2020 Quarter 3

Introduction

East Fork exists to make pottery, yes, but also to offer thoughtful, engaging work set on a foundation of good wages and benefits that allow our employees—who now number 90—to build stable, optimistic lives for themselves and their families. We measure our success by the degree to which we can create a workplace that’s compassionate, complete with work that is satisfying, challenging, and ever-changing. On the floors of our factory and retail stores and in our offices, you will find people who started doing one thing, moved on to several other things over time, got promotions, learned new skills—technical, managerial, both—and stay engaged by what they do.

 

We want to tell you these stories but we want to do it fully. And that means talking about the money that’s behind, well, all of it. When we talk about hiring more employees, tell you about people living happy, fulfilling lives, people being happy at work and in our communities, not for the day or the week but for the foreseeable future because they have found avenues for support, growth and stability of all kinds, at the heart of it all is money: what we bring in from sales from our pottery and other items, what we spend on our operations, salaries, and wages, and what is passed on to nonprofits and grassroots organizations in the form of funds raised through raffles and other contests, auctions and premium pricing in which the donations are built right into goods we sell.

 

Each quarter, on this page, we’ll update you on the money that came in and went out of the business. Now, we know money talk makes lots of people feel squeamish. We get that—we’ve been conditioned in our society to keep all that hush hush, like it’s unseemly to share your economic realities or to care about someone else’s. Let’s reframe that and, as our CFO and co-founder John Vigeland put it in a talk he gave a few years ago, let’s find a deeper and more complicated understanding of the reality in which we find ourselves. Let’s delve into the details and see what story the numbers tell.

 

In that spirit, we start this recurring Journal post series with an overview of Quarter 3, 2020.

Our Expenses

"Simply put, our expenses are the costs our company incurs to generate revenue. And there are a lot! Think payroll, capital expenses (machines, building improvements, cameras), rent, materials, insurance, consultants, software, discount budget, and more."  

Manufacturing Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority of our money gets put in this bucket. Our manufacturing costs include:

 

• Wages and salaries of team members in the Production Department
• Workers Compensation Insurance
• Clay for the pots, plaster for the molds, dozens of materials
that go into making our glazes, etc

• Fees incurred from research and development
• Gas and electricity bills incurred from firing the kilns and running the machines
• Tools and equipment—you need a lot of it for manufacturing
• An endless litany of other line items

 

 

Fixed Sales Costs

We present our goods online and in two stores, one in Asheville and the other in Atlanta. Some of the expenses associated with running these outlets are static, meaning they do not fluctuate with the amount of sales we make. Our sales department expenses include:

 

• Wages and salaries of team members in the Production Department
• Workers Compensation Insurance
• Clay for the pots, plaster for the molds, dozens of materials
that go into making our glazes, etc

• Fees incurred from research and development
• Gas and electricity bills incurred from firing the kilns and running the machines
• Tools and equipment—you need a lot of it for manufacturing
• An endless litany of other line items

Variable Sales Costs

As the name implies, variable sales costs change with the amount of items we sell. The more pots we sell, the more boxes we need, for example. Our variable sales costs include:

 

• Salaries for members of our Culture & People Department and Finance Department

• Professional development ie managerial training, equity training, equity and business coaching for the executive team, nonviolent communication training

• Legal and consulting fees

• Software subscriptions ie recruiting and hiring software, data management software

• Kitchen equipment and staff meals

• Life insurance for founding team

• An endless litany of other line items

 

Administrative Costs

Oh so many unglamorous sounding, kinda “hidden” but absolutely essential costs of running a business at scale fall into this bucket. Some of it’s pretty obvious—insurance, rent, cleaning costs—and a lot of it is less so.

 

• Salaries for members of our Culture & People Department and Finance Department

• Professional development ie managerial training, equity training, equity and business coaching for the executive team, nonviolent communication training

• Legal and consulting fees

• Software subscriptions ie recruiting and hiring software, data management software

• Kitchen equipment and staff meals

• Life insurance for founding team

• An endless litany of other line items

 

Expand to learn about our expenses...

Manufacturing Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

 

Variable Selling Costs

As the name implies, variable sales costs change with the amount of items we sell. The more pots we sell, the more boxes we need, for example. Our variable sales costs include:

 

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores

 

Administrative Costs

Oh so many unglamorous sounding, kinda “hidden” but absolutely essential costs of running a business at scale fall into this bucket. Some of it’s pretty obvious—insurance, rent, cleaning costs—and a lot of it is less so.

 

      • Salaries for members of our Culture & People Department and Finance Department
      • Professional development ie managerial training, equity training, equity and business coaching for the executive team, nonviolent communication training
      • Legal and consulting fees
      • Software subscriptions ie recruiting and hiring software, data management software
      • Kitchen equipment and staff meals
      • Life insurance for founding team
      • An endless litany of other line items

 

Sales Costs

We present our goods online and in two stores, one in Asheville and the other in Atlanta. Some of the expenses associated with running these outlets are static, meaning they do not fluctuate with the amount of sales we make. Our sales department expenses include:

 

      • Wages and salaries of team members in our Sales Associates, Retail Team, Customer Care Team, and Fulfillment Team
      • Website hosting fees and software
      • Rent on the two stores

 

Marketing Costs

Historically our smallest departmental budget, which is a pretty wildly different paradigm than most competitors or colleagues in the “home” space, especially the D2Cs.

 

      • Salaries for our Marketing and Creative Team including
      • Supplies for photoshoots and content creation
      • Printed brand collateral like little recipe cards we’d stick in your order or a print catalogue
      • Affiliate discounts
      • Print, broadcast, and digital advertising

 

 

 

Marketing Costs

Historically our smallest departmental budget, which is a pretty wildly different paradigm than most competitors or colleagues in the “home” space, especially the D2Cs.

 

• Salaries for our Marketing and Creative Team
• Supplies for photoshoots and content creation

• Printed brand collateral like little recipe cards we’d stick   in your order or a print catalogue

• Affiliate discounts

• Print, broadcast, and digital advertising

2020 Third Quarter Overview

By the third quarter of 2020, we had found a tentative new equilibrium. Our COVID protocols had become more routine, and save for our Asheville store, all of our locations were open and running. Internally we were getting more used to operating our ecom channel in a presale format, and it seemed our customers were also adapting to the big change—even expressing their preference for it sometimes. We were discovering how lucky we were—that so many of our customers were still interested and able to buy our pots, that we were taking care of each other and staying healthy, and that we weren’t operating in an industry that was harder hit by the circumstances of the moment.

 

We were making things work from a financial perspective: for each month coming out of our 8 week shutdown in the spring, we have been able to make and sell enough pottery to cover all our core expenses and even keep us slightly cash flow positive in some cases. For context: since we took on the big growth project of moving into our new factory space, we have been operating at a loss, knowing we’d make it up down the road. In fact, we had targeted 2020 as our breakeven year. At first we thought COVID might have shot that all to hell, but here we were—everything kind of clicking in the eye of the storm.

 

So what are the numbers telling us? I see it as a win—that we mostly hit all our marks, met or exceeded goals, effectively broke even for the period and set ourselves up to recoup some earlier losses with a strong 4th quarter. In terms of the breakdown you see here, there aren’t really any huge surprises or big changes in how we spent money in the 3rd quarter.

As always, our biggest cost center was the making of pottery (36% of all the dollars we brought in), followed by our other variable selling costs (19% of revenue). Our Sales and Admin departments spent about the same amount of money (15% and 14% respectively) with our small but mighty marketing department in the rear at 8% of revenues. We spent 3% of our income servicing our debt, and reinvested $121k or 6% of income into community non-profits. All of this is mostly in line with historical trends in terms of the relative proportion of those expenses (save for the donation budget which was larger as a % of revenue this quarter than in the past). The positive change however is that all these expenses got a little bit smaller as a % of revenue—we made and sold more and spent less doing it this quarter than last.

 

If you’re like me and you were adding up those %’s as we went along—you’d get to 101%. So we spent 1% more than we sold this quarter—thus the $18k loss. This didn't feel like much of a bummer considering that this was inline with expectations, and if you look at the quarter on a cash basis as opposed to accrual (perhaps a topic for another time) we were actually cash positive each month in Q3, even though we had a slight net loss. Sounds contradictory? It sorta is—accounting is large and contains multitudes.

 

You may be wondering what happened to the 6,179 pots we didn’t sell by the end of September. Many were Mugs we set aside to be sold beginning on November 9th and some were new Amaro and Panna Cotta pots sent to the Atlanta store to serve as displays to help customers decide what to buy in the monthly pre-orders we offered for year-round glazes starting in September. If you are wondering about the Asheville store, it did not reopen until October and that, my friends, is Q4.

Money Reinvested

In Q3, $121,895 was donated to a total of four organizations in Asheville and Atlanta. In July, we donated $70,705 to the Campaign for Southern Equality to support their tireless, full-spectrum fight to support lived and legal justice for LGBTQ+ Southerners. $58,115 came from an upcharge on the retail costs of pots glazed in Lapis, and $12,590 came from an auction of items made by artists across the country.

 

2020 Quarter 3

Introduction

Introduction

East Fork exists to make pottery, yes, but also to offer thoughtful, engaging work set on a foundation of good wages and benefits that allow our employees—who now number 90—to build stable, optimistic lives for themselves and their families. We measure our success by the degree to which we can create a workplace that’s compassionate, complete with work that is satisfying, challenging, and ever-changing. On the floors of our factory and retail stores and in our offices, you will find people who started doing one thing, moved on to several other things over time, got promotions, learned new skills—technical, managerial, both—and stay engaged by what they do.

 

We want to tell you these stories but we want to do it fully. And that means talking about the money that’s behind, well, all of it. When we talk about hiring more employees, tell you about people living happy, fulfilling lives, people being happy at work and in our communities, not for the day or the week but for the foreseeable future because they have found avenues for support, growth and stability of all kinds, at the heart of it all is money: what we bring in from sales from our pottery and other items, what we spend on our operations, salaries, and wages, and what is passed on to nonprofits and grassroots organizations in the form of funds raised through raffles and other contests, auctions and premium pricing in which the donations are built right into goods we sell.

 

Each quarter, on this page, we’ll update you on the money that came in and went out of the business. Now, we know money talk makes lots of people feel squeamish. We get that—we’ve been conditioned in our society to keep all that hush hush, like it’s unseemly to share your economic realities or to care about someone else’s. Let’s reframe that and, as our CFO and co-founder John Vigeland put it in a talk he gave a few years ago, let’s find a deeper and more complicated understanding of the reality in which we find ourselves. Let’s delve into the details and see what story the numbers tell.

 

In that spirit, we start this recurring Journal post series with an overview of Quarter 3, 2020.

2020 Quarter 3

Our Expenses

Our Expenses

"Simply put, our expenses are the costs our company incurs to generate revenue. And there are a lot! Think payroll, capital expenses (machines, building improvements, cameras), rent, materials, insurance, consultants, software, discount budget,

and more."  

"Simply put, our expenses are the costs our company incurs to generate revenue. And there are a lot! Think payroll, capital expenses (machines, building improvements, cameras), rent, materials, insurance, consultants, software, discount budget,

and more."  

Expand to learn about our expenses...

Manufacturing Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

 

Fixed Sales Costs

We present our goods online and in two stores, one in Asheville and the other in Atlanta. Some of the expenses associated with running these outlets are static, meaning they do not fluctuate with the amount of sales we make. Our sales department expenses include:

      • Wages and salaries of team members in our Sales Associates, Retail Team, Customer Care Team, and Fulfillment Team
      • Website hosting fees and software
      • Rent on the two stores

 

Variable Sales Costs

As the name implies, variable sales costs change with the amount of items we sell. The more pots we sell, the more boxes we need, for example. Our variable sales costs include:

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores

 

Administrative Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

 

Marketing Costs

Historically our smallest departmental budget, which is a pretty wildly different paradigm than most competitors or colleagues in the “home” space, especially the D2Cs.

 

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores

Expand to learn about our expenses...

Manufacturing Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

 

Fixed Sales Costs

We present our goods online and in two stores, one in Asheville and the other in Atlanta. Some of the expenses associated with running these outlets are static, meaning they do not fluctuate with the amount of sales we make. Our sales department expenses include:

      • Wages and salaries of team members in our Sales Associates, Retail Team, Customer Care Team, and Fulfillment Team
      • Website hosting fees and software
      • Rent on the two stores

 

Variable Sales Costs

As the name implies, variable sales costs change with the amount of items we sell. The more pots we sell, the more boxes we need, for example. Our variable sales costs include:

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores

 

Administrative Costs

Oh so many unglamorous sounding, kinda “hidden” but absolutely essential costs of running a business at scale fall into this bucket. Some of it’s pretty obvious—insurance, rent, cleaning costs—and a lot of it is less so.

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

 

Marketing Costs

Historically our smallest departmental budget, which is a pretty wildly different paradigm than most competitors or colleagues in the “home” space, especially the D2Cs.

 

      • Salaries for our Marketing and Creative Team including
      • Supplies for photoshoots and content creation
      • Printed brand collateral like little recipe cards we’d stick in your order or a print catalogue
      • Affiliate discounts
      • Print, broadcast, and digital advertising

"Simply put, our expenses are the costs our company incurs to generate revenue. And there are a lot! Think payroll, capital expenses (machines, building improvements, cameras), rent, materials, insurance, consultants, software, discount budget, and more."  

 

— John Vigeland, CFO

Expand to learn about our expenses...

Manufacturing Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

Variable Selling Costs

As the name implies, variable sales costs change with the amount of items we sell. The more pots we sell, the more boxes we need, for example. Our variable sales costs include:

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores.

Administrative Costs

Oh so many unglamorous sounding, kinda “hidden” but absolutely essential costs of running a business at scale fall into this bucket. Some of it’s pretty obvious—insurance, rent, cleaning costs—and a lot of it is less so.

 

      • Salaries for members of our Culture & People Department and Finance Department
      • Professional development ie managerial training, equity training, equity and business coaching for the executive team, nonviolent communication training
      • Legal and consulting fees
      • Software subscriptions ie recruiting and hiring software, data management software
      • Kitchen equipment and staff meals
      • Life insurance for founding team
      • An endless litany of other line items

Sales Costs

We present our goods online and in two stores, one in Asheville and the other in Atlanta. Some of the expenses associated with running these outlets are static, meaning they do not fluctuate with the amount of sales we make. Our sales department expenses include:

      • Wages and salaries of team members in our Sales Associates, Retail Team, Customer Care Team, and Fulfillment Team
      • Website hosting fees and software
      • Rent on the two stores

 

Marketing Costs

Historically our smallest departmental budget, which is a pretty wildly different paradigm than most competitors or colleagues in the “home” space, especially the D2Cs.

 

      • Salaries for our Marketing and Creative Team including
      • Supplies for photoshoots and content creation
      • Printed brand collateral like little recipe cards we’d stick in your order or a print catalogue
      • Affiliate discounts
      • Print, broadcast, and digital advertising

2020 Quarter 3

2020 Third Quarter Overview

2020 Third Quarter Overview

By the third quarter of 2020, we had found a tentative new equilibrium. Our COVID protocols had become more routine, and save for our Asheville store, all of our locations were open and running. Internally we were getting more used to operating our ecom channel in a presale format, and it seemed our customers were also adapting to the big change—even expressing their preference for it sometimes. We were discovering how lucky we were—that so many of our customers were still interested and able to buy our pots, that we were taking care of each other and staying healthy, and that we weren’t operating in an industry that was harder hit by the circumstances of the moment.

 

We were making things work from a financial perspective: for each month coming out of our 8 week shutdown in the spring, we have been able to make and sell enough pottery to cover all our core expenses and even keep us slightly cash flow positive in some cases. For context: since we took on the big growth project of moving into our new factory space, we have been operating at a loss, knowing we’d make it up down the road. In fact, we had targeted 2020 as our breakeven year. At first we thought COVID might have shot that all to hell, but here we were—everything kind of clicking in the eye of the storm.

So what are the numbers telling us? I see it as a win--that we mostly hit all our marks, met or exceeded goals, effectively broke even for the period and set ourselves up to recoup some earlier losses with a strong 4th quarter. In terms of the breakdown you see here, there aren’t really any huge surprises or big changes in how we spent money in the 3rd quarter.


As always, our biggest cost center was the making of pottery (36% of all the dollars we brought in), followed by our other variable selling costs (19% of revenue). Our Sales and Admin departments spent about the same amount of money (15% and 14% respectively) with our small but mighty marketing department in the rear at 8% of revenues. We spent 3% of our income servicing our debt, and reinvested $121k or 6% of income into community non-profits.

All of this is mostly in line with historical trends in terms of the relative proportion of those expenses (save for the donation budget which was larger as a % of revenue this quarter than in the past). The positive change however is that all these expenses got a little bit smaller as a % of revenue--we made and sold more and spent less doing it this quarter than last.

 

If you’re like me and you were adding up those %’s as we went along—you’d get to 101%. So we spent 1% more than we sold this quarter—thus the $18k loss. This didn't feel like much of a bummer considering that this was inline with expectations, and if you look at the quarter on a cash basis as opposed to accrual (perhaps a topic for another time) we were actually cash positive each month in Q3, even though we had a slight net loss. Sounds contradictory? It sorta is—accounting is large and contains multitudes.

 

You may be wondering what happened to the 6,179 pots we didn’t sell by the end of September. Many were Mugs we set aside to be sold beginning on November 9th and some were new Amaro and Panna Cotta pots sent to the Atlanta store to serve as displays to help customers decide what to buy in the monthly pre-orders we offered for year-round glazes starting in September. If you are wondering about the Asheville store, it did not reopen until October and that, my friends, is Q3.

2020 Quarter 3

Expand to learn about our expenses...

Manufacturing Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

 

Fixed Sales Costs

We present our goods online and in two stores, one in Asheville and the other in Atlanta. Some of the expenses associated with running these outlets are static, meaning they do not fluctuate with the amount of sales we make. Our sales department expenses include:

      • Wages and salaries of team members in our Sales Associates, Retail Team, Customer Care Team, and Fulfillment Team
      • Website hosting fees and software
      • Rent on the two stores

 

Variable Sales Costs

As the name implies, variable sales costs change with the amount of items we sell. The more pots we sell, the more boxes we need, for example. Our variable sales costs include:

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores

 

Administrative Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

 

Marketing Costs

Historically our smallest departmental budget, which is a pretty wildly different paradigm than most competitors or colleagues in the “home” space, especially the D2Cs.

 

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores

Money Reinvested

In Q3, $121,895 was donated to a total of four organizations in Asheville and Atlanta. In July, we donated $70,705 to the Campaign for Southern Equality to support their tireless, full-spectrum fight to support lived and legal justice for LGBTQ+ Southerners. $58,115 came from an upcharge on the retail costs of pots glazed in Lapis, and $12,590 came from an auction of items made by artists across the country.

Expand to learn about our expenses...

Manufacturing Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

Fixed Sales Costs

We present our goods online and in two stores, one in Asheville and the other in Atlanta. Some of the expenses associated with running these outlets are static, meaning they do not fluctuate with the amount of sales we make. Our sales department expenses include:

      • Wages and salaries of team members in our Sales Associates, Retail Team, Customer Care Team, and Fulfillment Team
      • Website hosting fees and software
      • Rent on the two stores

 

Variable Sales Costs

As the name implies, variable sales costs change with the amount of items we sell. The more pots we sell, the more boxes we need, for example. Our variable sales costs include:

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores.

Administrative Costs

Our manufacturing costs are the costs incurred as a direct result of making our pots—getting them from drawings on a sketchpad to fully-formed, sanded, and quality controlled vessels ready to be sent off to our fulfillment team to ship out to you. Quarter to quarter, the majority   of our money gets put in this bucket. Our manufacturing costs include:

 

      • Wages and salaries of team members in the Production Department
      • Workers Compensation Insurance
      • Clay for the pots, plaster for the molds, dozens of materials that go into making our glazes, etc
      • Fees incurred from research and development
      • Gas and electricity bills incurred from firing the kilns and running the machines
      • Tools and equipment—you need a lot of it for manufacturing
      • An endless litany of other line items

Marketing Costs

Historically our smallest departmental budget, which is a pretty wildly different paradigm than most competitors or colleagues in the “home” space, especially the D2Cs.

 

      • Credit card processing fees (wah!)
      • Supplies for the fulfillment team like packing materials
      • Shipping costs (pots are heavy and expensive to ship and we usually pay more for shipping than we charge our customers)
      • Wholesale goods that we purchase from other manufacturers and sell on our website and in our stores

2020 Quarter 3

Money Reinvested

Money Reinvested

In Q3, $121,895 was donated to a total of four organizations in Asheville and Atlanta. In July, we donated $70,705 to the Campaign for Southern Equality to support their tireless, full-spectrum fight to support lived and legal justice for LGBTQ+ Southerners. $58,115 came from an upcharge on the retail costs of pots glazed in Lapis, and $12,590 came from an auction of items made by artists across the country.