• Allanstand Craft Shop
• Alternatives Museum Shop, The Delaware Center for the Contemporary Arts
• Artisans Gallery
• Avalon Gallery
• Circle Arts
• Craftsman House
• Crescent Moon at The Cotton Exchange
• Don Drumm Studios and Gallery
• Don Muller Gallery
• Down Creek Gallery
• The Escape Fine Crafts and Gifts
• Fire Opal
• From Our Hands
• Handworks Gallery of American Crafts
• Hanson Galleries
• Hillyer House
• Iris at the Basin Park
• Langman Gallery
• The Laughing Dog Gallery
• Luma
• Madison Museum of Contemporary Art Museum Store
• Mary Lou Zeek Gallery
• Max’s
• The Muse
• Museum of Craft and Folk Art Store
• Petroff Gallery
• Pinnacle Gallery
• Poppy
• Sedoni Gallery
• Spectrum Art & Jewelry
• Timothy’s Gallery
• Village Artisans Gallery

Village Artisans Gallery

P.J. Heyman, owner
Boiling Springs, Pa.

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

I don’t carry high inventory levels because of our very limited storage space. I’m more comfortable ordering inventory for just-in-time delivery, but am increasing orders specifically for the holiday season.

I’m not sure that increasing the inventory levels is as important as bringing in new work to keep our customers interested.

What indicators do you need to see before you’ve decided that the economy is indeed improving?

I actually think the economy, at least in this area, is improving. Customers are talking less about the economy and are not as reluctant to spend on a whim.

Are you advertising consistently?

Yes, in various magazines. Two are sent to readers who appreciate fine craft and art. We also advertise in a brochure because it’s part of a statewide program, as well as the local newspaper to keep our name in front of our local customers.

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

I am not doing anything different from what I’ve consistently done which is:

• Continually work on promoting the gallery by creating events such as our yearly series of about 20 “Artists in Action” demonstrations. This year we produced a tri-fold brochure for the series that will be sent out at regular intervals to customers of the demonstrating artists and distributed to the local visitors bureau and B&Bs.
• Send out e-newsletters once or twice a month to about 1,000 of our customers to inform them of new artists, new work and the “Artist in Action” demonstrations.
• Partner with local organizations that give us the opportunity to have a presence on their websites and advertise in their brochures.
• Network with local B&Bs by providing coupons to their guests.

What have you noticed in terms of consumer confidence?

I get the feeling from my customers that they are ready to spend, but will be more discriminating in what they buy. They are looking at spending more on quality gifts that have meaning.

Timothy’s Gallery

Carolyn Luce, owner
Winter Park, Fla.

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

As is true of other parts of our country, Florida has been very deeply hurt this past year by the economic collapse. Last fall, we began to partner with our artists, our landlord, our advertisers and our customers to find the most effective ways to get through these times.

January brought the first gallery-wide sale Timothy’s has ever had in order to recoup monies to go forward, and a timely rent cut from our landlord for 2009 has been a true gift.

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

This year has been even more challenging than 2008. But, we knew it would be and planned accordingly. We focused on bringing in lower price points, spreading our budget among as many of our artists as possible and consigning with higher-end artists. This has been win-win all around, especially since Timothy’s continues our commitment to represent ONLY American craft artists—our margins don’t allow for much elbowroom.

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

More than ever, Timothy’s has EVERY artist’s face and short bio next to their work because our customers respond to their stories and understand that these artists are their neighbors. So when you look into a case in Timothy’s, you see a sea of smiling American craft artists!

Our advertisers have been calling us and working very hard to give us options to continue working with them. After 20 years, we are finding that the business base we’ve built with others will get us ALL through the hard times by spending less, but more focused, with those who will collaborate. We have been doing less direct mailings and more e-mail blasts offering incentives to customers.

We expect 2010 to be increasingly less worrisome, but our thoughtful, collaborative business efforts will remain the same; it’s what has saved us thus far in very difficult times!

Spectrum Art & Jewelry

Star Sosa, owner
Wilmington, N.C.

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

We started reducing our inventory levels in October 2008. It was like someone slammed the door shut on traffic; the gallery was empty. My inventory levels were reduced naturally, because I didn’t order any last-minute merchandise in the fourth quarter. I felt that if I could hold on until June, we could survive the crisis. That proved to be true.

I also made some fundamental shifts in inventory price points. I worked hard to develop low- and mid-range price points while still having unique handmade jewelry, glass and gifts. It became very important to purchase items that would allow for strong margins.

What indicators do you need to see before you’ve decided that the economy is indeed improving?

The strongest and most consistent part of my business is custom jewelry design. Oddly enough, people seem happy to recycle, restyle or redesign their jewelry, spending significant amounts of money to do so.

Are you advertising consistently?

I did cut back my advertising some, but I stuck with the tried-and-true methods. My biggest and most successful marketing efforts include my e-newsletter, website, blogs and a very active approach to social media and gallery events.

The greatest thing about the Internet is that once you learn how to do these things, the primary investment is time and creativity. The cost remains very low, and they all interconnect, feed off and support each other, creating links that improve exposure on the web.

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

I’ve been keeping my overhead very low, running with a minimum of staff, and cutting costs whenever possible. This is just good business, and these are habits it would be wise to continue.

I’m past believing that there will be a dramatic rebound. I think this experience has permanently changed the way many of us approach consumption and debt. We need to prepare for the new “normal.”

What have you noticed in terms of consumer confidence?

I can’t necessarily say that I’ve seen a big uptick in consumer confidence.

I still have regulars who indulge in impulse buys, some of them large-ticket items. Those are the people I really go out of my way to take care of, because they are the ones who sustain me through thick and thin. It is crucial to identify your top 100 customers and pamper them like crazy. They are better advocates for you and your business than anything you could spend on advertising.

I have been very proactive about putting any sleepy or outdated inventory in the sale case and freeing up space and cash to invest in fresh new inventory.

You have to know which items go on your “never out” list, and stay on top of your reorders.