Pinnacle Gallery

Joanne and Peter Hildt, co-owners
Scottsdale, Ariz.

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

We saw declining sales beginning in October 2007, and 2008 was our worst year in 12 years. Our season in the Arizona desert runs from October through May, so at this writing we are just approaching our season.  So far business is slightly improved, but we do not expect sales to recover to pre-recession levels for a while.

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

We are projecting a modest sales increase in 2010 as customers regain confidence. We have been keeping in touch with our customers through e-mail since many have multiple homes and travel frequently.

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

Pinnacle Gallery has refrained from advertising discounts because the sale image damages the gallery image and the long-term value of American craft.  Plus, we do not want our customers waiting for a discount price before they buy. We have strengthened our public relations efforts in lieu of some local magazine advertising but have retained ads in national publications.

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

We have increased consignment merchandise, but we are very diligent about paying all of our artists on time because we know they also are in a tight squeeze. We have brought in pieces at lower price points along with the traditional high-end works we continue to carry. We have increased our selection of gifts and jewelry under $200, which is showing strong sales.

Museum of Craft and Folk Art Store

Kpoene’ Kofi-Bruce, buyer and store manager
San Francisco, Calif.

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

Our sales are down from last year, but are flat compared to 2007—some months have been up and some have been down. We rely very heavily on tourist and convention traffic.

This year’s sales goals have been about achieving a realistic sales plan with more affordable merchandise, and we will continue that approach for 2010. I think something that works well for our shop is that we have a large number of items for sale for under $50; in fact, 70% of our sales are items under $50.

I am trying to build up repeat customers who think of the museum shop first when they are looking for a gift or a unique item for themselves, and who will continue to shop as they reach different stages in their own lives.

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

We offer a very high level of customer service and provide individual attention whether a customer is looking to spend $20 or $500.  Many customers remark on that, especially men looking for gifts.

This is a tough economy, and people are watching their funds but don’t want to skimp on buying special items; offering affordable items that are high-quality and combining that with a high level of customer service means that customers feel comfortable coming back.

We also opened up an online component to the store, which changes items seasonally. It is still in the trial period, but customers are responding well.

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

In the last six months, we have begun offering more in-store events. In October we began “Craft Bar with Etsy Labs,” a series of free monthly workshops/parties where visitors can take advantage of classes in knitting, embroidery and sewing, enjoy refreshments, talk with artists, even check out a local band!

Our big holiday promotion is “50/$50,” an exciting offering of 50 artists offering 50 unique product lines for the holidays, all retailing for under $50.

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

We do not have a marketing budget, but luckily we are blessed with an incredibly talented and dedicated group of staff, interns and volunteers. We have been able to take advantage of the Internet with Twitter, Facebook and blog posts. Our artists have also been great about blogging about the museum.

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

There isn’t any one product that is selling better than most; what has seemed to work well for us is my love of mining and cultivating new talent. It is rare for a week to go by without a new delivery of merchandise.

I also work closely with our artists to create products for the store—advising them on colors, sizes, designs, etc. We have to work very hard for every dollar that we make, and I want the customers to know that they are getting a really special item.

Luma

Cathy Coleman, owner
Colorado Springs, Colo.

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

I can honestly say that I haven’t reduced inventory levels in 2009.  Most customers, I believe, want to select from full displays. I will continue throughout 2010 to stock my best-selling artists’ lines more deeply.

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

If sales levels in 2010 are level with 2009, I’ll be thrilled. The economy will recover for people at different times, I believe. As a retailer in both a five-star hotel and our area’s premier art center, I typically see a customer who is traveling for business or pleasure. If their household economy isn’t recovering, I won’t see them at all.

Are you advertising consistently?

Advertising has always been—and continues to be—a spotty proposition for me. But I’m lucky—both The Broadmoor resort and the Colorado Springs Fine Arts Center act as advertising partners through their continuing efforts to promote and build patronage for themselves.

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

Next year could be a tougher year than 2009. I should know by May.

What have you noticed in terms of consumer confidence?

Reasonably priced gift items are always a draw—tough times or not. Finding those items is one of my most important jobs.

The high-ticket customer is still playing it safe in my stores. My art glass customer, for instance, has nearly disappeared.

The Laughing Dog Gallery

Susie Wilber, co-owner
Vero Beach, Fla.

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

We are still positioning ourselves as a destination shopping experience.

We are known in our area as an exclusive, customer-oriented gallery with many one-of-a-kind items. We’ve worked hard to build our brand and our reputation, so we have no interest in sacrificing either.

We are still selling big-ticket items, but not as quickly as in the past. We are not having sales or slashing prices, but we are slowly adjusting our inventory and concentrating on what is working well right now.

We’re finding that our customers still want to give gifts from The Laughing Dog and still want to buy American-made products, but their budgets are not as big as they were a few years ago. That’s understandable, and it’s our job to make sure we have well-priced items on hand that fit their needs.

I’m concentrating on keeping our customers happy, because the good days will return, and when they do, our customers will still be our customers.