What is a detergent, and how is it different from soap?

Technically, soap is a type of detergent, which just means they are substances which can be added to water to help remove oil and organic matter which water, by itself, can not remove during the washing cycle. For the purposes of this conversation, however, and to reflect how the terms are used in popular speech, I want to make a distinction between traditionally made soaps, and the highly processed detergents which have a few significant differences.

Soap is traditionally made by mixing fat (animal or vegetable) with a highly alkaline substance such as lye or wood ash. This creates a potassium or sodium based salt, which are long hydrocarbon chains. They produce an emulsifying effect because they are hydrophilic (water loving) on one end of the chain, while being able to bond with oils and other organic compounds on the non polar end as well. The salts, when bonded with water, form little spheres of molecules, with the non-polar ends facing in, and they hydrophilic, ionic ends facing out. The oils and organic compounds are pulled into the middle of the spheres and trapped there. The non polar oils trapped in the ionic spheres are now repellent from each other, which helps hold them in suspension, ready to be rinsed away. Unfortunately, when these salts interact with hard water minerals, they create a filmy residue which can deposit on fibers as well as on the washing machine or wash basin. Soap scum and “ring around the collar” are problems related to using soaps with hard water.

Detergents, as we generally refer to them today, were developed when petrochemicals were introduced as an alternative to the fats used in soap making, which were in short supply during WWII. Today, they are still usually made in a lab, some from petrochemicals, some from oleochemicals (derived from plants or animals,) but all highly processed and manipulated to form the ideal hydrocarbon chain length for their purpose. Shorter chains are better for emulsifying. Like soaps, detergents use alkalis to provide positively charged ions for facilitating chemical reactions, but they also contain additional surfactants and oxidizers.

Surfactants are found in most detergents and some soaps as well. Surfactants break the surface tension of water, essentially making water “wetter,” or able to more easily penetrate fibers. Surfactants of all types, even the “safe” surfactants derived from such things as coconut oil, are highly irritating and can cause skin reaction. The presence of surfactants such as sodium laureth sulfate are what makes mainstream hair detergents (shampoo) so much more painful than natural soaps (which still sting, just not as much) if it happens to get in your eyes. On a side note, we recommend finding cleansing agents which are actually gentle, rather than relying on “no more tears” shampoos which contain pain killers in order to mask the body’s natural response to irritating substances. Oxidizers are the chemicals in surfactants which are responsible for creating the hydrophilic (water-loving) component of the surfactant. Because they are highly reactive, these oxidizers can also be used as a bleaching agents.

Soap residue and oils will coat fibers, reducing absorbency, and can be very hard to remove. Using soap or oils on diapers will void all diaper warranties.

Do I really need soap or detergents?

It is possible to clean diapers without a detergent, but it is far from easy. The simple reason is that oil and water don’t like to mix, and most organic compounds (like poop) have a lot of oils in them. Water cleans by allowing dirt and grime to be agitated off the fibers, suspended and then rinsed away. If only water is used, the only way to get rid of oils and organic compounds is to rub harder, or use heat to get it off. Boiling laundry is a long accepted way to convince the oil molecules to release their hold on fibers long enough to be rinsed off. Unfortunately, excessive heat will also damage fibers and make fabric brittle and frail over time. This method is still used with prefold diapers, but please do not try this with anything which uses elastic, hook and loop closures or plastic/nylon snaps. Scrubbing also has a long tradition in laundry. Intense scrubbing is generally used in conjunction with soap or detergent, but if those are hard to come by for any reason, people just scrub harder. In my travels, I have used sand, stone, concrete, and metal washboards to clean my clothes. They come out clean and soft. They are also much thinner than when they went in, and that is with soap to help out. The new washing balls operate on a similar principal. They increase the agitation of the water and beat the clothes as well. They will certainly make water more effective than otherwise, but they act very differently from detergents, which use a chemical rather than physical application to remove grime.

Can I just use what I’m using now?

In many cases, yes. There are definitely detergents which work better than others, however most detergents will get your diapers clean with minimal residue. The problems often occur when detergents have other additives. Bleach breaks down diaper fabric faster than a regular wash will, and chlorine produces dioxin, a known carcinogen, when it reacts with natural fibers. Fabric softeners coat fibers, which prevents absorbency, as well as increasing the fabric’s flammability. Fabric softeners have also been linked to greater incidences of allergies and respiratory ailments. Bluing agents and optic brighteners also coat the fabric and prevent absorbency. If your detergent is free from all of these elements, it should be safe to use with cloth diapers. Dryer sheets are essentially an alternative method of distribution of with fabric softener and pose the same risks. TIP- If you use dryer sheets with your other laundry, wiping the dryer out with white vinegar on a rag will help remove residue from the dryer so it doesn’t transfer to your diapers. Using fabric softeners or dryer sheets will ruin your diapers and voids all warranties.

Why would I want to use a diaper specific detergent?

Peace of mind. Just because a detergent is safe for use with cloth diapers does not mean it is the most effective. Many detergents do leave residue on diapers, including some of the more popular mainstream detergents occasionally recommended for diapers. I can usually tell which mainstream detergents have been used on diapers based on smell, even if it is supposedly a “scent free” detergent, based on that residue. Detergents specifically recommended for diapers (including those few specifically formulated for diapers) have been tested and proven to leave very little residue, are extremely effective on diaper stains, yet gentle enough that they can extend the life expectancy of your diapers. Using a diaper specific detergent may reduce the risk of mineral build up, ammonia residue, rash and early diaper disintegration. Please see our article on recommended detergents for specifics.

Will I need to use additives or laundry boosters?

Whether you need laundry aids will largely depend on your water. Detergents are soecifically formulated to work on their own under average water conditions. We do not recommend using laundry aids as a preventative measure. Wash as normal first, unless you already know your water causes laundry problems, and then adapt as needed. As with anything else in life, laundry aids come with trade offs. Common laundry aids include RLR, also known as soda ash or washing soda, enzymes, oxygen bleach, vinegar, baking soda and chlorine bleach. Hard water treatments, preformulated mixtures of several of these typical additives,  may also be used.

Baking soda changes the pH of the water to a more alkaline state. This reduces surface tension and increases the water’s ability to get at the things you are trying to wash away. It also opens up the scales of natural fibers which allows the detergents to penetrate deeper into the fiber, but has the potential to clog porous synthetic fibers and prevent absorbency.

Enzymes are designed to break down proteins. This is fantastic for getting rid of poop stains and residue and does not harm either cellulose fibers (hemp, cotton, bamboo, linen) or synthetic fibers. It is very important to make sure enzymes are thoroughly washed out, however, since the nearest protein for enzymes to act on if they remain in a diaper is your baby’s sensitive skin.

Bleaching agents, including chlorine bleach and oxygen bleaches like hydrogen peroxide and washing soda (soda ash/RLR) and borax, are highly reactive and are used speed up chemical reactions. These oxidizing reactions break chemical bonds, making stains invisible (tho not necessarily removing the material causing the stain) and killing bacteria. They are also alkalis, which, like baking soda, will reduce surface tension and make water “wetter.” All bleaching agents wear out fabric, elastic and fasteners faster, and should only be used if you feel you have a serious reason for using them. Please be aware that washing soda is a common ingredient in hard water treatments, so we recommend avoiding the use of hard water treatments and additional washing soda simultaneously. Use one or the other to see what works for you.

If you choose to use chlorine bleach, there are a few things to remember. Chlorine bleach is much stronger and more caustic than any other laundry aid. It also produces dioxin, a known carcinogen, when used with any natural fiber. Never mix chlorine bleach with other chemicals such as vinegar, use only as directed and be careful not to breath the fumes from chlorine bleach.

If you must use a bleach, we suggest using an “oxygen based” bleach. It will still degrade diapers faster than normal, but it does not produce dioxin, as chlorine bleach does, and is not as caustic as chlorine bleach. Better yet, we recommend sunning diapers instead, even at -40 degree temperatures. Sunning diapers has a similar oxidizing effect, but with less wear and tear on your diapers.It really works!

Borax is an interesting mineral. When mixed with water, some of it will react to produce a little bit of hydrogen peroxide, but that’s not all it does. It is also an alkali, which, as stated earlier, can boost the effectiveness of detergents, and borax also works an excellent emulsifier.

Vinegar, unlike most laundry aids, is a mild acid. As such, it can help neutralize the alkaline nature of hard water deposits, ammonia and residue from detergent or surfactants. Vinegar can also help contract the scales in natural fibers, and works as a natural fabric softener and static reducer, without coating fibers like commercial fabric softeners. Vinegar should be used only in the rinse cycle, after the alkaline washing agents have done their job.

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Before you go out and by a diaper specific detergent, take a look at what you are already using and see if it is useable. Most detergents will clean diapers suitably, but there are a few things to avoid. Choose a detergent free of bleach, fabric softener, bluing agents and optic brighteners. We recommend using caution with enzymes and perfumes as well. They may not ruin your diapers like the previous list, but if not rinsed out thoroughly, they may irritate baby’s bum.

Special considerations

Please remember that every body, every washing machine, every water system operates a little differently, so you may need to experiment to find a detergent that is just right for your system. It is also important to know that our bodies, and more importantly the sensitive skin of our little babes, can react to anything. Even products specifically designed to be hypoallergenic and gentle for “any skin type” can cause reactions. Reactions to various detergents on our “safe” list have been reported, and there is no way of knowing before hand if your child will react to a specific product. Even tho incidence is rare with the detergents listed bellow, if your detergent (or any other product) is causing a reaction, stop immediately and switch to another option. If you are unsure of what is causing a reaction, please see our guide on Diaper Rash and What To Do About It.

So, what detergents do you recommend?

These recommendations are based on what we can find here in Fairbanks, Alaska. We have tried most of these ourselves and received feedback on others from many, many local families, however it is not comprehensive. One of our clients recommended checking out the more comprehensive chart Pinstripes and Polkadots has put together.

Charlie’s Soap: Not actually a soap, this detergent has been tested as the detergent with lowest residue on the market. In fact, it is so effective, it will actually remove residue from your washer as well as from your clothes. If you are not using this detergent exclusively for all your laundry, or if you are sharing laundry facilities, it is very important to run an empty load, or a load of rags or towels, before washing your diapers. If you run a load of diapers without this step, you are essentially using your diapers as rags to clean out the residue and can ruin your diapers, and potentially end up with severe chemical burns on baby’s bum. I love this detergent, it is super effective, does great on all our clothes, leaves no smell and has actually gotten rid of any static problem as well. I use it to scrub floors and toilets too, and I like having one, all purpose cleaner for our house but you need to know what the potential risks are. Quite simply, this detergent is best used if you are willing to make a complete switch for all your laundry.

RockinGreen- I like this detergent, it leaves no noticible residue and some of the scents are fun. They are very subtle and mostly noticed when actually doing laundry, not in the laundry after it is done being washed. My very sensitive family does not react to these particular scents, but if you have a known sensitivity, you might still want to use the unscented version. I do have to use more of this detergent than I do with Charlie’s, but it is comparable in price and efficacy. I find that many people tend to buy the hard rock version when they do not necessarily need it here in Fairbanks. We do have very hard water, but most residences compensate for that with water softeners and filters. If in doubt, please use the hard water test strips to test your water.

EcoSprout- I find that this detergent has a greater tendency to leave residue, but this was solved in our household by reducing the amount of detergent used to significantly below the recomended amount.

BumGenius Diaper Detergent- again, very effective and unscented. I found no noticeable residue when washing with the recommended amount of detergent. It is a little pricier than other locally available, diaper specific brands.

Mainstream detergents recommended for diapers:

Planet, Country Save, Allens- these detergents are all available at local grocery stores, leave no noticeable residue and have been recommended by local parents. I use Planet when washing at my parent’s house, and they have washed a fair number of our diapers as well, over the years.

Mainstream detergents commonly used for diapers:

These are detergents that are commonly used or recommended for diapers, which will not void warranty for most manufacturers. These particular brands have been problematic for some local families, including mine. They all leave a residue, so if you do use them, be sure to rinse thoroughly. I’ve used some of these when traveling, and used others for a long time, before more diaper friendly detergents were widely available. They will work in a pinch, but I can not personally recommend them in light of the highly effective, low residue detergents listed above. Several cases of diaper rash and allergic reactions have been reported to us for all of these detergents, but do keep in mind that we are relying on what has been reported to us, and we do not know all the circumstances which surround any given reaction. Basically, these are okay for diapers, but use with caution and monitor your results.

Tide- some of the scents may irritate sensitive people, and it has a tendancy to leave residue, which can be removed with extra rinse cycles.

All Free and Clear- has been reported to leave residue, especially with synthetic fabrics, and can cause diaper rash if not rinsed completely. I have used this one when traveling because it is often stocked in laundromat vending machines and I tend to forget things like detergent on vacation. I have not personally had issues during this short term use.

 BioKleen, Seventh Generation- the reports on both of these are very mixed. Some people use these without issues, but others have reported problems with both repelling and rash.

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Braving the cold? Just for coming in, take 20% off all Smartwool and Disana socks, tights, leggings, leg warmers, sweaters, long johns and blankets.

Bring a little color into your home with 50% off art prints and greeting cards.

Select quilts, beautifully hand made by local artisans, are 25% off.

“Fly” bird print, up-cycled onesies and tees are just $10.

Sock puppet kits are $8, and last but certainly not least, all toys and puzzles from Under the Nile and Melissa and Doug are 15% off.

Don't forget to join the Nutcracker Chase and turn in your cards before the Downtown Association drawing at the Solstice Spectacular on Friday!

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When we started Blueberry Baby, we met with a lot of skepticism from business professionals regarding our goals. We wanted to sell durable items which could be used for a long time, thereby reducing how much customers would need to come back and buy from us. Where is the profit in selling things like cloth diapers, which encourage parents to buy less? We also chose to work with artisans as close to home as possible. There are many times we have been offered discount products from China, India, Lithuania and other locations where it is less expensive for both labor and materials, in order to maintain a higher profit margin, and we consistently decline because we appreciate the unique designs, high quality and personal accountability which comes with dealing directly with our neighbors. We do purchase specific items from some of those places, but only after thoroughly investigating the companies for fair, ethical business practices. These are not items created or purchased on a whim. They are carefully designed and created and just as carefully purchased. They are also priced in a way calculated to sustain the artisan as well as Blueberry Baby.

We certainly try to balance that with the financial needs of our clients, but a reduction in price will directly impact someone along the line. There is not a built in margin designed for luring you in with a false “price reduction,” and we will not compromise on materials or craftsmanship in order to compete. Our products are meant to last as long as possible. We have high quality artisan items every day, priced fairly, and we feel blessed that the community has rewarded our vision and our priorities with 8 years of growing support. For the Thanksgiving holiday weekend, I do hope we can all take a little time out, evaluate what we actually need and make considered decisions about what is important to us, and spend time with our precious families. Blueberry Baby and all your favorite local artisans will be waiting for you when you are ready.

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This section of our site is set up for important articles on cloth diapers, babywearing, community support and natural parenting issues. Is there a topic you want us to cover? Let us know! We are here for you.

*We are experienced mamas, but we don't know everything- we welcome advice and opinions from others. We will do our best to keep you informed so you can make healthy decisions. We do not give medical advice, and no comments on this blog should be construed as such.

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First off, what is your product and who are you selling to? Try to put yourself in the shoes of your potential client and think about what would draw you to this product if you were shopping instead of producing. How will you dusplay this product? Does it look best on a shelf? Can it stand up on a shelf? Can it be hung? How much space does it take up on display? Does it look messy if hung in a group? Does it grab enough attention lying flat on a shelf? Can it be displayed in multiple ways? Play with your product and see if it needs extra support or simple packaging to hold up to display needs.

Everything you do in packaging is as much a part if your product and your brand as the item you are selling. For some items, a business card size tag (easy and inexpensive to print) are all you need, but think about what you convey with your tag design. Who are you appealing to with your font and images and color scheme? Elegance, fun, whimsy, functionality, simplicity, peace, trendiness can all be communicated with font and color. How do you make your presentation stand out?

Some items do better with stickers instead of (or in addition to) tags. Shaped, printable stickers are available at most office supply stores, and custom shapes can be ordered if you have a unique label design. Again, play around with the design and see what it says to you.

Get outside opinions, just in case what you thought said “trendy, upbeat, fun,” says “hot, bloody mess,” to the world at large. Use white space, keep designs simple and give the eye a place to rest. Make sure what you need to say is not hidden by what you could say. There are exceptions to every rule, but they are just that, exceptions. Something so intriguingly nonconforming that it grabs attention. Chances are you will get along better clearly stating the case for your product.

If you can afford it, hire a graphic designer. A good designer is worth every penny.

What do you need on your tags?

Essentials:

• Tags are not just a place to put a price sticker, they are your introduction to your customer. Tell them your name. If they can read your name, they are more likely to remember you and come back for more and tell their friends. If you have a website, include that as well.
• If you have a logo, use that. A logo is a simple identifier which lets people see at a glance who they are dealing with. It can be an image, your name or abbreviated name in a particular font, it can be a color or color wash you always use.
• We are required to tell where things are made, but don't hide it! Made in the USA or Made in Alaska are selling points, play it up! I strongly encourage Alaskan artisans to register for the MIA program, that little icon really does help sell items. If you don't go that route, a simple “town name, state” under your business name/brand serves the same purpose.
• Leave room for the price tag so it doesn't cover important stuff!

Important.

• If it is not permanently affixed to the item with a care tag or printed on, it is also good to print out care instructions and content, even for items not required to carry this information. Make it easy to read so people know what they're getting into.

Only if you have room:

• How to use the product
• Testimonials
• Endorsements

These are things to consider if you have a box or larger packaging, don't put this on a small tag, please! If you need to communicate this for a smaller item with less packaging, consider putting it on a website or a product brochure. Make use of QR codes.

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We spent a long time at the Chena Pump location and will miss our wonderful neighbors there, but we hope you will enjoy our new locations just as much! It will take us a little while to get settled, but we have access to the inventory while we rearrange things. If you have a special request, feel free to call ahead so we can have it ready when you stop by.

We expect to be fully operational by Tuesday, October 16, and we will have a re-opening party once we feel settled again, so stay tuned for details! Although unexpected, we hope that this will be a good move for us, and we are thankful for the opportunity to continue serving the Fairbanks community. Thank you for your support!

What is CPSIA? The CPSIA, or Comsumer Product Safety Improvement Act, was, in essence, a reaction to a series of recalls and tragedies between 2006 and 2007, involving toys produced with high levels of lead. At the time, producing these products was illegal, but testing and enforcement were lax enough to endanger the public. Frankly, we, the public, panicked. Instead of focused legislation and penalization of the offending corporations, various consumer groups lobbied congress to push through broad legislations requiring all products intended for use by children under 12 to undergo rigorous testing for lead and pthalates, even if those products posed no threat of containing lead or pthalates. The end result was no serious consequence for the largest corporations, whose manufacturing and distribution systems could be easily adapted to the new regulations, while some of the small companies who had made a name for themselves pioneering higher levels of safety for children's products and who first raised the alarm over pthalates, for example, were driven out of business or at least severely impacted by the new, expensive and at that time difficult to access testing procedures. Unrelenting grass roots efforts have been able to secure modifications in the legislations to accomodate some of those concerns, exempting materials which could not contain lead and pthalates, for example, and making provision for small batch manufacturers. It is now much easier to navigate all program requirements for small businesses. The end goal of all of this is to ensure the safety of our children, and steps have been taken to help encourage America's artisans and small businesses to continue to produce hi quality children's goods safely and without penalty. We hope this article will help you navigate it all; for more details, please visit the CPSC (Consumer Product Safety Commission)'s website at http://www.cpsc.gov

The is also a good summary at http://www.nssea.org/resources/cpsia.cfm

What does this mean for artisans? First of all, due to recent policy changes, it does NOT mean all artisans must have their products tested. Grass roots efforts from individuals and groups like the Handmade Toy Alliance were able to educate the policy makers of how cost prohibitive this requirement is for small or “micro” businesses. If you earned less than $1 million manufacturing consumer products and produced less than 7,500 of an individual product, you no longer need to back up your safety claims with testing.

You do need to submit a CPSIA compliance certificate for each product you make. This, again, can sound scary, but basically just means you need to write down what is in your product and identify the safety regulations which apply to the product. Keep this information on file, available for review upon request. The applicable regulations can be found through links on the CPSC small batch website at http://www.cpsc.gov/info/toysafety/smallbatch.html

Most artisan items we come across fit into category B on the left of that page, and we do think everyone making items for children should do the research on product safety requirements anyway! We also encourage everyone to use safe supplies for production. Simply ask for CPSIA certification when buying things like fabric, ribbons, snaps and zippers. Things like untreated wood, or the local yarn which goes from sheep to hat under your own care would not need testing, but paints, treatments and finishes may need to comply. Bottom line, know your product inside and out and make sure it really is safe in every detail. Current legislation still requires finished product testing instead of component testing, but knowing if your components comply not only shows good faith in attempting to comply with regulations, it also protects our children, which is the whole point.

All items intended for use by or for children under age 12 also need to comply with CPSIA labeling requirements. Consumers need to know who made the product, where it was made and when it was made. This can help trace back products to the manufacturer in case there are problems with an item, or if you need to issue a recall. If you find yourself at a higher rate of production, batch numbers may be helpful as well, but are not required for the small runs of hand crafted items our artisans tend to produce. A side effect of appropriate labeling is consumer confidence and interest. Most clients coming through our store look for that Alaska label. They shop locally because they want to support local businesses, so having that location specific label is a great marketing tool as well.

How does the label need to be affixed? In general, the CPSC wants the label with those three details permanently affixed in some way. We've seen wood burning, printed on labels and there are many, many sources of printed labels available individually or printed on ribbons, which can be sewn on or ironed on. Since many brand-conscious artisans do this anyway, we've also seen the date simply printed on these fabric tags with a fabric marking pen. I will put a list of recommended printers at the bottom of the article. A label can be attached securely, but not permanently, as part of the packaging if the artisan determines that permanent labeling would be impossible to attach due to material or size, weaken or damage the product, or impare the utility or aesthetics of the product. I strongly encourage all artisans to read through the labeling requirements here http://www.cpsc.gov/about/cpsia/sect103policy.pdf

If you are using a label affixed on the packaging instead of permanently affixing it to the product, please do make sure it is durable enough to survive on the shelf at the retail store! Many new artisans use inexpensive business cards as hang tags for their items, and these tend to be both more attractive and more durable than labels printed on copy paper, and make more of an impact on potential customers as well. We have also seen a wide variety of sticker labels, which can be printed at home with all kinds of interesting shapes and design elements available at most office supply stores.

In order to officially qualify for the small batch exemption, you also need to register as a small batch manufacturer at http://www.saferproducts.gov/Default.aspx

Like labeling, tho it may seem a hassle at first, participating can have advantages in the long run. Although this is a relatively new program, many consumers already check brands and products at this website for safety and reliability, and a positive reputation here could be advantageous even to small run participants. I check even small companies at safety websites like Skin Deep, and was thrilled to find my favorite Alaskan companies and to see that they had such good ratings already. Only time will tell, but I believe this website could have a similar effect on our dedicated artisans. I do have hope that this system will do more to help small businesses prosper, rather than be the big, scary hassle which drove many artisans away from children's products when the bill was first introduced.

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Business plan

This is not as hard and scary as it sounds. You do not need a template or a 5 year plan. The only person who ever needs to see it is you, so you can write it in crayon on the back of the shopping list if that’s what you need to do! Since you have already read our first post in this series on how to decide whether you want to be an artisan or not, you should already have an idea of whether there is demand for the product you intend to produce, as well as what your competition is. Now go ahead and make a list. Don’t leave anything out! Find out as much as you can about the demographics of your target audience and what your competition is doing. Find out every way possible for your potential clients to get that itch scratched somewhere else and decide if it will conflict with what you want to offer. Before you start planning, you probably had a rough idea of how much it would cost to go into business, now is the time for writing out a detailed start up budget. Go ahead and call the IRS and get your Employer Identification Number (EIN). Even if you don’t intend to have employees, you need this step to show potential landlords, insurance agencies, banks and suppliers that you are taking this seriously as a business. It takes 5 minutes of time and is free, and protects your social security number should someone you work with require a W-9 form from you. When setting your start up budget, There are many things to consider and it is easy to leave things out. The following is an outline of the typical expenses I have encountered. The inent is not to scare you off, but rather to empower you to set up a sustainable business model right from the start with a slightly more gentle learning curve than some of us have experienced!

The cost of business; establishing wholesale cost

Pricing a product is possibly the most difficult part of becoming an artisan. It seems so easy at first, because we rarely see all the costs involved in creating a product before we start. Even if you have been creating similar items for years, have you taken all of your expenses into account? Let’s start with the easily visible ones:

Material supply.

You need to know how much material you need for each piece down to the smallest measure for efficiencey. You need to know the standard price of your materials, even if you regularly find good deals and sales. Items should be priced with the replacement cost in mind, not necessarily the cost you actually paid for a particular run. Remember to add in a margin for occasional mistakes, or material flaws, etc.

Wear and tear and machine replacement cost.

It is all too esay to forget about this aspect, especially if you had equipment in  use before considering a business venture. “I had it already” is not a good reason for leaving this out of your budgeting process! Put a monetary value on your existing equipment and record it as an investment. Determine your replacement cost and how many items or years of use will get you to replacement time, then remember to actually set aside a portion of each sale towards that future replacement cost. Factor in periodic maintenance costs as well, from regular tune ups to parts replacements.

Licensing and insurance.

Becoming a licensed and insured business owner has real value in protecting both you and your clients and is absolutely not a government scheme for extorting money out of small businesses. Business licensing, trade licensing and insurance are all set in place not simply to help by the government or some insurance company make money, it is a show of good faith that you are attempting to comply with current standards of safety and fair business practices. The state can deny a license to businesses with unethical practices, and hefty fines can be issued for non-compliance, which are policies put in place to help protect consumers. Insurance helps protect you from lawsuits should someone suffer some kind of injury while interacting with your company and your product. It is essential to take care of both of these safety nets before going into business. You may also want to look at riders on your current home policy to cover business equipment and material loss in the event of an accident or emergency.

Research and Development

You spent hundreds if not thousands of hours learning your craft, including making student quality items and at least a few complete flops. It’s okay to admit that, it’s part of the learning process. Should you encorporate that learning expense into your production price? On a basic level, you can say yes, customers are paying for your experience in knowing your craft well enough to make a high quality product, but even if you decide not to factor past expenses in, there is something important to consider. You aren’t done learning yet. The market is changing every day. Every day there are new materials becoming available, new design trends to keep up with, new regulations to follow and a creative enterprise needs to keep growing and adapting. You will also continue to flop on occasion. Producing items to sell carries an inherent risk that people won’t like a particular item enough to buy it. Sometimes what we may consider our best work will never, ever sell. We hope that what does sell vastly outnumbers what doesn’t, but the brutal truth is that you will continue to fail with some of your creations, and you need to budget that failure into your overall business plan. Wild and crazy experimentation is a good thing if you want your business to grow, so allow room for it in both time and cash flow considerations.

Packaging and labeling

There is enough on this topic to write several more chapters, but for now I’ll just remind you that your product needs to look good, communicate proper use clearly and comply with federal labeling regulations. Besides the expense of the labels and packaging itself, you may also want to work with a graphic designer or marketing specialist of some kind, tho that is not strictly necessary.

Work space

This is another area where it is all too easy to say “I had it anyway” and skip budgeting for this. What happens when you outgrow your space and need to start renting a studio, or you need to move and want to make sure you have a work space in your new home? What else could you be using that space for? You are paying for that space in rent/mortgage, taxes, utilities, you might as well charge your business for it to help cover those costs.

Professional services

No one can do everything. We just can’t. We can certainly try to do the more expensive things ourselves if we have any aptitude in the area at all, but chances are you will need help with accounting or drawing up legal contracts or designing a logo, etc. It’s okay, you don’t have to do everything on your own, other people actually like doing these things and they are trained to do them well! Get a couple estimates and put this in your budget too.

Taxes

This will vary regionally, so make sure you check with city, county/borough and state tax codes in addition o federal codes. You’re on your own, now, which means you get the full burden of paying Medicaid/Medicare, social security and FUTA. These aren’t taken out until later, but you will pay for theme eventually, so again, I encourage you to budget for this and set aside money from each sale to cover this expense.

Now pay yourself!

You get to set your own wages, so consider carefully whether you want to undercut minimum wage to make $2 an hour or $20 an hour or something in between. What is your actual production time worth to you? How much design time goes into each product when you do a bulk run vs. a single custom order? What about the time you will spend getting your product to clients and providing basic information about your product? We will get into marketing and delivery expenses in a moment, but whether you plan on going through a retailer or doing direct sales, you need to spend a little production time defining your product and physically getting it out of your house or shop.

Congratulations! Add all these expenses and divide by your expected output and you have established your wholesale price! You aren’t done yet.

Retail pricing

Why should a small artisan charge double her basic expenses to maintain retail pricing? We could go into showing respect for your craft and for you fellow artisans who are actually trying to make a living at this, but really its about respecting youself and making sure you dont burn out. At this point, you’ve figured out production costs and are making a little pocket money, but are you really being compensated for your time at work? Producing artisan crafts can be a joy in and of itself, but time and again I have seen artisans burn out because they do not consider the time and energy involved in marketing and delivery. There is a very real opportunity cost, and only you can decide if you want to spend time in these activities, or if you want to allow someone else represent your work. If you are representing your own work by yourself, you are effectively a retailer with all the time and effort and expenses that carries.

Marketing cost.

Putting up and maintaining a website or an etsy account is an easy first step. Keep In mind that if you are paying yourself by the hour (in opportunity cost or cold hard cash) you are probably not saving money over hiring a designer, so what you do here will depend on whether you have more time or more money at your disposal. A website is not strictly necessary, but it does help establish your business presence and make you findable. The real work comes in convincing people to come look for you. Being a retailer means spending hours researching effective advertising methods for your target market, answering questions from prospective clients, explaining your product’s advantages over and over, listening to clients and establishing long term relationships which you hope will turn into repeat customers and long term sales. It also means hours of turning down advertising opportunities which you don’t think are worthwhile and telling potential customers no, I don’t think this is the right product for you. The absolute, hands down best form of advertising is word of mouth social networking based on a solid reputation for quality and service, and this is honestly the most challenging thing to maintain. It is a real job and not everyone is skilled at or of a temperament to deal with constant customer interaction. Some artists just want to create and leave the marketing to the retailers. If you decide you want complete control and like that interaction, pay yourself for the real job you are doing by charging retail rates.

Delivery of product.

For some this means standing at a booth every weekend or working in a store front every day, combining the tasks of marketing and delivery. It can also mean fulfilling web orders and correctly calculating shipping and getting things either to the post or scheduled for pick up.

More insurance, rent, payroll and more taxes.

If you have a retail front, either as a store owner or at a booth, you need general liability insurance in case someone slips on your doorstep and sues you for a broken ankle. You will also be paying for the space you occupy, both for storing product and display equipment and display space. Either in a physical store front, on a table at a craft fair or online on your website, your product needs to pay for renting that place on the display shelf until it sells. How much the venue costs and what the average turn around time for a product is will determine what that rent needs to be. If you grow to the point you need assistance, you get to deal with payroll and payroll taxes too. This is a relatively short list, but it is where the bulk of overhead comes from for most small businesses.

If, unlike me, you are not obsessed with putting that all into a spread sheet when you first get started, doubling wholesale price (100% markup) is usually a good rule of thumb. Some specialty items which do not tend to sell as quickly may be marked up as much as 400% to cover that “shelf rental” expense, while some quick selling items can afford a lower margin, so do keep an eye on actual expenses as time goes on.

Perceived value.

One last thing to consider before pricing, or even going into production, is what the perceived worth of an item is. You will never be able to compete as an artisan with a factory produced tee shirt, even if you are putting more effort and time into it, because the public has a very low perceived value of that product. As a friend, Shira once put it, you can spend hours collecting recycled lint from flannel to sell on etsy, but it’s no one is obligated to pay for that. Your product is only worth what people are willing to pay for. On the other hand, for a well presented, quality product, price can be a signal to clients of worth as well. Pricing brackets generally help set public perceptions of quality and worth, so pricing your items in a higher bracket can indicate to a consumer that your product stands out in some way, so as to be worth that price. I have seen many instances where raising prices to an appropriate level increased sales along with consumer confidence. It is, of course, your job to make sure your product is actually worth any added expense. Remember word of mouth is essential for sustainable growth, so artificially inflated prices will backfire, but accurate pricing will help you succeed. To maintain the perceived value of your product, it is important to maintain consistent pricing. Don’t ask your retail representative to sell at retail and then routinely undercut your own product. If you have a sale on the same product every week, the sale price becomes the perceived value of the product instead of the crazy good deal you are trying to promote.

A final note on choosing a retail partner.

If you choose to have someone represent your product, consider with care how it will be represented. Some retailers will simply put your product on the shelf and expect it to sell itself. These are usually larger stores, and there is the benefit of simply being in a large, well known store, but you will likely have to do more work establishing and marketing your brand yourself. In a smaller store, look for a partner who will make sure everyone on staff knows the ins and outs of your product, so they can direct clients appropriately to your product. Find someone who is excited about your product. No matter who you choose to work with, remember they are representing your brand and the service customers receive will be associated with your brand as well. The same goes for web sites as well many people sell successfully on eBay, for example, but is that the right image for your business? Maybe, maybe not, and it is fine to experiment, but at the very least you should be thinking about your overall presentation.

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