A big part of this newsletter is opening up about things that aren’t normally talked about when it comes to running a small business. Money is one of those taboos. I think it’s important to understand how artists can make a living and why prices are what they are, especially when it comes to handmade work. I love the freedom I have of being an artist but it’s not the fairy tale some may perceive it to be. I wanted to share more behind-the-scenes of what it costs to make this pottery business function.
Last month, a customer came to my in-person sale and asked me if this was my side project, or hobby. I was almost offended because I work so hard at this, and it’s definitely not my hobby. It’s a real, full-time job with all the stresses that come with it! I work out of my garage and the setup is humble to say the least, but making pots is how I pay my bills, how I save money and how I plan for the future. If ceramics is your hobby, I think that’s absolutely wonderful! It was my hobby for several years before it slowly morphed into a self-employment endeavor.
Sometimes I believe I have nothing to share because I don’t have it all figured it out. Every year has many challenges and this past one had its fair share. In the 8 years I've been self-employed, I've always made a little bit more money than the previous one, that is until now. Like many small businesses I know, I struggled to earn the same amount I did in the recent past. Unfortunately, I made a lot less money. 21% less than in 2022! Which is a big chunk. It’s scary to think about, because I can’t have that happen again and so there’s some pressure for this upcoming year. But I also know, that everything is ok and my profit margin for 2023 was good enough. I’m not thrilled about making less money, but I can’t beat myself up for it either. I should be proud of making it through another year of small biz life and to continue ending up on the plus side. Every year has been about adaptation—2024 won’t be any different.
Knowing your numbers is so important, I can never overstate this enough. I truly love to understand where it comes from and where it goes. And even if you don’t like it, awareness will bring comfort. It’s a monthly ritual I’ve been practicing as long as I can remember. Being an artist is not glamorous and certainly not lucrative, that's why I like to show some transparency with this business I call Cloutier Ceramics for those who may or may not want to go a similar route.
So, let’s look at some numbers. My total expenses were just over $26,000 which is oddly very similar to the year before even if I tried to cut back and was frugal. Another consistency which is also my biggest cost is always shipping. This list might be super boring to some, but I think it’s fascinating to show and compare. Here is where my money went, from top to bottom:
$6,462 - Shipping & Delivery
$3,588 - Studio Memberships (I was a member at 2 studios in order to have access to their gas kilns and glazes)
$2,526 - Credit Card Processing
$1,811 - Cone 10 Firing
$1,732 - Packing & Shipping Material
$1,560 - Equipment (My potter’s wheel died on me in late August)
$1,252 - Clay, Raw Material
$1,051 - Studio Repair
$1,020 - Body Care
$823 - Tools & Supplies
$692 - Newsletter Mailing List
$685 - Business Meals
$604 - Wholesale Product for Holiday Boxes
$481 - Tolls
$434 - Adobe Creative Suite
$422 - Photoshoot Prep
$404 - Business Cards & Design Collateral
$402 - Website Domain & Email
$313 - Research, Applications & Books
$97 - Workwear
$0 - Healthcare
$0 - Studio Rent
$0 - Insurance
$0 - Car
When pricing your own work, you need to know everything it entails to understand the full picture. I tell many people they need to raise their prices, including myself! I plan on raising my prices this spring. (PSA: If you’re selling handmade mugs for under $50, it’s no where near enough! I sell mine for $68 and I think they should be closer to $80).
You’ll notice a few line items as $0. I do have healthcare, but this past year my cost came out of my husband’s paycheck. Some years, his previous employers have paid for mine outright and some years I’ve paid out-of-pocket. All to say that it varies. I don’t pay rent for a studio because I work out of the garage of the home I own, but that doesn’t mean it’s free either. I pay for it in different ways. My transportation and insurance is a personal expense and I choose to deduct my mileage instead of track gas or car payment.
Now, onto income. Without telling you exactly how much I earn for a sense of privacy, I aim to make $100k worth of retail product (gross sales) every year, but I usually fall a bit short. The majority of money made comes from direct-to-consumer sales. That means my main way of making a living is by selling wares on my website which accounts for 70% of my gross income. An additional 21% comes from in-person sales. Teaching made up 5% of my income, which is much less than the previous year, which is a big reason why I made less money. I intentionally reduced my teaching hours because it was taking too much effort and was feeling burnt out on it. It’s important to note I don’t teach because I have to, I only want to offer it when it feels good for my practice and my wellbeing.
I very slowly decreased my wholesale accounts over the years because I can’t afford to sell my work at half price (most retailers typically buy at 50% of retail price). Only 3% of my income came from working with retail shops in 2023. I wish I could collaborate with more local stores for exposure but unfortunately I have to say no too often. For me, it’s not feasible without scaling up which is something I don’t want to do. And lastly, 1% of my income came from a collaborative product in which I receive yearly royalties.
Here’s some other numbers I like to track:
10 - Massages
10 - Private Wheel-throwing Lessons
10 - Online Classes taught through Case for Making
2 - In-person Sales at my Home Studio
12 - Monthly Substack Posts
22 - Bisque Firings at Home
+1,700 - Individual pieces of pottery I sold
4456 - Miles driven between my studio, community studio and teaching.
Another thing to note is that I’m not alone in this. I’m aware that not everyone has a backup plan or safety net, and I have the privilege and the peace of mind that if I fail, I have a support system and a partner who would support me no matter what. For context, my husband and I share our finances—what’s mine is his, his is mine. By no means does his income support me or vice versa. I manage our money and this works for us. We’ve been together for 15 years and over the course of our togetherness we’ve made varying amounts through multiple career changes. It’s one big pot and it doesn’t matter how it gets filled. Everyone is different, but this financial philosophy is simply what works for us.
I hope this encourages a bit of self-reflection if you’re looking to tackle your own numbers and better understand where everything goes. It’s cliché but knowledge is power.
Before I sign off and hit send, I wanted to take a moment to say how thankful I am for every single reader! I started Clayfulness exactly 1 year ago today and I’m so glad I stopped procrastinating and began posting regular diaries about art, pottery, small business failures & accomplishments and what keeps me inspired. It’s been a wonderful exercise for myself and I’ve really enjoyed the early-blog vibes here. After twelve monthly posts, I have over 800 subscribers, 17 paying members and received $675 last year from contributors who support me in this space. I plan on keeping this little place of mine on the internet free, but I do greatly appreciate one-time memberships or small monthly payments of any amount if it calls to you. Any contribution is meaningful, even the free ones :)
As I move forward with more writing, here’s a quick poll to see what interests you! What would you like to see more of? I have some new things in the works and I’m very much looking forward to spring, I’ve been in hibernation mode long enough. Thanks again for being here!