What to do if you want to make more money as a creative? 8 strategic questions & actions

Dear Design Doctor
I am a ceramicist and sell through a lot of galleries. My work is very labour intensive and I can’t keep up with the demand. I have been gradually increasing my prices and have worked out what I ‘should’ charge – around £40 for a mug, but I actually charge £20 – £22 (retail price).
This means I get less than the minimum wage! I simply want to make more money as a creative. I don’t expect to make a lot as a potter, but I would love to earn a bit more than this!

 
The answer to this real-life question is provided by Patricia van den Akker, Director of The Design Trust:

‘Thank you so much for your question, and great to hear that you are selling well. But you have probably already worked out for yourself that you can’t continue like this! You might be busy, but this is not a sustainable business – neither financially, practically, or emotionally.

So, what can you do?

There are plenty of options for you to make more money as a creative business owner. Do you have the guts to make some (big) strategic decisions for yourself? Here are some major questions I would be asking you as a coach or adviser:

Question 1: Are you procrastinating? Could you be quicker?

Firstly: Have you calculated your cost price correctly? Although you mention your price, I am not sure if you are actually covering ALL of your costs. Click here to find out how to calculate your cost price correctly.

You might think that you are expensive, but it is very common for makers to miscalculate and charge too little for their products, and barely cover all of their costs.

Many creatives SAY that they are profitable, but actually still pay themselves way too little! It’s not just your materials that you need to cover, but also your overheads such as your studio space and marketing, and in particular your labour and time.

Calculating your cost price is a crucial first step if you want to make a better living as a creative.

The next step is to check if your production methods can become more efficient. Have a critical look at your creative time and your making processes and evaluate if you can decrease the time spent on each task.

• Can you group certain tasks together and become more efficient and effective by producing them in batches?
• Are some production methods really labour-intensive and would your clients really see the difference? More importantly…would they be prepared to pay more?
• Can you work with an assistant? Outsource or delegate tasks to somebody who charges less than you (might be tricky if you are earning below the minimum wage!)
• Are you spending a lot of time getting your ceramics ‘perfect’? Are you overworking your work without anybody really seeing the difference? Are you actually not that busy but are spending more time on your products then is actually necessary? (Answer that one honestly!)
• Do you really love what you do but don’t really see yourself as a business? Have you still got a bit of a hobby-mindset going on? It’s very common when you are starting out to be slower at producing, and therefore the prices you need to charge are relatively higher compared to a more experienced maker.
• Could you make more products per hour? Or can you simplify the designs so you that you can make more?

Although you might not get your cost price down that much, these efficiency savings will help you to make more money as a creative. As any gallery commission will double or triple your retail price, any savings you can make on your cost price can have a big impact.

GET INTO ACTION:

Become more aware of how you are spending your time. Keep accurate time sheets for a few weeks on any work that you do including every project or commission you do. You might be surprised how much time they take, which might make you more realistic when you are putting proposals together in the future! What’s also interesting is that when you start keeping time sheets like this, you start to procrastinate less nearly automatically!

Start to be more honest with yourself about how you spend your time: Is your perfectionism getting in the way? Are you faffing, procrastinating, and taking way too much time on jobs? Could you get more efficient? Are you taking yourself and your business seriously enough?

Find out exactly what to include in your cost price too so that ALL your costs are covered. Knowing the facts often encourages makers to finally charge appropriate prices!

Question 2: Why compete with the High Street’s mass-manufactured goods?

Because that’s what you seem to be doing! And that’s a battle you will always lose. Sorry.

Your price expectations seem to be very low to me, as you are comparing your products with price levels for mass-produced products!

The reality is that your uniquely made products are very different and you can’t compete with a machine!

You and your potential clients (stockists included!) need to see that a handmade mug is different from a mass-produced mug, and that the perceived value of both should be very different. If you don’t present your work more uniquely to the outside world then you will never get that higher price you need (and the value of the product!) and make a better living as a creative.

Read the story about the £12,000 table and that you too are selling much more than just a product.

I see this issue of competing with the High Street and mass-produced items often with crafts, in particular with functional giftware and interior products, such as ceramic mugs and plates, handmade cards, printed cushions and wooden salad bowls:

• There is much more pressure on the prices of functional products as the consumer already has a psychological price that they are willing to pay for such items. Clients often have an idea (budget) of what they would pay for a wedding gift for example or what a mug ‘should’ be worth. In comparison: the price of a piece of art is often harder to guess than a functional item.
• There is a lot of competition from far cheaper mass manufacturers importing from cheap-labour countries for functional items. Again this brings perceived value and the retail price down.
• An extra problem with functional ceramics is that consumers like to buy them in series: 4 of the same mugs, 6 dinner plates, etc. That puts even more pressure on keeping the single unit price low.

In my opinion it will be very hard for you to compete in this product area. It will be an ongoing battle (that you are likely to lose), and I doubt you will ever be so efficient that you can sell to galleries at £10 with a profit (unless you are planning to become a robot!).

I also doubt that that’s the kind of creative business that you want to run.

GET INTO ACTION:

Stop creating work in a very competitive market (where you won’t be able to win on price) and start being more creative with the products you make and how you present yourself if you want to make a better living as a creative:

• How can you make more unique products that have a lot less competition?
• How can you create work with a higher perceived value that you can charge more for? Can you increase size, change materials, or make it more decorative or illustrative?
• How can you present your work in a better way, in the right places? Can you improve your branding and photography?
• How can you make your ceramics more one-off and exclusive? Can you create a limited edition (individually numbered)? I share some more ideas in question 3 below.
• How can you make work that is more ‘art’ than ‘design’ or ‘manufactured’? Art has a broader and more flexible price point than most functional creative products.

TOP TIP: My topsy-turvy pricing tip: Instead of calculating your cost price and then working out a wholesale price and retail price … start at the other end: What do you think your clients would be prepared to pay? What could be worth £50 or £95 or £250 in your business? Then work backwards to see if you can produce it for those price levels. Get creative with your price points and what you want to create!

We often see that actually increasing your price points or offering different price points can make your business more sustainable than focusing only on selling lower-cost items!

Question 3: Can you add value (without adding costs)?

There are plenty of ceramicists who sell mugs for £40 or more.

Very successfully!

So, what’s going on?

These £40 mugs might be classic vintage, have historic value, are elaborately decorated (think English beer steins!), or created by well-known potters.

How can you add value to your work without adding costs?

How can you make your ceramics worth more? Appear more valuable to your potential clients? And how can you make more money as a creative?

In my talks I regularly give this example about cushions:

I see many fairly similar, printed, small square cushions out there that cost £40 – £60 retail. This is pretty expensive for many customers, especially as fairly similar cushions can be bought on the High Street for far, far less. Why copy what’s already out there in the mass market?
If a cushion designer would create a more unique cushion (e.g. a different shape, add applique, or increases the size dramatically) then these cushions would be worth more as there is less competition and more interest.
If a cushion designer would create a large floor cushion then the costs would only go up marginally, because although the material costs would be higher, the biggest cost of labour wouldn’t be much higher as a small or a large cushion take up a similar amount of time to make. But this larger cushion will be worth much more in the eyes of a consumer! It’s not a cushion, it’s a piece of furniture and you can easily charge £100 – £120 for that!

How can you add value to your ceramics?

• Can you add decoration, different and more unique glazes or colours? Can you really personalise your mugs?
• Can you create very specialist or unique mugs? Can you make them more local or add illustrations or mark making?
• Can you play with the size, and make lovely big coffee mugs that fit snuggly in your hands? Or can you create a set of very collectable Americano cups?
• Can you make your ceramics more ‘handmade’ or more ‘high end designer maker’? Can you deliberately make them more unique and exclusive, rather than machine-made? (Here we go again!)
• Can you move away from mugs and start to design larger ceramic pieces for which you can charge more? Think about ‘art-like-non-functional’ items here such as vessels or wall pieces. Art often has a higher price value than functional items. (See question 2)
• Can you add ‘keep sake’ packaging to make it a really special gift (but keep the costs down!)?
• Can you increase your own profile as a ceramicist? Is your branding and photography in line with your profile? Have you won any awards or have you taken part in any prestigious events? Can you share your story on your packaging?

GET INTO ACTION:

Become more aware about what your products are worth in the eye of your potential clients.

What can add value to your work without adding costs?

Charging more is all about the perceived value, rather than the actual value.

Get more creative with the type of product you create and think about the perceived value for your type of products. How you can improve your branding and presentation?

A kind reminder … just because you are selling loads, that doesn’t mean that you are profitable! One of the easiest ways to increase your sales and profits is by stop selling unprofitable products and start introducing higher end products. Go through your recent sales and identify which products are losing money, and then either increase their price or stop producing them and start replacing them with work that is sustainable and profitable.

Question 4: Why Are you underselling yourself?

What’s interesting is that you have done the calculation and the facts are stating very clearly that you are not charging enough. And still … you have decided to overrule these clear facts and charge less then you should!

So, what’s going on there?

Why are you not charging the right amount?

What is stopping you from charging the right amount?

Are you worried that nobody will buy from you?

Do you worry that you or your friends wouldn’t be able to afford your work?

Do you love what you do and therefore don’t see it as a ‘real business’?

Do you think that your work isn’t good enough yet?

Do you worry what others might think?

Two things to consider here:

1. If you charge too little for your ceramics then ‘people in the know’ will think there is something wrong with it. They won’t think ‘oh what a bargain’, they’ll just query what’s going on! Do you really want to be known for being cheap?
2. If you continue as you are at present you will get completely overworked and most likely burnout. Is it worth it? Are you still enjoying your work or are you on an out of control hamster wheel?

You aren’t the only creative who undercharges and undervalues themselves. It’s very common! I suspect that the vast majority of craft businesses should massively increase their prices. Especially women. Because we love what we do. Because we ‘don’t do it for the money’. Because we are worried about being too successful. Because ….

Until you start taking yourself seriously, nobody else will!

GET INTO ACTION:

How can you work on your confidence? Your own emotions and behaviour around money, selling, and marketing (often ‘learned’ at a very early age!) can have a huge impact on how you run your creative business and your ability to make more money as a creative.

I very often recommend this book by journalist Barbara Stanny on ‘Overcoming Underearning’ to help with tackling money mindset issues. Or this book by creative coach and poet Mark McGuinnes on Motivations can help too, in particular the chapter about money versus creativity.

Unless YOU start to work on your confidence, and charge and communicate what you, your skills, and products are really worth, through regular communication and presenting yourself appropriately, you will continue to be a poor artist in everybody’s eyes (including yours!). Unless you work on your mindset around money and your confidence, then nothing will change.

I can give you all the advice in the world around increasing your prices, or changing your business model but unless you realise that YOU need to take charge of your business you will continue to make a loss.

Which direction do you want to take? Make a living or continue to be very busy and poor?

Question 5: Are you showing in the right places?

Getting the right price for your work is directly related to WHERE and HOW you position yourself.

Pricing is relative. What is expensive in one place, might not be expensive in another location.

Are the galleries you are with selling other high quality, more expensive crafts? If your £20 mugs sit next to a £95 cake stand or £150 collectable tea pot then your mugs won’t look out of place at all! But if you are selling online or at an amateur craft market then your mugs will be very expensive indeed.

You say you are selling with a lot of craft galleries. I suggest you assess your current stockists critically, and find some new higher end stockists that sell higher end products and attract clients that understand the value (and therefore the price) of your work.

I assume that you are selling locally or that you might be selling to ‘tourist shops’ where price levels are often lower.

Rethink where you want to sell, if you want to make a better living as a creative.

Good professional galleries, collectors, and regular buyers of high quality crafts know the value of handmade products, the training and the skills required. They will know their clients well and can advise you on what sells and what doesn’t, and what you can charge.

Many creatives worry about the affordability of their work, and lower their prices very quickly if they don’t sell. But the reality is that the price level isn’t as important for the purchase as you might think. Lowering your prices doesn’t necessarily get you more sales. What you need to focus on is doing more marketing to the right clients.

GET INTO ACTION:

Are you showing in the right places? Identify at least 15 shops, galleries, and events where you would like to show and sell your work. Make a list of the ceramicists who are selling there right now, the kind of work they sell, and their price level. Do some research into the places that appreciate your skills, and approach them professionally to start selling in the right places for you and your work.

Or look at who your role models are, the ones that are able to charge what you would like to charge. What are they doing differently?

Get inspired (don’t steal!) by how they present themselves online and at events. What can you learn from others and how they make more money as creatives?

Question 6: Do you need a middleman at all?

What about not selling through galleries or shops at all?

Galleries have to charge commission, and therefore make your retail price high! (for more info about why galleries charge so much commission, click here.)

At the beginning of a maker’s career the added commission doesn’t work in your favour: you are still relatively slow and learning and therefore it takes you longer to create your products; you are not well known enough and therefore can’t charge a premium; and adding the commission of the galleries or retailers will make your retail price simply too expensive.

The reality is: many new makers can’t afford to sell wholesale.

But: You don’t have to sell wholesale!

You could have a very profitable business and make a better living as a creative by just selling direct to consumers, via craft markets, online with your own web shop, and through commissions.

You will need to do more marketing and selling yourself than you probably do now, but your profit margins can increase and you will have direct contact with your clients, which can lead to higher value commissions and personalising your products.

Or … look at other trade buyers too …

Option 7: Different trade, different price.

If you want to make a series of tableware but your prices don’t stack up for selling wholesale, then see if you can sell through other trade businesses such as interior designers or create hotel ware. They both buy in larger quantities like retailers, but they pay more than retailers (they normally get a 30% discount on the retail price).

Many small restaurants, organic coffee shops, and boutique hotels love to have a more unique tableware range to present their food and drinks. And they are prepared to pay for it!

There is a creative and commercial opportunity for you in this too: The shapes and colours in hotel ware are usually much more adventurous than most consumer tableware.

GET INTO ACTION:

Can you sell in bulk to other trade outlets other than retailers? Get curious and see what other creatives are doing.

Can you approach high end restaurants and hotels directly (do your research of who is interested in design and presentation)? There are also specialist agents in this field.

Can you find the interior designers or branding consultants who specialise in working with these kinds of boutique hotels? Tableware decisions are often part of interior or branding decisions when a restaurant is (re-)launched. Find out who works in this field and then pitch directly to them.

Option 8: Create a higher value collection

As I said at the start: functional ceramics have a very clear price point in consumer’s and wholesaler’s eyes.

You can’t change that.

But what about getting more creative with the kind of products you make?
What about products that are less functional and more collectible?
What about creating larger scale pieces?
Why not offer work that is worth (much!) more in your client’s eyes?

I am not trying to turn you into a ceramic sculptor or artist, but think about larger ceramic vessels, lidded pots, vases, and bowls.
These have a functional purpose, but are also decorative, and therefore worth more.

In the last few years the TV programme The Great British Bake Off has sparked big trends and sales in bakeware products. I wouldn’t recommend you create ramekins (too functional again!) but do think about the presentation of cupcakes and tarts.

Could you make beautiful platters, a footed cake or even a tiered cake stand? Something that’s really beautiful and a future family heirloom? These kinds of beautiful AND functional items are more unique (and less easy to produce by the mass market!) and will sell!

What will you do?

I have given you 8 very different strategic questions and options to make a better living as a creative. It’s up to you now to decide which way is best for you and your practice and business.

But you do need to make a decision! You do need to change direction!

If you continue on your current path, you will make very little money and may lose your passion for making.

Get more creative not just with the products that you make … but with your business model & marketing.

Make your creative business work for YOU.’

Did you find this blog post useful? Did it get you thinking about your own business and pricing and how creative you can be to make a better living as a creative? Have you got other suggestions or do you feel similar to this ceramicist? Please add your comments in the box below.