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all is in the air and 17-year-old Kenny Kirkpatrick, owner of Ken's Pens in Wood River, NE, already has his mind on the upcoming winter holidays. As Christmas approaches, Kenny knows the orders for his handcrafted gift items will rapidly multiply. That's why he prepares for the gift-buying season by increasing production of his fine writing pens, wooden tree ornaments, key chains, magnifying glasses, and letter openers. "One store is already asking me about holiday orders," says Kenny, "so now is the time to get ready."




A Hobby Becomes a Home Business
The seeds for Kenny's business were planted nine years ago when he took up woodworking as part of a local 4-H program. Gradually, Kenny's wood-working hobby became a passion, and, when he was 13, it turned into a full-fledged business.
"I saw an ad in a woodworking catalog for kits to make pens," Kenny explains. The kits included the inner mechanisms necessary to construct pens. On impulse, he ordered a kit. "I just tried it for fun and then got really involved." Within two years he had netted $1,000 from pen sales. Now, four years into the business, Kenny's products are sold in stores across the state of Nebraska.

Finding Customers
"At first I tried to sell my pens at craft shows," says Kenny, "but that was the wrong market. I had to get into it deeper to find the real market." When he did, he discovered the Grow Nebraska program.
"Grow Nebraska helps promote small businesses in our state by putting on trade shows," explains Kenny. "At one of these shows, I met several wholesalers who were more my market." His new customers included Hallmark stores, as well as two retailers that sell only products from his home state — From Nebraska and Nebraska Food and Gift.
Kenny also struck a deal with an independent sales representative who wanted to "pitch" Ken's Pens to businesses throughout Nebraska and neighboring states. Although her commission was 20% on each sale, Kenny knew having a sales "rep" was a good idea because she could travel farther and make more sales calls than he could. Her assistance freed him to concentrate on manufacturing top quality products and filling orders.  Kenny still gets business from local customers by handing out brochures and business cards.

A Prize-Winning Plan
In 1998, one of Kenny's teachers encouraged him to learn more about business by enrolling in a youth entrepreneurship training program called KidzBiz (sponsored by KidsWay, Inc.) that was being offered at Central Community College in Hastings, NE. The 30 students who participated in these classes competed for prizes by writing business plans, designing posters, and presenting television commercials about their products.
Kenny's business plan won first place in the competition, and he received a cash award, as well as the opportunity to compete nationally.

 

Taking the Sales Rep Step


Large manufacturing businesses often have sales representatives who are employed directly by their companies. These salespeople usually earn a base salary as well as commissions on sales.
Smaller manufacturers like Ken's Pens usually can't afford to pay full-time salaries to salespeople, so they look for "independent reps" — self-employed salespeople who work on commission only. An independent sales rep makes money by selling a number of related products from various manufacturers to many retailers.
If you are interested in finding an independent sales rep for your product, attend trade shows that attract wholesalers as well as retailers. The following associations provide lists and match-up services:

  • United Association of Manufacturers' Representatives, P.O. Box 986, Dana Point, CA 92629;
    Phone: (949) 240-4966; Fax (949) 240-7001.

  • Bureau of Wholesale Sales Representatives, e-mail Repmatch@aol.com or call (800) 877-1808.

Exotic Wood Make Unique Gifts
Kenny uses a lathe (a machine that spins the wood rapidly against a shaping tool) to fashion the outer bodies of his pens from exotic woods. The woods — cocobolo, bocote, tulip wood, and moridillo — come from Central and South America. His supplier is a store in Lincoln, NE that specializes in hardwoods. He also makes pens from a countertop material called Corian® and a variety of plastics. The inner mechanisms are purchased from companies like Parker Pens.
After shaping the body, Kenny sands it on the lathe until it is smooth and then assembles the pen. Customers can personalize their pens with birthstone tips or metal pocket clips. He offers plain clips, as well as clips with a variety of sports, medical, or musical symbols.
The Christmas ornaments Kenny sells are made in a similar way to the pens, by turning them on the lathe. "They range from two to three inches in length, and I finish them with brass trim on the top and bottom," he explains.
Kenny estimates the raw materials for each pen costs about $5. By pricing his fine writing pens at $25 to $50, he is able to cover his advertising and shipping expenses and make a nice profit on his labor. Most of all, he's found a way to get paid for enjoying the woodworking hobby he loves.