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10 Benefits to Having a Niche in Your Craft Business

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I’m a huge advocate for having a niche, or specialty, in your Silhouette or Cricut craft business. While some believe it is better to be a ‘Jack/Jill of all Trades’, here are some benefits of choosing a niche.

10 Benefits of Having a Niche in Your Craft Business - cuttingforbusiness.com.

What is a Niche?

Before we look at the benefits, what exactly is a niche? A niche can be defined as a specialized section of the market. Here are a few examples:

  • Drinkware
  • Apparel
  • Party goods

Now, the niches I listed above are huge with thousands of different products. Rather than select a huge niche, I suggest choosing a more specific niche:

  • Drinkware – Epoxied glitter tumblers
  • Apparel – Unisex t-shirts with sayings related to outdoor activities
  • Party goods – All in one party supply packages for moms planning parties for children under age 6.

See what I did there when describing and picking niches? I narrowed them down to specific product lines. Now, let’s take a look at the benefits of niches.

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

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.

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.

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.

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, 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 who 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.

After you choose a niche, read my tips on naming your craft business.

gabriela perez

Wednesday 28th of December 2016

I love all of your post. this year is going to be my year. Im learning a lot with your post and books. But I need some advice in how to track my sells, expenses, my profict etc, etc

Christine

Thursday 29th of December 2016

This post will help: https://cuttingforbusiness.com/2015/06/08/accounting-and-bookkeeping-in-your-silhouette-cameo-business/

Aisha

Thursday 15th of December 2016

Thank you for all of this wonderful tutorials. I am starting to work on my business plan and get samples ready and this whole site has been so helpful to me. I am going to specialize in Christianwear items, such as shirts, hoodies, hats, etc. There is a need for these type of items and it is something that I really enjoy. Thank you so much for all the help you provide to so many who just don't know where to start.

Christine

Thursday 15th of December 2016

You're welcome Aisha! That sounds like a great niche! Best of luck!

Ms Gee

Friday 15th of July 2016

Thanks for the useful advice, I have been doing personalize glass and a variety of other things with vinyl for my friends family and coworkers bit after reading you post I'm going to turn it into a business...thank a million

Christine

Monday 18th of July 2016

Best of luck with your business!

Joleen

Tuesday 9th of February 2016

I am thinking about opening a store doing Christian Items, there does not seem to be a lot on line in these handmade shops.

Christine

Wednesday 10th of February 2016

That's great that you are carving out your niche, Joleen!

Sheryl McVeigh

Thursday 24th of December 2015

I plan on opening a new business sometime this coming spring. I enjoy making cards, envelopes, and bookmarks, so that is what I think I will specialize in. Thanks for all your great information! I wouldn't have know where to start otherwise ? And, Merry Christmas! ?

Christine

Friday 25th of December 2015

Awesome Sheryl, I can't wait to see your business in the Spring. Thanks for the kind words, and Merry Christmas to you! Christine