The Escape Fine Crafts and Gifts

Len and Judy Lester, co-owners
Georgetown, Texas

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

Our sales are down 16% from 2008. The first half of 2009, we were running a 20% decline, while August to October has only averaged 10% down. This tells us that things are leveling off and improving.

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

Since 2009 took such a big hit, we are projecting to at least make or beat the numbers in 2010.

We have a strong, stable staff of six employees. They truly contribute to our success. One example of their effectiveness is quite simple. Since most items we sell are gifts, they began asking, “Do you need a card to go with your gift?” Our card sales are up 45% over last year. We believe with great handmade products and wonderful sales people to help sell them, our future is quite bright.

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

We have increased the amount of direct mailing we are doing to keep customers who are spending returning to our store. We have great response, usually at least 10% to 20% for the mailers that we do.

We also offer holiday rewards each year. We run a list of our top customers and send them a special gift to do their holiday shopping. This year’s offer of $25 off a purchase of $60 just went out to 500 customers. People literally start redeeming them the day they hit their mailboxes.

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

In 2008 we spent 6.1% of our sales on marketing. This year we have spent only 3.8% to date. We have spent the funds more wisely, and I believe have had a better return on our investment.

One smart move we made was to start a realtor program. We offer up to 50 gift cards per month to realtors to use as closing gifts. All they have to do is provide proof of a homebuyer being new to our area, and we mail a gift card to the homeowner from the agent after closing. The homeowner comes into our store to use their gift card, usually spends more than $25, and likely falls in love with our handmade gifts. The realtor looks like a hero, and we gain a new customer. It is a win-win.

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

We have focused our buying for this season and next spring on affordable, functional and, of course, handmade items.

Overall, our jewelry and accessory sales are trending the strongest, at 38% over last year. We have expanded the selection of items from our top sellers and have added several new, successful jewelry lines. Accessories and impulse items under $20 are also performing very well.