Three Biggest Myths That Hold Crafters & Cottage Businesses Back From Being Profitable

There are 3 big myths that hold crafters, designers, and small cottage industries back from stepping up to the plate, realizing their full potential and making a profit. The truth is, all of these myths are centered around fear, doubt and uncertainty. Change is an inevitable part of growth. Take a look at these Myths and see which ones apply to your business:

Myth #1: If I price my products too high people won’t buy them. I keep my prices low to sell more

Truth: You can’t decide what other people will pay for your products. Pricing is an art combining perceived value, workmanship, availability and timing in the marketplace and perhaps actual costs. If you’re lower than everyone else you may encounter lack of sales because your products are considered inferior quality even though they are better than other similar products. I had a client recently who was thinking along these lines and when she raised her prices she not only sold more units but greatly increased her revenues. Ask yourself this question: do you always make purchases based on the lowest price?

Myth # 2: Shipping & Admin work takes so much of my time I don’t have time for creating new products

Truth: Shipping and admin work are tasks that can be easily systematized. You can’t afford not to hire help in doing those things that are not your forte. Rule of thumb here is: Do what only you can do and delegate the rest. You cannot grow your company if you do everything. As the owner you are the visionary – and it is up to you to be working on your business and not in it. For example, if it takes you 6 hours a week to ship and you could hire that out for $72 a week – with that time saved you would then have 24 hours a month to devote to product development, marketing & sales. You are actually losing money by doing it yourself – it is false economy!

Myth #3: It costs too much for marketing, people find me by word of mouth

Truth: The life blood of any product based business is marketing. If you don’t get your name and products in front of the public to let them know you’re in business, you will not have a business for very long. Marketing is what draws prospects in to take a look at your products. It is not enough to open up your website, buy an ad in a magazine or attend a trade show. You have to “work it” over and over again. The truth be told, marketing is what makes your business sink or swim. Marketing makes people aware of your product and they must be aware that you exist in order to buy.

There are many ways to promote your business that are low cost: social media, newsletters, post cards, phone calls, classified ads, special promotions, Blogging, SEO ( search engine optimization) and press releases to name a few. The more often you’re seen the more likely it is that your customers will become familiar with your company. You want them to know, like and trust you because they will then buy your products.