Carol Cypher, Marketing Magic, and a Middle Aged Slumber Party

Promotional events are the lifeblood of a spectacular retail experience.  It is all about SHOPPERTAINMENT!  You know you should do more Store Events and I know that I should do more Studio Events.  Life often gets in the way of our intentions.  After all, there are only so many hours in a day and the "Hostess with the Mostest" Ball is often the first one to get dropped in our struggle to get the bills paid.  However,  in the interest of practicing what I preach, I am going to share with you the evolution of  a Cooperative Marketing Event that I am orchestrating in my little corner of the world.  It is a first for me and I am sure that there will be some lumps and bumps along the road, but I figure that it will be a great learning and networking opportunity.

First the idea....

I was thumbing through my copy of Hand Felted Jewelry and Beads this past July and found myself wishing that I could take a workshop with Carol Cypher.  I have been a fan for years as her work was the first that I had seen that combined felting with beads.  I checked around but she wasn't teaching anywhere close by...Sigh.  Maybe another time.

WAIT!  I have a studio with plenty of space.  I really, really want to take a workshop with Carol Cypher.  Tampa has a large crafting community and a number of fiber and bead hobbiests.  Maybe Carol could teach from MY studio.   Hmmmm.....

  Most National Instructors charge between $375 and $575 per diem, plus all expenses relative to travel and accommodations.  A quick call to Carol confirmed that her fee structure fell well within these parameters. She had one open week-end before the end of the year and I snagged it!   

[Yup---that's me.  Leap first, consider the consequences later.] 

YAY!  CAROL CYPHER IS COMING TO URBAN STITCH STUDIO NOVEMBER 11-13!

[Gulp.  Carol Cypher is coming to Urban Stitch Studio November 11-13!]

The biggest challenge:  My customer email list is composed of Brick and Mortar Shopkeepers throughout the country, not crafters in  the Tampa Bay area.  Clearly, my existing email list is NOT going to fill Carol's classes.  What to do?  What to do?

[What if no one signs up?  What if I am the only one in the class?  What if there is a hurricane?  First inklings of self doubt start to plague me. ]

BRIGHT IDEA!  I decided to call a couple of the local craft store owners to see if they wanted to split the cost/share the profits of the workshops.  The gals I talked to love the idea of a National Instructor, but no one was keen on the idea of sharing expenses.  EPIC FAIL.  [Gulp].

NO!  Failure is not an option.  Carol is amazing.  There is a dearth of  amazing instructors in Tampa Bay.  I just need to figure out how to make this work. 

Ruminate.  Ruminate.  Ruminate some more.

BRIGHT IDEA!  Clearly, I need to keep costs to a minimum.  After some mental hemming and hawing,  I got up the nerve to call Carol  and asked if she would be willing to stay in my home rather than a hotel.  We are almost pals, after all.  I offered a comfortable bed, wonderful home cooked meals and even promised that my dogs were well behaved.  [well...they are.  Kinda sorta.]  She graciously agreed.  [Whew.  OK, this might just work out]

Although I was able to save on hotel/car rental expenses, I still need to cover Carol's teaching fees as well as airfare, so it is critical to get the word out to area crafters.  What is the best way to let them know that a Beading Rock Star will be in their midst?   [Hmmmmm....While the store owners didn't want to take on financial risk, I wondered if they might be willing to jump on board in a different capacity......]
  

Ruminate.  Ruminate.  Ruminate some more.

BRIGHT IDEA.  I sent an email to several local craft stores, choosing those who had some miles between them in an effort to avoid sending emails to direct "competitors" to the extent possible.  My email was entitled "Cross Promotion Opportunity" and detailed my decision to host Carol Cypher at Urban Stitch Studio for a series of felting and beading workshops that might be of interest to their customer base.   

I included a coupon code offering their customers 5% off any Carol Cypher workshop fee, as well as a 5% referral fee for each shopkeeper.  Participating stores would agree to post a coupon on my site offering 10% off supplies purchased for the workshops.  Finally, I offered each retail store owner who participated one free workshop with Carol.

I wanted to make participation easy, so I included a PDF flyer touting the event for electronic dissemination by the store owner.  I figure that it is a win-win.  I am not selling supplies that compete with any of the businesses that I approached, but we all have a similar customer base.  The stores get to avoid the financial risk, have something fun to talk about with their customers, and get the AWESOME OPPORTUNITY to take a free workshop with Carol.  I get to build my customer email list while fulfilling my need to work with Carol Cypher.  Happy Sigh.

HOW COOL IS THAT?

Reaction has been very positive and the classes are starting to fill up.  We still have some availability, so I figure that I will send out a press release as well as email all of the local bead and fiber guilds in the next week or so. I am totally stoked about this event, but am taking it one step further.    I invited Felty Diva Marlene Gruetter of Marlene's Felting Madness to join us for the week-end, and to my delight, she will make the trek from Ohio.   Carol and Marlene know and like one another, so I figure that it might as well be a slumber party!   My husband agreed to head out of town to visit his mom for the week-end, which means we have the house to ourselves. In fact, I still have two extra bedrooms so if any Crafty Retailer needs a creative week-end getaway, let me know!  The energy is sure to be INCREDIBLE and I am counting the days to the big event. I know it will be fun...but with a little luck and elbow grease, maybe it will be profitable as well!

Jumpstart your Email Marketing Campaign to Improve your Bottom Line!

I love getting emails.  Seriously.  I know that folks bitch and moan about getting "spammed" but the reality is that true spam is easy to deal with---a quick press of a button sends that bad boy to my junk folder forevermore.  It is a small price to pay for all of the good stuff that finds its way to my In Box:  coupons, free tutorials, recipes, a window into my competitors' world, etc.  Email  Marketing is AWESOME!  It is cheap, easy, fast, and effective...provided that you do it right.  Fortunately, there is a formula for email success.

1.  Build an Email Contact List.   Forget about the benign little guest register book on the counter---it is too passive and quickly becomes invisible. Train your staff to effectively gather this information from your customers on a consistent basis.   Many shopkeepers are surprisingly reticent to ask for this information.  Don't be!  Most folks will be happy to give up the address provided you offer value for the sign up by way of great newsletter content, sales information, free tutorials, etc. One surefire way to update your email list is to offer to email  a coupon for a free gift later that day.

This works on a number of levels:  the retailer has an opportunity to verify the validity of the email  before giving up any goodies and the customer makes a return trip to the store to redeem the gift---an additional sales opportunity!

Remember to use your website to capture email addresses.  An attractive sign up box for visitors to register for  newsletters, product updates, etc. is a painless way to grow your contact list.  The coupon give away works just as well online.

2.  Divide and Conquer.  It is a good idea to divide your list into groups, so that the emails can be narrowly targeted.   For example, I have a Master Contact List, which includes my entire customer list.  However, I have subdivided the list into several smaller groups:  Bead Store Owners, Yarn Store Owners, Needlepoint Store, Spinners, Felters, Jewelry Designers.   A carefully targeted email will increase the odds that the recipient will be happy to receive it because it is relevant to her.


3.  Make it a Habit.  Your customers will get used to seeing your missives and-- if you have quality contact--- they will build you into their daily ritual.  Despite what many retailers think, once a week is not too often.  A recent study reported that the unsubscribe rate actually increases with the infrequency of the email! If folks aren't used to seeing you, they will delete you!   The Crafty Retailer should send out a weekly email filled with pictures and links.  The more pictures, the more interesting.  Crafting is all about the visual. I am always kind of blown away when I see a craft retailer who advertises classes without posting any project pictures:   SERIOUSLY?  How can you excite and inspire without the eye candy?  Pictures are a  no brainer.  Additionally, the more links within your email, the higher the click through rates and the lower the unsubscribe rate.  Remember...your customers like to craft and you sell product they love.  Your email is like comfort food!

4.  Be Careful about the "From" line.   Will your customers recognize your name as the sender or is the  store name more likely to garner greater recognition?    I typically delete email from unknown sources, so an email from a known local store "The Fiber Factory" will get opened, while an email from "Mary Smith" --who the heck is she?--will not.

5.  Use the Subject Line to Hook your customer!   You know the drill...it is all about Salesmanship.  "Newsletter Update from the Bead Barn" might get put on the back burner, while there is a greater sense of urgency to read "Just In!  New shipment of Gemstones at 2005 prices!  Get 'em while you can!"

6.  Offer High Value Content to Improve your "Click Through" rate.   Art/Artist related newsletters typically garner a 17.53% open rate, and a 3.54% quick through rate.  How do your newsletters compare? I keep a newsletter cheat sheet near the computer so that I can jot down notes when I come across an item of interest while surfing the net.  That way, when I am ready to sit down and actually start typing I already have an outline.  You can download a newsletter cheat sheet here.

The definition of "high value" will vary.  I tend to open newsletters that give me something:  information, eye candy, a coupon, warm fuzzies, a giggle.  For example, a fiber store could include one of the hilarious photos from "What Not to Crochet," while a bead store owner could give directions on how to clean Swarovski crystal.  Consider including a favorite seasonal recipe, or note that your best customer's son just made it to the Little League All Star team.   It is all about building community!


In the Studio:
The recent fiber earring challenge left me very inspired!  In fact, we are working on a line of Felted and Embellished Earring kits that are wonderfully easy and delightfully inexpensive.  Here is a sneak peak at one of the designs...whuddayathink?

 

Update: Cooper the Demon Dog

 I lost my glasses.....and then I found them....sort of.

Cooper - 1, Glasses - 0.

Nonetheless, Cooper and I seem to be making our way. Only two accidents this week and no dead chickens...it is all good!

Of course, we had to restock our chicken family after the most recent massacre and the new girls are happily nesting in the studio for now.  I am hoping that familiarity will encourage Cooper to feel more protective than  predatory!

So far, he is fairly disinterested.  I'll count that as a win!

If I can market office furniture, marketing your craft store should be a breeze!

Ever notice that it is really easy to give advice, but  a tad more difficult to follow it?   Helping my husband market his Office Furniture business has provided me with a great opportunity to practice what I preach and it ain't always pretty.  I am stretching  beyond my comfort level to do things that do not come easily, but I am doing it.  Is my halo glowing?

I send out e-mails.  I schedule special events.  I try [ ...er...."try" being the operative word] to keep his website current.   Heck,  I have even started networking.    Today I plan to ditch my shlumpy "working in front of the computer" clothes, don something that says "jewelry artist" and brave rush hour traffic to have a glass of wine with folks I met at a recent charity event. 

Guess what?

Its working!  Mind you, I am always behind and there is always more to do, but I can see the impact my efforts are having on the business.   A single email on filing cabinets has resulted in two customers who have gone on to spend tens of thousands of dollars with us.  Better yet, my husband has just added himself to the payroll---for now anyway---despite having been in the industry for less than a year.   I find that marketing office furniture is much more challenging than marketing Swarovski Crystal and Felting Supplies, but the same principles apply.  It is all about establishing the KNOW, LIKE, AND TRUST QUOTIENT! 

E-MAILS MATTER!
I want our brand to be top of mind with the consumer and need to do it in a manner that is not irritating.  I am learning the email "sweet spot" for prospective office furniture customers---- you know what I mean...that magic number that serves as a gentle reminder that we are here,  not harassment.   It appears that one email every three weeks is about right for us at this point.   You can email your crafty customer with greater frequency.  After all, she is already interested in what you are selling.  Crafting is what she thinks about when she is daydreaming at work.  It is what she wants to do when the kids are tucked in bed.  

My customer is a bit harder to engage.  My challenge is to give  him a reason to stop and peruse the email before hitting the delete key!    Not easy when you are selling work stations.  Accordingly, my emails often have little to do with  office furniture.  My last few blasts touted our latest "Business Boot Camp" Event.  

SCHEDULE SPECIAL EVENTS!

Since our customer is a small business owner struggling along just like the rest of us---wearing too many hats, facing too few hours in the day---we figured that it might be worthwhile to have a monthly gathering where folks could network and listen to a speaker on subjects of interest to every small business owner.  So far it is proving to be a solid networking effort.  Of course, any time you try something new, there is a learning curve and bump or two along the road.  Mama didn't raise no fool and  I made sure to stack the deck in my favor for the first event.   While several attendees came to  listen to the speaker and some others came to network,  more than a few only stopped in because I promised them a home cooked meal in exchange for the warm body.  It worked!  Those interested in networking were impressed by the turnout, making the second event an easier sell.

In fact, I didn't have to call in a single favor and attendance actually went up!  A number of attendees brought guests and I am hoping the series continues to grow.  The main attraction  is the ability of guests to network and market their own businesses, but I am confident that if one of them is ever in need of an ergonomic office chair, they are going to think of us!


NETWORK LIKE IT MATTERS!

...because it does.  One of the things that I have learned from working with my husband is that networking really works.  He has opened my eyes to the power of the referral and what it can mean to the bottom line.    John is in several networking groups where each member's mission is to procure leads for others.  The guy in the market for a telephone system might also be in the market for office furniture.  A few questions can result in a great lead for me, or for someone in my circle.  I would never have considered such an aggressive networking effort as a bead store owner.  Too Pushy, felt kinda smarmy, not my style.   I was wrong.  If you are sincere and motivated by a desire to give at least as much as you get, lead generation is awesome!  Every time I meet someone these days I pause to consider how we can help each other.  My life --and my business -- is richer for it.
 

Toward that end, let me tell you about Hannah Rosner.  Hannah is an amazing bead artist whose work leaves me breathless.   You can see some it here and here.   Hannah is really, really good at Social Marketing.  She and her fiance have a separate business focused on helping businesses navigate the wild and wooly world of Social Media at a fraction of the cost of other industry experts.    However, the coolest thing is that because she is a self supporting artist, she is particularly good a CRAFTY MARKETING.   She has a kind heart and a generous spirit.   If the whole Facebook/Twitter/Blogging thing has you pulling out your hair in frustration, you should contact her.  Seriously. 

In other news

Happiness is getting it level the first time.  Well, level enough, anyway.  The dogs decimated my fall vegetable garden so I spent the week-end building a fence to protect the spring plantings.  I am sure that it was quite a site....I was digging in fence posts, cutting boards, and glistening profusely.  It was great fun and I still can't believe that I did it.   I hope to have it completed this week-end so that I can get back to the more important stuff...like my fuzzy pink necklace.

Marketing Events are Critical for the Cash Strapped Retailer

Customers are inundated with choices on how to spend their money but have less money to spend. What a conundrum.   Competition for that dollar is intense.  That's a fact, Jack.  Bemoaning the state of the economy does little to get your rent paid.  Savvy retailers know the value of scheduling frequent customer appreciation events to get cash flow positive.  After all, it is much easier--and way cheaper-- to delight existing customers than it is to forage for new customers.  Are you taking advantage of this simple marketing strategy?

Successful Event Marketing does not require a big budget or even a particularly brilliant idea.  However, it does require time and consistency.  Many of your stores are a little slow right now.  You can spend your hours worrying and ringing your hands or you can take control of your life.  Turn the downturn into an opportunity by using the extra time to get your marketing plan in order.  Gather your staff together for a brainstorming session and fill out a marketing worksheet.    Once you put an idea down on paper, it is more likely to become a reality for you.  Leverage technology to reach your goals.  The beauty of an email blast is that you actually have time to pull off an event to spur sales this week-end!   We recently blogged about Crafty Retail Superstar Jackie Goff of Uptown Fibers.  She was able to generate one half of her monthly revenue in one week-end, based upon an email blast sent a few days before the event. No advertising costs, no major headaches...just determination and a clear sense of purpose.

I received an email from my LYS announcing her 6th Anniversary week-end celebration.  Honestly, I probably would have passed on the event because I had just spent more than I would have liked on the 40 skeins of yarn needed for my current afghan project.  Puma was disturbed to have her nap interrupted by my camera.  But I digress....

I wasn't planning on going to the event.  It was a busy week-end, I had already spent my yarn budget, etc.

....and yet.....

I spent $150 and had a great time.  Huh?  I know, I know...I didn't plan on it but the yarn shop owner did a CRAFTY RETAIL SUPERSTAR kind of thing.  She got on the phone a few days before the event because she "wanted to make sure that I got a personal invitation from her."  BINGO!  She had me ...hook, line, sinker.  How could I say no?  I went, but I went with a steely resolve:  NO SPENDING.

You can imagine how quickly my resolve crumbled when I saw the beautiful jewel tones in a wool/silk blend---perfect for my next project---and it was "Buy one, get one free!"  Yowza!

"That will be $149.79."

Sigh...I guess I can use my clothing budget for yarn.  Again.

I confess.....I can resist anything except temptation and I bet your customers are similar....so TEMPT THEM!    Roze, my local yarn shop owner did a couple of brilliant things to ensure that she got the job done:

First, the owner of Fiber Art in Odessa, Florida,  knew that an anniversary required a big celebration.  Roze contacted all of her vendors and explained that she was having a party and asked them to donate door prize items.  They were happy to oblige and the prizes helped generate a buzz leading up to the event.  Savvy Roze followed up with thank you notes to let her vendors know that their efforts were appreciated.  Warm fuzzies all around.

Next, Roze made sure that she sent out an email blast notifying all of her customers about the event.  Her best clients received a special invite to a customer appreciation soiree the night before the big event.  They got first dibs on the sale goodies, as well as great wine and festive appetizers.

Roze made sure that she was adequately staffed for the event and even had a good friend step in as "store greeter."  She was a charming gal who joked that she wasn't crafty at all, but she was a heck of a greeter.  It was a nice way to break the ice for someone who was walking into the store alone.

Roze made sure that she had a loss leader.  She jokes that her "Buy one skein, get TWO FREE" promotion had her suffering some heartburn, but in the end it proved to be a winner.  Customers clamored to take advantage of this deal and in addition to ridding the shelves of some targeted product that needed to go, many customers invariably added other "non sale" items to their baskets.

Finally, Roze called EVERY SINGLE PERSON on her list to personally invite them to the shindig.  Note that she only spent two hours on the phone.  I know that those phone calls aren't easy to do, but do them anyway!  They are very effective.  Remember:  I only went to the event because I had received the phone call! I spent almost $150  and then called Roze the next day to ask her to pull another $150 worth of sale yarn for me.  What can I say?  It made sense to buy it on sale.  I need it to finish the afghan that I haven't even started yet.  Yup, it makes perfect sense.

I guess I can use my hair budget this time around.   Sigh.  What can I say?  A crafty girl needs her crafty stash.  But I digress...

Roze's sales greatly exceeded her expectations---she sold $10,000 of product over the course of the week-end.  No advertising expenses, just planning and focus.  She got rid of old wool inventory just as we are heading into a Florida summer.   Good job, Roze!  You do not need an anniversary to stage a party.   Celebrate Spring if you have nothing more creative....get some wine, a fruit plate or two, and get going!  You can find some quick and easy marketing ideas in this post and a marketing calendar listing zany promotions ideas can be found here!

Motivated?  Good!  Now put down that bag of Cheetos and get off the couch.  Trade in those fuzzy slippers and sweatpants for your short skirt and cute sandals.  Be a walking advertisement for your store.  Get your employees behind you  and  make it happen! You are strong, you  are powerful, you are a RETAIL SUPERSTAR!    C'mon...you can do it!

Ready, set, GO!




In other news.....


On my studio table:

 My industrial metal kitchen table needs the softness of a runner.  The green one that I had been using was recently gifted away.  Accordingly, I need a quick replacement.  In an effort to effect some sort of a cosmic payback for my recent yarn indulgence..ahem... I am currently working on a wet felt/needle felt table runner that will utilize my scrap wool. There will be nothing purchased for this project, No Sirree.  I just laid out the first layer....an apple green that is definitely NOT my favorite color. It will be interesting to try to turn it into something I love.  Stay tuned....tutorial to follow soon!
 

Speaking of tutorials....Part II of the Embedded Crystal Cuff tutorial is now available for download here.  It is free, it is easy, give it a try!

If you missed Part I, check it out!




An Attitude of Gratitude really does make life sweeter.   I shared a poignant moment with my oldest son yesterday that made me pause for a moment of quiet appreciation for my many blessings.  Jake recently moved to L.A.  Jake---the silly young man pictured at right---has stars in his eyes and is chasing  his dream.  I am really proud of his fortitude and his focus but I miss him like crazy.  Yesterday he called me and I could tell that he was a bit shaken.  He shared something that appeared to be nothing more than a moment in time when it happened, yet it turned out to have a profound impact on him.

Jake was in the train station last week when a young kid (he described him as a young traveler/"gypsy" sort of kid...kind of a lost soul with a gentle disposition and a tattooed face) came up to him out of the blue and asked to borrow his cell phone.  Jake handed it over, got it back, and went on his way without a second thought.  Yesterday he got a call from a frantic Mom hoping against hope that Jacob might hold the key to her child's whereabouts.  The kid had gone missing and Dad had flown into town and was randomly driving the streets of  L.A. hoping to find him in a city of millions.  Mom got Jake's number from the person her son had last called and that is where the trail ended.   He had to tell her that he didn't have a clue and the woman fell apart.  What a nightmare for her.    I am so grateful for a close and connected family and hope that you will join me in sending out a prayer for that mom and her son.



So, yes...times are tough, every sale is harder today than it was yesterday, but I am really, really grateful for what I have in my life.   

What are you most grateful for today?

Economy Be Damned....Many Crafty Retailers are Beating the Odds!

Oops!  

For those of you looking for the post on the Craft Industry's "Dirty Little Secret"....it is here.

For those of you who want to read about Crafty Retail Rock Star Paula Rosenberg...read on!  

My family took a quick week-end trip to visit Nana Eileen this past week-end.  Nana is my husband's 86 year old mother and she is truly the Matriarch of the family.  It is a gift to have her around and it has been too long since I visited my old hometown of Columbus, Georgia.  My son was in rare form as he tormented Nana by walking around flexing his muscles.   She does not like muscles and he thinks that she is funny.  My 17 year old daughter found adequate mall time, my husband considered a toupee and even Rosie, our newly three legged dog was clowning around.  A good time was had by all.

One extra treat was a chance to pop in to one of the finest bead stores in the country:  The Bead Cage.  The Bead Cage was established 7 years ago and is owned by Paula and David Rosenberg.  I have known the pair for several years, having first met them at the Tucson Gem Show  a while back.  The duo is incredibly business savvy.  David, a radiologist, designed the killer acrylic bead bins used in the shop and Paula is a talented artist whose tiny size and sweet southern accent belie the business savvy she possesses.  A winning team, to be sure.  I was delighted ---but not at all surprised---when Paula reported that 2010 was up by almost 100% over 2009.

What makes them different?

 INCREDIBLE STAFF!
When I got to the shop late on Saturday, the place was busy.  Very busy. Nonetheless, within seconds of my arrival a friendly staff member approached me and immediately commented upon a piece of jewelry I was wearing.  She "Oohed" and "Aahed" in a genuinely interested manner.  She asked knowledgeable questions about the technique used to make the piece. I was impressed and the exchange made me feel good.  Our shared interest gave us something to talk about.  I was already into the experience.   How does your staff compare?  When I commented on the excellent staff, Paula smiled and said that she has an outstanding team.  She employs 8 employees, 4 part timers and 4 full timers.  When I visited David was away on "doctor" business.  He called in to report on his side trip to 4 different bead stores in the town he was visiting.  He noted that out of the four visits, only ONE SALESPERSON GREETED HIM!  Hmmm......  He also observed that the shops were low on basic inventory...with empty bins announcing the fact to all who were looking.  Bad Service.  Sad Inventory.  Coincidence?  What do YOU think?

DEVELOP A NICHE!
Paula has worked aggressively to maintain a reputation as "the" place to go for beady education.  She regularly brings in national instructors which draw students from much larger cities, such as Atlanta (100 miles away).  Additionally, this year will mark the second annual Southern Bead Retreat, which will be at Callaway Gardens.  The instructors are industry rock stars:  Sheri Serafini, Cynthia Rutledge, Diane Fitzgerald, Laura McCabe, and Huib Petersen.  Paula carries an impressive selection of the basics which are often utilized in the classes.  However, she knows that a beader willing to drop cash on quality instruction will be equally inclined to splurge on an unusual bead---so she has plenty of them, as well.

KNOW YOUR DEMOGRAPHIC!

Despite the name, the The Bead Cage sells much more than just beads.  Paula told me that although she is a passionate beader, the city's demographics are such that beads alone would not sustain her retail store.  Accordingly, she made the decision to incorporate several different lines of fun and unusual gift items.  Beads take up about 1/3 of the shop's 5000 square feet, while gift items take up the remaining 2/3, with proportional sales revenues.  The Bead Cage is a great place to go for a wedding gift, birthday present, or a special gift for yourself!  Paula noted that most beaders are women and all women wear shoes.  Yup...that explained the expansive selection of "Switch Flops."   I want a pair for summer!  They are cute and functional and have little interchangeable snaps:  plain/festive/sparkly/etc.

HAVE WELL DEFINED GOALS THAT YOU ARE ABLE TO MEASURE!
Paula and David use the Microsoft Retail Point of Sale system.  Every item in the store is bar coded so inventory is a snap.  Additionally, Paula has a plethora of valuable reports at her fingertips and most of her work day is spent working on the business, rather than on the sales floor.  In a hilarious side conversation, Paula explained to me that it is better for everyone if she is not on the sales floor, noting in the cutest little accent that she does not have "the friendliest face and tends to roll her eyes or make a face if a customer says something stupid."  Note to readers:  Paula has a very friendly face and is an absolute delight.  My guess is that she simply prefers the strategic side of the business!   Her ability to establish systems and processes enables her to make decisions based on logic rather than emotion.  If a product is under performing, she can quickly identify it and get it out the door, which brings us to her next attribute....

GET RID OF DEAD INVENTORY QUICKLY AND RUTHLESSLY.  Paula identifies her deadbeat inventory before it has a chance to strangle her cash flow.  If a product is on the floor for six months without selling, it is marked for termination.  Month 1:  sale at 25% off.  Month 2:  sale at 50% off.  Month 3:  donated to her favorite local woman's charity. 


GO FOR THE RESIDUAL SALE!
Paula also knows that the gift buying, shoe wearing, bead loving gals who shop in her store probably like their homes smelling fresh and fragrant. She offers the Lampe Berger lamp line.  The "common" fragrance oils found at the big box stores will ruin this fuel based lamp, so her customers must come back to her for refills.  The residual sale is a big part of Paula's overall strategy.  She likes to stock inventory that requires a follow up purchase from her customer.  Buy one pair of Switch Flops and spend lots more money on the snaps.  Buy one Lampe Berger and come back often for the fuel and for new scents. She offers great product lines so her customers are happy to return.  Win-Win! BRILLIANT! 


Impressed?  I am!  Paula is an inspiration to see...a veritable Steel Magnolia!  You will learn more about her and some other retail success stories in the coming weeks.


In other news

 We have been getting in wonderful pictures from our MARCH CRAFT CHALLENGE volunteers.  The participants were given several colors of Swarovski cup chain and asked to play with it in whatever manner tickled their fancy.  The cuff bracelet pictured at left makes it easy to see why Kelli Burns of The Hole Bead Shoppe has had her work featured on two separate covers of  Bead Unique magazine!  We were blown away by the breadth and scope of the talent!  Click here to see the other equally creative contributions!



APRIL CHALLENGE PARTICIPANTS ARE HARD AT CRAFTY WORK!


The April Challenge kits have been mailed to the lucky participants and we are looking forward to seeing what they can do with the components pictured at right.  Pictures are due on May 1.


NEW CHALLENGE!  
Calling all ETSY JEWELRY DESIGNERS!

The "Crafty Retailers Create" Challenge series has proven so successful that we are launching a new Challenge geared to Etsy Jewelry Designers.  We have 24 kits identical to the one pictured above.  The kit has a retail value of over $100 and is free to the lucky participants who will be chosen in a random drawing on April 15.  Send an email with your Etsy Store identified and we will enter your name in the drawing.  Check out contest details.

'NUFF ABOUT BUSINESS.....

.... I want to talk about more important stuff....like my current crafty personal projects!   I have been spending a whole lot of time in vet waiting rooms of late, so I needed some easy lap work.  Nothing complex, nothing that required thought.  I was looking for soothing, repetitive, "thumb suck" kind of work.  I found it with this great ripple afghan project.  The pattern is from Attic 24 and the instructions are absolutely fantastic.  I chose unusually bright colors, but plan to use it to bring some color to a dark leather couch.  Although the summers get wicked warm in Florida, my daughter loves cozying up on the couch with a blanket regardless of the temperature.  This cotton afghan will be perfect!

 I seem to have been bitten with the crochet bug again and am considering a granny square ensemble for my bed.   I saw this wonderful patten on Wonderland5, which is from a retro Better Home and Garden publication.  I was able to score the book from an Amazon affiliate for only $3 and should have it this week...I am very excited!

So...what is on your crafty agenda?

Are you a Marketing Ninja? CRAFT A MARKETING PLAN THAT WORKS!

Marketing is not a four letter word....so why do so many retailers simply  discount expensive inventory, send out an email touting  a BIG SALE, and  call it a day?     I have never understood such willingness to bleed away profitability.  If you need to get rid of dead stock or want a quick cash infusion then such a sale might be a good idea.  However, if you are slashing prices just to attract customers then it is time to rethink your strategy.   Your goal should be to develop customer loyalty through your role as a Value Added Craft Reseller, not to train customers to be loyal to price point.  Face it....the world is peppered with bottom feeders, so there is always someone willing to undercut your prices.  Focus on  developing  loyalty to your store brand.   You do not need lots of cash to market your store brilliantly; you do need FOCUS, DEDICATION and CREATIVITY.

Despite the importance of marketing, many Crafty Retailers find the Marketing Hat to be an uncomfortable fit.  It makes you feel pushy, desperate, fake, etc.  You consider it just one more unpleasant challenge in a day that is already over-scheduled.  Yup, you know that you should do it, but the wheel just doesn't squeak loud enough for you to oil it today.    You will make time next week, next month, next year.....

.....Hmmm....are you really listening to what is actually "squeaking"?  Think about it..... Do you ever have trouble making the rent?  (squeak!)  Do you schedule classes that never fill up? (SQUEAK!)  Is your customer base shrinking (SQUEAK! SQUEAK!)  Do you often forgo a paycheck? (SQUEAK!  SQUEAK!  SQUEAK!)  Honey...it is time to listen to that marketing wheel 'cause it is most definitely making some noise!


What is the Crafty Retailer to do?

Get serious about moving your business forward by engaging in some deliberate, results oriented, marketing!


FOCUS

Many craft store owners are creative people.  Few creative people are  process oriented.  Successful businesses must leverage the concept of "process."  Eek.   What to do?  What to do?  Hint:  Get out your calendar and pick a time to focus on marketing your store.  Improve the  odds of success by making it the same time every week. For example, I have started to schedule a two hour "marketing block" the first thing every Monday morning. If I wait until I "have the time" it will never happen.  Mondays are good for me because many craft stores are closed on Mondays, which means my phones are quiet.  Moreover,  I am recharged from the week-end and feel ready to slay dragons.   The first thing that I do is to send out at least 5 hand written "customer appreciation" notes to customers I want to acknowledge.  It takes me about 30 minutes and costs me $2.20 in postage.

It is a delightful way to kick off the week because it provides a necessary opportunity to count my blessings.    Seriously!  I have to think of five customers who have made me smile in the last week or so.  It is a kick for me and for my customers!   After all, in this age of tweets, IM, Facebook and the like, there is something special about receiving an unexpected---a genuine--- handwritten thank you note.  I will send out over 250 such notes each year.....imagine the impact for less than $115!

I use the rest of my time to plan upcoming coupons, write tutorials, and research.  Today I spent about 45 minutes taking part in an invaluable online class created by Diane Gilleland, Twitter for your Crafty Business.  I learned more in 45 minutes of focused time today than I have learned in months of using (misusing?) Twitter.  Thanks, Diane!  In fact, I was so impressed that I asked Diane to put together a special class for my blog readers.  Stay tuned for details....tiny investment, big reward!

I use an excel spreadsheet as my marketing calendar.  There is a worksheet tab for every month of the year and it enables me to quickly see what is coming up, what work needs to be done for the next promotion, etc.  Email me and I will send you the full 12 page spreadsheet template for you to adapt to your own store.

Take Away: Affirmatively scheduling adequate planning time for your marketing program.  Everyone knows that diet and exercise programs are destined to fail without adequate discipline and focus.   Similarly, your marketing plan will be dead on arrival if you do not make it a weekly priority!  You don't get skinny by scarfing cupcakes and you will not become a Marketing Ninja by wishing it were so.  MAKE THE TIME!


CONSISTENCY

 I often hear retailers explain their reluctance to plan marketing events because they "had a few events last year and no one came."  Lame, lame, lame!  It takes time to develop a reputation as the town craft mecca!  Your first few events might not reach the level of success you had hoped for, so refine them.  Stack the deck in your favor by asking some good friends to show up for your events with the understanding that they have a job to do.  The mission:  to be enthusiastic participants in whatever you have going on.   No one need know that the group is made up of your best friend, your cousin, your babysitter, and your mother in law! People tend to be followers and if something looks like it is causing excitement and interest, they will want to be a part of it.

Study after study demonstrates that the buying "experience" is more important to the consumer than price. You won't have to worry about prices that are "higher than the internet" if you are providing value in other areas.   It is expected that you will have a clean store, friendly sales staff, and lots of great inventory.  So does the online retailer!  You need to step up your game by making your store the place to be for crafty community.   Schedule one big event and 3 or 4 minor events at your shop EVERY SINGLE MONTH.   A sporadic event here and there will not have the desired impact.    Send out your newsletter on the same day of the week, at least twice a month.   Does writing leave you cold?  Don't let it!  Click here for a Newsletter Cheat Sheet.  Hand out Bag Stuffers to every single customer.  Bag Stuffers are fliers which tout store events/programs/new inventory.  Check out a sample Bag Stuffer here.   Use slow time in the store to pick up the phone and call customers that you haven't seen in a while.  Is it easy to do?  Nope.  Is it effective?  Yup.  Misery loves company....ask every staff member to make 5 calls per week to customers of their choosing.  Track the impact of the calls ....because there will be impact!

Take Away:  Vow to be consistent and to be dedicated to your marketing program...this month and every single month throughout 2010.    You may not see results immediately, but stick with it....you will see results...guaranteed.

CREATIVITY
Does your advertising need some tweaking?  Although newspaper circulation is down everywhere, my customers still report success with that medium.  A weekly ad gets the word  out and acts as yet another nudge to the consumer.  Ad rates are flexible, regardless of the number of the rate sheet.  Ask for a discount.

Lacking the budget for advertising?  I read about a store that had a pretty girl in a bikini knitting in  the front window.  Talk about making an impact!!!!  Not ready for a swimsuit?  Put fliers on cars in nearby parking lots.  Better yet, pay a teenager to do it so that you can spend your time developing new marketing strategies.

Brainstorm with your staff to flesh out your marketing calender for the year.  It takes lots of imagination but very little cash to fill your calender.  Humans are tribal.  Leverage the fact that people like to hang with like minded folks.  Start a craft group for young moms....they can meet in the morning while the little ones are at pre-school.  How about a Stitch and Bitch group for divorced gals?   I would be attracted to any group that paired wine with fiber!  A monthly wine/yarn tasting sounds good to me!

Consider joining forces with area craft stores to sponsor a Craft Bazaar.  More and more crafters are looking to earn extra cash (or at least some money to cover the costs of their addiction!) Start small...align with a church or civic group.  You will be performing a service for your customers, generating some great publicity, and encouraging sales.


There are National "holidays" celebrating different food items almost every single day of the year.  You can inexpensively fill up you marketing calendar by simply celebrating those days!  Silly?  Yup.  Effective?  Absolutely.  So....It is National Coffee Cake Day?  Great!  Make sure to promote the wacky celebration ahead of time!  Talk about it in your newsletter,  remind your customers via Bag Stuffers and on the big day simply hand out lots of coffee cake.  Better yet, give away a copy of the recipe!  The cost in dollars will be relatively insignificant, but you are on your way to proving yourself to be a Marketing NINJA!

  

Did you know that National Lingerie Day is celebrated on the same day as Pigs in a Blanket Day?

Hmmm....Scary coincidence, wouldn't you say?  Download a Calendar listing daily holidays through June 2010 here.

Take Away:  Be imaginative and be clever.  Although your marketing does not need to directly relate to your craft, it must enhance the shopping experience!


Other news:

Need a quick Make and Take  Project for an upcoming event? 

This is the one! Your customers will learn to craft a felted flower barrette using only 5 grams of wool top and some beads for embellishment! Fast, easy, and inexpensive...what could be better?

Click here for the free tutorial.

  
Attention"Flying Solo" participants:  Please send in your questionnaire responses if you haven't already done so.  Additionally, the Campfire Chat format is proving to be unworkable, so we will be moving to a Ning network.  Details to follow by the end of the week.