Monday, May 23, 2016

Tutorials, Custom Orders, Free Stuff & how I determine my prices ...

I am not accepting any more custom orders, but I will still be adding dozens of new pre-made sets every month. Available sets will be listed in my Etsy Shop: https://www.etsy.com/shop/NVCL3ARBVTT3RFLY
The simple answers:
How much I earn...
Tutorials: $0/hour
Custom Orders: $2.85/hour t
Pre-Made Sets:  $10.25/hour
Sending Out Free Stuff: $0/hour & -$30-$150/set (supplies and shipping cost money)

Why I am not accepting custom orders...

Unfortunately, I cannot afford to make custom orders.

I understand that this seems confusing, and after receiving many inquiries as to why I cannot afford to accept custom orders, I decided to simply write a (rather lengthy) blog entry. Yes, I was charging significantly more for custom orders, but it wasn't nearly enough to offset all the lost time.

"How are pre-made sets, which cost less, more profitable?"
When I'm making pre-made sets, I make the set, I photograph the set, and I list it. When it is paid for, I ship it, and I update it as shipped. That's pretty much it. Occasionally, a customer has a question, but most transactions require very little time for customer service. 

I have no deadlines, aside from going to the Post Office once a week to mail packages. If I want to work 80+ hours in a week I can, but if I want to be "lazy" and work a mere 40 hours, it is alright because I have not taken payment for a set that has yet to be made, so there is significantly less stress. Like most people, I work more efficiently (and am happier) when I'm not overly stressed.

Supplies can be ordered in bulk (discounted pricing) at my convenience, and I can choose whichever supplies are "in season" or on sale/special. With custom orders, I usually have to order a specific fiber, which may or may not be in-stock. I may have to check several suppliers, pay a higher price, and pay individual shipping charges. Basically, the supplies generally cost $10-$40 more per set for a custom order.

Assuming that the item I need is in stock, wool is a natural fiber and can vary in texture from one fleece to the next, so the client might not like the texture of the finished product. With pre-made sets, the texture is what it is. There is no need to worry about whether a new batch of wool will felt up exactly like the previous batch. 


With pre-made sets, I get the freedom to make what I want to make, and I can make the sets that I feel will sell. Custom orders tend to be really specific. So, if a customer changes their mind, I'm stuck with a set that I will have to sell for less. Unwanted custom sets rarely sell quickly. There are also a large number of people, who knowing that their set won't sell, decide to try to barter and make irrational demands so they can pay less than the agreed upon price.

So, if I pay an extra $10-$40 for supplies, and the order falls through, I have to sell it as a pre-made (average of $165). It's more like I'm selling it for $125-$155.

Why I didn't make a profit off of custom orders...
Most inquiries are not serious inquiries.

Of the 400+ inquiries that I received:
18 became orders
10 required cancellations/refunds (so only 8 actual sales)

So, 98% of the inquiries did not end in sales. 

Four-hundred messages isn't really that many, but most inquiries involved several messages, ranging from 2-50 messages per inquiry. So, with an average of 20 messages per inquiry = about 8,000 messages. The average message took just 2-minutes to answer, but:

8,000 messages x 2 minutes = 16,000 minutes
16,000 minutes / 60 = over 266 hours

So, over the past three months, I have spent over 266 hours responding to messages. 
(So, about 22 hours per week.) 

To continue to be able to financially afford to take custom orders (in addition to the normal cost of a set, plus the additional cost of ordering set-specific supplies) I would need to charge for the time spent answering inquiries.

266 hours x $8.50/hour = $2,261

$2,261 / 8 (the number of custom orders that went through) = $282 (rounded down)

I sell my average pre-made set for about $165.
Custom ordered supplies cost an extra $10-$40 per set.

$165 + $282 + $25(average cost for extra supplies)= $472

$472 for a set! (If I want to make roughly minimum wage)

Here is what I actually made by selling custom orders:
Charging an average of $200/custom set x 8/sets = $1600
(-2.5% for Etsy) -$40
(-$5/set for Paypal) -$40
(-$5/setfor packaging/cleaning supplies) -$40
(-$25/set for supplies) -$200
(-$25/set for extra supplies) -$200
$1600 - $520 = $1080
Average time per set (not counting customer service): 14 hours
14/hours x 8sets =  112 hours
Adding in the customer service time (266 hours)
112 hours + 266 hours = 378 hours
$1080 / 378hours = $2.85/hour

Charging almost $500 for a set of dreads is a bit much, but making $2.85/hour isn't an acceptable hourly wage. This is why I cannot afford to accept custom orders.

"Why do you need to make money?"
Unfortunately, I cannot afford to work without getting paid. Like (most) everyone else, I have bills and expenses. There is nothing immoral or unethical about expecting to get paid for doing work.

"You should care about more than just money!"
Yes, some things are more important than money. For me, staying home with my son is more important than making more money. To be honest, the average dread-maker makes about $2-$10/hour. Yes, there are a few who make much more, but most artists do not get rich selling their art.

If a customer decides to change their mind about the date that they need their set, I get to comply or issue a refund. Customers don't want excuses. I put off visiting my father, because a couple customers decided they didn't want their orders unless they could be completed sooner. Since he lived hundreds of miles away, I couldn't afford to schedule a trip if I refunded their payments. At least I was able to make it to the funeral. The final time I accepted custom orders, I had to stay home and work on my son's birthday. I missed his party, so I could finish a set (several weeks before the initial agreed upon date) that the customer "needed". When I let her know that it was finished early, she asked to cancel the order. I issued a refund, and decided I was done with custom orders.

"You charge too much!" (How much I make per hour.)
When I first started making dreads, I aimed to make a minimum of $4/hour. At the time, in my area, minimum wage was about $7/hour and daycare was about $4/hour. Four is more than three, and it meant that I could make more money while staying home with my baby.

I only made about $1/hour for the first twenty or so sets that I made, but as I got faster at felting and started ordering supplies in bulk, I was able to get to my $4/hour goal by the time I reached my fiftieth set.

Honestly, I have lost track of how many sets that I have made. I estimate it is between six and seven hundred. After nearly three years of working 40-80 hours per week, I was able to make almost $9/hour.
*Update (2/2017) : I am currently making $9.50/hour (minimum wage in my state is currently $8.90)
*Update (12/2019) : I am currently making $15.50/hour (minimum wage in my state is currently $9.45)
*Update (2/2021) : I am currently making $10.25/hour (minimum wage in my state is currently $9.87)
***Due to the pandemic and inflation, the cost of all of my supplies, packaging, fees and shipping has nearly doubled, while the global market has expanded, so customers have pressured me to lower my prices to compete with overseas sweatshops, which meant I had to cut my personal wages. 
(As this is not a living wage, and it is not sustainable to continue to work 80+hours/week, prices are set to increase $0.25-$3.00/set starting on 3/31/2021, with gradual increases every 2-3 months, until a reasonable living wage is obtained.)


"Well, other people sell for less"
Yes, some people sell for more and some sell for less, but I don't understand why people need to get upset with me over the prices that I set for my products. If you don't believe that my work is worth the price I'm charging, you have the option of buying from someone else.

Most people that sell for super cheap are just starting out, and they need the practice, and they understand that they aren't making a profit because they are investing in their own future. There is nothing wrong with buying a set at-cost or below-cost from someone that is just starting out. You are helping to support them while they learn and establish a business. However, most people will raise their prices once they gain experience. So, if you see a dirt cheap set from a new maker, nab it before they raise their prices.

Beware that super low prices can also indicate lower quality.

I admit, sometimes there are sellers that are offering amazing quality at super low prices, which make mine seem insanely high. Some, know they are selling low, and only make a few sets a year for a bit of extra cash. They don't care that they aren't making a huge profit because it isn't their primary source of income, and they are mainly creating for fun. There are also a few sellers who are located in areas where they can buy their wool directly from local farms, so their supply costs are significantly lower.

Then there are other sellers, who make great products, but they are horrible with managing business matters. They usually make simple errors, such as not calculating in the little costs, such as packing materials, storage supplies/furniture, shipping, dye, business cards, photography accessories, selling fees, transportation, etc. Or maybe they are making huge errors, like only calculating the cost of half the wool that they are actually using for a set. Or they aren't figuring in the occasional big expenses, like blending equipment, a new camera, or a new computer. Or maybe they have carefully factored the cost, but have forgot to figure in an hourly wage. Or they have factored in the cost of raw materials, but neglected to add in the amount of time (and money spent on scouring products) to process the raw fleece.

Whatever the reason, if you see a full set of new dreads that are absolutely gorgeous being sold for $35 then there is something seriously wrong.

And sometimes it's a scam.
So, be safe, use Paypal, read up on their Buyer Protection policies, and make sure to open a case if your beautiful dreads never show up. Also, before you buy, read the entire listing. That $35 could be a deposit, not the price for the entire set.

Also, when looking at dread prices, Etsy is a global economy... So, a sweatshop overseas will cost less than a product handmade in the USA. If you're looking for dirt cheap dreads, there are sweatshops that machine make inexpensive junk. 

Basically, I deserve to be paid a living wage, and like every other human being in the world, I should never be expected to provide free products or  unpaid services. If you need other people to live in poverty and suffer, so you can look pretty at festivals, then something is seriously wrong with you. If this angers you, then the problem is yours, and you should take some time to reflect on your values and priorities. You have the right to disagree and look for a cheaper price, just don't bother me about it.

I'm sorry, but I do not make tutorials...
I don't mind when people ask how I make my products or ask if I have tutorials. I actually find it very flattering. I can completely understand why someone would want to go the DIY route. It saves money. Honestly, I couldn't afford to buy any of the dreads I wanted, so I learned to make my own.

I don't even get upset when people contact me via my Facebook Page or Etsy Shop to ask, even though my Policies clearly state:
"While I appreciate your interest, I do not have any video tutorials or written instructions for how I make my items. If you have any questions about my items, please do not hesitate to ask. However, please be respectful of the fact that this a shop for selling my handmade products, not a forum for discussing and sharing methods of creating arts and crafts. Please understand that I am in no way obligated to share my techniques. I appreciate your understanding."

I encourage people to learn to make their own. Telling people specifically how I make my products is not only bad for my business, but it discourages people from developing their own personal style. There are already plenty of tutorials on YouTube, and wonderful books on Amazon. There are groups on Facebook and various other forums across the web, various crafting sites, blogs, etc. Honestly, the information is already readily available. There really isn't a "need" for me to make videos. In fact, the ONLY time I ever comment on how I made something, or respond to questions regarding techniques/materials/supplies/etc is publicly. It is a bit disappointing to share photos of my work in Facebook groups, only to have other makers send me PMs ("private messages") asking what they could easily have asked as a comment on one of my images:
1. If the comment is attached to the photo, I know what item/technique/color you are inquiring about
2. We all know that commenting on a photo boosts it's post reach on Facebook. You love my work? You want to see more of it? Then please comment on the photo instead of sending me a PM.
3. I might be inclined to take the time to respond to a publicly posted comment. It's easier and less time consuming to respond to a public comment and have a conversation with multiple people, instead of tediously responding to individual PMs.
4. Normally, a PM comes across as selfish and lazy. When people send PMs they typically fail to include all the information (or ignore using spellcheck or typing out complete sentences/words) because they're sending it quickly, in a way that is purely convenient for them, and they expect a prompt personalized response. This sort of message is fine and appreciated if it's coming from customers because they aren't asking about free (time-consuming) tips and advice, they're planning to buy something from my shop. For example:
Q: how do u make it glow?
Q: how do u get them curly?
Q: where do u buy ur dye?
Q: how do u make these?
It's not fair to expect a twenty-minute reply to a 6-second question. Part of the reason that I'm self employed is that I couldn't tolerate coworkers, who would NOT do their fair share of the work, but received equal pay. I had to do my own research, develop my own techniques, find my own supply sources, and invest my own time and money.
If someone won't or can't figure out where to buy dye, wool, and navigate the internet for free tutorials, videos, and forums, will that person really be willing to spend the time needed to make an entire set of dreads? Probably not. I don't feel comfortable encouraging people to spend a bunch of money on supplies that they most likely won't use.

I only get really offended when people get pushy and rude, and I get really upset when people try to get sneaky and lie:
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There are so many many many things wrong with the above conversation... I'm still curious as to how to make 200 dreads using only one pound of wool, and where can I buy Merino for $10/lb? Anyway...

No means no, and most people are fine with that. Then there are those people that just don't get it. I stopped replying to the "customer" above. I want to be a nice professional business person, but I cannot tolerate when people pretend that they are interested in my product, waste my time with countless inquiries, only to eventually reveal that they have no intention of buying, repeatedly insist that I provide them with instructions on how to make my products, and then throw a tantrum when I refuse to do what they want, like this other customer:
No job, and trying to score free/discounted things on Etsy, while demanding tutorials...yep, totally sounds like a regular customer, who isn't trying to pull a scam...I should send her an apology and a free set of dreads ASAP!

"Can I have this for free?"
Probably not...If you have something to offer in exchange, such as modeling or advertising services, then there is absolutely nothing wrong with making an inquiry. However, it is very tacky to try to get free stuff by making other people feel sorry for you:

I get a lot of messages like the one above. This particular person actually sent me three of these requests. First, this is the internet, so I have no way of verifying that what the person is claiming is true. Second, if you really just lost your spouse and your house, it just seems bizarre that you are really concerned about getting hair extensions.
I make and sell hair extensions. They are awesome, but they will not help you raise your children.

Third, having children does not entitle you to free stuff.
Or does it?
I have a child, so here is my Amazon Wish list. I better hurry up and add more stuff to that list before random strangers buy me everything on it.

Or maybe I'm just being selfish... I could afford to send out hundreds of dollars worth of free stuff. I just need to not buy groceries for a week, so she can have a set of hair extensions.
(And yes, my profile picture on Etsy shows me holding my five-year-old son.)
So, Dear Strangers: Here is my Amazon Wish List, because I need a 3D printer, random fashion accessories, books, art supplies, and random crap more than you need to pay your bills or buy groceries.
Update(2018): Two years later, the same girl sent me yet another request.

Fourth...For anyone that thought I was being too harsh. This same person had the audacity to send me another request for free stuff over TWO YEARS later. Aside from the fact that she still hasn't figured out how to use spellcheck, or write a basic sentence, there are much more serious issues here.
1. After two YEARS she can't afford a set of dreads, but she is attending "a lot of shows and a lot of festivals", so she now has plenty of money to go out and do stuff, but thinks I should hook her up with free fashion accessories? This is beyond tacky. 
2. "I am trying to start up a Facebook page and a YouTube channel" Excuse me, what? She was trying to get free stuff under the guise of providing a review TWO YEARS ago...and she hasn't even set up a channel or page yet? Seriously, what was she offering me two years ago? Nothing.
3. Maybe this person has two or three kids, and maybe her husband died, and maybe she lost her house, BUT she also mentions that she has plenty of spare time for shows and festivals (and hasn't gotten around to setting up her social networking pages yet), so it's safe to assume that she is more interested in fun vs. working, and would love having a free set to wear, but would be less than thrilled about actually following through with promoting/reviewing.

Fifth, "please get back to me asap" Really!? Not only is she asking for free stuff, but she insists on a prompt response! 

Sixth: If you are going to beg for stuff, please at least use spellcheck and maybe write out something resembling a complete sentence.

Seventh: She offers to provide me with a service. So, by sending her free stuff, she can help me? And this brings me to:

"I'm a model..."
Real Models vs. "i m pretty, gimme free stuf"
The lady above offered to provide me with "a video or something". However, she did NOT send me a link to her successful Youtube Channel. (Most likely because she doesn't have one. *Update: two years later, she sent me another request for freebies and indicated that she was just getting around to setting up a page and channel!) If you can actually help advertise my products and increase my sales, then I would love to consider having you model for my little company! Please send me an inquiry regarding modeling in exchange for free products. However, if you are just trying to con free stuff, please look elsewhere. Requests should NOT be a grammatical nightmare riddled with spelling errors.

If you are claiming you can help promote my products, you should have no problem with supporting those claims. Please include links to your various social networking pages. I would appreciate statements like "I have over 20,000 followers on Facebook: (link to page)" or "I have several thousand followers on my Youtube Channel: (link to your channel)". If you are a model, you should have a portfolio with professional quality photographs, and you should send messages with "I am a model (links to portfolio and websites/pages), not "how abouta discount n i can modal 4u". If you have a Youtube Channel, it should have videos on it that people will watch. (No one wants to watch wobbly low-definition videos that were taken with your cell phone.) Your style and following should also be compatible with the products I'm selling.

I use to check out every request I received. Then after the 50th or so link to a page with horrible cell phone selfies and fewer than 100 followers, part of me died inside, and I came to the conclusion that it was a waste of time to check out these "models". Then I get to feel like an ass when someone, who actually has a successful youtube account contacts me.
The person in the above video is installing a set of dreads that I made. Her profile on youtube: https://www.youtube.com/user/ch527kerosene

In the last couple of months, that video has gotten over a million views. She has nearly 200,000 people subscribed to her channel, and she didn't even ask for a free set!
This was the set that I sold her. I will be adding similar sets to my shop in June 2016 : https://www.etsy.com/shop/NVCL3ARBVTT3RFLY





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