be a good amount of money for you to just feel like it could stay your side hustle, could be a little bit of extra spending money. You don't have to go back and get a job. You get to kind of not get a job, but you don't have to go back to your old career. Like you get to kind of live as a product boss. The most scalable thing that I see happening is the kits with some of your handmade stuff. But the handmade stuff that you do is more expensive and like when I say more expensive, but there's like value to it because they're getting a finished good and they're just like so in love with it and it's, and it's something that feels really special and you, and you've got the value in it. So they're buying your art piece but they're, it's two different customers. But the thing that I see, because I think you said faith based, there was something in there. There's a lot that you can do in the faith based market. There's so funny, I was just talking about this this morning. Have you seen the trad wife hashtags like the. It's a new trend. So like the traditional life, right? And there's this element of like there's also like homesteading and people who homeschool their kids and they have like a very specific way. And so there's this also there's. In times of uncertainty, people also go back to things that are certain or nostalgic. And so there is also an element of faith and sitting there like trying to be off screens, trying to not do those things and picking up some sort of hobby. And now we did really well with that in 2020. People needed other things to do. They couldn't leave their house. But there is still this element of, I think by you tapping into the faith part or having Some like being known for something is going to get you a lot further than just making anything that you can make just cuz. Right? Because then you become referable. So it's like yeah, like we can compete with all these needlepoint companies or like, you know, the bigger mas companies that like you can buy a ring and a pattern from Michael's. We don't want the generic. We want something that feels really aligned with your ideal customer and your values and that's really what's going to keep you in a niche of your own. Which is not a bad thing because if you can be known for something, then it's more to talk about. So like create the. You have it on your Instagram. Create in me a clean heart. Oh God. And renew a right spirit within me. Right. Things like that. Where or Lord I believe. Help. Like yeah. Versus you are my sunshine. You are my sunshine's fun but like rejoice with with me. I found my sheep and it's got these cute little like sheep all over it. That's the stuff that like I think you can spread out, you can, you can water it down later. But if you can be really specific to start. It's like if you're gonna do flowers, do flowers with something faith based so that your customer keeps coming back for more of it. And it can be a variation of it, right. Like it could feel super religious or it could be just something that lives in the zeitgeist. You know, that's out there like courage dear heart, but it's still very aligned with the same customer. Did you catch how we reposition Sarah's embroidery business? By leaning into faith based designs with a modern twist, Sarah can carve out a unique niche in the product market and know exactly who her ideal customer is and who she's speaking to. Remember, properly positioning your products is key. By crafting your brand and products around your ideal customer's values and traits, you are able to directly speak to those customers pain points. Resulting in not only getting more eyes on your business, but the right eyes. Right? The eyes that are actually going to buy from us. So for Sarah, this means crafting embroidery kits and other pieces that blend faith and inspirational quotes. Not only does this approach allow her to stand out in an otherwise crowded market, but it also allows Sarah to attract a growing audience of those looking for more modern day faith related products. And I want you to just pay attention to this, but you're going to hear me talk a lot about the profitable product boss method. Okay? It's something new that I'm sharing. I've talked about it in different ways. And a lot of times the very first pillar of this is ideated, right? You're coming up with the idea initially when you're first starting out. But we're always ideating new ideas for our customers. We're always fitting our businesses back into realignment with who our customers are. And so even if you are, if you're just starting out or you've been in business for years, or you make some sales or not enough sales, or maybe you make a ton of sales, we're always coming back to this phase of our business, right, this pillar of the ideation phase. Because sometimes we've diluted our product line, right, and we've made all the things and we have to refocus. Sometimes it's time to add something new or upgrade or redesign or hit it with like, whatever's happening in the times right now. And so you can see, while she's had an embroidery company right now, we're going back to that idea phase to really think, how do we make this a profitable product that matches an ideal customer, right? How do we get her a sellable product? You're going to hear me talk a lot about sellable products. It's one of the key things that's standing in the way of a lot of people getting to their goals in their business. Okay. So speaking of that, now let's dive deeper into the products Sarah offers and see what we can learn there. And so it could be that you have a few of those. You can have like a couple of them embroidered one that's an example of the work. And then if someone's like, can I just buy this? You could sell it. But I'm wondering if the kits are the more interesting or like, it's higher price point for you. Like, it's a better margin because you're not having to physically make them all and you get to just sell the supplies and then they get to make them. And then not only that, it's a consumable now. So the difference between your art is they might buy it once from you or a couple pieces. But if you're going to learn needlepoint and you're. And you're teaching classes and you like teaching and all that, it's really aligned with you and it's less labor on your part. And once you get done with one, they're going to come back to you for another. But there's something there with the family one that might be an interesting for you for this Holiday season. That actually to me seems interesting for the holidays of buying finished. I would maybe buy from you something finished if it was going to be an ornament or a keepsake that I bring out for the holidays. But the family thing would be a really cool finished product that people can buy from you and then maybe like they get to pick. It feels a little custom, if that makes sense. It's just a random idea. You don't have to do that. But there's something there. So how does that feel in terms of like, in terms of selling kits and being more faith based?

I think it, it does confirm like kind of the way that the vision that, that I, I guess more long term that I see would be, would work with this model or what I'm trying to do. One of the main reasons why I started stitching is I didn't want my four children to grow up with their memories of mom always on her phone. I wanted to be doing something with making things like art in the margin of life. So just trying to like fit it in here and there. So that's that I would like to encourage that or to be kind of part of my, I guess, brand of who I am and what I'm trying to do. So I think like the kits is very much in line with that.

And yeah, I laughed because I had a. What I was talking about earlier with, like, I actually talked to my life coach earlier, actually right before our call. And so the two things I talked about were, well, a few things that we talked about, but the wanting to do things. And I was just saying I don't like cooking. Like, I just hosted a family thing at my house and I was like, I don't have the time. I don't like cooking. I like. It's not a hobby that I enjoy because I would rather be doing other things. But then it was the same thing. I was like, are my kids going to grow up thinking mom doesn't cook? I can cook. I just don't enjoy the process of it. But I was making a Taylor Swift costume for Halloween and bedazzling with like all the crystals. And I was like, oh, I like doing this. Like you said, in between, in the margin. So it was an, it was a bit of a project that my kids would find me just, you know, putting crystals on for hours. And so I'm laughing because I'm like, yeah, as a parent, I'm experiencing the things that you're sharing, which is probably a shared problem that a lot of people are feeling. And by Sharing that it will really resonate in alignment with a lot of people. And then people will choose the thing that they want to do. So some people might be like, actually, I do want to learn to cook and cook more. Some people might be like, you know what? Yeah, I think a little art project to do. Which for me, I'm highly considering. Like, maybe I could learn needlepoint. Because it would be something once the Taylor Swift costume is done. Which, by the way, in the middle, she told me she doesn't want to be it anymore. So I was like, all right, well, at least I had this hobby. But, yeah. So I think that it. That deeply resonates if we think about a problem that people have or like a need, want, desire, or problem that your product can solve. The need, the want, or the desire might be to do something else. Like to find a creative outlet of creative hobby to do something else than maybe always defaulting to our phones. That might not be their original thought, but when you say it that way, you're like, oh, yeah, I don't. My kids are always like, mom, you're on your phone. I'm like, I'm reading the news, but they don't know what I'm doing on my phone. Cause I'm actually not on social as much as I used to be. So I'm reading the news or I'm doing something else. And so. But they still see it as a device. So that's a pain point that you could easily express, but it's not gonna be your entire brand built around it. It's just one of the stories that will connect with somebody somewhere. And then they get to choose what side hobby or outlet that they want. Some might say, you know, I'm gonna try needlepoint. Some might say I'm gonna knit. Some might say I'm gonna cook. Some might say I'm gonna take up photography. So your customers will learn, but you're gonna be. You're gonna be meeting a need for that person. So they're either an experienced nailpoint artist and they like the fact that they can get this, or they're new to something and they wanna try it. And then your. And knowing how to teach might come in handy with, like, you doing videos. You know, like, when they buy it, there could be like, you know, kit one, kit two, kit three, like, different levels. And then it could come with a QR code with a. Okay, this is. You could even literally do a training for your embroideries. And they could watch it if they want to. To learn how to do that needlepoint, like not by themselves. Or it could be like, here are three basic stitches. So you can really include a lot of that in. In support of the product you're selling. So you want to kind of figure out like how to get. He said that to make this successful to you or what you need help with is like a step by step on how to get the business going and what to take, like, what steps to take in the next six to 10 months. So let's say, you know, this time next year and really trying to think of like your path forward. So knowing the product now that we kind of have to sell or. Or I've suggested it to you. So do you feel aligned with that idea or how do you feel about the. The physical, like what we're thinking about selling, the offer we're going to make?

Yes, I think, I think that works. It is sort of like a spanner in the works. With Christmas coming up and at markets, like, yes, people are going to want to buy a finished good. I think at that point the kits also do well too, because people want to have an activity, you know, when they're sitting around the fire or something like that.

Yeah, but you could position them as. You could and should position them as gifts. So I would have the kits kind of like, maybe you get like a cute cardboard box and a bow and you could show like, these are great gifts gifts. You just want to like, even have a sign that says makes great gifts next to the. The kits because you're assuming it's for someone to do themselves. But note that people are looking for gifts. And a lot of times when you bought the same gift, like you have the same people you gift every year. Eventually you're like, I need a cooler gift or I need something different or I need an alternative thing. So it could be for that creative person. You know, if there's a kids one where like people are looking for gifts for kids. So I want you to still think about it in like a gifty way and so speak as if it's a gift to get people.

Okay. Yes, I do have kids kit that have sold well in the past. And I've done them with VBS's like vacation Bible schools as well, where it's a little hoop and it's like you learn how to stitch with it. And those have always done well. And yes, I think I do like going more online, like trying to, I guess, sell not in person with the kids. I think if I'm selling in person, I can have kits But I also need to have the finished goods there as well.

Yeah, yeah, but it's a. It's like a secondary. It's a secondary product. But I want you to start to think about it. I want you to mark, this is where you're going to test and try. So you'll have your finished goods there. And you said you have a lot, so you don't need to make more necessarily.

No, I always think I don't have enough.

As you breathe in, I'm like, oh, she really. She was about to make 75 more. Look at your inventory that you have. I want you to turn it back into cash. Okay. You have hope, peace, joy, love. Like you've got stuff. Like, let's turn this back. Let's turn your product into cash. Like, you might need to tell yourself, when I sell it, then I can make another.

Okay. Yep.

And then. And then as you position your booth through in person markets, I want you to position them with the mindset of. Now everybody that's shopping is going to be thinking about the holidays, where it's official. And this is October 8th. We're recording this. It's official that, like, we have switched into holiday mode. So anytime people are going, you can get. Right now we want to get early shoppers. That's why actually today I think is Amazon's doing another Amazon Prime Day in early October. Because also in the States we're having an election and right in the holiday season is going to be. God knows what happens right, with the election. So there's going to be. And then. And then Thanksgiving and Black Friday is not till the last weekend of November, which normally is like the third week, but it's all the way out. So we have a whole month of November that there's like, it's not even going to happen till the end of the month. So anytime you can capture early buyers now, capture them. It's too much to put off.

So it's not too early, because that was another question, like, to launch, like the Christmas line of my patterns and kits.

It's out, it's done. Like, if you go into the stores now, like, Halloween's gonna be going on sale even though Halloween hasn't even happened. And if you look, there's sections now cleared out and Christmas is moving in. So it's, it's not. You don't have to do full launch if you're not ready for that. But I would say by mid October, towards the end of October, I would start to have your holiday collection out. Because what we want to do is especially this year. I mean it's happened year over year. It feels like it doesn't get any more stable. But there's an election, there's wars around the world. There's currently at the time same this very moment hurricane's happening. There's all this stuff that like keeps throwing people's lives into upheaval. So let's just be ready to catch them when they can be caught. Like when they're. If they're in the mood to buy. When they see you, let's let them buy it. If you hold out, we don't know what we only have now. We don't know what the future is going to bring. So I just want you to start to sell now. Which is why, why Amazon is doing a sale so early in October. They're even trying to beat out the Black Friday like Cyber Month. They're trying to get people to buy earlier this year. So follow the big guys. Okay, so with that make sure that your booth and your way that you're selling feels like you're suggesting great for gifts. You can even lean into your like if there's like a kids area like a kids kids projects like give them the gift of less screen time this holiday season. Do little sign it signs. Do little chalkboard signs. Like whatever it is. I think those are things that are a parent's gonna be like yeah, I'm gonna buy my kid that. Like even if they never get their kid to do it, it's the, even the intention that the parent feels like they're taking a step in a direction to keep their kids off screens. Said by a mother who would be like I'm going to get that they're not going to do screens and they're just going to do screens. But I will have bought it from.

You so many times you do end up stitching while watching a show or something.

Totally. I'm fine with watching shows together and movies together. It's the tiny devices and all that that I have more issue with. So okay, so thinking about this, what we've covered so far is kind of positioning your brand right? So the faith based embroidery, teaching people how to do it, having product projects for kids and adults and then having your art as a sec. I think your art part is secondary. I would try it if you try to reposition. I just think it's more scalable the other way and more cost effective. Then we've talked about the products. So we've talked about maybe you raise your prices on your handmade A little bit if you can and then really you have multi stream machines. So go back into the pricing strategy for the kits and then have like your different segments of it. Right. Like it might be like beginner, intermediate, like more professional or you know, the simple one. A thing that teaches people how to be makers and then also does finish goods. Did you see that what we did there? Right. We what we were able to figure out. So while Sarah has been focusing on selling both finished embroidery pieces and do it yourself kits, we determined that focusing on and leaning more into her DIY kits could be a game changer for her business. Why? Because in Sarah's case, her kits are going to be easier to scale and have a higher profit margin than her embroidered pieces. Plus, with Sarah's background in teaching and her desire to encourage creativity in others, her kits are going to be easier to sell due to her passion. As I always say, if you want to grow your business, you need to go deep, not wide on your products. So for Sarah, going deep means leaning into her DIY embroidery kits and expanding her selection of kits from beginner friendly to more advanced, plus having different price points. What going wide means is making all the things and thinking that people need all the things they don't. We just have to get focused, faith based, do it yourself embroidery kits. So by homing in on her kits, Sarah is setting herself up to make more sales and money to really start to make a profit and grow her supplementary income, which is exactly what she wants to do. So now let's figure out how Sarah is going to get her products onto more platforms and which sales channels might be best for her and her business. Happy holidays. We want to get you uber prepared for this holiday season because what we want is that you can get consistent sales, right, have steady growth and keep growing your business beyond always having to offer a discount during the holiday season to drive sales. So if you want to get prepared, you can jump in and grab 101 content ideas beyond the holiday discount. And it is a bundle of content prompts, tools, hashtags and templates and it includes a three month calendar with things to say every single day is so helpful. So feel uber prepared for the holiday season when you grab yours. Now just head toholiday content ideas.com and then let's talk about your sales strategy. So even though you're an introvert and you'd rather be making makers, got to make money. Okay, I want you to remember that you can embroider that for yourself, put it in front of you because usually Makers just stop at makers, got to make. But if we're in business and we're not just a, it's not just our hobby, which you're selling to hobbyists, but for you it's, it is a business, it's a side hustle business. We have to make money, that's what makes it a business. So thinking about sales we have in person, you have a couple other options, especially since you're a multi stream machine. I don't teach Etsy and it sounds like Etsy is like a once a month situation. So you could try and build Etsy and get better at that or you can think about other ways to sell your stuff. So whether you're like you're leveraging Instagram and Facebook because you do have like a, you, you have a better established Instagram than a lot of people that I coach. So you do have something happening there and then that would drive traffic to your website. But your website's not really optimized to sell right now. It's not built.

No, it's not. I'm, I'm currently trying to build that up or I have a friend who's working on it. Yeah, yeah.

But if you want to make sales online, direct to consumer, then you're going to have to drive your own traffic there. So you either have to do it in a paid way, organic or through partnership. So the easiest ways for you organic wise would be trying to grow your Instagram, Facebook and or driving people that you meet in person to buy more from you online. It's not the easiest way. That's not the thing that's going to be the, that doesn't turn the faucet on. That's, that was my path when I started Cuffs Couture where I was like, I'm launching a website. It's going to be beautiful. And no sales happened because nobody knew I existed. So the two things that I did that got my business like started was in person. Like you're doing, getting immediate feedback, getting emails, getting known by people and then wholesale. So for you, you could do wholesale, you could do Amazon, you could grow, you could try and grow your Etsy, you're doing in person. There is some like affiliate kind of marketing you could do. So thinking of an additional sales channel, what feels misaligned to you that you'd like to work?

Am curious with the wholesale or like licensing, something like that. There is a couple little shops like gift shops here just in Richmond, Virginia that I'm teaching a workshop at and then I'm will talk to them about carrying the other kits. So I think, like, I have in line and some meetings to meet with some shops, local shops in that regard, but I haven't really looked at Amazon kind of. I don't think I'm. I don't think I'm ready for that, I guess. Yeah, I don't know. I kind of looked at it and I would like to. I think that that would be a good market because so much of the product or the embroidery kits that are sold on Amazon are cheap. They're not made by an artist or an embroiderer. So it makes the, the embroiderers like, like cringe when someone says, oh, I bought this kit on Amazon. So it would be nice to be there in that marketplace to say, hey, this is a decent kit.

You know what's funny is I actually live near a embroidery. It's called something stitch, but it's like an embroidery shop. It's an old little. It's a little shop that's been there forever that hasn't updated its windows since the 80s. And it's nice to kind of see those quaint shops still. I mean, I'm in la, so, you know, things change over a lot here. But wholesale for you could be a path of. I want you to leave every option open, right? So instead of having these, like, strong ideas of it's like this or it's like that, leave every opportunity open, leave a little crack so that if and when someone. Use my friend Bunny, use this as an example as an analogy. And I love it. So you know this because you live in a cold place. So in the winter when it's all frosted, like the. The windshield is all frosted and you turn on your defroster and you start to see, like, it starts to clear the very bottom of the windshield, and then it gets bigger and bigger and eventually you can see through the whole windshield. Right now it's all frozen and you can see a little. You're going to start to defrost it and see a little bit. You're going to see a little clearer, but then you're waiting for the full picture to happen. And it's not going to happen overnight. It takes time, so leave it that you're allowing everything to unfold. But what you said to me about teaching classes, what I'd love for you to do is if you're going to teach a class, I'd love for you to bring kits to sell after and make an offer to them that if they buy while they're there with you. They get x percent off. So I just did this. I took my kids to a virtual reality place and they upsold me at the end. So it was, it was so expensive. I didn't ask the price before we went in. It was like 50 bucks a person. And I was like, oh my God, I could have gone to Disneyland. At the end we get done, they're showing us our video, like our replay and all that. And they're like, hey, if you book now for your next session, we can give you, I think it was like 10% off. I was like, yeah, okay. Like, let me think about it. And it wasn't enough for me to say like, yeah, I'm going to give you more money right now. And then he's like, listen, you only have to book one person, you get the 10% off. And then you can add on other people later and they can get the 10% off too. So he's trying to just get me to pay for one person to reserve a future time. And I was like, okay, let me think about it. And I was really not sold on it. So then he comes back and I'm like, oh, this was totally, this is part of their, their, their deal. He goes, well, I just talked to my manager and he's given me approval to give you. I was like a car salesman. He's like, give me approval to give you 30% off. And remember, you only have to buy for one person right now and then you can add on. So the 30% off. I was like, yeah, that's significant for it being 50 bucks to 30% off. So the value was worth it to me. The discount was a better discount. So I booked it for like way future time and now I have to make sure I use it by that time. So for you, it's an offer of, listen, if you buy these kits now, it's the cheapest price I'll give you and it could be 20, 25% off. You have to find the number because 10% isn't going to be worth it enough to make that purchase at that point. So it could be like the lowest price when they buy right after because they're at the height, they've had a win, they've learned to embroider, they're like excited. They're thinking, maybe I can do this, maybe this is going to be my hobby. And then you try and sell them kits when they leave. And you could have like a one kit, you could have a three pack kit. You know, there's different things that you can offer them to try and sell direct to consumer right there. So not only getting paid for the teaching, but that then I would build that in. It's not the finished goods. It's the. Here's your. Here's. You can literally tell you, like, you can give a man a fish and feed him for a day, or you can teach a man a fish and feed him lifetime. So it's that same idea. Like, sure, you can give them a piece of art that they can buy if they want, but let's try and sell them the kit. Then in those same stores, you could make the connection for them and say, like, these are great, like, giftable ideas. These are great gifts for people. Maybe there's even. Maybe you do smaller ones that are ornaments, that are easy little kits to do. And it's like make your own ornament. You could do. Make your own ornament, craft things. You can position it that way because I want you to make the connection for the stores why they would carry you and how they could sell it if they're a gift shop. So again, it's less of your finished goods. They could buy your finished goods. But really I want you to position these kits as gifts and projects. So for me, for your second Strat, your second sales channel, I think in person is one way. And then I do think wholesale in this sort of. It's. We're not. It's not that much money. I know it feels like a lot, but it's not that much money you have to make from this. So it's. It. This does feel very attainable for you to hit your goal with even this. Just these two options, not even worrying about Etsy, unless you want to go and build the Etsy engine. With that said, I want you to figure out your kits and then the pricing of your kits and the average amount that they are. So if you think that, well, how much is a kit? If I were to buy one from.

You, it is 36.

Okay, so $36. And do you know if someone buys from you in person, what they're. What they're buying or spending?

It's probably around like, $40.

Do you know, like, what your average orders are like when they buy from you in person?

They would just. Most people would just buy either one kit or two of the little ones, which are like 15.

Okay, so we'll just go with the 35. Okay. So to get here, if you only sold one thing at a. Like, if you only had an average order value of 35 and you wanted to make the 20,000 at the average order value of 35, then you need to sell about 11 kits a week or have 11 orders of $35 a week. Now that probably feels a lot in the way of one a month on Etsy. So there's two things that you could play with here. One is raising your cart value. So anytime you can get them to spend more, it's less people you have to sell to. So if you could get them up to $50 a person, so that would put you at like seven and a half, let's call it eight sales a week. So if you can get them to spend $50 with you, then it's 8 versus 11 sales a week. So I say that because if you can raise the average order value, so it's either Costco's up a bit, they buy scissors from you or they buy extra. Like are there add ons that they can add on to raise the cart value? Is there an offer that they get, you know, by, you know, a pack, a set of three together. Anytime you can do some sort of add on or upsell, that's going to raise the value from 35 up. And if you're telling me it's 35 and then 15 for a Mini, then let's always try and sell that to people.

Okay. Yeah, I have not done, I've normally have kept like the little kits like just for the markets, but I can see and I started to have vision for doing kind of a variation of it on Etsy and trying to put those online as well. So that's something that, yes, that's a good idea.

You could do like 1 for 35, 2 for 60. Right? Like instead of so or 1 for 35, 2 for 50. If you, if you had like that margin there and you could do it like I'd be like, yeah, I would do 50 bucks.

Okay.

Like that to me is a very easy jump to just be like, oh yeah, that's super worth it. Because it's only another $15. It's basically like buy one, get one 50% off, which is 25ish percent off. So you could think about market offers, but if you can raise your average order value then you can make, you'll make less sales. That's like, that's number one. The second thing is, is people who have bought from you to get them to buy again, they're the easiest people. So these are like the, the easiest levers for you to pull to make more money. So the, so you go your email list and that's one thing, right? And so you get them to buy on they, you get them to buy from you by sending emails. That's one thing. Second thing is like you could have a punch card, you could have a loyalty system, especially if you're doing these in persons, like if they come back. I don't know if you ever peak customers, but I want you to start to pay attention. Do I repeat customers, they're the easiest people to sell to versus acquiring new customers, which is either you're growing it organically or paid or the, the getting of new customers. The secondary option is exactly what you're doing, where you're going to go try and get retail stores to buy from you and those people buy more in mass from you. So same thing. Now instead like you might be having a $500 order come in from a retailer. So that's how you start to chip away in bigger chunks at that $20,000 goal and you don't need that many. So let's say you get, I don't know, five people, you know, five people to buy from you, $500 minimum. And so that's $2,500 just there. That's a, a huge chunk of your goal. And then you get those five people to buy again from you one other time during the year, another 500 then, now you've made 5,000 out of your $20,000 goal with only five stores. So it's way easier to like have more coverage or to chip away at these goals wholesale because you sell more at a time to them and they can reorder more bulk from you. So I think that's a really good strategy for you. Do you see what Sarah's path forward is? While she has seen success at in person markets, most markets are local, which means right now she has limited reach. So together we were able to figure out that Sarah's biggest sales opportunity is actually through wholesale. More specifically reaching out to gift shops and faith based retailers who sell to her ideal customer. Even if Sarah were to secure only a handful of wholesale accounts, she could start to see some incredible success towards her revenue goals. This means Sarah's path to profit is through adding on wholesale and then also optimizing where she's currently selling to increase her conversion rate on her Etsy shop. Now, now listen, this is going to be her simplest path forward to reach her revenue and profit goals. And the biggest lesson here is that to multiply your revenue, you must multiply your sales channels so that you don't put all your eggs in one basket. Does that sound good? All right, now let's wrap this coaching call up. So to wrap, if we want to buy from you, follow you, support you, where would we do that?

The Instagram right now, I think it's made by day with some hyphens thrown in there. And Etsy is made by day. Rba.

Amazing. We will drop that all into the show notes if anyone wants to buy gifts or finished product for the holidays. And thank you so much working with me today.

Yeah, thank you. Thank you very much. This is very helpful. I'm excited.

I had such a great time coaching Sarah and I'm really excited about the path that she's on for her business. Now, the main theme here is that if Sarah wants to turn her hobby into a profitable product based business, she's going to need to reposition her products, right? She needs really great, profitable, sellable products. She needs to go deep, not wide, right? And by going deep, it means she's focusing on her do it yourself kits. And by getting onto more sales channels that have eyes already on it, right? By getting onto people's shelves by selling wholesale, she's going to get in front of those doors, stores, customers, and that's how she can start to grow her business. So if she implements what we discussed, I'm confident she's going to grow and she's going to be able to reach her annual revenue goal while still maintaining the necessary flexibility to care for her four children. Four kids, right? Full time, full time job, taking care of those kiddos, let alone this being her side hustle and all the other things she's doing. Sarah, if you're listening, I want you to know you are amazing. And at this point, one of the most important things is really figuring out how to blend all the things. How do you blend the things you want to do in your personal life, the commitments you have to the people you love and to yourself as well as your big beautiful business goals. It is all possible just some days require a little bit more of the blend of business and some days might be more blended into personal. So if you're wanting to turn your creative hobby into a profitable product based business, or maybe you're just feeling stuck and you're like, this thing just isn't working the way I want it to work. I'm putting in all of this effort, all of this effort and you want to look to increase your sales or maybe you're anywhere in between, right? You're just starting out. 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