How to Turn a Craft Business into Profitable Parties

We have all been to a cosmetic, basket or jewelry party at one time or another in our lives. It is a great way to gather with girlfriends, while finding great gifts or making money. I found that having craft parties can be a profitable way to market my business. If you have a craft business, you can turn it into parties that both you and your friends can profit from. The level at which you want to sell will depend on how much you can produce, and how large a craft party company you want to build. If you decide to have others do craft parties for you, it is best to consult with an accountant once you have the financial details worked out. An accountant will help guide you to the kinds of records you will need to keep for both you and your hosts, and give you information on specific business laws that may apply to the state you live in.

Product Line

I found that high quality, affordable, functional and decorative crafts have the most appeal. Most of the gifts that I offer cost under $12. I decided my product line would include 15 to 20 craft items for every day use, and a line of 10 to 15 holiday craft pieces. If possible, make each craft item available in other colors. The more choices a potential customers has, the higher potential for a sale. Also, I offer custom orders on most of my craft pieces. Once the products are chosen for the line, make a sample of each craft piece.

Catalogs

I found it is quite easy to make your own craft catalog. Take a picture of each craft piece being offered. Download the pictures to your computer. Next to each picture I write a brief description, the price and color choices. Below that picture I put the next craft item to be offered, etc. Once they are all listed, I make copies of these catalog sheets. I usually make between 25 to 30 catalogs at one time. I give extra ones to my girlfriends to hand out. I found a few websites that offer free order sheets that can be printed with your business information at the top. Attach an order sheet to each catalog. If you decide to have hosts, type up a list of what each host will receive if they have a party. This can be included in a catalog if someone decides they want to host a craft party.

Sales Reps

If you want to expand your craft party business, you will need to decide on a commission and special perks to give each host. I offered 15% commission, free sample packs, catalogs and a special craft deal exclusively to the host of my parties. The formula that works best for your business will depend on your craft items, funds available and prices. Make sure each host keeps accurate receipts, and that both you and the host have copies of all transactions for tax purposes.

Invitations

Send invitations through mail or online at least two weeks before the party. This will give each potential guest enough time to plan. On each invitation put a couple of pictures of the hottest craft items that will be offered at the party. This will peek the interest of the potential guest. Also, tell any guest to bring someone. More guests means there is a greater potential for selling your craft pieces and hiring hosts for future parties.

The Party

I always plan for double the people that are invited. Have a buffet table of snacks and drinks in the room where the craft party will be held. Have games and other activities planned so you can give a few of your crafts pieces away as prizes. I always offer a gift basket of my crafts to be raffled off at the end of the party.

Orders and Payment

The party was a success, and now you need to talk about payments and delivery. Depending on your craft line, give yourself enough time to make the items. I usually give a time of two weeks. My guests can come to my house to pick the pieces up, or I can ship or deliver the items. I also ask for a deposit of 50% down, and the balance to be paid when the craft item is picked up. Write a receipt for the deposit and when the balance is paid. Keep these receipts organized in a separate folder for tax purposes.