Discover how a home party plan is a lucrative way to sell your handcrafted jewelry.
What is a Home Party Plan?
The home party plan is a method of product marketing in which you ask a hostess to sponsor a party for their friends.
At this informal party you demonstrate your jewelry to the hostess and her invited guests. The list of goods marketed through the home party distribution channel is nearly endless: crystal, makeup, lingerie, plastic food containers, skin care products, clothing, toys, artwork, jewelry, gourmet foods — and now handcrafts.
This party plan for selling was first pioneered by Stanley Home Products about 70 years ago, and it has become the mainstay of a number of major, nationally known companies, such as Princess House, Tupperware, and Allouette.
Through "homemade sales" (transactions conducted in private homes), these major companies are able to drastically cut their operating costs. The biggest savings of course is their rent or lease costs, thus, rent-free sales from home.
The key to the success of the party plan approach is that the selling is all done in a happy, fun, homelike setting among friends, and that the products offered represent good quality and unique jewelry at reasonable prices. Few other marketing methods have these advantages.
Participants in all home parties play similar roles (demonstrator, hostess and invited guests). The demonstrator arranges for someone to host the party and do the recruiting, and then the demonstrator puts on the program, usually at the host's home. Afterward, the host receives a gift and generally a percentage of any sales.
If you think that party plan marketing is the right way to go with your jewelry designs, your first step should be to attend some the various parties being held, which you may hear about through friends.
Observe the presentations carefully and see how the party is organized and run. Take mental notes on the good and the bad points that you have observed.
Use the good points to your advantage and improve on the bad points to help increase sales. Talk to the demonstrators at these parties, tell them that you are interested in starting a party plan with your own line of items, and ask them if they have any tips or advice about the party plan method of marketing.
For a step-by-step action plan for building a home jewelry party business see Lorri Ely's 'How to Run a Home Based Jewelry Party Business for Fun and Profit'.