Craft Show Research, Etc. - (Safford, AZ)

Linda didn't know what I was writing about yesterday, but we were on the same wave length.

During her two hour coffee time, she was looking for craft shows in Arizona where she might sell her bracelets.  The reason we have stayed away from those shows in the past is the administrative hassle.

In each state that has a sales tax, you have to get a sales tax license (which usually comes with a fee), charge sales tax, and remit the tax with a form.  In many states there is a state sales tax, a county sales tax, and a city sales tax.  And sometimes, you need a full-blown business license.

In Arizona, you have to get what they call a privilege tax license - it's a sales tax, but apparently it is a privilege to pay it in Arizona :).  And a single state license isn't sufficient.  You have to get one for each city where you will do vending at a cost of $12 per city.

The state collects the "privilege" tax for the state, county, and most smaller cities in the "program" - program cities.  However, the larger cities like Phoenix, Tucson, Flagstaff, etc. are "non-program cities" and administer and collect their own "privilege" tax, so that requires different applications and licenses.

If you are selling low margin items, by the time you pay a vendor booth fee for a show and deal with all the various licenses and taxes, it hardly seems worth the trouble.  Plus, with each official contact with a state of which you are not a resident, the potential for legal issues over residency increases.  I'd prefer to never let another state get our social security numbers in their system.

As a Kentucky vendor, we can sell to folks in almost every other state without collecting and remitting sales tax.  The burden is on the purchaser to pay "use" tax to their residence state - of course we know most people don't know they are supposed to pay "use" tax, especially on small purchases, and they almost never do.  :)

"Use" tax is basically the same as sales tax - it's the method states use to collect sales tax when you buy stuff in other states without paying sales tax.  If you bring that stuff back into their state, you have to pay to "use" it there.  :)

As we travel and make sales in campgrounds and through word of mouth, those sales can be "done through the website" as a Kentucky vendor where we don't have to deal with sales taxes and the purchaser is technically responsible for use taxes.  All we have to worry about are sales to Kentucky residents since we are a Kentucky business.

But once we establish a physical presence in a state with a "store", using that term in the broadest sense, where the public is invited, the rules change and we have to be careful about the different rules in each state.

I know thousands of people travel to different shows and flea markets across the U.S. and deal with the hassles of taxes and licensing everywhere.  They just do what they have to do.  In fact, most reputable shows will require that you have your licenses in place before you can be a vendor.

Now, with all that said, it looks like we will go down the road of getting all the necessary licenses as we go.  There is no question that Linda can do well at shows.  Her jewelry definitely "shows" better in person, and she is a natural in sales when she loves the product.  Plus she likes the feedback and gets lots of new ideas.  As long as booth fees are reasonable, I think she can increase our income by doing some shows.

Whew.  After yesterday's entry and the sales tax research for Arizona, I needed to get outside.  It was warmer today, so I sat out in the sun for a little while.  It was nice to get back in my shorts and t-shirt.

Then I snuck up on this Black Phoebe for as good a shot as I could get.

This bird has a range limited in the U.S. to the southwest and coastal California.  We've seen them a few times in the last couple of years, but this is as close as I've gotten for a decent photo.

I decided to go play golf after getting an okay from the boss.  I struck the ball better most of the day, but had more penalties and unfortunate breaks than the last time out.  And, carrying my clubs, I wore out and took big numbers on the last three holes.  So it was another 89 - a little disappointing, but not too bad given how little I've played.

On the back nine I joined a fellow from Kansas who was playing with his daughter who lives here.  Nice folks.  Meeting people like that is one of the things I enjoy about going to the golf course by myself.

Linda was still beading when I returned.  She has a couple of samples done for the Texas A & M Aggies Moms' clubs.  If that goes well, we might be able to tap into other university Moms' clubs.

After a shower and dinner, we settled in to watch the Amazing Race.  I'd love to do that show, but Linda is concerned the stress of traveling in unknown surroundings with time pressures might just lead to reactions she doesn't want millions of people to see.  :)

It wasn't long after that, I was out like a light.  Nothing like walking eighteen holes on a sunny day to make for an excellent post-golf nap.  :)

Tomorrow we will hang around and see if our satellite equipment comes in.  If it comes in and we can get everything working, we will likely leave here on Tuesday.

Then the plan is to go to the Saguaro SKP Co-op for Thanksgiving.  It's likely we'll stay there a month since the monthly rate is $280 plus electric for members.

Until tomorrow.  :)

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Comments

[Whistler Kelly]

I'd love to see you both on my favorite show, the Amazing Race, I'd bet you would do well and besides, you'd be the first Full Time RVers (I can't remember any others and I've been watching from the start). Go for it, we'd all support you. Just remember, if you win you'd get a million and that would probably "help".

[The Bear II]

Howard & Linda,

In California, you are able to sell a few times without having to get a seller's permit. I thought it was the same in AZ and most states.

We sold fashion jewelry at Quartzite several years and discovered by the time we paid for the space rent, travel expenses, and extra inventory for a three week show, we ended up averaging about $10 per hour profit for the two of us.

Same experience at county fairs and large swap meets.

We did better at the RV shows put on by RVIA and Good Guys Car Shows.

Overall we were averaging less than $15 per hour. That's why I decided to go back to a corporate job until it's time to sell the house and go out on the road fulltime.

The old timers on the flea market, swapmeet and fair circuit all told us that the internet, 99 cent type stores, walmart and the big box stores have killed their business. The common theme was..."You should have been here in the 80's". One guy told us, back then he ran out of spaces to hide money in his RV he was making so much. Now he's lucky if he makes $300 in a weekend.

[John Huber]

There are some major swap meets in the Phoenix area, including a huge one in Mesa, and one in Gilbert. Also, many of the RV parks have monthly vendor days where you can sell crafts for a very low fee. We're going to be staying at Happy Trails in Surprise and we'll let you know when the day is there. Also, you can post on Craig's list for free since you're going to be in one spot for a month.

[Gene S.]

I think you would do well in the Amazing Race and I encourage you to apply for it. The full-time RV niche has yet to be seen on the show.

[Jimbo]

You had me until the Texas A&M thing. lol Orange and white would sell so much better, especially after Thanksgiving night. I get to watch my favorite team then sleep about 4 hours, get up and go say good-bye to all my fellow workers. I am calling it quits after 35 years 6 months at the Post Office. Already have the Day Dreamer fifth wheel and will be leaving Florida (after winter) to travel the country thanks to you and Linda. You have shown me I can do it. God Bless both of you this Thanksgiving and Hookem Horns.

[Claudia]

I recall the admonition of the tax attorney for whom I worked many years ago advising me that I had to pay a "use" tax for items I purchased in New Hampshire tax free. I told her I hadn't recently fallen off the turnip truck. With respect to your next stop in Benson, you'll probably be far enough away from the train tracks over there. The trains run on the tracks you'll cross after you leave I-10. You'll love Bisbee, so plan on lots of time to explore that old town. Take a walking stick along since it's on the sides of the hills.

[Barb Williams]

At some shows the show sponsors hold a Sales Tax # for vendors that do not have a tax # for that location. The vendors can then report their sales to the sponsors and give them the Sales Tax to submit to the state and local agencies. Good Luck

[David Burville]

Tax, tax,,tax and even more tax! What a great way to discourage micro and small business in the USA. I feel sorry for you guys.

In Australia we can pretty much sell stuff anywhere on a small scale and all we have to worry about is personal income tax from our sales if we cross our tax-free threshold. If we sell more than $50K of products in a year we also have to collect GST (consumption tax) on behalf of the federal government. Boy have we got it easy!

[Jerry and Suzy]

Howard and Linda, have you thought about the Gypsy Journal Rally in Casa Grande in February? It's getting to be a neat medium sized rally, and Nick allows only one vendor selling a product type, so all vendors have a good chance of making a buck. Plus it's a fun rally.