How Much Money Did You One Person Operations Spend Getting Started?

[Tallbald]

I'm a happy leather crafter, having been hand stitching and making some holsters and small accessories for over three years for self, family and friends. Due to a serious spinal injury and spinal surgeries, along with a total knee replacement in the last 4 years, I've been forced into an unwanted early retirement at age 55. I also have had to give up another favorite hobby, wood working. I can no longer stand or sit for more than an hour or less, and psoriatic arthritis has smacked me down yet more with swollen sore joints and limited mobility. Add to all this that I'm going deaf in both ears from a heredity problem and you kind of get the picture I'm painting of where I stand (or sit) these days. I've made a big decision with family encouragement, and have purchased a Cowboy CB3500 sewing machine using some retirement funds and selling off some wood working equipment. I have hopes to use my machine to extend the amount of time I can occupy my mind and body, and perhaps participate with my loving wife in craft fairs and shows that let us remain active as our doctors suggest, and hopefully recover some of the costs of our materials. We'll see.

My question is this. Aside from the cost of my machine (which has yet to arrive), how much in a ball park figure have folks here spent on materials to get started making enough stuff to offer at craft shows? I already spent about $230 on materials including a modest Hermann Oak veg tanned hide, a little lining leather and a bag of 100 line 24 snaps. I'd like to be able to make a few messenger bags as gifts (saving money on Christmas expenses), but also offering a small line of high quality lined big dog collars with stainless steel hardware, heavy duty dog leashes, some nicely stitched men's clip style key hangers, some cell phone cases,and some biker's billfolds. Hardware for maybe 10 of each of these type items easily runs close to $400 when I add prices up online with a couple of different suppliers.

I don't mind the risk I'm taking hoping to begin crafting with an eye to recovering materials costs but am I wagering too much on this kind of wish for a relative beginner? Perhaps it comes down to what I want to do. Some men have hobbies like beautiful motorcycles, bass boats, travel, or sports cars. I tend to think that $3000 spent toward a hobby that might last me the rest of my life isn't too bad. But when I phone in an order, it would be comforting to think I'm in good company. Opinions sought and welcomed. Don

Edited April 14, 2014 by Tallbald

[texback]

Tallbald you will most likely get many different answers to your question. I personally have several thousand tied up in a machine and tools, and I have a very long wish list as well....all this with the intention of supplementing my income when I retire. I would say that whatever the cost to keep you occupied, active, and happy is well worth it....and if/when you can make it pay that's icing on the cake. The cowboy should be a big help to you. I think that if I were in your position I would just buy the material, hardware, etc to make a couple of each item you are thinking of and see what sells the best. That would give you a better idea of the direction you should take. Just my 2 cents worth and wishing you the best of luck.

[Hi Im Joe]

I think I've spent 500 dollars...this month. My wife is none too happy. She's coming around though.

[LTC]

make a couple of nice things for her. i bet she'll be more supportive then.

[Hi Im Joe]

make a couple of nice things for her. i bet she'll be more supportive then.

That is in the works. Gotta up the skills before I can really wow her ya know?

[BDAZ]

The key to this quandry is are you investing in a business or in a hobby? If it's a hobby being run for your own enjoyment and to recoup some of your material costs then you should keep your investment to a minimum and make a few items that you enjoy making. Figure out what will sell at the local craft shows and make things that you like and folks will buy. Your time is less important that saving money on tools.

If you are setting up a business then time is money and you need to develop a product like that you can make efficiently and sell profitably. Time IS money and any thing you can do to minimize construction time while maintaining product integrity is worth while investing in.

I recently went through this exercise and I have around $5K invested and just hired my first employee. I am not in it to make a lot of money, just to keep the overheads paid, cover my employee and eventually cover my investment. The biggest single investment was a CB 3200 with all the bells and whistles. Remember that your 3500 will always retain some value if you ever need to sell it.

I used to work in the wine industry in California and the joke was "How do you make a small fortune in the wine industry? You start with a big one!" I suspect the leather industry is very similar.

Cya!

Bob

[chiefjason]

I started a couple years ago with $500 that we could afford to loose and not get hurt. Started small. Made a lot of tools when I could. Rolled 99% of my money back into better tools and more materials. We built up slowly while not accumulating any debt into the venture. I still have no debt in it. It's self supporting and a nice side income now. I could stop tomorrow, sell everything, and walk away in the positive. I suggest you keep that in mind as well. Debts make it work. And that can make it miserable.

FWIW, I've probably spent $1000 in the last month on materials and new widgets. Good news is that I'm set for a little bit anyway. Wife does not mind because we don't mix the money in with our normal income. That way it's completely self sufficient and we invest none of our normal income in the venture. To a point we will spend out of the account or move money out into personal savings or investments. But when I have to move personal money into the venture account, I'll be looking to shut it down and sell off stuff. I can deal with break even for a bit. But not negative flow.

[papaw]

I am just getting started and have spend about $1800. in tools and supplies, and have know power tooling. Arbor press, stamps, knives, needles, thread, leather, storeage boxs. Had some tools to start maybe 10 stamps and a few books.

[Matt T]

Several thousand. It didn't take me long to realize that buying cheap tools was a waste of time and money. Now I stick with the best: Vergez Blanchard hand tools, Fil Au Chinois thread, Cowboy 227rb, Skiving machine (essential), and fine leathers. I should add that my income is not from leather, and if it were, I might have a different story.

[JoeSnuffie]

In the first couple months I spent maybe $300 but much of that was at Hobby Lobby with 40% off coupons for kits and tools. Their retail prices were usually lower than Tandy to begin with. I've spent a couple thousand total, now, but have managed to turn a little profit. It's not much but my hobby pays for itself and a couple gifts for my wife and kids along the way.

[DavidL]

1200 total for vergez blanchard tools, dixon pricking iron, die cutters, supplies and leathers. Planning to spend 2-4 grand on an apprenticeship and work for someone for a few months to work off my debt and earn enough to live on. I plan to make a small web business selling leather goods and maintain another job until it gets off the ground. Worst that can happen is I make a side business that makes a few bucks on the side.

[BondoBobCustomSaddles]

When I first started, I had about $600 tied up in materials and a couple of hundred in tools. every time I made something for someone, I just added a tool to the order sometimes it was $5 and sometimes it was a couple of hundred, and so on. Later I started buying the bigger stuff when I got paid for a saddle or set of chaps and so on. Now, I find I wouldn't even be able to guess how much I have invested, but; my experience is that you can never have too many tools, especially god ones. You can help stave off the cost some and get good used tools in good shape, by buying from Bruce Johnson. He will always be glad to give you some advice on what you need when looking for that special something to do that certain type of cut, stamp, etc. and his prices are good.

Hope that helps!

Bob

[Tallbald]

This has once again for me become a very helpful and interesting thread. I'll add this in to my situation. Leather crafting is not a business for me but rather a hobby that I need to turn into a self-supporting one. I did it in the 90's with wood sculpture turning and bought all my tools with sales proceeds at the time. Nowadays though I am unable to even attempt making leather crafting into a business because given physical limits, I cannot take volume orders much less turn out an item at wholesale rates. Some days I can produce and some days it's a chore just to move around in our own home. At this time, I have paid for my sewing machine, which as some have pointed out has resale value should it become necessary (comforting). I have also placed for sale a large wood turning lathe I am no longer able to use. I have a few other things I plan to place up for sale locally, to help fund what in essence is a mandatory change in hobby. I am not being forced by my loving wife to do this, but as a practical man made the choice myself and look at my hobby change as a change out of necessity.

I respect the admonitions to buy quality tools and materials. I'm a retired ER nurse, but in addition to that I'm also a Journeyman Tool and Die maker who knows the value of good tools. "Buy quality once, cry once" of course can be taken to an extreme and by some, be used inappropriately to rationalize over-buying, but it's been a good rule of thumb for me. But high quality materials and tools that work will I think remove one roadblock to any potential success.

My wife and I are currently networking with other craft show participants, two of which have many years of experience with shows in a 75 to 120 mile radius. Together she and I have "done" two shows in our town, and are learning what does and does not work for us. The advice of our networking friends has helped immensely, and our extended family has been very encouraging and emotionally supportive. I have had a sales tax number for many years, and since making the Leather Decision have used it to good effect setting up to wholesale accounts with a couple suppliers. Makes a BIG difference in purchase prices of tools and such. My wife and I are all above board and did turn in sale tax receipts for the few items we sold at the two shows last fall, and we both keep good and honest records (both of us are retired nurses used to detailed record keeping).

What I plan to do at this time is to get my machine, learn its use, and make several copies of items I want to try marketing. Handbags, snap style belt key holders, billfolds, book covers, phone cases, messenger bags, and generic folding knife cases. I think that given the economy, items with a price point of less than $20 would sell quicker than higher priced items. I will be experimenting.

The amounts I see others here having to spend seem right in line with what I have earmarked for my tools and supplies. I feel better folks. I truly appreciate the sharing of experience here. Thanks again, Don

[SeekingPerfection]

This has once again for me become a very helpful and interesting thread. I'll add this in to my situation. Leather crafting is not a business for me but rather a hobby that I need to turn into a self-supporting one. I did it in the 90's with wood sculpture turning and bought all my tools with sales proceeds at the time. Nowadays though I am unable to even attempt making leather crafting into a business because given physical limits, I cannot take volume orders much less turn out an item at wholesale rates. Some days I can produce and some days it's a chore just to move around in our own home. At this time, I have paid for my sewing machine, which as some have pointed out has resale value should it become necessary (comforting). I have also placed for sale a large wood turning lathe I am no longer able to use. I have a few other things I plan to place up for sale locally, to help fund what in essence is a mandatory change in hobby. I am not being forced by my loving wife to do this, but as a practical man made the choice myself and look at my hobby change as a change out of necessity.

I respect the admonitions to buy quality tools and materials. I'm a retired ER nurse, but in addition to that I'm also a Journeyman Tool and Die maker who knows the value of good tools. "Buy quality once, cry once" of course can be taken to an extreme and by some, be used inappropriately to rationalize over-buying, but it's been a good rule of thumb for me. But high quality materials and tools that work will I think remove one roadblock to any potential success.

My wife and I are currently networking with other craft show participants, two of which have many years of experience with shows in a 75 to 120 mile radius. Together she and I have "done" two shows in our town, and are learning what does and does not work for us. The advice of our networking friends has helped immensely, and our extended family has been very encouraging and emotionally supportive. I have had a sales tax number for many years, and since making the Leather Decision have used it to good effect setting up to wholesale accounts with a couple suppliers. Makes a BIG difference in purchase prices of tools and such. My wife and I are all above board and did turn in sale tax receipts for the few items we sold at the two shows last fall, and we both keep good and honest records (both of us are retired nurses used to detailed record keeping).

What I plan to do at this time is to get my machine, learn its use, and make several copies of items I want to try marketing. Handbags, snap style belt key holders, billfolds, book covers, phone cases, messenger bags, and generic folding knife cases. I think that given the economy, items with a price point of less than $20 would sell quicker than higher priced items. I will be experimenting.

The amounts I see others here having to spend seem right in line with what I have earmarked for my tools and supplies. I feel better folks. I truly appreciate the sharing of experience here. Thanks again, Don

Do you think you will be able to keep up on turning out enough product with those $20 price points? Dont get me wrong $20 is the perfect price for an impulse purchase at many shows. But if you want to average say $1,000 a day (to survive I have found this to be a good goal) over a 2 or 3 day show you're going to need to sell 100 to 150 pieces. And to sell a 100 pieces you're going to need at least 3 times that on the table.

Now I realize that my example might be crazy high for someone starting out (make it a goal), but divide that number out to whatever your goal is. Even if your goal is $300 a day you're still going to need to make a lot of product at those price points. Can your body hold up to that kind of labor? You need to be realistic with yourself and what you are capable of. Sitting out at a show takes a real toll on the body as well. Loading, unloading, standing in the sun for 12 hours, ect.

With all that said, I would suggest you have a variety of price points. you keep your low end stuff easy to turn out, and put some nicer pieces out where you can get more money for it. As long as the value is there people will buy whatever you put on the table. When I do shows I have things priced from $3 (not leather) up to $300 or $400 in the booth. Some people will buy the cheap $3 stuff, and others will buy the more expensive $400 stuff. I am a fairly young guy, but I will tell you selling at shows is not easy on the body. And when you're making the stuff it's even harder.

Like I said be realistic with your expectations. Figure out what you're going to do if your stuff sells too good. And figure out how often you want to work. Doing shows can provide a very lucrative lifestyle, but it doesn't come cheap.

Edited April 18, 2014 by SeekingPerfection

[immiketoo]

I have spent 10K in my first year and a half. A big portion of that is my Cobra 4, but the rest is hand tools, leather etc. It's hugely addicting, and I admit I have many things that I probably won't use for a while like spots, buckles etc. But, I don't care. I NEED to do leatherwork and in turn, I need quality tools. I found out quickly that poor quality tools irritate me, and so I graduated to better tools. Of course, that why my figure is so high. The quality of my work and the ease with which it is done makes that expanse worth it to me. Another plus is that you will always get your money out of quality tools should you decide to sell them, and, they eliminate any excuses that you might decide to blame on a crappy tool.