The And She Looked Up Podcast
Every other week The And She Looked Up Podcast sits down with inspiring Canadian women who create for a living. We talk about their creative journeys and their best business tips, as well as the creative and business mindset issues all creative entrepreneurs struggle with. This podcast is for Canadian artists, makers and creators who want to find a way to make a living doing what they love. Your host, Melissa Hartfiel, left a 20 year career in corporate retail and has been happily self-employed as a working creative since 2010. She's a graphic designer, illustrator, writer, community co-founder and has owned and operated a multi-six figure a year creative content business. She resides just outside of Vancouver, BC.
The And She Looked Up Podcast
1224 Subscriber Soundbite: Tariff Uncertainty - What Can Artists & Makers Do?
Canadian small business owners - including artists and makers - are facing the uncertainty of potential US tariffs in 2025. So what can we do?
While we have no say in whether or not another country decides to levy tariffs against us, we do have the ability to prepare ourselves to weather what could turn out to be a few clouds on an otherwise pleasant day or a full on tornado that rips up the landscape. The truth is right now, we just don't know. But don't stick your head in the sand and wish it all away or ignore it until it happens. This is one instance where preparation is not only key, it's doable. This subscriber only episode looks at some proactive strategies that can help you shore up your creative business in the face of uncertainty.
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- Instagram at @andshelookedup
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For a list of all available episodes, please visit:
And She Looked Up Creative Hour Podcast
Each week The And She Looked Up Podcast sits down with inspiring Canadian women who create for a living. We talk about their creative journeys and their best business tips, as well as the creative and business mindset issues all creative entrepreneurs struggle with. This podcast is for Canadian artists, makers and creators who want to find a way to make a living doing what they love.
Your host, Melissa Hartfiel (@finelimedesigns), left a 20 year career in corporate retail and has been happily self-employed as a working creative since 2010. She's a graphic designer, writer and illustrator as well as the co-founder of a multi-six figure a year business in the digital content space. She resides just outside of Vancouver, BC.
Hello everyone, and welcome to a brand new premium supporter episode. This is your December episode. I'm getting it in, as usual, under the wire, and this is one. I kind of left this to late in December on purpose, in the hopes that we would have a little bit more information on this, but we really don't, and so I thought I'm going to put it out now, and what I will probably do is do a bigger, more expanded version of this on the public podcast in January, if necessary.
Speaker 1:But, of course, I am talking about these potential 25% tariffs that we, as small business owners in Canada, may be facing in the new year when the new president-elect takes office. So, regardless of how you feel politically about any of this, if you are a small business owner which we all are this has the potential to affect us very dramatically, and the most frustrating part about this is that this is something we really don't have control over. We will have no say in whether these tariffs are enacted. It is not our government that is going to potentially do this, and we don't have. There's, quite literally, very little that we can do besides advocate for ourselves with our own government, which, let's face, it, is a bit of a gong show right now to make sure that they are doing everything they can to minimize potential impact, and you know there is a possibility that none of this may come to fruition, but there's also a very real possibility that it will, or that some form of it will. So, without getting into the politics of it all, what I wanted to talk about today is what we can do. So, while we cannot control whether this goes ahead or not, there are things we can do within our businesses to prepare, and so I wanted to put those out there for all of you, so that you can at least be thinking about them, because I think, at this point, this is something we should all be doing. We should all be thinking about how we can potentially protect ourselves to the best of our ability. It's going to be rough if it goes ahead, and the better we can be prepared, the better off we will be. So I think, to give you a few things that you can look at, I think one of the first things that I would do is and I talk about this a lot in our premium subscriber episodes is make sure that your pricing is nailed. If you are working with very, very small margins, you are not going to be able to tweak your pricing.
Speaker 1:I also think it's important to understand how tariffs work. Tariffs are not something that we put in place. It is something that is put in place on the other end, on the end of the importer. So the tariffs might potentially be added. If you sell on Etsy, etsy might add the tariff on at the checkout. It's not something that we include in our prices, because all that's going to result in is that the tariff will be applied to the new, higher price on our end. On the other end, it's a little bit complicated. So this isn't like something that we apply on our end in our shops. It is something that is applied, like I said, etsy might collect it or it might be collected at the border, almost like a duty or a tax or customs fees, those types of things. So this is all going to.
Speaker 1:We're not sure how this might potentially play out, but if you have some room in your wiggle room in your pricing, if you have good margins particularly if you price for wholesale you probably have some very healthy margins which might be able to allow you to do some different pricing for your US customers where you actually lower the price for them. Etsy allows you to do this. You can have a domestic price and you can have a price for the rest of the world which is could be lower, it could be higher, so there's that opportunity there. If you have your own website, that might be something you want to look into to see if there is an app or a plugin that gives you that kind of functionality. But again, if you have very low margins to begin with and you're not pricing for wholesale, that's going to be really challenging for you. So that might be something that you need to think about. Do you want to raise your prices so that you have those margins? That can be tricky too and then to raise a price and have a tariff on your new raise price? That can be really rough. But this is why pricing appropriately is so important, because it does give you some flexibility in these situations. Give you some flexibility in these situations.
Speaker 1:I would also be looking at nurturing your own domestic market. We obviously don't have the same population that the US has. They are almost 10 times our population. There's a lot more potential customers in the US, but we still are sitting at. I'm not sure what our current population is. I think it's around 38, 39 million. That's still a lot of people, and this is where you really want to focus on that domestic market and ask yourself what you're doing to market specifically to your own neighborhood, your own province, your own country. There is a very strong possibility that we will lose some of our US-based customers, and I know on Etsy, a lot of people focus on selling to the US market.
Speaker 1:Now is the time where you might want to focus on your Canadian market and that may mean looking at other options besides Etsy and I'm picking on Etsy here because that's where I know a lot of you do sell. So maybe that means getting out and doing more in-person markets. Maybe it means marketing yourself on Facebook to a Canadian audience, talking about things like the fact that you are made in Canada, that this is a local business, all those types of things that really motivate people to support you here. I think those kinds of things are important and it's really important to remember that marketing doesn't change habits overnight. It's very hard to get people to change their habits overnight. It is very much a long game. It's something that you have to start and work on every single day until it starts to snowball, and it's not something that you can just do on January 16th or February 1st or whenever this could potentially happen. It's something that I would start focusing on right now. And even if none of this comes to fruition, at the very least you are nurturing your local market, and that never hurts to do. It never hurts to become a name that everyone recognizes locally or within your own country.
Speaker 1:On that note, this would be a really great time to nurture the loyalty of your US-based customers. So focus in on different ways that you can let them know that you're there for them. Let them know what makes you special. Let them know that you're there for them. Let them know what makes you special. Let them know what might make it worth the extra potential 25% to continue shopping with you, because there will be people who will be able to absorb that price increase and who will potentially want to stay with you. So what are you doing to nurture those people right now? Are you making the most of your email list? Are you letting them know who you are, what you're about your story, because that's really important when we're small businesses and makers and artists. It's you know. People support people who they trust. People support people who they feel that they have a connection to. So now is the time to really forge those connections and see what you can do to strengthen them.
Speaker 1:Looking at doing digital products, particularly if you're an artist or an illustrator I don't think tariffs at this point are being talked about for digital products we will have to wait and see but that is potentially an option as well as something that you can do, especially if you are in art, illustration, graphic design, any of those types of things. Also, consider whether you can add services to your offerings, because I don't think services are going to fall under this tariff. I certainly hope not, because I run a service-based business and the majority of my customers are in the United States, so, but it doesn't sound like services are something that is being looked at right now, so maybe that's a potential thing you can do. That could be things like courses. So services and digital products could be things like templates, courses, e-books, all those types of things. So that's another thing that you can look at. You can look at other markets outside of North America.
Speaker 1:This has also gotten trickier, unfortunately, this year, because the EU now has some very interesting regulations and restrictions. You need to have an EU representative if you sell to EU countries now, which is very challenging. I know a few small businesses in the UK who are going through this, trying to, to, to to make sure that they can continue selling to the EU, where for them it is much more of a concern than it is for us. But where else could you potentially target? What other markets could you look at? I think also, now is the time to really focus on finances, so do you have an emergency fund for your business as well as for yourself personally?
Speaker 1:What could you do to cut expenses or costs and look at where you get your materials from, because there is also the possibility that retaliatory tariffs will be put in place and that may mean that if you get supplies and things from the United States, there is the potential that those are going to go up in price as well. It's so hard to know how this is going to impact everyone, because our supply chain cross-border supply chain is so intertwined and there are things that start out in Canada, get finished off in the United States, get imported back into Canada and you have the potential for tariffs to be added on multiple times. This is why the auto industry is so stressed out about this, because when a car is made in Canada, or the US parts and things go back and forth across the border multiple times and it has the potential to really impact that industry, but it has that potential to impact us as well. So where do you order your raw goods from, your and your supplies and your materials? I would start looking to see if you can find Canadian suppliers. It might be a little more expensive initially, but it has the potential to be cheaper in the long run. It doesn't mean you need to switch over to them right now, although I know a lot of people are doing that because they are not willing to support the US if the US puts these tariffs into place.
Speaker 1:That's a whole. That's up to you. I'm not advocating one way or the other, but maybe there is a possibility that you can find other options in Canada where you can order your materials from, and if things do start going the wrong way, then you know at least that you can get what you need from another source. That might, in the long run, be cheaper, if that makes sense. I hope that makes sense. Um, I think also. Uh, take a look at things like your inventory. Uh, inventory is costly. Um, if you sell to wholesale outlets uh like on platforms like fair and things like that to to us clients, uh, this has the potential to impact you as well, and so maybe you want to start paying attention to, um, finding wholesale retailers, et cetera, in Canada to fill what could potentially become a gap or a void. So those are all things that you really want to be paying close attention to right now.
Speaker 1:It is better to have plan B, c, d, e and F in the back of your mind now rather than scrambling a month or two from now. I think a lot of us experienced that with the postal strike. We kind of thought, oh, it's not going to happen, they'll settle. And then, when it looked like they wouldn't settle, we were like, oh, but last few times they've done rotating strikes. And then there was no rotating strikes, and then the strike hit, everything shut down and people were scrambling to find another option. You don't want to be scrambling at the last minute. You want to be very aware of what's going on and make sure that you have backup plans in place to handle whatever comes our way. It has the potential to be really sucky.
Speaker 1:So, yeah, start, start thinking about what your backup plans will be, whether that is financial, whether that is finding raw materials, whether that is marketing to a new group of people. Um, I would start marketing efforts Now. Marketing efforts are never wasted. If you grow a new market without losing an existing market, that is great. That is going to set you up for a fantastic 2025. If you do lose one market, then you're going to want that other market to step in and fill the void, so that's not wasted. I would start that now. I would also start preparing an emergency fund right now if you don't have one in place. If you do have one in place, maybe start putting extra money into it while you can, wherever you can, just in case and you know what Best case scenario you don't need it, and then you have a nice little cash fund where you can reinvest in your business in other ways, maybe six months or a year from now. So you know again, money doesn't go to waste when you have it. It's always a bonus. It just gives you more options and more flexibility, and that's really what we want to be focusing on right now is making sure that we're in a flexible, that we have flexibility, that we can move back and forth, that we can move back and forth and we can toggle switches and pull levers and hopefully not suffer too much from anything that potentially comes our way.
Speaker 1:There are some other things that you can do, depending on where you live. Maybe take a look at whether or not you can do some events in the US this year. If you live in a border town, that might be an option. I don't know the logistics behind that, or particularly selling in a country that you're not located in, so that's something that you would have to research, but again, that's part of the planning process. Is that a viable option for you? I'm just going to pick BC because that's where I live, but you know, if you live near a Peace Arch border crossing, are there some markets in Blaine that you could go down and do for an afternoon. Those are close enough. In some cases they might be closer to you than driving into Vancouver and you can go down and do set up early in the morning and be back home at night without having to stay overnight. So that might be worth taking a look at.
Speaker 1:I think, too, one of the things that we don't have a great presence with in Canada is we don't have platforms like Etsy that are Canadian made. There are a couple of them, but they're not great. Maybe this is an opportunity to try some of them out and maybe, if enough of us get onto those platforms, there's a potential that they could grow into something better. I know the UK has their own platform and there are other platforms in different countries, so that's something to maybe look at. I don't think it would hurt to try a few of those platforms out. I don't have names of the ones. There's one in particular I'm thinking about because I see their ads on Instagram all the time. That's a possibility. Pair up with other makers and maybe do create your own pop-up sales or, um, different ways that you can potentially uh, work together to to create experiences for local, local customers. Um, and yeah, I think basically that's what you need to do and, at the end of the day, focus on what makes you unique, what makes your products, what gives them their value.
Speaker 1:I know, sometimes when we create art or and when I say art I'm not just talking about paintings, which is what everyone assumes by art, but I'm talking anything that we make or create artisanal goods I think for us it's very hard to figure out what the value proposition is, because we sort of view what we create as a want and not a need, but lots of people spend money on their wants and not their needs. So what is it about what you do that makes you different from everyone else? And really work on honing in on that. Messaging in your social media, in your email newsletters, in however you market, when you sell at markets. Look at yourself on Etsy. Do you look like everyone else? If you were to search for what it is that you sell on Etsy, does your listing look like everyone else or do you stand out Like? What is it that makes you different? And and you really need to I think a lot of times we change one little thing and we think that makes us different from our competitors or or other people creating the same type of work that we do, and in the eyes of the consumer, it's usually not enough for them to notice the difference.
Speaker 1:I think we really have to focus in on what makes us unique. What's your voice? What is your style? Focus in on the handmade message. I think a lot of people are starting to realize that there's a lot of crap on platforms like Etsy that is not handmade and they're really looking to find those makers to get back to what Etsy used to be. So you start really working on that messaging. I find the same thing when I go to markets. More and more people are starting to realize that a lot of stuff at markets isn't handmade or it is, and when I say handmade I mean made by the artists selling it. So I think that's something else to think about. But on that note, there are things where if your item is made in the US so print on demand situations where somebody in the US purchases something that you sell but it's actually printed and shipped from the US, I don't think again, we won't know, but I don't think those would be subjected to tariffs. So if you sell things like t-shirts, sweatshirts, anything that's sort of print on demand, those might be exempt from tariffs. So that might be something else that you want to look at. But again, in that situation it's not handmade, it is being made by another company, it's being manufactured at that point. So again, you're going to have to be very careful on your messaging with that and the types of words that you use. But print on demand is a legit option to potentially avoid tariffs for your US clients.
Speaker 1:I know, like with Amazon. I sell notebooks on Amazon. The notebooks are made with my designs on the cover and I design the inside of the notebook. But they are printed on demand when a customer orders on Etsy. So if a customer in the US orders, or a customer in Japan orders, or a customer in the UK orders, their book is going to be printed, made and printed in their country. Same within Canada. If somebody in Canada orders it, it is going to be made in Canada. So that's another way. But it can be very difficult to stand out on places like Amazon. If you think Etsy is crowded, amazon is even more crowded. I think so, but there's options. So, anyway, that's what I wanted to cover off this month.
Speaker 1:Like all of you, I'm really hoping that this doesn't turn into the mess that it could potentially turn into, but we're not going to know. We're just not going to know. This new president is, if nothing, if not unpredictable, but this has been something he has been talking about implementing for months, so it shouldn't come as a surprise to any of us, and I do think I've talked about this before in other episodes. It is really important for us, as small business owners, to stay on top of the latest news with these things. Don't find out. There's a Canada Post strike the day before it happens. If you had been paying attention to the news, you would have known that was in the works for weeks prior to it happening. This has been in the works for months prior to it happening. So stay on top of things.
Speaker 1:Don't be afraid to advocate. Contact your MPs, contact your MLAs, counselors, whoever, whatever you call them in your city, your mayor, your business association, all those like Canadian Small Business Association, your local chamber of commerce, boards of trade all of those associations are there to advocate for us. And we are small business owners. We have just as much voice as larger manufacturers and bigger companies, because this is affecting them too, very much so. This has the potential to affect every industry in Canada, and so make sure that you let people know.
Speaker 1:We are heading into an election year. Whether that election is going to happen in February or October, nobody knows, but this is the time to start raising your voice with your local politicians. When they come knocking on your door, let them know I run a small business. What are you doing? Not just what are you doing internationally, but what are you doing domestically for me? Because, frankly, I feel like small business has been a bit left behind this year, the last few years, honestly. So, yes, remember that you have a voice. You can use it. Band together with your fellow makers and artists and let people know that you're unhappy and that this has the potential potential to really impact you financially. Yes, and small businesses pay. We pay our share in taxes, and when there's less small businesses, there is less tax revenue and no government wants to decrease their tax base. They want to increase their tax base. So it's really on everyone right right now to minimize the potential impact of this. And yeah, so stay informed, be prepared, have a backup plan and make sure that you are doing everything you can to be as financially prepared as possible. That is it for this month.
Speaker 1:As always, I just want to say thank you all so much for your ongoing support over the past year. It has been very much appreciated and I don't kid when I say the podcast would not exist without you. It would not, and I really appreciate everything you do to keep the show going. I hope that you all have a fantastic New Year's and that 2025 is happy and prosperous and peaceful. I'm kind of laughing because I was reading a thread yesterday where somebody said they sent somebody a text that said I hope you have a prosperous new year and autocorrect changed it to a preposterous new year and I feel like that is probably more correct. But we shall have to wait and see. If nothing else, I think it will be an interesting new year, but thank you all again for your support and I will be back in January with another new premium subscriber. Only episode. Happy New Year everyone.
