Search results (tags) for: "value"

Handmade Cults: An Interview with Douglas Atkin

2008-06-27T14:12:00Z

Douglas Atkin, from Meetup.com, answers Etsy's questions about networks, branding, and gender in our continuing series, A Dude's Perspective.

Please introduce yourself and talk a bit about what you do at Meetup.
My title at Meetup is 'Chief Community Officer.' We’re a company that’s all about creating local community offline, around common passions, causes and needs. A large part of my job is to create a sense of community amongst the organizers of Meetup Groups. What they do can be hard work (leading a community group, ensuring each Meeutup is successful, managing the membership), so I’m trying to help them learn from, and be inspired by, each other.

Before this job, I used to work in marketing and advertising for about 25 years. I worked in everything from small creative advertising ‘hot shops’ in the UK to large multinationals in both London and New York.

A few years ago I published a book called, The Culting of Brands: How to Turn Customers into True Believers. It looked at how and why people became committed to cult-like organizations, and examined everything from real cults and religions to fan clubs, corporate cults and cult-like brands. The idea was to get to the heart of why people believe and belong.

I'll often hear people say that women are more "social." Do you see that translating to Meetup?
Yes. There is a tendency for more women to form and join Meetup Groups than men. This is a reflection of a tendency in society at large for women to have more and larger social networks than men. Interestingly, there are many studies currently being published that show longevity, health and happiness are related to how social a person is: how many relationships and how close they are. It’s potentially a reason for women’s longer life-span.

Etsy is 95% women. Any thoughts on why that came to pass?
Not specifically. I guess that there has always been a tradition of women making things within the household, both in our culture and others. It’s probably something that has become an unconscious expectation and inclination for women to do more than men, but that’s conjecture, not based on any study.

Are there things that subcultures and brand cultures do differently that appeal to men vs. women vs. mixed-gender groups?
The strongest communities (virtual or actual) have some key ingredients that are universal; they apply irrespective of gender, race, geography or language.

Every strong subculture or community has a clear ideology or worldview. The ‘Handmade Movement’ is a great example of this. Within the larger Etsy community, it appears that there’s a world view that values the connection of producers directly with consumers, with all the attendant implications for globalization, big box stores, oil-based society and so on.

A strong and differentiating value system is something that can be ‘bought-into’ by either men or women. You just have to ask yourself whether the one you have chosen specifically alienates men.

Inevitably, a strong and differentiated worldview will bring the community into conflict with others. In Etsy’s case, it is the prevailing cultural belief that low priced consumption and globalization are good at whatever cost. Conflict with an opposing ideology can be a benefit within a community. It can help create solidarity in the face of a perceived threat.

The other key ingredient of community is interaction between its members. In fact, a community is about as strong as the degree to which its members interact with each other. Whether virtual or face-to-face (face-to-face is always better, as a species we’ve been wired to communicate in many non-verbal and non-written ways), a community should strive to do everything it can to be social.

So perhaps it’s here that a community should strive to reach out to and involve its potential and existing male members, given this gender’s tendency not to be social. But there are examples of many male dominated subcultures that are thriving (fans of sports teams for example).

Are there ways in which subcultures or virtual communities can be more inviting?
Many. And it’s critical to be welcoming. The way cults and many successful religions work, for example, is for members in the organization to form direct relationships with those outside of it. This happens before any major effort is made to convince the potential recruit of the ideology (which may repel them early in the relationship). We’re social animals, belonging is a fundamental part of the human condition, and forming a relationship eases the person into the organization. The monologue that’s going on in the recruit’s mind is: “Well, I like this person and we share many of the same values. Their religion/organization/brand can't be that bad. I’ll give it a try.”

This applies to buying brands, too. A personal recommendation from a person with whom you already have a relationship (family member, friend, colleague or other trusted source) is the strongest incentive to buy something, bar none.

What could individual sellers do to attract male shoppers or to brand their stores or a line of products? Any specific ideas?
The very first thing to do is understand your potential male purchaser. Get insight about what his needs are, his lifestyle, what he's like. Basic consumer research goes a long way in both being able to design a product that meets his specific needs, and in how you pitch it to him. The tendency of many producers, whether it be a producer of handmade goods, or even a major corporation, is to have an idea, make it, and expect customers to beat a path to their door. A critical step is to find out whether people want it, or their motivation might be to buy something like it.

It’s hard to give specific examples because each product and the need it’s satisfying will be different (or should be). But get out there and learn. Then craft your product and pitch accordingly.

Do you have any anecdotes to share about communities that were once gendered in some way transforming into a more mixed group?
Somewhat related might be what Saturn Cars did when they launched. They realized that, contrary to popular belief, and contrary to how every other American car maker sold, more cars are bought by women than men.

Through many radical changes to how cars had been sold for decades, Saturn did things that appealed to both men and women. They did away with haggling over the price, and made a set price for each car. They made the dealerships appear more like your living room than some messy office where the dealer was about to screw you. They ran classes for people to learn basic repairs. They had ‘community events’ that centered on the local dealership, such as owner car rallies, barbecues, trips out to the local theme park.

The buying and owning experience felt like more of a community experience, and less traditionally male dominated than any other car brand could offer. And they grew to become the best selling small car within two years.

Do you think that the crafting scene is not jibing with males who make stuff (not necessarily crafty stuff)?
It’s hard to generalize, but ‘crafting’ might need a makeover to get away from the ‘hobbyist’/cutesy/amateur image that it may have. Personally, ‘crafting’ connotes all those things I just mentioned. ‘Handmade’ means something different. And ‘Handmade,’ when associated with the kind of movement Etsy is trying to start, means something else again. To me, it’s the latest iteration of the anti-industrial, depersonalized means of production that William Morris and Gustav Stickley pioneered in nineteenth century England and America as a reaction to the dehumanizing effects of industrialization. Buying something handmade now starts to feel like it’s both a purchase of quality and a statement.

Many, many successful brands have championed causes and had clear values. And people have bought them as much because they personally identify with those values, as the quality of the features. Apple is a great example: it stands for creativity and non-conformity. Committed Apple users would define themselves, and the brand, as standing for those things.

Creating that emotional, values-based bond leads to incredible commitment. I see a huge opportunity in Etsy sellers aligning themselves with the values of Handmade that Etsy is championing. Badge it in someway. Buyers are likely to proudly show off their items not just for the inherent worth of the product, but because it stands for a value they actively support, whether they are male or female.

Looking for more info on branding and marketing? Check out our recent interview with branding guru Seth Godin.

The Art of Pricing: Preparing for Wholesaling

2007-10-31T08:21:00Z

Beth is an admin at Etsy on the Business Operations Team. She is writing about pricing in a multi-part series, so ask her your questions in the comments below. This week's topic is how to prepare your business for wholesaling.

Wholesaling is yet another factor to consider as you price your work. Wholesaling is when a boutique or another reseller approaches you to purchase your items in bulk, usually expecting a discount for the large order. The expected discounts are between 30% and 60%, most often settling around 50%. These discounts are large, which is why it is so important to carefully consider how wholesaling could work for you before you price your items. As we discussed in Understanding Your Costs, it is critical to calculate your costs and related time and price your work accordingly. Remember that since you would selling multiple items with wholesaling, you may not need the same profit on each item for the economics to work out well for you.

Here are some numbers, for example:

Traditional pricing:
$20 – Total direct costs
$45 – Price (this includes the amount you would like to make for your time)
$25 – Total profit per item

Wholesaling:
$45 – Price
$22.50 – Price per item at wholesale discount of 50%
$20 – Total direct costs
$2.50 – Total profit per item

In this example, the seller needs to consider if $2.50 per item is enough profit to justify the sale. It may seem low, but it may just be worth the sale. Depending on the quantity purchased, this profit can add up to a tidy sum. For instance, if you are selling 10 items, this profit is $20.50 and at 50 items $102.50. This is a simple example that illustrates the need to walk through your costs, necessary profit and the expected discounts before pricing if you want to consider wholesaling.

Wholesaling can be a great way to drive more sales, but you need to take care in pricing your work accordingly. Since each item you sell wholesale is not available to sell for the full price in your store you need to balance the increased number of sales with your ability to stock and sell in your own store.

When working with wholesale buyers, price is only once consideration. You want to outline the other terms and conditions you need to be comfortable with for the deal to work. For instance, you may find that it is not worth wholesaling unless the purchaser buys more than a certain quantity. In the above example, the seller may decide that 10 items is the minimum number to make a wholesale order work for them.

Other terms you may want to consider include payment before shipment (received and cleared) and a sliding scale for discounts. An example might be: 10-20 items receive a 40% discount, 20+ items receive at 50% discount, etc. Consider what you will need to make yourself comfortable with the deal and protect yourself. Some put these terms in their Etsy shop descriptions. However, I suggest listing on your front page that wholesale orders are welcome, like Contrary, an Etsy admin, does in her store. Then you can email or convo your terms directly to the wholesaler once you have established contact.

Another way to protect yourself is to conduct your wholesale orders on Etsy. This can be done a couple of ways:
1) After you've agreed upon a deal with a wholesaler, create one custom listing specifically for all of the items that they agreed to purchase. Make sure to title this custom Etsy listing as "RESERVED" so that some other buyer doesn't purchase it by unwittingly.
2) Use existing or create multiple listings for the items to be purchased by the wholesale buyer (this can also help increase
your sales numbers and feedback).
Both ways create an online record or "virtual paper-trail" at Etsy which is important to protect yourself. Etsy Support staff will not be able to help you if you do the transaction off Etsy and something goes wrong.

Wholesaling can be a great way to increase your sales and your reputation. Done thoughtfully, wholesaling can help your business get to “the next level” and broaden your exposure, which is always good for future sales.

Check back in next week, when Beth will be discussing Theories in Discounting. Please leave Beth your questions and comments below!

The Art of Pricing: Price, You Get What You Pay For

2007-10-24T11:02:00Z

Beth is an admin at Etsy on the Business Operations Team. She is writing about pricing in a multi-part series, so ask her your questions in the comments below. This week's topic is pricing as an indicator of value.

The price you choose says something about what you make. Just as you carefully select your materials and skillfully craft your item, what you choose to charge for your item is just as important. Particularly with a one-of-a-kind item, like many of the items on Etsy, the price is the first indicator of value to a customer.

We see this phenomenon in many industries. Take the cosmetic wrinkle cream industry, for instance. Intellectually, we know that there is not a huge difference between the $10 cream and the $90 cream, but somehow many think that it is impossible to make a quality product at such a low price and opt for the high priced cream. The companies with the higher priced products aggressively pitch the quality and uniqueness of the special ingredients — in essence justifying the premium pricing. Throw in some fancy packaging, and you know what? It works. HeyMichelle and daniellexo commented, "If you're going to buy a gift for someone, you're not going to scrimp."

"That t-shirt you made that you price at a thousand dollars, and everybody thinks it must be the greatest t-shirt in the world? Oh, yeah!" Etsy Artist-in-Resident Avery from EmpireEmpire joked. But seriously, Avery pointed out that "pricing also has to do with your self respect. You should think about what your creativity is worth. In the long run it's better to not be pricing things just so that they sell only because people think they're cheap."

So take a hard look at your items and evaluate whether you think you can position your item as a "premium" product. Do you use great materials? Is your technique unique? Do you have an interesting story? There are lots of reasons that might justify a premium price position. Some believe that if you price your product too low right off the bat, you risk damaging your product's image. This may be an extreme example: however, it illustrates the importance of price as you position your product.

"Pricing too low over time and across sellers' shops also makes the general population say to themselves, 'Oh, I've seen that thing around and it's always really inexpensive,' remarks Sarah aka Lil'Snotty of Etsy Artist-in-Residence Ruffeo Hearts Lil' Snotty.

In the event items are not selling, most artists are quick to assume the price is too high. The truth is that the price might be too low. Experiment. See if raising the price will help sales. You never know: you might be selling yourself short.

Check back in next week, when Beth will be discussing preparation for wholesaling. Please leave Beth your questions and comments below!

Anita Roddick, Founder of The Body Shop, dies at 64

2007-09-10T17:27:00Z

We are saddened to hear that Anita Roddick, founder of The Body Shop and pioneer of values led business, died suddenly today of a brain haemorrhage.

"John Sauven, executive director of Greenpeace, said Dame Anita was an 'incredible woman' who was passionate about environmental and human rights issues.

'She was so ahead of her time when it came to issues of how business could be done...When you look at it today, and how every company claims to be green, she was living this decades ago.'"

See the BBC's coverage.

NOTE:

This place-holder image looks way too cute and The Body Shop doesn't have anything to do with Etsy directly. We just admired her way of doing business.