Smaller pieces of leather offcuts are usually the cheapest to purchase due to their limited applications (too small to make sandals or bags with), but they can be turned into leather keyrings and sold for a good profit.
To start this business you will need leather offcuts which is the material you will use to make the keyrings with, a hollow punch (50mm is advised), an eyelet punch/pliers and eyelets as well as a hammer to strike the punch with to create the circle.
50mm circles of leather are then punched out from the offcuts, this will make up the keyring. This leather circle is then punched with an eyelet punch and an eyelet is applied using the eyelet pliers. Finally a split ring is added to finish off the keyring (see Guides in resource box in end of page for full tutorial).
This is a manufacturing business, so you factor in the cost of the leather offcuts, usually it is sold by the kilogram, check how many circles you get out of a kilogram on average. Then you factor in the cost of the eyelet and split ring; finally add your labour cost for the time it takes to make each one. The circles will be cheap as chips to make as smaller pieces of leather offcuts are really cheap. The challenge in this business is finding a market for your product.
Target Market / Marketing
There are two ways to market this product. One is to look at how this product can be branded and the best way is hot foil stamping. In other words you can sell this product to companies that offer hot foil stamping as a service who in turn can offer it to their clients.
On the other hand, you can market it directly to the end user either as a “blank” (unbranded) or branded (you can outsource the hot foil stamping). The most obvious markets for this product is corporate (company logos) and tourism (places).
|Material||Leather Offcuts, Eyelets|
|Equipment||Hollow Punch, Eyelet Punch/Pliers|
|Guides||How to Use a Hollow Punch
How to Make Leather Keyrings