I Need Help With Market Research For Business Plan

[Iron Pounder]

Even though this site has a bunch of good folks I think this is the wrong place to ask that. We all make things that cost more than lower end stuff so we look beyond price quickly. I'm not sure very many can give you just a flat answer, I think most everyone will opt for the best value, if they understand the difference in the two products. I think price affects my buyers. I sell a fair amount of pocket wallets at 1/4 the price of my bifold wallet. Maybe they just like the look of the smaller wallet better I don't know for sure but I just think price limited the selection down to the pocket wallet. If I asked someone that question I would follow that with asking what kind of car they own.

[DoubleC]

I thought about that after i did this, and it's not the on ly place I've done the research. Everyone here makes quality things so of course they are going to want that in what they buy. A car's a great question. Cheryl

[Spinner]

It may not help your plan/question but here's a bit of input from the bike end of the leather spectrum. I've found that Design and Quality are the top two considerations for motorcycle gear. Materials not so much because if they made it to me, I already know they're looking for real hide and the grade kind of follows the idea of quality in my mind. Price is a consideration but for those folks that are seriously looking at the products and know my reputation, price ends up being the last question they ask. My prices aren't crazy expensive like DB but my average ticket range is $250-$400 so it's not pocket change either and seeing as how I'm backlogged 2-3 months usually I could probably increase them more if I wanted to. I guess I'm middle shit too...LOL.

Admittedly, when I first started out price was the biggest question since folks didn't know me, my work or the quality so I had to beat the other guys with the money. Once I had enough product out there and word got around I was able to raise prices to a more comfortable level and business has actually increased along with the materials, quality, value and price of my work. I think that's a natural progression that most small businesses take unless of course the craftsperson behind the business has a following already and is simply transitioning to the realm of profession vs. hobby.

As for myself, it's all about quality & design. if both of those things exceed everything I can get elsewhere I'll scrimp & save to find the money if need be. Think about the mauls, swivelknives, custom maker stamping tools we all drool over & buy. Are there cheaper alternatives to each of them? Yes but most of us are willing to spend, in some cases, 10 times that amount to get the better item (Tandy std. swivel knife vs. a SK-3 or Tangleboss)...provided it's a true quality rather than perceived.

[DoubleC]

Spinner, you make several good points. I don't have a following, well heck, I'm not even a real business yet although I am working my hiney off at being one. I have two local musicians using my straps, and I have a friend wearing my jewelry at her work, and I wear so much of my stuff I look scary (seriously, walked in mental health one day with eye earrings, pendant, and belt buckle and then wondered what would have happened if someone paranoid had seen someone with 7 eyes walking toward them :-)

Target date for the grant was October but my VOW counselor got another job, is leaving the 20th and truly he has done everything for me, put me in touch with the musicians, the org. helping with the business plan and the org with the grant money, plus too many other things to even mention.

I'm trying to keep my prices very competitive right now while i'm waiting on enough money to get what I actually need for a project all at the same time and I make the very best product I know how, although I believe each one is better than the one before, but that's as it should be. This thing was done to add to my business plan (since a little extra paper would make that person very happy since I don't like that side of things) but yet I know it was skewed from the start. But I've done internet research and local so I thought I'd ask you guys to help me out too.

I may drool over a lot of things, but I can find the best deals on things even I DON'T believe and until I do, I do without. I have to since I'm footing the bill right now, with few sales trickling in.

But I'm also trying to be careful what I wish for.....I guess I'm superstitious. Right now I can make what I want when I want and practice, experiment, and only answer to myself mostly. That will change once I get known here and kit's a small enolugh place with no one who does what i do that I don't think it's going to take long....I mean like 10 years to get established.

Thanks for all your ideas. Cheryl

[Spinner]

Spinner, you make several good points. I don't have a following, well heck, I'm not even a real business yet although I am working my hiney off at being one. I have two local musicians using my straps, and I have a friend wearing my jewelry at her work, and I wear so much of my stuff I look scary (seriously, walked in mental health one day with eye earrings, pendant, and belt buckle and then wondered what would have happened if someone paranoid had seen someone with 7 eyes walking toward them :-)

Target date for the grant was October but my VOW counselor got another job, is leaving the 20th and truly he has done everything for me, put me in touch with the musicians, the org. helping with the business plan and the org with the grant money, plus too many other things to even mention.

I'm trying to keep my prices very competitive right now while i'm waiting on enough money to get what I actually need for a project all at the same time and I make the very best product I know how, although I believe each one is better than the one before, but that's as it should be. This thing was done to add to my business plan (since a little extra paper would make that person very happy since I don't like that side of things) but yet I know it was skewed from the start. But I've done internet research and local so I thought I'd ask you guys to help me out too.

I may drool over a lot of things, but I can find the best deals on things even I DON'T believe and until I do, I do without. I have to since I'm footing the bill right now, with few sales trickling in.

But I'm also trying to be careful what I wish for.....I guess I'm superstitious. Right now I can make what I want when I want and practice, experiment, and only answer to myself mostly. That will change once I get known here and kit's a small enolugh place with no one who does what i do that I don't think it's going to take long....I mean like 10 years to get established.

Thanks for all your ideas. Cheryl

Hey Cheryl,

One thing to consider in all of this is your target geographical location. You mention getting established there and your items being shown locally but thinking about it from the grant reviewer's perspective, how far will your specific area take you? While sales could be good to begin with, you'll eventually hit a wall when the market becomes saturated, especially if your products are not throw away items that wouldn't be replaced regularly. They are going to want to know what your next steps plans are like expanding your product line (forgive me but I only know of the 'eye' jewelry and guitar straps you've mentioned) and eventually expanding your sales area. Obviously the internet should be a given, either your own website or at least starting with Etsy and the likes. My area is a bit different in that So. Cal is so spread out but tell you what, if I had to depend on local sales I wouldn't be able to buy dye for my next piece and that's with a huge motorcycle market here...of my 63 orders this year so far only 1 has been 'local' with everything else going out of state/country. So just make sure not to limit yourself to a certain locale.

Cheers,

Chris

Edited July 10, 2012 by Spinner

[DoubleC]

I have a website, etsy shop and FB page. I know what you mean. My VOW worker took one of m y straps to VA with him last week, and I am soon going to have a 'real' website' instead of the one VT. gave me through google, not that I'm complaining....it was free :-)