Business ownerMythsPricing

Myths of Being a PYOP Studio Owner

 

I’m Donna Bordeaux with PYOPAccounting.com. I am a CPA who works as an industry specialist with ceramic art studios; and, I wanted to take a moment today to talk about some myths in the ceramic arts industry.

The one, we’ve all heard this one, a hobbyist versus a business owner. Everybody, when they hear about the industry or experience it for the first time, thinks this would be a fabulous business to own. I get to paint all day. It’s so much fun! It really is a fun industry. However, in order to be successful, you must treat this as a business venture. You must have a profit motive in mind. You have to abide by your budget and make sure that you have the money in the bank to operate the business effectively. I realized that is an area that some people struggle with. They may have been a more creative brain type person and not really had a lot of experience in the business or entrepreneurial world and that’s what I’m here to help. I can partner with you to help make sure that you get off on the right track.

The second myth is that everyone should have access to my studio. I’m sorry, that’s not true. We are going to have people who cannot afford to come to your studio and that is okay. Painting, glass-work, all of the creative industry information that you do, all of that is an experience and that experience is going to be priced out of some people’s budget and that’s okay. I want you to hear it again. That is okay. Your studio must be able to price its experience for profit. And that means that some people may be excluded and it may not fit into their budget. And again, that’s okay. So feel okay about that.

The next big topic that I hear from a lot of studio owners, it’s the reason we love them, but it’s also going to be a hindrance in business is that they’re pleasers. They have to please everyone and everyone must love them. I’m sorry, but that can’t be the case. In business, you will have people who love you, plenty of people who love you, but there are going to be some who are not happy with you. And again, that’s okay too. We don’t have to please everyone. The old saying that the customer is always right. I’m here to tell you that’s not really true. That’s a fable. Sometimes the customer is just flat out wrong and we all know that. We’ve experienced that. So that’s okay. If you have people who don’t like you, you have a bad rating here or there, it’s okay and it’s going to happen. It’s how we deal with it. That makes you the true business owner.

Next up, the biggest fault that I see in the industry is establishing pricing based on your own budgetary restrictions and not the guests that you’re trying to get into the studio. Most of you need to be attracting the upper end of the income and your area. This is a luxury; an experience!  Just like going to the movies. Some people go to the movies and they buy popcorn. and Icees, hotdogs, and M & M’s. That’s the market that you need to be able to attract. So even if it’s outside of your budgetary constraints, you need to price to the upper end of your market. And I can help you do that. We have some guidelines that we use on pricing and I will always be the one who tells you, take it just one step further and let’s try. And here’s a little secret, if people aren’t complaining about your pricing, in some instances, you’re too low, you’re not in the sweet spot. You should have about a third of the people say, “Ugh!”, and still pay for your product.

I’m sorry I said that backward, pay for the experience of coming to your studio! That’s when you know you’ve hit the sweet spot in pricing. So, don’t be afraid, it’s not for everybody. It doesn’t need to be designed for everyone to visit your studio and afford your experience. Treat it as a business. I can help you with that and make sure that you’re set up for a long and profitable venture in your business. The way that you will help your local community and economy is by providing jobs and providing taxation that will be paid into your local economy. That is how you will help, not by providing handouts.

So, if you want to talk some more about how your studio can help make sure that it is progressing and staying in business for the long-term future and has a good, profitable venture. I’m here to help.

Donna Bordeaux
CPA with PYOPAccounting.com.

Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna Bordeaux and PYOP Accounting.com. Donna and her husband, Chad, who is also a CPA, have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help PYOP studios earn 4 times more profit than the average PYOP and are passionate about helping industries that help families build great memories.

Photo credit by derekbruff is licensed under CC BY-NC 2.0