Artisans Gallery

Linnaea Holgers, owner
Santa Cruz, Calif.

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

We’ve only had a few months that have drastically been down from last year. Most months have been only a little below last year, and April we were way up! I’m quite hopeful for Christmas this year and that next year will be stronger. We’ve been building our business up slow and steady.

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

I expect 2010 to be a much better year. I think that the downturn in the economy caused me to make some serious evaluations about the business that will pay off in the long run even if sales aren’t as high as they previously have been. Examples are reworking the staff schedule, tightening our inventory and cutting expenses.

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

We have tried a few things since I took over ownership in February. I send out an e-mail at the beginning of the month to our mailing list. Part of it showcases the “Medium of the Month,” where we highlight a couple of artists. We offer 10% off that medium all month, just mention the e-mail! It’s a great way to introduce new lines.

In October, we had a second-ever storewide sale. Oct. 17 marked the 20th anniversary of the earthquake that destroyed much of our downtown. So our sale was to thank customers for 20 years of support with 20% off on Friday, Saturday and Sunday. The sale was really successful in getting cash flow to help pay for Christmas. I plan to have a sale next October.

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

I have not subtracted; in fact I’ve added. I added another ad per month to a different weekly newspaper. I’ve increased the amount of donations I’ve given. I think keeping our name out there has been beneficial because the town knows I recently purchased the business, and wants to be supportive.

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

Lower-end items in jewelry for sure. Even in down times people still have birthdays, so reasonable jewelry has been very successful. Scrabble tile necklaces that retail at $19 have been flying out the door. Keeping fun, unique cards in stock makes it so anyone can afford to buy something! Making people feel like this is a store for everyone no matter what your budget is will make them remember the store when they have more money to spend.