Most handicraft shops are not business enterprises. They are often hobby shops run by people who enjoy the work they do.
You may also notice that the number of employees of shops is generally below the number of individuals working in the retail business. This shows that handicraft shops are not large businesses or established businesses with a fixed workforce.
Are they profitable in the long run?
The numbers can vary from shop to shop and can be determined only by comparing all the various numbers. While we can not know how much a handicraft shop will make in a 12-month period, there are several ways to judge the performance of a shop.
Let us consider the profit potential of a handicraft shop under different scenarios.
In the last 12 months, the number of workers involved in the sales process has doubled. If these workers are selling only their handicraft products they would make $16,200.
The number of stores has increased tenfold. Under the new scenario, the sales workers would make $46,300.
Each person can now make $1,000 a month. They do this only without any real work, and the handicraft products they sell are not very good. Yet, they do it, nonetheless!
The number of the workers who are no longer involved in the sales process and who are making a living selling handicraft products has also increased tenfold. They will make $18,400.
In addition, sales of products made by handicraft workers who do not normally sell to customers have increased tenfold. They will make $23,700.
Since the percentage of workers employed in the retail business is equal for all the scenarios, the total profit potential of the three scenarios is $44,120.
The business owners are not always successful.
The number of shops is the best indicator of the success and failure of a handicraft shop. It is important to remember that the average number a shop has is about 10,000 items.
Even on the low end of this estimate the shop would still make more profit than a retailer would, since they sell a larger percentage of products.
If they have a strong sales team working around them, the shop can succeed in some cases because the products offered are more attractive to more people than those sold in the retail chain.
However, the results of a successful handicraft business will vary from shop to shop.
You may notice that the number of workers
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