CCI-newsletter-1979-23-November-December

NEWSLETTER

Thomas Prior House, Merrion Road, Ballsbridge, Dublin 4, Ireland.

NOVEMBER/DECEMBER 1979

Telephone 01 680764

Minister for Labour Opens 1979 Conference Mr Gene Fitzgerald T.D., Minister for Labour, opened the second Crafts Council of Ireland Conference in Cork on 2nd November. Speaking at the opening dinner at the Silver Spring Hotel, he said that the Crafts Council of Ireland was to be commended on the choice of theme— "Craftsmanship is our Business"—and continued: " I was particularly interested to learn that this theme which recognises that economic realities cannot be ignored by the craftsmen was chosen in response to requests by delegates at last year's conference in Wexford for a discussion on the specific issues related to the business of being a craftsman. the development of craft-based industries which have made a major contribution in this area. "Small, owner-managed companies are recognised as a vital part of our industrial structure, and are helping to stablise many small, rural communities in the face of the drift to the cities. Even in national terms the employment created by the industry is significant," said the Minister, who also "There are now about one thousand pointed out that the Government regards people in the country earning their living tHe development and expansion of the mainly from craft activities, while a further craft industry as an important aspect of further 4,000-5,000 outworkers are its job creation programme and this is engaged in part-time activities such as knitting and weaving. Craft workers who reflected in the financial assistance given previously worked alone are now being to the Crafts Council and in the activities encouraged by the IDA and AnCO to of the IDA and AnCO, which he illusrecruit apprentices, and the average trated with a number of examples of employment in a typical craft industry initiative in this regard. is now four to five persons."

The Minister concluded by saying: "In Speaking on the encouragement given by adopting the business dimension as the the IDA and AnCO to craftsmen to theme of your conference, it is clear that recruit apprentices, the Minister spoke your Council has already made a commitof our economic well-being requiring the ment to significant developments in that rapid creation of employment to serve an direction. I hope there will be more and increasing population, and in recent times more recourse to the various state agencies "The crafts industry may be said to be big business on a small scale. While in former years crafts may have been regarded by many principally as a hobby or past-time, today the contribution of the crafts industry to economic growth is widely recognised.

Ms Sallie O'Sullivan, Weaver; Mr O Slatarra, Chairman/I DA; Mrs P Duignan, Chairman/Crafts Council and Mr J O'Donne/1, Chairman/Cork Craftsman's Guild. in the special fields of research, design, training, finance and marketing, and I can assure you that you will find them eager to help in every way possible.

The crafts industry is playing an increasingly significant role in this country and will undoubtedly form an important complement to large and medium scale industries in our future industrial development. In this sector, as in others, there is a growing need to be professional and businesslike in approach. It is only through combined excellence of craftsmanship and a similar attention to business matters that the future of Irish crafts can be secured.

I am confident that you will take up this challenge with your traditional dedication and so ensure a significant place in the future for our unique craft heritage of the past."

IDAChairman makes Keynote Speech Mr Padraig O'Slatarra, Chairman of the Industrial Development Authority who made the keynote speech began by asking "What is a craftsman?" and quoted: "In the image of his Maker, man is a Maker. The evolution of skills in making things is an ageless process. The trades­ man can make it well in his own good time but the machine can do it in half that time. The craftsman may take longer but since he endows with beauty, the world takes notice and wants what he makes."

In discussing the theme of the seminar, Mr O'Slatarra approached the subject under three main headings: 1. Heritage and tradition 2. Achievements of recent years 3. Goals "We are," he said, "the inheritors of a tradition going back to the early history of this island and we have a magnificent tradition in which we can take justifiable pride, in which we can find inspiration; it is something that lingers with us, which we do not just slavishly copy but which can serve as a basis to transform into the modern idiom.

"We have a great Celtic heritage, but we have more than that. The distinctive and classical architecture of eighteenth century Dublin reminds us of another gracious period of our history which has left us with a fine heritage, not only of architecture but of furniture, silver, bookbindings and glassware. There are the old functional skills that predate the machine age and our present urban society. These skills are represented by the blacksmith, the saddlemaker, the handweaver, the basketmaker, the handknitter—to mention but a few. In a sense these skills are probably closer to us Irish than to most Western peoples, because until quite recently we were a very rural society and it is, I think, true to say that our attachment to rural values is still very deep."

Crafts Council of Ireland, Mr O'Slatarra noted as being a focal point for craft activities for nearly a decade, and it has been a decade of considerable progress and the craft guilds affiliated to the Council now represent 1000 full-time craftspeople and up to 5000 outworkers.

"We must all feel greatly indebted to the founders of the Crafts Council for their vision and dedication which have con­ tributed in no small measure to our present level of achievement.

"As Chairman of the Industrial Develop­ ment Authority I can readily see the progress of the crafts sector reflected in the activities of the IDA. "The IDA has been closely identified with the Crafts Council in recent years and is represented on the Council. Our association with the Council has been happy and fruitful, and we look forward to building on the progress already made."

He asked who could have foreseen in the Fifties that we would have a craft sector of such vitality today, but pointed out that present success and future prospects will place new demands on all—demands which will require a new professionalism.

Speaking of goals he said: "Irish people have achieved worldwide distinction in literature, drama, art and music. They can do likewise in crafts.

"They should be encouraged to do so and there is a need for outstanding people to show the way.

"The IDA places special emphasis on a steady and increasing inflow of talented people into the crafts sector. Here, I would like to make particular reference to a recently announced IDA measure, whereby grants of up to 100% are given to master-craftsmen for the recruitment of trainees. These grants cover the cost of courses, travel and subsistence for apprentices. The craftsmen,are also com­ pensated for the time spent training their apprentices and for any courses they themselves attend in order to up­ grade their own skills.

"We now have this facility but only you can make it work. I therefore have no hesitation in strongly urging your co­ operation in helping to increase the pool of qualified craftsmen available to us. In other words, use this scheme to your maximum advantage.

"We were happy to provide £35,000 by way of grant assistance towards the attendance of craft potters at a new ceramics technology course at the NIHE in "Limerick. We are co-operating closely with AnCO and NIHE in monitoring the progress of this course."

Turning to education, Mr O'Slatarra said "We also look forward with optimistic anticipation to the first results from the new post-graduate Training Centre at Kilworth, Co Cork, which the Crafts Council is providing in co-operation with the IDA and AnCO. "These developments lead me to wonder if there are other aspects of training to which we might address ourselves. Could our educational system do more? For example, could those second level institutions which operate a strongly academic syllabus consider providing a room for handcrafts? For many secondlevel pupils, such a development could provide a greater sense of fulfilment and achievement. It could awaken, in some cases, an awareness of unknown talents which might lead to rewarding careers in an area of unrivalled job satisfaction. " I have placed some considerable emphasis on the need for new entrants—talented new entrants—to the crafts sector and to their training needs because this flow of new entrants is the very life blood of our expanding crafts industries.

"Might we look with confidence to indus­ trial and commercial firms, and indeed to state bodies, to lend their support and encouragement to craftsmen? Some have done so and I would look to others to do likewise—say by commissioning some craft work to adorn their premises or for some special occasion.

"In other words, I am suggesting a revival and extension of patronage of the arts to include crafts. Indeed it would be approp­ riate that in our age such patronage should come from the large concerns which I have just mentioned.

"The commissioning of craft items for display on the premises of our large commercial and industrial undertakings would both provide more shop windows for for the work of our craftsmen and enhance the image of the concerns providing such patronage.

" I t is a paradox of our silicone chip era," he concluded, "that, as we are drawn more and more into the world of auto­ mation and electronics, the inherent individual and artistic qualities resulting from your manual skills will be in ever greater demand."

A Serious and Successful Conference The annual conference, held this year at the Silver Springs Hotel in Cork, was attended by 130 craftsmen and others directly concerned with crafts. While markedly different from last year's in content, it was judged to be equally successful. Being entirely businessoriented—as the title "Craftsmanship is our Business" suggests—it was at times somewhat unexciting, but always stimulating in the amount of imparted knowledge from the various speakers drawn from the business, banking and state agency side of the commercial world, as well as from practising craftsmen who could speak to the theme from, as it were, the inside, such as Rudolf Heltzel. Especially fine contributions at this altter level were made

by Jane Forrester, the Bandon-based potter, and Bebhinn Marten of Beacon Designs in Baltimore. They counterpointed very excellently the more "theoretical" papers.

Extracts from the various speakers' speeches will be printed in this edition of the Newsletter and, because of the length and important content, some will be printed in the following edition.

Craftsmanship Synonymous with Excellence John Makepeace, master wood craftsman, said that excellence can only be judged against a complex set of criteria. Touch, sound, smell, taste and sight—but also those judgements which are made consciously or intuitively by the intellect.

Wit, economy and clarity all add to the essential tension between art or craftsmanship and this moment in time—never to be repeated.

It is simplistic to suppose that craft skill is an adequate basis for either a life or a business. If there is to be a sustained revival of the crafts, it has to be a revival of excellence—a broad concern with every aspect of the work. That would suggest that, in order to be a successful craftsman in the future application, intelligence and imagination will be prerequisites. "Alas, our education system would have us think otherwise; you only qualify for the bad at everything else

Mr D P/emming, Ms B Marten, Mr J Murphy, NCAD and Mr E Cahill, I PC imagination will be prerequisites. "Alas, our education system would have us think otherwise; you only qualify for the crafts if you are sufficiently bad at everything else!" he said; but on a more serious note added, "the more I see of the world, the more I come to the opinion that creativity is the product of relating disciplines—not in a suppressive sense but by seeing the interface of those disciplines as a stimulus rather than a constraint.

This cross-linking opens up a new and a broader basis for looking at problems, and for their solution."

A well-organised, small business he saw as an object of beauty—an art form, from whichever angle it is looked at. It is a rare, but precious experience to deal with a business which respects people, whether customers, staff or suppliers; that is consistent and reliable in its products and in its dealings; and because of the pressures of commercial reality, very accurately reflects current conditions. " I t seems to me that, at best a business certainly qualifies as a work of art where the principles of management have been applied and this requires the analysis of objectives—economic, market, the use of

resources and personnel—in order to achieve three major functions: sales, productivity and development.

"This does not assume the commonly adopted aim of growth in size, but it does recognise that no business can stand still. It is only through analysis that the craft business can identify its logical direction of change in order to become more effective.

"In order to assess progress, every business business needs an accurate system of measuring performance—in each sector of activity. Not only the principle, but every individual within an organisation needs to know where he is, and where he is trying to get to. These objectives may be difficult to measure in precise terms, but their careful definition helps to ensure that the craftsman can establish a clear sense of purpose.

"Business is just as much about people as it is about products. The craft business (as any other) is a link in a chainconnecting people all along a line of supply. That chain will always break at its weakest point—a result of inadequate management."

Partnership with the Retailer David Pleming of Letterfrack suggested that many craft workers look upon the retailer as some sort of barrier between themselves and the ultimate buyer of their goods, and as a person who puts on a large mark-up and, without putting in too much effort, takes a big share of the final price which the customer pays.

"This may be true in some cases but very few indeed and it is a great pity that this feeling exists. Most retailers realise that the supplier is a most impor­ tant part of their business and therefore do their best to work in close harmony.

Our type of mark-ups are unfortunately necessary, owing to our high overheads.

These include, apart from the obvious items such as wages, rates, ESB etc., pilferage and interest charges, not to mention breakages and those items which have to be written off because our customers just did not like them or consider them good value. This question of goods which have to be written off is quite important because this is where a high risk factor is involved, particu­ larly with handcrafts which are usually unique. The retailer has to work hard to promote the craftsman's work and sell enough not only to give himself sufficient margin to pay his way, but also to have something to reinvest in repeat orders. " I t is a very competitive business and there is great competition for those £s and D.M.s but the punt should not be underestimated because the home market is becoming increasingly important. There has been a marked increase in the amount of high-quality craftwork being purchased by Irish people and they are now among the most discerning buyers."

A good retailer, Mr Pleming said, is a specialist offering a professional approach to customers. He offers premises where customers are given a choice of products which enable them to make a buying decision.

By using a retailer, the craftsman uses time to the best advantage, by using it to produce and also this spreads the products over a wider area, involves fewer trans­ actions and hoDefullv makes for aucker cash flow.

Regarding the choice of retailer, Mr Pleming said that it has been made comparatively easy with the help of Bord Failte and the Crafts Council. The Visitors Purchase Section of Bord Failte are always most helpful not only by showing samples but by suggesting possible outlets. The National Crafts Trade Fair held by the Crafts Council is also of invaluable help in giving an opportunity to show your wares and meet new customers and fellow craft­ workers.

When craftworkers find that their work is not being accepted by retailers, they should explore the reasons why. In many cases, this is not a reflection on the work being offered but more because the work is being offered to the wrong type of shop.

"The first thing to do when looking for possible outlets is to look for shops that sell the sort of goods that you are pro­ ducing or possibly for ones which you feel could benefit by selling your work.

stand and, because of the very nature of a Trade Fair, it is often impossible to deal with potential customers without interuptions. Here, good display, easily understood price lists (preferably with some illustrations, however basic) and order forms are essential. Many buyers will look at the stand having every inten­ tion of ordering later but, for one reason or another, they do not get back to the stand—often because the person they wish to speak to is engaged with some­ one else.

"Craftsmen should make it easy when the buyer gets home for him to remem­ ber the craftsman's stand, make sure he has your literature with him and if there is more than one sheet, make sure they are stapled together. Always try to get the name and address of a potential customer and if you have not heard from them within a reasonable time, a short note with a new price list will often result in an order.

"When you visit a retailer or, when he visits you, bear in mind that you are "Decide how many shops you can supply competing with many others for his and how you will deliver to them. Make custom. It costs you very little to do a sure that the shops whichyou choose are good selling job, just a little fore­ not too close together. Visitors to an area seeing the same things on offer in a number thought. Nobody would expect or want of shops tend not to buy but rather favour a craftworker to be a slick sales person but enthusiasm and pride in one's work something that is a little more exclusive. more than make up for this.

By spreading your work around, you also apread the risk."

"There is no excuse for samples that are Timing is, he pointed out, important, not not in good condition. Good samples only the time of the year but also the sell, poor samples quickly make a buyer time of day. Most shops selling craftwork lose interest. When presenting your are very seasonal: try to find out when work to retail buyers, show it to its best advantage. Present it well, price buying is most likely to be done. Remem­ it clearly and, if it is good it will sell ber that a shopkeeper has usually itself." finished Christmas shopping by October and, after that time, he is unlikely to be On the matter of delivery and documents, interested in anything for Christmas and Mr Pleming's advice was that, when will probably be more concerned with delivering or sending by rail, craftsmen doing his Christmas selling before com­ should make absolutely sure that the mitting himself too deeply for summer invoice, or at least a priced delivery stock. docket, arrives at the same time. There is nothing more frustrating for the Pick a good time to call on a retailer. retailer than, having unpacked a con­ Most shops are short staffed at lunch-time signment of bulky craftwork, to find and if you choose this time to call, you that an invoice was not included which are probably putting yourself at a dis­ means that the whole consignment has advantage. to be re-packed for storage.

"With the expanding National Crafts Trade Fair, there is an ideal opportunity to make contact with buyers. Last year we found that we were able to do a large proportion of our buying at the Fair.

Selling at a Trade Fair needs a very organised approach as many buyers are only able to allow a limited time for each

Invoices must be easy to understand.

Code numbers, which may be familiar to the producer will, in most cases, mean nothing to the person unpacking the parcel. If items are difficult to describe because of their unique nature,

Money Management it is often helpful to number the margin of the invoice and put corresponding numbers on each item in the delivery. By this method, there can be no confusion.

The question of identification of goods he saw as of prime importance because if it is not easy to identify goods when they are being unpacked, it is certain that, once they have been sold, they will be impossible to re-order.

Pricing was an important matter and, when pricing work, obviously one must be realistic and take into account all the costs involved but also bear in mind the final price which the retailer will have to charge, including VAT. Compared with a manufactured product, which might fulfil the same need, craftsmen should make sure that the price difference is not so wide as to be unrealistic. "If you intend to sell direct to the public, it is only fair that you should charge at the same price as the retailer. Most craft­ workers tend to forget that VAT at 20% has to be charged when their goods are sold by a retailer."

At least 50% of craft items are sold as presents, very often as presents for a person who has not visited Ireland. When the gift is purchased, it is seen in its Irish context, whereas the receiver will see it in a completely different light.

The person receiving the gift will be interested to know the country of origin, perhaps the name of the maker and certainly any tradition or legend which might be applicable. Also, they would be interested in the type of material used, if this is not obvious, and any special care that may be required.

In the case of jewellery, the name of any stone would be of great interest, together with details of the design on which the piece is based. No one would expect fancy packaging for craft items but all this information could easily be included on a quite inexpensive label and the cost would be more than recouped in extra sales.

"You and your retailer are in partner­ ship, by understanding one.another's problems, we can make sure that not only is Craftsmanship our Business but also our Profitable Business."

Mr Eamonn Cahill of the Irish Productivity Centre in his paper ofn Mr Eamonn Cahill of the Irish Productivity Centre, in his paper on "Money Management and Control," said that the secret of success in abusiness Mr Eamonn Cahill of the Irish Productivity Centre, in his paper on "Money Management and Control," said that the secret of success in a business of any size is control of that business's money, and pointed out that, whereas receipts can vary in regularity, all pay­ ments are regular and repeating.

Successful businesses control the payments ments and the receipts so as never to empty the reservoir of money.

Receipts from one's resources are usually those profits from the business which are reinvested. This will depend on whether one has traded profitably, which depends on whether the quantity of goods sols and their price was sufficient to yield a profit after all the expenses of the business have been reckoned up.

"When you know what the cost of material and labour is in a product, you know that the difference between that cost and the selling price you obtain is the amount that is available to cover overhead expenses and then your profit, and you must know what your overhead expenses are and should check them every three months."

He pointed out that to have any income from customers, one will have to deliver products of the quality required at a price acceptable to the customer. But even that will not be enough. "If customers are cash customers—as they will be if products are sold direct to the final customer—then there is no problem in this area. If, however, one is selling through retail outlets one has to operate the rules of good credit control." These he listed as: Agreeing credit limits in advance; Checking.customers' payments perfor­ mance; Keeping records of how old each invoice is; Dealing promptly with queries; and Being prepared to stop supplies to outlets which go over credit limits.

'Many of you have the problem of building stocks up over the quieter, off­ season, months in order to meet the demands of the traditional buying season and you know how costly this process is. It is much worse if you have not fore­ cast demands accurately and you are left with goods in stock which are not being sold while you cannot meet the demand for other goods."

People who will lend money will want to be paid back with interest, and will want a demonstration of how they will be paid back.

People from whom one gets supplies and services also lend money to the extent that they allow deferment of payment.

This is the reverse of the situation with debtors and the rules apply in reverse, so seek the longest credit terms.

"Planning how you will utilise your available cash in the next month," he continued, "keep a weather eye on the following and you should not go too far wrong:

1) Who has not paid you that you expected to pay you?

2) Whom did you not pay that you should?

3) Is the position improving or disimproving?

4) How are your stocks of finished goods and raw materials?

5) What products are selling and how profitable are they?

"Many small and medium-sized businesses fail in spite of having a good product which can be sold for a profit. The main reason for this is a shortage of cash. The level of trading must be matched with an adequate level of funds to finance such trading. The relationship—or, rather, the lack of it—between Profit and Cash is a key fundamental concept which must be clearly understood in all businesses, no matter what size, in order to survive."

The Craftsman as a Businessman

TaxandtheProfit-andLoss Account

Rudolf Heltzel posed the question: "Is there a connection between crafts and business? Can or should the craftsman be a businessman?" He concluded that the very simple answer to this is: if the craftsman is not at the same time a businessman, the craftsman will soon cease to exist. He cannot carry on with his craft if he has no workshop, no tools, no raw materials, if he has nothing to eat, nowhere to sleep and cannot clothe himself. To have all these things he needs money, money that comes from the sale of his goods.

Mr Michael Coleman of Stokes Kennedy Crowley in his paper which dealt with the effects of tax on the profit and loss account, gave a number of examples of how the various allowances can be treated in the accounts to the advantage of the proprietors orthe

His view was that the craftsman, in order to be a good craftsman, has to fulfill certain conditions. He has to know his craft. He must have confidence that he can translate his ideas and visions into the actual piece of work. He must be prepared to own up to his work. He must be dedicated, diligent and aiming at the highest possible standard. His products have to be suited to their intended functions.

If he does not manage to get a satisfactory standing of living from his work and finds it difficult to develop his craft, we shall find that, although he is a good crafts足 man, he is bad at one or several of the following things: he produces too little; he sells too cheaply; his overheads are too high; he fails to make contact with the consumer. As a result he does not earn enough money to be confident about his craft and his future.

The craftsman not only has to be good at his craft, but has to master many more skills to ensure his survival. These skills are as vital to him as the proficiency in making things.

"So what are all these business skills?" asked Rudolf Heltzel. "To me it seems that they can be grouped into two different groups. Production and marketing. Do we get the most suitable raw material, do we pay the right price for it? Are delivery times acceptable?

Do we get credit, discounts? Tools and equipment have to be suited to the job.

Do we utilize tools and machinery? Do we have too many or too few tools? Is our workshop layout well-planned? Is it easy or difficult to work in our places?

proprietors or the owners of a business.

The paper, which was essentially one to be read while he enlarged upon the points made, showed clearly the need for pro足 fessional advice on the whole subject.

An example was the interpretation of an employee for income tax purpose from which it could be argued that an out足 worker does not necessary worker does not necessarily have a job but rather works on a random basis, and as such is outside the scope of PAYE, but in terms of the PRSI code is specifically catered for and hence is difficult to exclude or ignore in that case.

162 Exhibitors for Trade Fair The Fourth National Crafts Trade Fair will be quite a bit larger than the 1979 Fair and it looks as though it is now reaching its limit in size as it will almost fill the large Industries Hall at the RDS. This can only be seen as a tribute to the crafts sector which can contribute exhibitors of an increasingly high standard each year.

The dates are 15th, 16th and 17th of January 1980 and as usual the Fair is confined to trade buyers only.

The paper also examined the legislation relative to the tax reliefs for creative talent.

"Do we check our workshop overheads?

Is the workshop advantageously located?

Do we work too many or too few hours?

Is there too small or too big a stock of finished products? Should we keep records of our production?"

On marketing he felt that still more skills and probably more difficult ones have to be mastered, such as, is pricing right?

Are deliveries reliable? What about packaging, literature, advertising? "All these questions and many more confront us almost daily. It is easy to brush them off and say 'I am a craftsman and I do not want to spend my time writing, counting, recording, adding and subtracting.' But it has to be done, it is part of our job.

And we have to apply the same diligence, almost devotion, to this rather abstract side of our work as to creating.

"Unfortunately a craftsman will probably never at the same time be a very good businessman. We have to strike some sort of compromise: we have to stay crafts足 man first and before all, but still do all the things that could be classified as business as well as possible. No matter how good a businessman you are, if you are not a good craftsman at the same time, or can find good craftsmen to work for you, very little can be achieved."

Handpainted Silk Scarves Roderic Knowles of Marshall's, Sneem, Co Kerry, is anxious to contact those interested in participating in a travelling exhibition (home and export) of handpainted silk scarves. Those interested should contact Mr Knowles direct.

Dublin Weaving Course in January1980.

Annie Dibble will begin another ten week weaving course in January 1980 and anyone interested should contact her at 27 South King Street, Dublin 2