Iris at the Basin Park

Iris and Rick Feutz, co-owners
Eureka Springs, Ark.
479-253-9494

How do this year’s sales compare to recent years’? Are you seeing a consistent decline or a slow improvement?

Sales in 2009 as compared to 2008 are down about 10% thanks to a stronger October, but lag 2007 by 13.5%. Our business is tourist-based and can be influenced by factors other than the economy; this year’s weather contributed to lower sales. The trend of the last six to eight weeks seems to be a slow improvement both in customer count and sales, which bodes well for next year.

Are you projecting more positive numbers for 2010? What are you doing now to keep customers shopping?

Ever optimistic, we are planning for a better 2010. Much of our marketing planning is coordinated with the local gallery association and with the newly formed city arts council. With those groups, we are working on expanding art related events for 2010. For us, that will mean more focused in-store events such as guest artists, and more cooperative events such as street musicians, designed to draw the “art” tourist to town.

Have you tried any new promotions in the last two quarters?

Another facet of our marketing effort this season has involved percent-off coupons given to groups attending events in town. Done in cooperation with local hotels and the chamber of commerce, these promotions have had only a small impact on sales, but have raised awareness of our gallery.

How has the economy affected your marketing budget? Are you adding, subtracting or keeping an even keel?

Unfortunately, our lower sales volume has necessitated lowering the marketing budget. We have compensated with the coupons and by increasing our telephone and e-mail invitations to special events. The latter proved to be very successful for a recent weekend visit by Georgia artist James Dean with sales increasing 15% over last year’s visit.

What changes did you make to your inventory mix during the economic downturn? What types of items are selling best right now?

Preparing for the 2008 season, we used buying parameters that had proven successful in years past. We were blindsided by the sales downturn, and ended the year with a higher-than-normal amount of high-end inventory. Adjusting for 2009, we bought lower-priced art and wrote smaller orders. Artists accommodated us by creating lower price points and lower minimums.

We also focused more on local art, which is a strong selling point for the tourist who is only making minimal purchases. Lower-cost items have carried us through the past few months, although the number of high-ticket sales has increased over last year.