Craft Fairs and the financial questions

[Badgerboy]

Being a newbie and seriously considering being a vendor at a local craft fair I have a couple questions. 

1) Do you collect the appropriate sales tax if the Fair mangers do not have specific requirements to do so?  If yes, do you simply include that amount in your selling price or make it an obvious add on.  In this case the state in question does tax such craft items. 

2) What payment options do you provide?  Just cash or do you take the time and incur thr expense to offer electronic payments ( credit card, pay pal, etc...)

3) Do you simply take samples and have customers place orders, make a guess what will sell and take inventory or do both?

Thank you for sharing your wisdom and experience. 

[don in brooklin on]

I am not a seller but Scott Seifer posted a great over sight on craft selling.  It may be a little out of date regarding accepting credit cards as you are supposed to have a pin machine now.  

I know that I rarely have cash on me and my kids definitely don't.  

If you read older posts there is a lot of info on taxes, insurance etc.

It might help if you can let the sellers here know what kind of items you plan on selling.

 

 

[dgman]

I accept cash and credit cards. Because I accept cash, I round up the prices to full dollar amounts and I pay the tax. That way, I don’t have to keep change. I use Square for credit cards. You don’t need any machine if you have a smart phone or an iPad. I use an IPad with a dedicated hot spot. All transactions are done on the device. Square supplies a swiper for free. They offer a chip reader for less than $50. The charge is something like 2.75% each transaction. Once you set it up, money is deposited in your account the next business day. Once I started accepting credit cards, my sales increased 60%.

[grandpuppies]

I sell primarily in the fall (Oct. thru Dec). My prices include the tax amount. For my own ease I round up to the nearest dollar amount. I do include readily available price tags for

     items showing price and tax with total price tally. I don't want to deal with a lot of loose change.

I accept cash and state I prefer it to the customer but I have Square for credit cards - this only works with cell phone reception or internet connection.

I take my inventory - instant satisfaction can be important. But if there is real interest I will take special orders I do require a deposit on special orders and refuse any thing 

     that gets too far out or too complicated I need to be able to sell the item if the original purchaser backs out.

One think I find helpful to attract customers is a line of small inexpensive items to get them to stop and look. I make "Pocket pets" - small cutouts of animals that are one to two

     inches or so I sell for 50 cents - that I make from scrap cut-offs from larger puzzles (my main item) these attract a lot of parents and grandparents. I do make sure to caution

     them about kids putting them in their mouths, let them know that if the kids do, they are responsible for monitoring them. Couples seem to get a kick out of them for their 

     partners as well.

[Iguanadon]

Thanks to Don for sharing that link of the write-up I did... hard to believe that was 2 years ago already...  Time flies.

Quick answers... Check with your local state requirements.  Here in North Carolina vendors are required to collect sales tax.  Many events ask for your sales tax ID number when you apply to make sure you're set up properly.

I charge $25 for most of my items.  If they pay cash, I cover the sales tax, if they pay by credit card, I have Square set up to add tax to the price and it ends up at $26.75.  I have to file quarterly with the state.

You pretty much have to accept credit cards these days or you'll lose a lot of business.  The 2.75% fee is well worth it.

Good luck and keep asking questions.  A lot of great experience on the forum willing to share.

Iggy

[Badgerboy]

3 hours ago, don in brooklin on said:

I am not a seller but Scott Seifer posted a great over sight on craft selling.  It may be a little out of date regarding accepting credit cards as you are supposed to have a pin machine now.  

I know that I rarely have cash on me and my kids definitely don't.  

If you read older posts there is a lot of info on taxes, insurance etc.

It might help if you can let the sellers here know what kind of items you plan on selling.

 

 

Don, thank you for the wisdom and for the link to Iggy’s ebook. Both were very helpful!

[Badgerboy]

4 minutes ago, Iguanadon said:

Thanks to Don for sharing that link of the write-up I did... hard to believe that was 2 years ago already...  Time flies.

Quick answers... Check with your local state requirements.  Here in North Carolina vendors are required to collect sales tax.  Many events ask for your sales tax ID number when you apply to make sure you're set up properly.

I charge $25 for most of my items.  If they pay cash, I cover the sales tax, if they pay by credit card, I have Square set up to add tax to the price and it ends up at $26.75.  I have to file quarterly with the state.

You pretty much have to accept credit cards these days or you'll lose a lot of business.  The 2.75% fee is well worth it.

Good luck and keep asking questions.  A lot of great experience on the forum willing to share.

Iggy

Thanks Iggy, your booklet is awesome!!  I may have to make a short road trip and come see the animal puzzle assembly line. 

[Badgerboy]

Dgman and grandpuppies thanks for your thoughts and wisdom!

[Iguanadon]

Just now, Badgerboy said:

Thanks Iggy, your booklet is awesome!!  I may have to make a short road trip and come see the animal puzzle assembly line. 

LOL, absolutely, happy to give you the grand tour.  Let me know if you're ever in the area. If you can't wait to see it in person I've done some You Tube videos including this grand tour.  

 

[kmmcrafts]

12 hours ago, Iguanadon said:

LOL, absolutely, happy to give you the grand tour.  Let me know if you're ever in the area. If you can't wait to see it in person I've done some You Tube videos including this grand tour.  

 

I had not seen this video before.. great job and very informational.. Thanks for sharing

[ike]

I sell at local craft shows and I like the church ones best. I have a better time at the churches. I sell at tax included Most  items are at sell at 5. 10 15 thre 30 dollars. I do this just to pay for my Hoby I am 81 years old My wife is 78 the kids are raised and the dog died and we get by I go to a craft sale and if I sell $100 that is fine or if I sell $400 that is fine. It's a good life if you make it that way. no fuss no worry.

IKE

[JimErn]

Even though the organizers of the event will have your sales tax number, take the sales tax certificate or at least a color copy with you.  I have had sales tax auditors roaming through the event asking for it, fail to have it, shut it down, and they start in on paperwork.  I never followed up with the ones who did not have it though to find out exactly what happens.  Some pose as customers, others just ID themselves and ask for the certificate.

As always, YMMV

I was advised to have a sign saying sales tax included, might just have been that sales tax guy though, seems to me saying so would be enough

I do not know of a state that says if you sell less than this amount (in person, not referring to the wayfair boondoggle) you do not have to collect sales tax.

[Fedido]

All, 

Thank you for your wisdom. It has answered a lot of my questions concerning selling my produces.