Today I’m so excited to share this guest post from Emma of Showpony. I love Emma’s work and I’m even more excited about the topic she’s talking about: how to design your products so that you can make them by hand but have them produced for you if demand increases. Thanks for sharing Emma!
Hi, my name is Emma Henderson and my company is called Showpony. I design fun accessories and home wares made from organic and fair trade cotton. Although all of my designs start off being hand made it is my aim to outsource more and more of the production of my products to fair trade organisations in India and elsewhere. I thought it might be helpful to share some of my experiences of making the transition, from in house production to outsourcing. I hope to show that with a bit of planning and determination you can start small but grow when necessary.
I’m sure that there are some of you who will love making everything yourself and revel in the delight of personally hand crafting every item you sell. If this is you I think you’re amazing! For me though it’s the designing where I get a real buzz. I love to make the first few samples and refine the design until it’s just as I want it. But beyond that I’d rather design more, and make less.
When I started Showpony I was determined to use organic fabrics and was becoming increasingly interested in working with fair trade suppliers, so I did lots of research into how I could make this possible. I got loads of samples, found out what different companies could offer, and what services they provided. There were fabric suppliers, printers, dyers, and stitchers. I found out costs, minimum orders, and got shipping estimates from suppliers all over the world, all in order to gain as much of an insight into the industry as I could.
However back in reality I was designing a new range of bags (my Vintage Shoppers) and I didn’t have nearly enough money to have them produced as I would have liked. The minimum orders were just too high to risk, so I did the only thing I could, I ordered the minimum quantity of my favourite fabric from all the samples, printed the designs onto it and stitched up the bags by hand.
What I realised then was that although I’d done lots of research into production and manufacture I wasn’t very clued up on how I was actually going to sell my products, so I did all I could think of. I took photographs and uploaded them to my Etsy shop, and this is where they stayed for almost 2 months. Suddenly though thanks to a few large blogs posting about them, I did start to get orders, a trickle at first but then more and more, until before I knew it I was selling, relisting, sewing like mad, taking wholesale enquires and starting to panic about how to meet the demand.
However this is where my research really paid off, as soon as I could meet the minimum order I was able to look through my samples and quickly order some blank bags, and I began printing directly onto them. Sales continued to grow and a couple of months after this I was delighted to be the featured seller on Etsy. Once again I saw a huge spike in sales and with Christmas looming I started to think about moving to the next step up the production ladder.
Thankfully, having done my research I knew that the company I was already buying the blank bags from could arrange to have them printed for me in a fair trade co-operative in India, and I had priced my work accordingly to these quotes. So I sent off my designs and put in an order for the minimum quantity. Since then I’ve ordered lots more and am now developing the bags again with a different producer in India.
Building my production up this way had obvious advantages. I was able to keep control of my finances by only ordering more materials when I could afford it and when I was sure there was demand. By being able to grow the production at my own speed, and having a clear idea about my next steps I was able to fulfil orders and even take on some larger accounts with distributors.
But working this way can have its disadvantages. When I started printing the designs onto blank bags I was able to reduce my prices quite dramatically because I wasn’t spending so long making all the bags from scratch but while this was good for the majority of buyers some who had purchased the more expensive bags only a few weeks earlier were not so pleased. I’m sure though that with better explanations of my processes this sort of upset could have been avoided. Another issue was that the look of the bags changed a bit with each stage. So on some occasions I was getting press from blogs who had old images that didn’t quite match what I was now selling in my shop.
These problems are understandable as a product develops throughout its lifespan and for me any negative effects have been far outweighed by being able to get a product manufactured in manageable stages.
I’ve repeated this process with subsequent products and its been really effective. With my tea towels for example, I’m generally able to keep up with orders printing them myself onto blank tea towels. But when a large chain store contacted me about placing a big order I knew exactly where to go for manufacture, this meant that I could fulfil the order in the time scales they wanted and guarantee quality as I’d already had samples printed by them.
My advice would be even if you are just starting out with a new product it really pays to have a plan for how you can gradually increase production of that product this will help you meet demand and keep your profits up.
Finding these manufacturers is not easy – especially if like me you want to limit your search to organic suppliers and fair trade producers but persistence does pay off, and what I always try to remember is that if it was really easy everybody would be doing it.
Excellent post, Emma. Thank you for sharing this.
My experiences are very similar to what you’ve described. I have notebooks full of research, quotes, etc on various product ideas I have – some of which I’ve used already and some I plan to use down the road. Since I don’t make everything myself, having that info at my fingertips is key in determining if an idea is feasible. And def a bonus to have it ahead of time so you can price your work accordingly, even if you’re producing in-house initially.
I seriously love hunting down sources – it’s like detective work!!
Great post – really interesting. I’ve always wondered if you have to travel to places like India to do the research or are there representatives here who can help. very interesting. Thank you for sharing!
dare I venture into touchy territory here – but I’m sure the “Made in USA” issue will come up – is there a reason why you chose to go overseas? Is that type of work hard to find in the US? I have no doubt you chose a reputable co-op, but are the prices quotes that extremely different? have any of your customer’s been put off by it? wholesale buyers? or do they not even notice? sorry for all the questions – just curious! thanks for the post – super interesting!
Thanks so much for sharing this information! I’ve always been curious about how that type of thing works.
Great article with some really interesting points, thank you for writing it. I’ve had a lot of similar experiences with my own products, I print designs on to organic cotton and hemp and sell fabrics and items made from my fabrics. I have done a lot of research myself in to various different products such as different fabrics, in the meantime I’ve come across companies who offer those exact same services as you describe – printing on tea towels and bags and even printing fabric but I’ve never been tempted to use them. I still really enjoy printing everything myself, I enjoy this as much as the designing. I’m based in the UK and I want to build my business and employ people to help with printing as I get busier but I must admit I worry about inability to compete cost wise with those companies who have items screen printed abroad. The wage I could pay myself or people I employ would push up my costs far above the price at which something could be printed abroad. Yet I’d love to be able to employ people in my area and keep the ties with my city. The competing market is something I definitely think about and I must admit, something that worries me as an independent maker.
Do you see your company growing in to something that will move away from a ‘craft’ type business and more towards a mass produced ‘Cath Kidston’ type company where all items are produced abroad?
Great article! Thanks so much for sharing your experiences. It’s always helpful to hear about the ups and downs that small businesses go through.
Hi
Thanks for your comments.
Karen, it’s a fair point, and perhaps I didn’t mention it in the article but I am based in Scotland so no cotton item I produced could ever truly be described as ‘Made in Scotland’. The cotton has to come from somewhere overseas so I see no reason why it can’t be printed and stitched there too. If that helps struggling communities to make money then I feel really good about that.
Sarah, I understand what you’re saying. I think I’d prefer to employ people in my area than use the companies you describe but sometimes the sums just don’t add up. Although I have my own screen printing area in my studio I don’t have the space to print large quantities easily, or to do multiple colours and to get the space and equipment to do this would cost more than I could manage. Studio rents, particularly in Glasgow are quite high so space is always going to be an issue and if I was taking people on I would need more room.
Ideally I’d like to have my items produced in the best ways possible, which would mean not simply taking the cheapest option but researching the best solution for the producers and the environment.
This is really great. Outsourcing has been an alternative to many companies.
As per Emma “It would help you meet demand and keep your profits up.”. I agree with her.
This is really interesting story. Thank you Emma for sharing this.
Phil
Great article! I did some investigating into this myself, more full scale clothing production though, and it’s definitely a daunting subject. I’ve actually put the project I had in mind on the backburner because it seemed so overwhelmingly expensive to even begin. I also know someone locally who has been working with small scale outsourcing, but she’s trying to find exclusively local vendors to help her recycle materials into new products. Whether it’s local or overseas, it’s definitely a lot to consider. I wonder if there are any good books on the subject… surely there have to be?
Great article. Now I know nobody likes to give up their sources, but would you be willing to steer in the right direction to begin a production search? Anything is appreciated. Many thanks.
Elena – you might want to check out my previous post on resources for manufacturing for some suggestions on where to start – https://www.designinganmba.com/2010/02/09/resources-for-manufacturing/
Mallory – There are some books in that list that cover the manufacturing processes, but i don’t know that there is a book on the process of finding and sourcing manufacturers
Hi Karen: It’s always a delicate balancing act that requires choosing the best options available when you have specific goals and your production exceeds your in-house capabilities.
In my particular case, it took 9 mos of research – interviewing companies, running fabric analyses, going over every penny in break-even spreadsheets and so much more – to determine that the organic fabric I want to make is not being milled in the U.S. No matter how I tried to split that molecule, it just wasn’t happening. Made in the USA was at the top of my list, but so was organic. Anything that came close to what I wanted was spoken for by huge companies like Patagonia. I decided that the organic fabric sourced abroad (and fair trade certified) had to take precedence over conventional cotton sourced in the U.S. My hope is that as more micro-companies like mine delve into organics, the more farmers in America will rise to meet the demand. “Be the change you want to see.” It’s not easy to become a GOTS-certified organic farmer, and so far, the US is seriously behind in this arena. (I guess the biggest difference for me is that I’m not just buying pre-manufactured base goods of fabric; I’m actually producing it to my specs from the moment it’s woven.)
Thanks Jan! this all really interesting to me – the fabric and textile world is something I know nothing about. I agree that going organic is super important, and damn, if you can’t find it in the US then you gotta do what’s best with your end product in mind.
I think if we all dug really deep into researching our supplies we’d find out some not-so-nice origins and practices … let’s not even get into the gold/silver mining discussion …
Maybe I just need to get this off my chest as someone who conciders herself a crafter and artist. In the real craft community that does not include selling on-line, this is an IMPORT and it is not allowed into any reputable craft shows.
I hope that this type of practice becomes and exception and not the norm when calling yourself a “craft business”.
This practice is blurring the lines for real artists and hurts the integrity of craft.
Being an artist and selling on line used to mean more. Now “Handmade” and “craft” are just gimmicky terms used in a way to fit into a “niche” market. It makes me sad.
Hi Kerry
I totally understand your frustration but I don’t really consider myself to have a craft business in the way you describe. I totally appreciate you wanting to hand make your items yourself and as I said in my article I think that is amazing and I have huge amounts of respect for it. I’m not saying that my items or products like mine are craft or should be sold in the sort of craft shows you describe.
I see myself as having a small business where some of the items are handmade and some are outsourced with the hope that more will be outsourced in the future.
What is important is communicating what makes your products unique. If you make everything yourself then communicate that to your buyers.
With all due respect, Emma, I don’t think you do understand. Selling on-line has become a nightmare for true artists and crafters. It’s not your fault that that on-line selling venues don’t care, allowing the floodgates to open to this type of product.
I certainly do tell people that my pieces are handmade and have no intention of changing that. What I would be afraid of for YOU is that someone will very well come along, outsource that same design or idea for less, squeezing YOU out.
You say your not a craft business, but yet, here you are, on a blog that I thought (maybe I’m wrong) was about craft and the business of craft. You are getting publicity for you shop, and I think that the message that that is sending out is confusing ( and being a purest when it comes the the definition of craft, very wrong).
Kerry Alice – I truly believe that there is more than one business model for designing and making products, and I think I do my readers a disservice by not presenting different options. I agree that Emma’s work probably doesn’t make sense for the established craft shows that you talk about. But over the last handful of years, I have seen those shows suffer from lack of funds and a dwindling customer base, and I worry about encouraging everyone to try to make them a cornerstone of their business. (I’m not saying it isn’t possible, I’m saying it is challenging.) Ultimately, I think everyone has to create a business model that works for their values and vision. It does not look the same for everyone, and for most people, myself included, it is constantly evolving. I think we’re all just trying to figure out the best way to make a living designing and producing products we feel passionate about.
I also think your concerns about someone else outsourcing the same or similar design and undercutting your work are not specific to Emma’s processes, but are real concerns for all of us. Because most of your work is made by casting, it could just as easily happen to you. (I hope it never does, but it is always a possibility.) All my wire jewelry is hand-formed and welded, but I have still had people take my designs, make a mold of them, and cast them and sell them on Etsy. It is a concern for ALL of us.
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Whilst I love your products Emma, and really respect what you are doing to grow your business I am not sure Etsy is now the place for you. I think your items are not actually Etsy ‘legal’. According to the ‘Dos and Don’ts’ – ‘An assistant or third-party vendor’s involvement may not comprise a majority share of a handmade item’s creation’ – the process you describe above rather does suggest that the majoriy share of the item is produced by the companies you use in India.
Amy, what I would say is that Etsy is certainly the right place for me to be selling most of my products which are handmade by me. Those that are outsourced may be a different matter which I will check over with etsys terms.
I applaud Emma for getting her vision, “her craft” out there and finding the resources to expand her business. As for Kerry Alice’s comments, these articles and blogs are set up so that people can find help and advice to expand their CRAFT business. It’s a business if you’re making money at it, we need to know how to do things right in the business aspect of this crafty notion of ours. She’s still the designer, she still owns it and if she needs to grow it beyond her studio, I applaud her. You can’t begrudge an artist who wants their product to reach more people. If you’re making money, paying taxes, sales taxes and paying booth fees, paying for help, you’re a business. If you can grow a business you started creatively and artistically and are able to stay out of the corporate cubicle hole, I applaud you. Selling online has helped people stay home with their children and reach a larger audience. Nightmare? I think not, its a dream situation. What a handy tool, this online world! Everyone wants to do what they love as a business, be it cooking, clothing designer or rock star. We all started out in our bedrooms, expanded to the kitchen table and then the world stage. We start out with passion and love for what we do and if we can make money at it to sustain our lives, our families, we have to learn the business of it to keep the bills paid, taxes covered, learn the proper channels to keep it on the up and up and to get our word out about what we love to do. WE know there are people that are in their studio handcrafting every piece that goes out on the so called “sales floor” of the world. I started that way. But it’s still a business, isn’t it? You’re taking money from a customer who go to “reputable craft shows” who loves your product so you can buy more paint, clay, beads, ect. go back to the studio and handcraft more to sell. That’s your way of doing business. This site is for those who want help in the business end and who seek those who can help them. Maybe you lose that “I-made-it-with-my-very-own-hands” aspect of it because you may have to hire an assistant to help pack, put a pendant on a chain, screen print an image or do mailings and you don’t like that, but it’s still your craft business and you own it. We have to keep communication channels open to those who need the guidance. I’m looking forward to hearing about how Emma irons out the kinks, her learning experiences with this new outsourcing venture. There are people thirsty for this information and kudos for those taking it to the next level.
My point is that people who are moving away from “handmade” and moving to outsourcing are still trying to fit into that community by either not telling their customers the truth about their product or just ignoring the fact that they are hurting true artist and crafters who belong there.
Grow your buisness. get those huge accounts, but don’t try to fit into a community that you have outgrown. It’s not right.
What are your thoughts on Amy’s point, Emma? When do you stop selling you product on Etsy? When you get flagged, when your product is in every Mall?
As for shows suffering, well, not the ones I do. They are getting bigger and better and show no signs of slowing down. Renegade, Bizarre Bazaar, Twist, all my local shows, small New England shows, all have been great for me and my sales are not suffering at them, so I’m not sure which shows you are talking about, ( maybe ACC shows which I don’t do) There is a new life being breathed into craft shows because of a lot of hard work and love being put into them by true crafters and artists who want to showcase the work of people like me who do not outsource.
The term “craft business ” is so watered down ON-LINE that is has little meaning left. People who design work and have it produced, or outsourced, is, in my opinion, not a craft business any more. But I may be the minority in that way of thinking. People are constantly trying to bend the definition into whatever will benefit THEM, not craftspeople, or artisans. I think this is exactly what is happening here.
I think we all know that Kerry Alice is spot on, I think some just don’t want to admit it.
Thank you kindly, Pamela.
These bags are lovely. Congratulations on your business getting so big that you can outsource!
Unfortunately, Etsy isn’t the correct venue for you. It’s for items that are handmade BY YOU. Period. That’s Etsy’s whole raison d’etre. And what separates it from other venues. Outsourcing to India is certainly not ‘Etsy legal’.
And it’s not fair to the majority of the Etsy vendors who do abide by the rules. Because, as noted in the article, price-wise, it’s pretty hard for people who are handmaking their stuff to compete with third-world outsourcing.
Also, it’s not fair to the customers, who believe they’re buying something handmade by you. That WHY people shop at Etsy. And not elsewhere.
Ebay, online boutiques catering to eco-conscious folks, your own web site, bricks ‘n’ mortar artsy stores – all great venues for your business model.
Just not Etsy.
The problem with this article is that it may encourage others to do something similar. And I’d hate to see someone’s Etsy store get shut down if their outsourcing comes to the attention of the administration.
From Etsy’s Rules: (http://help.etsy.com/app/answers/detail/a_id/148)
What items can’t I sell on Etsy?
What cannot be sold.
Etsy’s marketplace is limited to handmade items, vintage goods and crafting supplies. All items listed in the handmade Categories must be made by the Etsy seller; we do not allow reselling of handmade goods. Mass-produced items — though they may be technically made by hand in some cases — are not in the spirit of Etsy and may not be listed in the handmade Categories.
but etsy also states:
Production assistance
Production assistance for certain intermediary tasks in some crafts may be acceptable. The following policies govern use of production assistance in the creation of handmade items:
* An assistant, under the direct supervision of the seller, may: assist with a portion of the creation process, list items in a shop, ship items, communicate with buyers, accounting or other record keeping.
* A third-party vendor may be used for intermediary tasks in some crafts. Acceptable examples include, but are not limited to: printing the seller’s original artwork, metal casting from the seller’s original mold, or kiln firing the seller’s handcrafted ceramic work.
* A third-party vendor may not fulfill your orders to your Etsy customers on your behalf (no drop-shipping).
* An assistant or third-party vendor’s involvement may not comprise a majority share of a handmade item’s creation.
Absolutely, as Lu Summers clarifies, it is allowed to outsource printing of your original artwork on etsy.
As a buyer and seller on etsy, and contemporary crafts collector and curator, it doesn’t bother me one bit.
Also I think the suggestion above that assumes ‘the real craft community’ and ‘selling online’ are mutually exclusive seems a little odd.
I’m also interested in the term ‘real artists’ and ‘true artists and crafters’. Personally I consider printers and print designers as real artists / crafts people.
They are also designers, and it is a common practice in design to outsource production. (In fact this happens in art and craft too, and has done throughout history, so the lines are blurry in all these practices).
I don’t think there can possibly be a ‘definition’ of what craft business means – it means something different to everyone who makes. Some don’t even call themselves crafters or artists but designers, makers or designer-makers. Some make and study, some craft while doing another full time job, some are self taught and do their craft after the kids have gone to bed and sell it on etsy, some hook mass manufactured beads on a string to make a necklace with no skill or practise or talent and call it a craft business.
And what fits in these models in USA and Europe, might look different again in India, South America, China, Africa or all sorts of other places, though any one of them might be on etsy – who’s to say which best fits a definition?
I think it’s naiive to generalise in the way some of the above comments do, there are many different business models. Emma’s is successful and within the terms and conditions of etsy’s trading.
It may not be what some people believe in on a personal level, but I think if there is a ‘craft community’ it’s better to appreciate new possibilities and opportunities which benefit makers overall. Each successful craft business will be building buyers and audience not just for themselves but other makers too. On a global scale everyone benefits – etsy is successful now precisely because all the buyers we all bring with us individually explore other sellers’ work too and so the market grows.
Congratulations Emma on managing your growth so ethically, professionally and successfully. Great news and clearly lots of others are already benefitting from you sharing your experiences.
lusummers – you said it best:
“* An assistant or third-party vendor’s involvement may not comprise a majority share of a handmade item’s creation.”
Let’s be real. These bags (the fabrication of which is almost totally outsourced) are not in the handmade spirit of Etsy.
Look, the Gap has designers who outsource the construction of garments in much the same way as this shop. This business model has much more in common with places like the Gap, than with knitters who make their own items on Etsy.
I like the Gap. I buy from the Gap. But the Gap doesn’t belong on Etsy. Or, Topshop if you’re in the UK.
In fact, funky stores like Topshop and Urban Outfitters often contract with people like this. Perhaps she should work on getting her stuff in trendy stores like that. I’m sure the sales would be much better than Etsy anyway…. And fairer to the people on Etsy who actually do handmake their stuff (like one is supposed to). So that they’re not trying to compete with outsourcing and the use of third world labor. Etsy was created exactly to get away from that sort of thing.
(And no. I have no shop. So this isn’t personal for me. But as someone who buys stuff from Etsy, I would be very disappointed to find my item wasn’t made by the actual shop owner. I might as well just go to the mall then.)
Okay. I’ve blabbed enough. I wish this shop no ill will. Like I said, her stuff is cute. I hope she has continued success. Just in a more appropriate place.
Walmart and Target would both be excellent venues for this outsourced craftwork. I can see it hanging on a rack near the front door in either of these venues.
On Etsy, not so much.
Congrats Emma. I wish you the best.
You are a great example for many crafters out there who wish to one day do bigger things with their businesses.
I often ask myself ” How long can I handmake my stuff?” My hands hurt, my back aches. Creating is my passion, it’s in my heart, but ultimately I am businesswoman – I don’t do this for fun, I don’t have a rich husband to depend on, I’m not a bored “nothing to do all day” hobbyist…
When many artist hear the word “outsourcing” they start acting all funny…
But the reality is we can’t “handmake” forever!!!
So she doesn’t make all of her stuff…SO WHAT!
I’d whether buy from her than a reseller on Etsy who buys jewelry from China and marks it up 1000%!
or those Etsy jewelry makers who throw a “made in china” pendant on a “made in china” necklace and call it a day!
AT LEAST she CREATED the designs for her own stuff!
I don’t want to beat a dead horse. A matter of fact, congratulations on your success! What I’m really curious is…how much of your gross income still comes from Etsy? If large chain stores are contacting you for orders, I’m surprised you’re still selling on the website. Do you still make a good amount of money (comparatively speaking) off of Etsy customers? I understand you wanting to penetrate multiple markets, don’t get me wrong. I’m just curious…
Thank you for a great post! I think Emma’s story is a fantastic example of conscious outsourcing and something I would love to see more designers do!
Regarding the debate on Etsy’s confusing handmade definitions I think the issue is that Etsy tries to put a equal sign between “crafter” and “indie designer” . While you can certainly be both, it is clear that the handmade label doesn’t always fit and maybe Etsy is starting to paint itself in a corner. Also I suspect that the handmade label makes some sellers unwilling to disclose assistants since it doesn’t quite rhyme with the Etsy “vibe”. Plus Etsy’s loose definitions creates a rather suspicious culture where some other sellers are constantly on the lookout for “cheaters”. And those who make time consuming crafts get jealous of the assemblers. The Swedish equivalent of Etsy is juried and include indie designers who outsource and perhaps Etsy will one day take a similar direction? Also I agree with Sam who would rather shop from Emma than from someone who doesn’t use ethical produce but happens to fit within Etsy’s “handmade” definition.
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