A number of times Craft Fair Stallholders have proudly told me, at the end of the day, that they'd "done all right". When questioned this usually refers to "I've taken enough to cover my stall costs". When questioned further it transpires that they are referring to the fact that the turnover for the day has equalled or exceeded the cost of the stall hire AND nothing else.
This is a delusional state. Let us look at a brief breakdown of your costs as a crafter/stallholder.
1. The cost of your raw materials.
2. The time you needed to create your crafted items.
3. Insurance, usually public liability, costs.
4. Promotional costs (leaflets, business cards, websites etc).
5. Travel costs, both to and from craft fairs but also travel to suppliers as well.
6. Energy costs, such as electricity and gas, required as part of the craft making process. If you use a kiln, a light, a sewing machine then you're also using energy and that is a cost.
7. Any costs associated with learning your craft. Books, courses, even watching videos on Youtube. It all costs money and time.
8. Stall/sales kit. That includes a cloth to go over your table, stands to display your wares and the price labels.
9. The cost of hiring a stall.
10. Your time travelling to a Craft Fair and the time spent sat at your stand trying to sell your wares.
Now isn't that a bit of an eye opener?
Let's create a hypothetical crafter called Sue Smith. She makes 500 knitted hats each year and sells them at 10 Craft Fairs in her area. A breakdown of her costs for one item could be as follows.
1. Each hat needs £1.00p of wool and thread.
2. It takes 1 hour to create each hat. At National minimum wage that is a labour cost of £5.80p.
3. Annual public liability is £35.00p. Divide that figure by the number of hats made per annum equals £35.00/500= 7p per hat.
4. Annual promotional costs are £200 (printing, website etc). Divide that figure by the number of hats made per annum equals £200/500= 40p per hat.
5. Travel costs. 10 Craft Fairs attended. Total distance covered for Craft Fairs equals 500 miles. Notional rate per mile (including fuel cost, insurance, maintenance etc) set at 25p a mile equals 500 X £0.25p = £125.00 that equates to £125/500=£0.25p per hat!
6. Sales time and travel time. 10 Craft Fairs at 8 hours combined sales and travel time each = 80 hours. 80 Hours at £5.80 per hour = £464.00p per year. Per hat(500) = £0.93p each!
7. Sales Kit costs of £40 per annum. Equates to 8p per hat.
We will assume that Sue already knows all about hat making and that her energy costs comprise of a couple of bowls of cheap porridge per day. Hence no cost.
8. Stall costs. Each stall costs £20 per Craft Fair. That makes a total of £200.00p per annum and a per hat cost of 40p.
This gives us a total of £8.93p of cost per hat. If Sue Smith follows the usual pattern for crafters she'll be charging below her per item cost for each hat. Thus making a loss on every sale she makes. How long can anyone keep that up for?
The bottom line is that too many crafters appear to under price their wares. They don't take into account all the costs involved and appear to be throwing good money after bad. I'd encourage all crafters to sit down before they book another event and work out their costs as accurately as possible.
Finally, tax. A dirty word in anyone's vocabulary but we're all adults here and we have to face the issue of tax. What you call a hobby Revenue & Customs might well call a business. Are you registered with them as a trader? Do you complete your tax return every year? Even if you haven't made a profit, sadly the situation most crafters will find themselves in, you may well be required to fill out the requisite tax forms for self assessment. It's not a joke, people. I wonder how long it will be before our friends at Revenue & Customs start visiting craft fairs, pick up cards and then start back checking their records? A chilling thought.

