Handworks Gallery of American Crafts

Glenn Johnson, owner
Acton, Mass.

Have you reduced your inventory levels? What needs to happen before you will feel comfortable increasing your inventory levels?

When the economy collapsed last October, most of my Christmas orders were either on the way or almost finished being made. Beginning in October, sales were down 20% pretty consistently every month. Through December we sold almost the same number of items, but my customers chose items that were less expensive. I came through Christmas with too much inventory and no money. And I worked to reduce my inventory.

In May and June, we were down much less. My customers are still wary, but their retirement accounts aren’t as bad as they were. Christmas is coming, and I’m raising my inventory levels, but not as much as in the past, and much more scientifically.

Are you advertising consistently?

I have tried to rethink how I’m doing everything, including advertising. I used to mail 4,000 postcards to my customer list four or five times a year. I can’t afford that anymore. Instead I am sending a monthly e-newsletter. It is proving effective. I drop the newsletter into the homepage of my website, so it’s also updated monthly.

We are sponsoring local open studios and running emerging artist promotions. I’m dropping the most expensive newspaper, which didn’t seem to work last year, and instead I am advertising in more local papers and underwriting our local NPR radio station.

What are a few other ways you’re preparing for the rebound?

I am making better use of my best tool, my POS software. I printed off my list of craftspeople in order of their sales per year. There were a lot of surprises. Some of my favorite things aren’t always the best sellers. I choose work based on beauty and function, but for reorders I also consult the list.

What have you noticed in terms of consumer confidence?

Customers are still spending less per item. There is not as much impulse buying on large items. People are shopping more thoughtfully. They are still wary, but the tension seems to be lessening.