The Leather Business - A Rant

[Ian]

This is a rambling Sunday morning rant just getting things off my chest and wondering out loud.

I'm sitting here wondering about the feasibility of the leather business. I've been tackling it from various angles for about 15 years now, trying to make it pay as a full time business. I generally get 2-3 custom orders a week (ranging from gun belts to motorcycle seats and bags, chaps, etc) plus small stuff like repairs, sewing club patches, etc. I'll tell you, more than half the time there is little profit in it. I've gone at it from the angle of selling only ready made products, belts etc, but that only covers the expense of a space at a trade show, travel, etc.

At one time I had a regular store front business and am considering re-opening, learning from the business mistakes of the past, but I'm leary of investing the 40 grand or so it would take to rent and stock a small store in this time when small businesses are almost a thing of the past. But, the couple of years I was open were the most enjoyable of my life - meeting such a variety of people and the huge scope of the orders I got were a real learning experience. Do I try again, putting more into promotion, re-developing a customer base, etc? I don't know.

Every time I see a rack of Chinese made belts marked 'genuine leather' but are actually 99% plastic, I want to punch something. But this is what we compete against. Are there enough people left who will pay 4 times the price for a hand made item, when every store is loaded with cheap fakes? Where is the Federal Trade Commision when it comes to this outright fraud? When you can pay half as much for a bonded leather couch as for a custom made motorcycle jacket......and about 10th of the price for a Pakistani made jacket, what will people choose?

One of the problems I have is finding suppliers - and I've ordered from every one of them over the years. Some recent examples include a set of bags. I spent a large amount of time trying to find a color match for the customer's seat, and when I recieved the side, it was many shades lighter than the swatches I was sent - and dirty to boot. Unfortunately, I had cut into the side already before the customer rejected it, so there was no returning it (which would have added another 25 bucks to my cost anyway), so, there was over 100 off my profit. This has happened so many times, from so many suppliers, that I can't count. Leather that gauges wrong, different color, damaged, etc. Profit quickly dissapears when only half a hide is usable, and customers aren't that interested in hearing about supplier issues - they want a clean, well made product.

Recently I decided to splurge on a new machine. Now, granted a $2,500 sewing machine is low end, but the marks the foot leaves are so severe, I could never ask a customer to accept that. The supplier kindly offered to make some custom alterations to the foot, and I'm looking forward to seeing how it turns out, but jeez, wouldn't you expect that such an issue would be taken care of in the design stages of the machine? If it doesn't work, I have an expensive doo-dad gathering dust in the garage.

It seems that over the years I have spent as much time (and almost as much money) learning every aspect of leather work, pattern making and construction as it would take to earn a medical degree, but is there value in this knowledge? Perhaps if I'd focused on learning high end saddle-making from the beggining, I might have had a shot, and I admire the heck out of what those guys do.

From time to time something big happens, like right now I've been asked to develop a product for the state police, but those are few and far between.

So, anyway, If you sat through my rant, thanks. Just feeling kind of frustrated right now, wondering if I haven't been chasing this thing long enough. My shop has gotten too small for all the equipment and leather, and need to rent a bigger workshop. Should I, or should I just sell everything and move on......I don't know.

[electrathon]

_{I often see people traveling in a poor direction on hobby/career/small business working. You open a bigger shop and $3000 more has to be earned just to break even. If you work out of the space you have you often have less stress. Make QUALITY and sell to the small group. You can not compete with China and the mas production issue. You can blow them out on the quality that they can not do. The internet gives all of us the ability to market to a wide range of the world that you never had before. Sell with a gimmick: Personal service, Big business can not offer this. Then actually provide the personal service.}

[WScott]

Good rant, hope it feels better to get it off your chest!

All industries have the fight with the New World Economy...it is the new reality. Hopefully substance, service and quality come back into popularity rather than cheap, immediate and flashy.

Learn from the business mistakes of your past....what is different now than from when you had to close down? What will you do to survive the monthly bills? Is there a market close by for your products? Can you afford the risk, loans and stress?

Staying in a small "lean and mean" workshop, marketing through the internet and shipping to customers might be a better idea than a bricks and mortar store with a lease. Certainly in a regrowth phase lean and mean lets your business build before you get ahead of yourself debt wise.

Money stress makes people take on foolish and risky clients, projects, cases etc.

I run my own business for a living in healthcare,the same principals apply.

JMHO

I wish you well, Scott

[DoubleC]

Lan these are good questions you're asking yourself and ones 95% of us struggle with all the time. I just jumped in head first into the murky waters of buying a sewing machine that hasn't arrived yet because I can't keep up. Yet my profits to date don't really justify such a purchase. I'm gambling that my profits will increase with it in order to pay for it. I sell at the local farmer's market twice a week and sell very little premade stuff so the majority of my business comes from custom orders. So while it keeps things interesting there's also a learning curve every week. To illustrate I'm currently working on recovering a chair and a woman ask me to make her some 3/8th " purse straps to replace some that were plastic and broke. The purse probably didn't cost what I had to charge to replace them for her. To make it worse where we sell is practically in Walmart's parking lot LOL. I had a guy show me a 16.00 wallet he got there and asked me if I could duplicate it......for 16.00. I'm still chuckling about that although that may not have been my best customer service I've provided.

But you know only you can answer these questions for yourself. All businesses I think deal with a poor supply occasionally and that should just be written into your equation when you look at your business plan. Supplies are going to arrive late, damaged, different than what you expected. Customers are going to expect more when they buy hand made rather than less because the Chinese stuff 'looks good' even though we know it's not going to last. I'm replicating a Chines belt right now that's giving me fits on the embossed design it has on it. I can't get it to scan straight and it's going to need taped to the belt when I do to get it on without it sliding. I've been asking myself some of these questions recently because I am slow and I want everything perfect as I can get it when the customer gets it back. I wish I could answer them for you but I can't answer them for myself. Good luck. Cheryl

[raysouth]

Hello Ian, or is it Lan?

Good advice/suggestions from folks above.

Years ago, I also operated small business, one of many over the years, but today I doubt if I would go it again with conditions as they are.

Operating from homestead helps control cost and folks will come if you have the product they seek and can compare quality or simply desire the best.

Your rant is something that many folks are experiencing so it has been beneficial for others to see that they are not alone.

Even today, I feel pressure that I should not be feeling but won't get into that. Just grab a cold, (whatever you prefer), take off and find a relaxing spot, imagine that you are above the clouds and floating away from all the trials and tribs. of today.

You will find a way and it will be a good trip.

Be well, my friend.

God Bless.

Ray

[Ian]

Thanks for the very good advice. I'm lucky that I have a job that pays me well in addition to the leather business and foolishly thought I'd quit that to do the leather business full time again. The thing with part time is that I'm in the shop every day on the weekend and at night, so everything else is put aside. It becomes more of a chore than why I got into leather in the first place - because it's so much d**n fun. So there is a big attraction to working 5 days full time in the shop. Just unrealistic. I'm thinking I'll spend a few bucks to insulate and sheetrock the 2 car garage, install heat, etc. So I'll be adding value to the house as well. I guess all the other frustrations go along with the business.

Oh, Double C the machine I'd been using is an Aerostich pnuematic. I used to cuss about it all the time, but what a joy to be sewing with that one again today. I don't think you'll ever regret buy a machine. You'll be amazed at all the different things you'll be making once you get it.

[Ian]

Thanks Ray....very cool message. Spent half the day polishing the bike, finished a gun belt and am feeling a lot better about the whole thing. In six years I'll be joining the Social Security crowd and I can be the old hippy I always wanted to be.

[DoubleC]

Thanks Ian, I'm pretty excited about it. I got a great deal on a Cobra 4 because it's white. A factory mistake. I can't wait until it gets here. I'm glad you had a relaxing day and hope you are happy and relaxed about your decision. Cheryl

[Cyberthrasher]

One thing I pulled from your rant is that your customers seem to have been expecting manufactured results instead of that variances that come with a handmade organic product. I'm not saying you're wrong in your frustration on consistency, but it's also important to educate our customers on the facts of custom leather. No two pieces will ever be the same and there are no guarantees. If I ever had a customer tell me I HAD to color match an item they already had, I would say "I can try to come as close as possible, but exact matching would be pretty hard to come by". Usually if it's worded right, they understand. Most of the time, once their item is done, they're amazed at how much better it really is than the item they originally wanted matched. That's the root of the problem we face, an un-educated customer base. No, we'll never compete with the Chinese market because 95% of the population thinks that's what they should be paying and they'll accept it. Our goal should be to wow and amaze the other 5% and try to get them to influence the rest.

I have these same thoughts quite a bit (about leaving the day job) and I've decided that once the income from leather starts to equal out really close to my day job, then I'll consider it. Until then, I have a lot of fun with leather and my customers know that I'm here to support them. If I were just throwing stuff out the door, there's no way I'd be satisfied because it wouldn't be the work I enjoy the most. As an artist, I'd much rather take my time and put out really cool work then just rush out simple stuff for some extra bucks.

[cjdevito]

I'll never be able to make as much money with leatherwork as I make at my day job. Forget about my skill level, which is low... even if I were one of the best, it wouldn't be enough to compete with my regular salary. On one level that's a damn shame, because I enjoy the leatherwork a hell of a lot more than I enjoy my day job. On another level, though, it's a blessing - it keeps me from seriously contemplating going into the leather business, no matter how much I enjoy working with leather.

So my plan is simple. I have another 20 years or so til I can retire, and when I do that will be with a great pension, SS, and a retirement fund. I figure I can use the time between now and then to improve my leatherwork til it's a level where I could feel proud enough of what I make to sell it, then when I retire I'll go into the leather business then. I won't -need- that income, so I'll still be able to have fun with it without having to worry about putting food on the table with it.

I can't say whether the leather business is the right call for anyone else as a way to make a living. Just that in my own case it's not. Being able to look objectively at it, no matter how much you love it, is key to figuring out your own answer.