In my last post, I wrote about how to find a niche in your cutting business. If you aren’t convinced that niches are the way to go, let me see if I can change your mind.
10 Benefits to Having a Niche in Your Craft Business
- Credibility – When a new customer comes into your online shop or store and sees many of the same items, and positive feedback, you gain instant credibility as a seller of the products you make when you have a specific niche.
- Mastery – Like I mentioned in the previous post, the more times you make the same (or similar items) the better you become. You are more likely to come up with new ideas, or seek out additional training (which could be researching a new technique on YouTube or taking a class on Craftsy.com) within your specific niche.
- Higher Pricing – With credibility and mastery comes the ability to set higher prices. After you’ve proven yourself in your niche, raise your prices slightly. If sales are still going well, raise them a little more. You will find that customers are willing to pay a higher price from a store that specializes in the product they are looking to buy.
- Efficiency – To expand on number 2, the more mastery of a product you have, the faster you can make them. This ultimately will allow you to cut down time creating products, which means you will be able to fulfill more orders in the same amount of time.
- Neater & Tidier Store – When you have a niche of products, they will likely fit into a smaller amount of categories. This will help your store look neater and tidier. This is especially true on Etsy.com, where you have a limited amount of categories.
- Cheaper & Easier Marketing – When you have a niche, it is easier to narrow down your demographic (those are the categories of people whom buy your products). When you know who buys your product, you can market to these buyers. For example, if you sell infant bodysuits, you may find that your main demographic is women in their 20’s and 30’s (primary child bearing time). After researching your demographic, you find that these potential buyers are active on social media. You’ll then be able to target them directly either through paid or organic advertising.
- Narrows the Competition – In many product niches, you’ll find that the more specialized you become, the less competition you will have.
- More Memorable – Niche stores, especially handmade niche stores, are more memorable when they create and specialize in a small number of products. The more memorable you are to your customers, the more likely they are to talk about you. Word-of-mouth advertising can be powerful to a small business owner with a limited (or non-existent) marketing budget.
- Customers Buy Multiple Items – If a potential customer finds your store while looking for glitter coffee mugs, and you have multiple styles to choose from, you may find that the customer will purchase several items. If the same customer comes to your store and you only have 1 glitter coffee mug, you may only get a one item sale.
- Naming Your Business is Easier – Once you decide on your niche, incorporate it into your name. This is great for two reasons: 1) Customers will instantly know what you sell 2) Search engines will pick up the keywords in your name and when someone searches for “xyz product” your name is likely to appear higher in search results if you have “xyz product” in your name. In contrast, a shop who only has the words “Designs” or “Creations” in it may appear lowered even if they offer the same product.
What is your Silhouette or Cricut based business niche? Let me and other Cutting for Business readers know by leaving a comment.
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