Great Holiday Season

I'm having a terrific holiday season on etsy this year.  I'll do a year-to-year comparison once it's over, but clearly the level of activity is way up.  Question is, why?  Is my stuff better?  Are my photos better (yes)?  Is the economy finally coming back?  Are people more into handmade than mass-produced?  Lots of questions; so far, no answers, but I'll be looking for them.

Wholesale-wise, on the other hand, I totally missed the boat.  Should have been touting my wine bags back in October; not sure why I wasn't other than the distraction of Oberlin.  I admit that I found it virtually impossible to conduct any business while I was there - mainly because we were working on the house from early morning to evening.  Have made myself a marketing/sales/production/administrative calendar so I don't get caught again.  At least I learned that Valentine's Day is the next viable opportunity for wine bag sales, so that'll be the push in January.  If I can find the time away from the house.

Local Advertising

Am trying something new today:  local advertising.  I was told about the Aha! Connection web site by one of my clients, which provides news about local businesses, events, etc.  They offer advertising for only $15, so what the heck.  I'm advertising my embroidery business rather than the items I make; it somehow seemed easier to describe and I'd like to amortize the cost of that machine more than I have to date!

It hasn't appeared yet and unfortunately there wasn't a "preview" option so not sure if it's going to look very good, but we'll see if anything comes of it.

Teddy bear patches:  122 down, 28 to go.  Just waiting for more brown thread to finish up.

Etsy Search Ads - Discontinued

After 30 days, the verdict - for my shop - is in:  etsy search ads aren't worth it.

Statistics as follows:
- Spent $14.65 for 14,165 impressions, a little over $.001/impression
- For that, I got 56 views, 2 "favorites," and 1 sale for $23, or $3.82/view, $7.33/favorite, $14.65/sale

By contrast, in the same period for the non-advertised portion of the shop, I had 1,400 views, 36 "favorites," and 7 sales, for which I paid nothing.

The ROI on search ads is clearly not acceptable.  To be discontinued, immediately.

Quick update:  ads re-started yesterday so will continue until Oct. 26.  Damn!  Yet another reason not to like these search ads.  Hope you got a nice infusion of cash, etsy - I have a feeling these won't be around much longer.

I Did It!

What did I do?  Four hours of calling, that's what!  About 2/3 follow up, 1/3 cold calls.  I guess I've really become inured; the time went fast and it wasn't bad at all.

I've decided that that's the single best way to get customers and 10 calls a day simply isn't going to cut it.  Right now I'm working my way through the college "green" list and the ICBA member list.  I start at 9 with the east coast stores, then at 10 I move to the central time stores, at 11 the mountain time folks, and finally at noon I get to the west coast.  Cross-country touring, every day.

Had some decent interest from the cold calls, regenerated some dead or dying leads, and got some definitive no's that I can now take off my list.  Not, however, from my friend Josh who is apparently going to make me call him every few weeks for the rest of my life.  Which I will do!

Paine College

Back in the saddle after trips to Oberlin and Natapoc and a visit from Sarah.

To my great chagrin, I never got around to canceling the one-woman vendor show at Paine College in Augusta.  I reluctantly agreed to sell directly to students, then immediately regretted it and planned to explain that this was not my current business model to the bookstore manager there.  However, I didn't get around to calling so I was stuck.

Despite the fact that it was a 5-hour round trip drive for 3 hours of selling, it wasn't a bad day.  It wasn't a great day, either, but I did make some sales and the students were very enthusiastic.  Antoinette has asked for suggestions of how to move forward and I plan to propose the following:  She buys 12 sleeves from me (my minimum order) to have in the store.  If students want to buy shoulder bags or have more variety, she will direct them to my etsy shop.  I will provide a coupon code that will discount the etsy items to match her retail price.  She will also link her web site to the etsy site and provide the coupon code.  Seems like a win-win to me...

Friendly, nice, polite students!

The loneliness of the long distance cold caller

I've moved from being scared to make calls to being mightily bored by it.  It is very tedious to say the same things, hear the same questions/answers, ask the same questions/give the same answers, time after time, while remaining polite, upbeat, and interested.

Just finished making all my bookstore follow up calls.  No one to whom I'd sent a catalog last week has had a chance to look at it, so that means another round of calls in a few days.  I'd almost rather get a "no" than a "later" or a "maybe."

Worst of all, no yeses so far so nothing to keep me motivated.

This afternoon, going to pick up the ones who were out, busy, etc., as well as follow up with those in more western time zones.  I need to make significant progress on my "green" school list.  I can't believe it's past mid-July already!

Whole Foods direct contact!

I think there's been a breakthrough in the WFM saga.  I actually had a call from the famous JP - unfortunately I had left my phone charger in Oberlin and only just got the message today.  In the meantime, however, he had emailed me asking for my vendor packet.  And this morning I went ahead and returned his call even though it was late and I had already resent him the packet.

Apparently they changed systems and my information fell through the cracks.  He did apologize and seems like a super nice guy.  And good thing we talked, because it turns out there is an insurance waiver form I can sign instead of having to buy product liability insurance.  Thank goodness - the insurance is expensive and what am I insuring against, exactly?  I'm trying to think of the stupidest thing someone could do with a sandwich bag that could harm them, and I just can't come up with anything.

Of course, this waiver form hasn't actually made it to my inbox yet, but I'm reasonably optimistic that it won't take another 8 weeks and 8 emails to get it.  Just in time for BTS!

Moving on...to sandwich bags and laptopwraps

Not that I'm giving up entirely the wine store chase, but I'm quickly approaching back-to-school buying time and I don't want to miss it.  Although I'm pleased with the results of my wine bag campaign, it's clear that the big season for them is around the holidays, i.e., October.  So I'm going to wrap up the calls I've already started, then put wine stores on the back burner for awhile.

Have already started marketing the sandwich bags today, with several calls/emails to local health food stores including Sevananda and the Savannah Food Co-op.  And in breaking news, WFM finally responded to my sixth email - not that I have any news but at least JP's boss and boss's boss are requesting an update from him.  Be nice to see some movement there so I can re-contact the Atlanta stores and branch out to the rest of the region.

Time to Focus on LapTopWraps

New design LapTopWrap

I don't want to lose the wine bag momentum but the time for back-to-school ordering is coming up fast.  My experience is that bookstores finish up the semester in May, do inventory in June, and are ready to gear up for the fall semester by early July.  My catalog is pretty much done, so now to prepare a MailChimp campaign with my video (yet to be finished).  However, I think I'll continue primarily with my current strategy of cold calling, it seems to be the most effective and I'm dreading it less all the time.  I feel that with my new processes, resulting in lower pricing, selling to bookstores this year will be easier than ever.  And I'm not going to focus on Georgia, although I won't ignore it, either, but rather target schools that are into sustainability.  Too many times I've heard from GA bookstore managers, "Our students don't really care about environmental products..."  Again, though, with the price point I've been able to achieve, even people who aren't into eco should be interested in the sleeves.

Uncommon Goods

Finished up South Carolina cold calls today, still have some follow-up to do.  Only found 29 stores on google with several of those being Total and Winestyles, so actual number called is only 21.  Of those, only 4 have asked for photos so far but 6 are still outstanding so too soon to tell how interested SC is in general.

In researching more stores, I ran across a site called Uncommon Goods.  It's an online store that specializes in artistic/unusual products with some emphasis on handmade and eco.  Sounded right up my alley so I made an application for the wine bags.  However, I think I should do the same for my other products, which either have no competitors or just a few on the site.  Of course, I never heard of this site before today so I have no idea how much traffic it actually gets.  Still, doesn't hurt to submit them.  It's noon, so not a good time to call wine stores.

Three in-store calls this afternoon, assuming everyone cooperates (David, this means you.)

Marketing Plan

I think I'm finally understanding how to use the marketing plan I got from the Get Clients Now workshop I attended several months ago.  Although there are peripheral marketing activities that I can and should engage in - networking, for example - the number one thing I need to do is make phone calls.  It's paying off beautifully for my wine bottle bags and there's no reason to think it won't work as well for the other products.

So now my first 3 marketing activities are all around calling - first, follow up all outstanding calls; second, make 10 new cold calls; and third, research new stores to call the following day.  Since they're on a list, it's pretty certain I'll do them.

Of course, I really need to up my cold calls.  I started with 5/day, then 6, now 10.  But I just did 10 calls and it only took 13 minutes, not really enough time.  It's getting toward noon now which tends to be busy for wine stores, but I need to make a bunch of afternoon follow up calls so I'll tack on another 10 cold calls at that time.

Right now, however, I need to fill my order from Mac's Beer & Wine, received yesterday.  I think that makes 7 stores now!

My Catalog

I called about 5 wine stores yesterday and had interest from 2.  Not a bad rate, actually, although so far they've only asked for information.  As usual, it's one step forward, one step back, as I realized I needed to update and reformat my catalog.  That took me off sales and into marketing, but it was a necessary step as I'd promised my catalog to Pearson's.

It's done, at least as much as it needs to be to send to wine store buyers, because I guess they'll only care about those 2 pages.  (I do need to get some more samples made, though.)  But I feel like it needs a total overhaul before I go back to the bookstores.

I really want to get back to the original vision:  colorful, simple, and cheap.  Student budgets, right?  I want to refocus on a single layout - vertical, no shoulder strap - with crazy color and pattern combinations.  That's what's going to differentiate my sleeves from the others out there.  What I need is 2-3 samples in each size so that the buyers get a feel for the design, which they will then order by size and quantity.  No more trying to duplicate ones that I've already made with fabric resources that are often very limited.

Unfortunately, the samples in my catalog don't reflect this vision at all.  It's a hodge podge of old things that never sold and new things that I've made with the etsy market in mind.  There's kind of a unifying design - flap tucking into a front strap - but even that isn't 100% consistent and I have some with velcro, some with buttons.  Plus the combinations are too tame.

So, I think the plan is this:  I need to continue calling the wine stores and I should make up 2 more samples:  wine is the answer, and happy 21st birthday.  This I will do today.

Then, I need to make 10-15 sleeve samples with the new (old) design in 5 standard sizes:  ereader, ipad, netbook, notebook, and large.  These will go into the front of the catalog.  In the back, I'll put the old stuff which can be ordered, of course, but only in quantities of one.  I've got some time for this because back-to-school (BTS) ordering doesn't begin until June or July.  Making a bunch of them now, though, will let me find out what my rock-bottom wholesale price can be and still make a little money.

Too bad I already cut up so much material, and mostly for bags, not sleeves.  (The sleeves have to be wider because they don't have straps to provide additional width.)  Well, I can just cut down a larger size to make the smaller size; I don't sell many of the really large laptop sleeves anyway.

And what about etsy?  I guess I'll keep some stuff out there but really it's just too massive.  I posted a 25% off spring sale on FB (which goes to Twitter) but I'll be amazed if anyone uses the coupon code.  I'd like to get out of retail sales altogether.

Wine & Jazz Festival update

Ok, I know it's too soon to know for sure, but based on the day's sales, it was, as usual, not worth it to attend a show.  On the plus side, I developed a new product line - wine and champagne bottle bags -that went over pretty well.  I met a wholesaler and 2 women who have local co-ops.  So maybe something will come of them.

On the minus side, I invested $230 plus a lot of time to pull in $150 in sales.  Don't need my global MBA to know that that's not a very good return.

It was a pleasant afternoon and I got to listen to some great jazz, but next time I'm asked to be a vendor at a show, would someone please slap me until I say no?

Whole Foods

How much would I love to have an account with Whole Foods!  It would be just one more reason to love them.

I have now contacted all 7 of their stores in the Atlanta area.  Result:  2 appointments, 3 requests for information, 2 call-backs needed (buyer wasn't in).  All expressed some level of interest in my reusable sandwich bags.  Keeping my fingers crossed!

Also contacted "Ashley" at Festivity, a gift store, and had a request for more information.  I'm thinking about my silk products, like card cases and passport covers, for them.  Four stores in metro Atlanta, so this would also be a nice account to get. 

Still Looking for My Market....

Looking back at 2010 - my first full year in business - to help prepare and plan 2011, I'm still a bit stymied as to what and where my real market is.  When Dom and I put the original business plan together we were convinced that college students would swarm all over these bags.  Of course, that's when we thought we could keep the cost to $20, which isn't possible.  Also, we forgot that we had to go through the purchasing staff first.  And unfortunately, my first 3 major wholesale orders were made before I'd switched from the big bubble wrap to the tougher stuff, so the quality wasn't where it should have been.  Hence the return, below, and the disappointing sales at Macon State.  On the other hand, Abraham Baldwin made a repeat order last year.

My other retail stores didn't work out.  Re-inspiration gave my bags back after only 2 months, saying that they were "too nice," i.e., didn't look as though they were made from recycled materials.  Uh, that was kind of my goal.  And The Gift Emporium, well, not sure how well it's doing overall - I know that at last look they'd only sold one of my items, a card case.  And the web site is a mess.  My apologies if you see this, but it's true.

Then there was the farmers market.  Hmmm.  Sharing a booth with mumuboutique made the registration fee $137.50, and I sold over $600 worth of stuff.  Good return on the financial investment, but what about my time?  4 hours of market, plus 45 minutes commute each way, every week for 8 months.  Not even going to figure out the hourly rate, that would be way too depressing.  Still, it was $600 that I wouldn't have otherwise made and got the word out that much more.

And finally, of course, there's etsy.  I had a pretty decent year on etsy, not brilliant, but the numbers are definitely going in the right direction.  And I made the contact with Matt Dilling of Lite Brite Neon which led to the Tiffany project which could lead...who knows?  I don't spend that much time on etsy and I'd have to take the photographs anyway for my catalog, so there's an acceptable return there.  Zibbet has been a total bust so far, and Zecosi wants nearly 10% commission!

So what does all this mean for 2011?  Well, I'm not giving up on the colleges, but I do need a more organized approach to them and better follow up.  To that end, I've scheduled 4 MailChimp campaigns to send out my catalog at strategic moments - 2 months before Earth Day, early summer for back-to-school, September for Christmas, and early December for 2nd semester.

Etsy will definitely continue.  As I post more items and become better known, I expect this venue to grow.  Especially if I can keep ahead of the holiday calendar.  That's been a big challenge for me, to plan 2-3 months in advance of a major  holiday and make sure I've got some relevant items to showcase.  Plus I'm going to do 4 retail MailChimp campaigns with features, sales, coupons, etc., and see what happens.

Haven't given up on the retail stores, either, but maybe it makes sense to focus on nicer stores and not just "green" ones.  I've started making card and passport cases from the store of silks and linens that I have, and I think some higher-end gift stores might be interested.  I'm going to contact one later today, and I've been in touch with Whole Foods for my sandwich bags and will see one of the buyers next week.  Overall, though, I need to be more aggressive in researching good venues.

And I need to decide soon if I want to do another farmers market, especially if I want to be at a good one like Norcross or Peachtree Rd.  I think Muriel would like to do it again, although commuting might be a challenge for her.  The personal contact with customers was nice.  We'll have to solve the tent problem (namely, we don't have one).

I don't see myself doing craft fairs - I hate craft fairs.  Ironic, isn't it?

Any suggestions?

Vendor Show - Worth It?

Whether the vendor show at the Alabama College Bookstore Association (ACBA) meeting yesterday was worth it or not from a sales standpoint remains to be seen.  What I believe, though, is that it's got to be more valuable to meet people in person and to show interest in their group than to pick up a phone and cold call.  Ok, that's a no-brainer.  Still, it's good to reinforce platitudes with experience from time to time.

Other vendors kept coming over and asking if I'd written any orders.  I didn't expect to take any orders - I didn't even bring order forms!  For me, it was an opportunity to show my stuff, hand out my card, give a little gift (a card wallet), collect cards, and talk to people.  Did all that, and more:

• One person did give me a custom order (although he didn't pay for it yet)
• A potential customer gave me an idea for a new product, perfect for the military student body at her school
• Another person wants to organize her colleagues to buy 12 items for Christmas giving in order to get the wholesale prices.  Fine with me!  I don't care what they do with them.
• A vendor, who shall remain nameless and blameless, offered to send me her database with college store contact information
• Another vendor is going to put me in touch with a mid-states conference organizer
• Made some great contacts at NACS, based in my home town of Oberlin, and heard a very inspirational story

So was it worth it?  Absolutely!  What would I do differently?

• Work harder on my display, in advance.  Dom rigged up something with coat hangers that was ok considering I asked him to do it the night before he was going out of town.  With more time, though, I'm sure he could have done something better.
• Maybe bring some order forms?  Doesn't hurt to give people the idea that the stuff is for sale.
• Bringing the iPad with a pdf of the catalog was a good idea that worked well, but need to get a stand for it.
• Could have skipped the opening night dinner, especially considering that I had to drive home that night to take care of the chickens and be back the next morning by 8.  Was going to blow off breakfast but the cheap side of me vetoed that idea as I'd already paid for it.  Good thing, too, because I had the opportunity to introduce myself to the entire group at once and talk a bit about my company and products.  Would have appreciated a little advance notice on that, but it was fine.

Otherwise, I think I did all right.  Looking forward to the Georgia equivalent (GACS) next week.

Learning to Say No

My instinct is to try absolutely everything in an effort to market or sell my products then eliminate what doesn't work.  While not an entirely stupid strategy, it has resulted in a lot of wasted time.  After a year and a half, I'm beginning to get a sense for what doesn't work for me.  Even so, I have hard time turning down an invitation to participate in a festival or show - it's flattering, right? - that I know in my gut won't yield much.

Today is a case in point.  At the weekly farmer's market, I was invited to participate in a fall festival at a local private school.  "Your sandwich bags would be perfect!" the organizer said.  "I love your sign; it's got to be there."  And she said the magic word, "free," as in, no cost to participate.  Part of me thought, yes, my sandwich bags would make sense at a school. (http://www.etsy.com/shop/wrapcycle?section_id=7216178)

Then the experienced side of me weighed in.  How well organized is this event, given that they're accepting vendors the day before?  How much money do young parents have to spend on reusable sandwich bags?  If they're attending to support their school, why would they buy from me when the school has asked for neither an entry fee nor a cut of the sales?  Is this really how I want to spend 5 hours on a beautiful fall Saturday?  In the best case scenario, could it possibly be worth my while?

Taking a hard, objective look forced me to admit that this was a time when it was in my best interest to say no.  Unfortunately, I'd already committed to my market partner to participate with her.  Fortunately, our contact person never responded to my email, so I was off the hook.  But I realized that this analysis needs to take place prior to making the decision to participate in an event, not as an afterthought.  I think the salient questions to ask are the following:

1. Is it a cause, event, or organization that I personally care about and support?  If so, the rest of the questions may not be relevant or may carry less weight. 
2. Does it appear to be well-organized or am I being contacted within 1-2 weeks of the event?  Is there a single point of contact and does s/he respond quickly to queries?
3. Who are the attendees, and how many are there likely to be?  Is it likely to be a "spendy" group or just there for the fun or to show support?
4. Given the appropriate product mix for the event, could I hope to make an amount of money that would compensate me for my timethere?  If I'm limited to small items $7 or less, as in the case of the school, that would be difficult.  And elementary school parents are not likely to buy laptop cases (http://www.etsy.com/shop/wrapcycle?section_id=6117916) in great quantities at a fall festival.
5. Similarly, can I reasonably expect to cover the entry fee, if there is one?  (The answer to this one certainly would have knocked the Women's Conference, below, out of the running.)  If there's no entry fee, why isn't there?

There are probably other relevant questions but these would paint a pretty accurate picture of whether an event was worth attending or not.  And while trying everything is not such a bad idea for a beginning business, it certainly shouldn't be the going-forward strategy.  Time to put the last 18 months' experience to work for me, and learning to say no, when circumstances call for it, as an important part of that.