Homemade selling: How to earn money with your hobby

Benefit from customers buying homemade products

We live in a throwaway society today. We usually use things only briefly, then throw them more or less carefully into the dumpster, causing gigantic waste. You can buy most of the products cheaply, so you can not dispose of so pretty looking things thoughtless and replace them. Society no longer appreciates the value of a thing or a product. There is often a lot of work, material and creativity behind it. Such “handmade” products are popular again with many people, because they are of excellent quality, made of the highest quality materials and above all, no goods are “off the peg”. Home-made is for many a piece of luxury and this brings you to the house.

It is no coincidence that more people are looking for home-made food and pay more for it. It is again thought about how much effort is in a product. Some also appreciate the uniqueness of products that were not produced in a mass production, but created in loving and painstaking manual work. You can successfully pick up this trend and sell your own home made .

What you need to sell homemade

Once you’ve discovered a talent for making, first think about which product you could produce and sell with your skills. It is therefore important to develop an idea for a product. Let’s say you enjoy creating soaps or making key rings from bottle caps. Then you could make a deal out of it and sell the soaps or key chains as homemade. Let’s just play through these two examples. What could a possible process from the idea to the sale look like?

Materials and storage space

Many discover their creative or handicraft talent by chance rather by chance – when practicing a hobby, the renovation of their own four walls or when tinkering with the children. Usually, the idea spontaneously grows to turn talent into a business. The basic idea was born with it. In order to be able to sell homemade, you must first produce it in appropriate quantities. Of course, to be able to produce enough quantities, you will need the necessary materials. This is the first problem, because it raises the question of where you get the required amounts of material and that at a price that still allows a profit margin. After all, you want to earn it. If you then get the material, you have to store it somewhere, as well as later the homemade product. So you need in addition to the material and a sufficiently large storage space. In addition, with some products a suitable production room is necessary, as you will see later on the example of the soap.

Get feedback on the product

It’s nice to be able to make something, but it’s not sure if people would buy it too. Therefore, it makes sense to get as much feedback as possible before the start of a professionally established business, as the self-made by others arrives at others. First, make a limited number of soaps or keyfobs, give them away to family or friends and ask for honest feedback or opinion. Above all, the subjects should give you feedback on the following topics:

  • materials
  • processing
  • Consistency, feel (eg feeling when using the soap)
  • Odor (eg the soap smells like the ingredients)
  • Benefits (eg how well does the soap clean)
  • Overall impression (is the product recommended)

Such feedback will give you a first, but important, indication of whether you would be successful if you were to sell your creations as homemade.

Planning of production and quantity

If the feedback on your soaps or key fobs has been positive, consider how much you want or want to make. And: How should the manufacturing process be designed so that you can handle even larger quantities? It is always convenient to have a product warehouse in which there is a reserve. Nothing is worse than having a customer buy a product, but it can not be delivered because you no longer have it in stock.

So be realistic. Try out how many soaps or keychains you can make daily, weekly or monthly without compromising quality or motivation. For large online stores, you can show the customer on the product detail page how many soaps or key fobs are still available. If you have your own online shop, you can usually also place such an ad. So you do not come in distress, but just sell as many parts as you can produce and stock.

Overcome possible obstacles

Above all, you can not just sell homemade soaps, but you have to overcome some hurdles before customers can enjoy your product. A first obstacle is suitable premises for the production. These must be easy to clean and designed so that you can work hygienically in it. It is best to get in touch with the relevant authority and to find out what requirements inspectors have for your “soap kitchen”.

Another requirement is that you register with the relevant control authorities (Landratsamt, Chemisches and Veterinäruntersuchungsamt and the Federal Office of Consumer Protection and Food Safety). At the authorities you have to present a so-called safety assessment for each soap creation, which is created by a laboratory. By doing so, you will prove your health safety.

Also the documentation of the production of a product is prescribed, especially with soaps. For each new unit, it is necessary to list which ingredients are contained in which quantities and which operations have been performed. Each batch receives a batch number that can be used to track problems and how the product came from.

Other obstacles, if you want to sell homemade, may be the requirement to your online shop or tax requirements (trade license, tax number, small business regulation, sales tax yes or no). In any case, before you dive into all these things, it’s part of your business.

A good business plan

So that you can successfully sell your homemade, you have to calculate expenses and income well, so you get a business plan. You will incur costs that you need to include in your planning:

  • material
  • Tools (if needed)
  • working hours
  • Room rental (production facility, warehouse)
  • Rental charges (electricity, heating, water)
  • packing material
  • Shipping
  • Staff costs (if required)

These total costs must be broken down. You have to calculate the costs of each item per piece of manufactured product. So in the end, to earn something extra, it’s important that you turn all expenses over to the single product. The selling price should be so high that you not only cover the costs incurred, but also something left over. This is called profit margin.

To be able to sell self-made goods as a trader, you usually have to register a trade and become self-employed. As long as you do the business on the side and also have a permanent job, you do not have to worry about other costs such as health insurance . However, once you become a full-time retailer, it is necessary to calculate that all costs such as rent, telephone, vehicle, taxes and social security contributions are covered by the revenue. Calculate how much your total monthly costs are and then calculate how many pieces of your home-made product you need to sell each month to cover these costs and also to save money on food or hobbies.

Find the right sales channels

You started producing your homemade product and worked out a small stock. The next thing to do is to think about which channels you want to sell your home made or can do. There are several ways to get your product to the man or woman.

Sale at markets or shops

 

The classic method is selling on creative markets. There you have your own stand and you get in direct contact with the customers. Here it is important that they connect your product with your personality. For example, you are much better able to say something about the idea, the materials and how to make your soaps or key chains. You do not have such a chance when selling over the internet. If you want to appeal to a broad audience, you can also get in touch with specialty stores and offer your product there. Ideally, you can inspire the owner for your product, selling it on a commission basis or on the basis of another agreement.

Onlineshop and online market places as selling places

 

The trend today is towards online shopping. So think about whether you might want to sell your home-made online. With its own online shop or with a seller account on major online marketplaces such as Amazon or eBay or on online marketplaces such as vondir or muckout , which specialize in the sale of home-made. The biggest advantage is the range, if you sell homemade on the Internet. You can offer your product not only regionally, but worldwide because the Internet knows no borders. The use of online marketplaces has its price. There you can stop your products and pay a fee to the company. You save this fee if you put your own online shop on the net. This also has the advantage that your own brand – which you have finally created with your product – is more in the focus and becomes better known.

Advertising for own products

If you want to sell homemade things, promoting your product as efficiently as possible is a very important task for you. Creating an online shop and then waiting for customers would be the direct route to failure. You have to make people curious about what you do in laborious work. You have to convince them of the quality you get when you buy your product. And of course you have to get them excited about the benefits of your product. Bring them closer, such as Nourishing your homemade soap and how cool it is to have a keychain made of bottle caps designed by you. But how do you best promote your homemade product?

Use social media channels for advertising

Most people reach you today through various social networks like Facebook, Twitter, Instagram or YouTube. This is where you should promote your product. You can invite your family, friends, and acquaintances to like, share, or comment on product reviews. In turn, you will reach their friends and acquaintance and so on. This alone increases the awareness of your home-made product.

Advertise your product through Google and Co.

Of course, you can also use the major search engines to advertise there. However, you have to take money in hand, because such ads cost money. Google, for example, can pay for clicks, which means that it only costs you money when someone clicks on your ad. You can also use the good old ad in a newspaper or a city magazine to sell your home-made.

Create product videos as an advertisement for your home-made

Although a well-designed ad in text or picture form is perceived as positive by many customers, it does not achieve the impact of advertising with a video. Moving, well-staged images simply captivate the viewer the most. Especially with homemade products, it makes sense, for example, to represent the manufacturing process and to show how much work and passion is in your product. Let the customer experience first-hand how your soap or your keychain develops in painstaking and loving work. Such a thing inspires and tempts to the purchase.

Simply sell homemade – trade agencies support you

You can get professional help in case you have the talent to create a product but feel overwhelmed to organize the sale by yourself. There are certain trading agencies such as For example, the JB Commercial Agency or CSP (Corporate Sales Partners) who specialize in taking care of your product and looking after advertising, negotiating with merchants and online marketplaces, product presentation or pricing. But of course you pay for such service money.

Conclusion

The idea of ​​selling something home-made is certainly an exciting project. But it takes a lot of time, energy and money. To really make money from the sale of handmad products and live off the revenue, you need to be professional. Before you think about exactly what you want to sell, how you make it and where you want to sell it in the end. You need a compelling and sought-after product, a detailed business plan, good advertising, and above all, persuasion and perseverance. So you can sell home-made and start a successful business with what you like to do and do well.