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.

Fire Opal

Sue Stein, owner
Brookline and Jamaica Plain, Mass.

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

Yes, in February 2008. I think we’re comfortable staying light and ordering more frequently—that may not ever change.

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

In terms of measureables, I don’t think it’s any more complicated than seeing our own numbers being more in line with 2006-2007 sales, if that’s possible. I think we have a long and bumpy road ahead before there is a healthy recovery.

Having said that, we also feel fortunate, being in this craft/small business market. Because of our lean size, we are able to turn on a dime and make critical adjustments. These are desperate times, but we feel stronger through the goodwill and good nature of our artists.  We are so thankful to have partners who are remarkable people.

Are you advertising consistently?

No.

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

Survival first—rebound second! We need to broaden our market, so having an online retail presence is a direction we will pursue.

What have you noticed in terms of consumer confidence?

I think customers will always be looking for sale items. A large part of our retail business is gift giving. People are buying gifts, but are forgoing purchases for themselves. We see many more cash sales. Unfortunately, shoplifting has increased dramatically.

We’re a local, family-owned, American-made gift gallery. People do want to support local business and American-made goods; but want to cut costs on other things. For us, it’s simply not having modestly priced items. People can get those things anywhere, at a fraction of the cost. Customers are looking for quality handmade goods that resonate with meaning. Price is crucial, but the ballgame is intrinsic value.