In this week’s The Leather Element, Chuck goes over some simple mistakes to avoid while working with leather. From stitching tricks to punching surfaces, Chuck covers quite a few scenarios. We hope these tips and tricks are helpful to you in your leathercraft journey!
HOW TO START A LEATHER BUSINESS?
A leather business supplies leather goods and services to customers. Everything from high-quality purses and handbags to leather repair may be available through a leather business.
What are the costs involved in opening a leather business?
It is possible to get started in a leather business for a relatively low overhead, depending on your focus. If you are selling some pre-crafted items online from your home, you will need to spend most of your money on building up your stock. Handbags, purses, gloves, and smaller leather items can be purchased wholesale and stored in your house or other storage options until being shipped to customers, as the orders are received. You will need some sort of forum for reaching customers, such as a website or access to online retail options, such as eBay or Poshmark, for example.
If you choose to operate out of a storefront, you will need to factor in the costs for rent, utilities, and business insurance. Although this will raise your overhead costs, you may reach more customers, depending on the location of the store.
If you are creating your own leather products or offering service and repairs for leather goods, you will need to add the costs for materials and equipment, such as an industrial sewing machine, leather needles, cutting tools, and patterns.
What are the ongoing expenses for a leather business?
Most ongoing expenses will pertain to materials and finished resale products, especially if you operate online. A store location will add rent, utilities, internet, phone, and some advertising.
Who is the target market?
Your target market will more than likely consist of customers who have purchased leather items before. Although leather is popular, many consumers will shy away from animal products. Therefore, it’s critical to attract customers who appreciate the durability, rugged, yet refined quality, and look and feel of leather products. Some items can be reasonably priced, but most of your goods and services will tend to be priced below luxury, yet above department store numbers.
How does a leather business make money?
A leather business makes its money from the sale of leather and leather products as well as the repairing of leather goods, such as shoes and apparel, such as purses, suitcases, or briefcases.
How much can you charge customers?
Client pricing will depend greatly on what you’re selling and offering. Research competition thoroughly to see where your price points will fall. Some high-end leather bags will range upwards of five figures, whereas leather glove repairs may only fetch $10-20. Understand what you’re offering and charge accordingly.
How much profit can a leather business make?
Depending on what you sell and what services you offer, you can see earnings in the $30,000-40,000 range, especially if you are able to keep your overhead costs low.
How can you make your business more profitable?
Offer related products, such as leather cleaning and care oils and solutions. Sell these items in conjunction with your orders and many customers will continue to purchase the products, even without buying more leather goods. If you are an accomplished leather worker, offer specialty designs and custom builds. You can charge a premium price for your services, as it will be an additional source of revenue and not the primary moneymaker.