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!

Mary Lou Zeek Gallery

Mary Lou Zeek, owner
Salem, Ore.

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

Yes I have. I put thought into it last October because at that time sales had started to dwindle.

Of course sales need to increase a bit. I am seeing people moving towards “handmade,” which helps the gallery business … especially if one can inform the client of just who these artists are.

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

I look at the job market and employment as an indicator. The housing market also needs to build again. If people are losing their houses, we can’t expect them to purchase art.

Are you advertising consistently?

I haven’t given up on my regular advertising. I advertise in national publications, travel guides, and send monthly postcards and e-mails.

I now have relationships with these publications, and I do feel that they are looking out for my business. I also receive the most calls when an ad runs. I keep my ads consistent with my branding so they are always recognizable.

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

I look for work that fits the “sustainable and recycled” verbiage that we’re hearing these days.

I also let my artists know that I haven’t forgotten about them and will be placing orders soon. I keep in touch because I want to nurture our relationship.

What have you noticed in terms of consumer confidence?

I think people are just beginning to come out of hiding. They seem more confident because they have assessed their buying power and know that they can spend by keeping a budget. The public has looked at their finances and are more aware of what they want, and spend time thinking about their purchases. They don’t want “stuff” (mass-machine-made items) but are looking for artwork that has a connection to the person who made the object. That’s where I come in … I can talk about my artists and share their background.

I sell paintings that are higher-ticket items, and I am finding they are beginning to sell again. Overall, I think items that are below $100 can sell easier than the high-ticket items.

Handworks Gallery of American Crafts

Glenn Johnson, owner
Acton, Mass.

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

When the economy collapsed last October, most of my Christmas orders were either on the way or almost finished being made. Beginning in October, sales were down 20% pretty consistently every month. Through December we sold almost the same number of items, but my customers chose items that were less expensive. I came through Christmas with too much inventory and no money. And I worked to reduce my inventory.

In May and June, we were down much less. My customers are still wary, but their retirement accounts aren’t as bad as they were. Christmas is coming, and I’m raising my inventory levels, but not as much as in the past, and much more scientifically.

Are you advertising consistently?

I have tried to rethink how I’m doing everything, including advertising. I used to mail 4,000 postcards to my customer list four or five times a year. I can’t afford that anymore. Instead I am sending a monthly e-newsletter. It is proving effective. I drop the newsletter into the homepage of my website, so it’s also updated monthly.

We are sponsoring local open studios and running emerging artist promotions. I’m dropping the most expensive newspaper, which didn’t seem to work last year, and instead I am advertising in more local papers and underwriting our local NPR radio station.

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

I am making better use of my best tool, my POS software. I printed off my list of craftspeople in order of their sales per year. There were a lot of surprises. Some of my favorite things aren’t always the best sellers. I choose work based on beauty and function, but for reorders I also consult the list.

What have you noticed in terms of consumer confidence?

Customers are still spending less per item. There is not as much impulse buying on large items. People are shopping more thoughtfully. They are still wary, but the tension seems to be lessening.

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.