Friday, 9 December 2011

Don’t Let Your Other ‘Hobby’ Eat Into Your Earnings

Save and Watch Your Cash Grow
As many craftspeople will know, setting up an online store and establishing yourself as a professional merchant can take some spending, just until you start making sales and eventually a profit.

But many craftspeople who advance on to making regular sales find they have developed a new ‘hobby’ that eats into their earnings fast, making them feel as though they aren’t making much money at all.

And what is this so-called hobby you might ask, well it is something you’re probably very familiar with already.

Shopping for supplies.

That’s right, shopping for supplies, ones you buy just because you think they’re pretty or because they were selling at a good price etc etc – Insert your excuses here.

The problem is, many of the supplies bought can sit permanently unused or you may have bought way more than you really require and that is a huge waste of your hard-earned cash.

It is definitely a nice feeling to shop for supplies and I myself am certainly as guilty for impulse buying. But since realising my faults and making an effort to restrict my purchases to things I absolutely need, such as wire, I have seen a nice rise in my PayPal figure that continues to rise with every sale.

And that brings a far superior feeling believe me!

The restrictions I have now imposed on my own spending habits are just three things, but they are working well:

1. When buying the supplies that I use regularly, I only buy as much as is needed for roughly two months worth of work, no overstocking.

2. If purchasing something new I must first know exactly what I will do with it, down to the very design and price.

3. Do not buy anything new until I have done what I intended to do with my previous purchases and have made some profit on them.

And that’s it. A few little restrictions that help me to keep my earnings for what they were intended… me!

If our items are priced correctly, we should be seeing profit, as well as money to purchase new supplies, but only when absolutely necessary.

Of course, it’s easier said than done, but once your PayPal balance begins to climb, you will start to equate your PayPal balance with the success of your business and will appreciate having earned your money.

Suddenly you’ll find that you become a little tight-fisted even with yourself, but that’s a good thing!



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6 comments:

  1. I totally agree with this! I haven't gotten to this obsession yet but I see how easily it can happen. In my defense my store is fairly new so I don't have a ton of stock in general. In my stash I have one of those little tags attached to a string looped through each ball of yarn I have with how much I paid for it and what project it has been allocated for. This helps me know EXACTLY what each supply is for and if I REALLY need another ball of yarn.

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  2. We are on the same page. Fort the lat 2 years, my New Year Resolution has been
    Use all my supplies on had and do not buy any supplies unless they are required to finish something I have started. Period. No exceptions. This will be my resolution for 2012 too.

    I have started listing some supplies on ebay to get rid of them. They were supplies I would never use. I had been given many of them. My craft supplies drawers were so full I couldn't find things I needed. So I started pulling out one item when I was searching and then list it on ebay or in one of my shops. I also give supplies to church for crafts. It helps relieve the overwhelmed feeling of too many supplies.

    I know that in this economy there are people looking for craft supplies at a bargain rate. Some items are practically free, but the good thing is these items are out of here and on to hands that will use them.

    Have a wonderful day!

    I stopped by from Blogging Buddies

    <><
    http://christiecottage.blogspot.com

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  3. Great tips - I know how this goes.

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  4. Was just starting to put my budget together last night. I start one yearly, but always overspend and do buy the cute things that I never have time for. I vow to change that this year! This was a great post.

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  5. Timely tips that I need to apply. It's easy to become overwhelmed with supplies to the point you no longer know what to make. I have found myself having tons of one thing and none of what I needed in another to complete a project. Your simple tips make perfect sense. Thanks!

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  6. Great great post. I can see where I went wrong- I bought everything on impulse and without knowing what I will do with all of the materials. I find all of these great deals and end up purchasing more then I need but not what I need. Now I have a collection of unused materials for my shop.

    I am so overwhelm with all of the cost that I have put my shop on hold.

    I hope to set a new goal and reorganize everything and be back in business sometime next year.

    Following from Blogging Buddies.
    myminibag.blogspot.com

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