The global craft market passed $45 billion last year, and it’s not slowing down.
But before you start dreaming about opening an independent craft store, you need real numbers. So, how much does a craft store owner make?
And, maybe more importantly, what factors determine whether you'll struggle to break even or build a thriving business?
In this guide, we'll break down the actual income ranges you can expect, reveal the six key factors determining your success, and share six expert strategies you can use to launch and run your independent craft store.
Let’s not beat around the bush: How much does a craft store owner make?
On average, craft store owners earn between $40,000 and $100,000+ annually. We know this is a pretty broad range, so let’s break down the factors that impact where you might expect to fall.
One of the main factors that impacts earning potential is your location:
The profit margins for a craft store are pretty average for the retail industry. Well-managed stores will generally see margins between 10% and 20%.
But remember: These numbers aren't set in stone. Your income potential will vary based on factors like store size, product mix, and what kinds of events or classes you choose to offer. We’ll dive into those details later on in the post.
Jo-Ann's recent store closures might seem like a death knell for the craft industry — in reality, these closures create a massive opportunity for independent craft store owners. When a major chain pulls out of a market, it leaves behind customers who still need their crafting supplies.
If your local Jo-Ann’s stores are closing, your area has hundreds of displaced customers actively looking for a new place to shop. Plus, with less competition for specialty supplies and workshop space, you have room to carve out your niche.
Despite corporate closures, the craft industry is thriving. You just have to be ready to capture that market share to run a successful business and make a livable wage as a craft store owner.
Your craft store’s earning potential (and your earning potential, as its owner) isn’t random. Controlling six key factors can help you make the right decisions and build a healthy bottom line.
Location is the single largest factor in determining your income potential. High-traffic retail areas bring in more customers, giving you more revenue potential. These areas also tend to cost more in rent, cutting your profits.
So, how do you find the sweet spot?
The trick is to consider local demographics. You can justify higher location costs if you’re opening a store in an area with high disposable income and an interest in DIY projects — if you’re in a lower-income area, you want to find a less expensive storefront.
Don't forget to scope out the competition. Sometimes, a less obvious location with minimal craft store competition can be more profitable than fighting for customers in a market that’s already saturated.
Related Read: Marketing a Craft Business: 6 Steps to More Customers
Next, consider the size of the store you plan to open. Bigger stores can stock more inventory, typically translating to higher sales — but that’s not always the case. The broader your inventory, the more inventory management challenges you have to account for.
Investing in the right technology can help you expand your product range without expanding your stress. Rain's integration with Notions Marketing gives craft stores access to thousands of products with automated purchasing and receiving processes. Instead of manually managing hundreds of suppliers, you can streamline your inventory workflow through one system.
You may also consider operating a craft store in a specific niche. Specialty stores focusing specifically on quilting or jewelry often outperform general craft stores by becoming a go-to destination for crafters in their niche.
Your business model also impacts your earning potential. On average, brick-and-mortar, retail-only craft stores have lower earning potential than stores that blend retail with workshops, repair services, and online sales.
If you want to boost your profits and revenue, invest in tools that let you integrate e-commerce, repairs and work orders, and class offerings with your brick-and-mortar operations.
Dead stock kills profits, but so does running out of popular items during peak seasons. The best way to optimize your earnings is to master the balance of craft store inventory management.
The best way to strike this delicate balance is to invest in the right technology. Choose an all-in-one point of sale (POS) and inventory management solution that helps you track sales patterns, integrate online and in-store inventory, and alert you when you’re running low on key stock.
You also want to consider seasonal sales patterns. Track your sales and customer data over time to identify what supplies sell faster during the summer months and what sits gathering dust during the holiday season. Then, adjust your ordering appropriately to avoid tying up capital and shelf space with inventory that isn’t selling.
We all know that keeping an existing customer costs your business less than winning a new one, but that’s not the only advantage of customer loyalty for craft stores.
Crafting is a social hobby for many people. When you turn your store into a gathering place for local creatives, you can win more business, word-of-mouth referrals, and profits over time.
Offering workshops is a great way to engage your customers on a deeper level and boost revenue. Customers who take your beginner quilting class don't just pay for the class — they often purchase fabric, tools, and supplies for months afterward.
Consider implementing a customer loyalty program. Invest in a POS solution with built-in customer loyalty tracking to manage these programs and boost customer lifetime value.
Related Read: How To Offer Art and Craft Classes for Adults: 5 Tips & Tools
Every minute you spend manually counting inventory, hunting down customer information, or handwriting notes and details is a minute spent not growing your business.
That’s why the final element that impacts your craft store's earning potential is your operational efficiency.
Again, the key here is the right technology. When your point of sale system integrates inventory tracking, e-commerce sales, repairs, and more, you can run your store more efficiently and with less waste.
Smart staffing decisions matter, too. Well-trained employees who understand crafting can effectively upsell and provide valuable customer service, while poor staffing leads to missed sales opportunities and frustrated customers.
All in all, the more efficient your operations, the greater your earning potential.
With these factors in mind, let’s explore six strategies you can use to boost your profits and increase your chances of success as a craft store owner:
These six strategies can help any craft store owner take their store to the next level. Remember: With the right tools and a staunch focus on customer experience, you can run a craft store that becomes a community staple in no time.
Running a craft store without the right technology is like trying to cut fabric with kitchen scissors — you might get the job done, but it'll take longer, and the results won't be nearly as good.
Here are some of the advantages you can enjoy when you invest in a point of sale system designed for specialty stores like yours:
The right technology saves you time, boosts your profitability, and reveals opportunities you never knew existed.
So, how much can you actually make as a craft store owner? The numbers speak for themselves: $40,000 to $100,000+ annually, with the highest earners often surpassing six figures. Your income depends on the strategies you implement and how efficiently you run your store.
Success isn’t just about luck — you have to make the right decisions at the right time. When you choose your location, inventory, and tools effectively, you can run a thriving business and earn a healthy income.
Ready to see how the right POS system can boost your craft store's profitability? Build and price your perfect solution today.