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!

Last Minute Holiday Make and Take Projects can get customers in the door!

The holiday countdown has begun but it is not too late for some last minute low cost marketing magic!  A quick internet search has revealed a treasure trove of crafty goodness that would be perfect for a Holiday Make and Take Event or free afternoon workshop.  Get the hot chocolate brewing, put some cookies on the counter, and show your customers some crafty love. 

For example, The Purl Bee's Betz White has a tutorial on these "Oldie but Goodie" Slippers....so awful that they are fabulous!  Seriously...I am strangely compelled to whip up a pair.  Crochet doesn't get much easier than granny squares and if they are not nice to me, every member of my family will find a set under the tree!  Yup...punitive gift giving. 

Speaking of which, how about a contest asking your customers to describe the worst gift they ever received?  Offer a shop gift certificate to the winner to make up for the horror.

In a shameless bit of self promotion, consider a Felted Soap Make and Take!  No previous felting experience is required and everyone leaves happy.  Truly, I have never met a person who was not delighted by the project.    Written instructions can be found here and for those who prefer a video demo...you can find that here.

Holiday ornaments are always a gratifying project.  I am currently working on some crochet stars courtesy of a free Ravelry download designed by Daniela Herbertz.    CraftyPod's Diane Gilleland has a simple tutorial which makes terrific use of fabric scraps to make Japanese inspired "Upholstered" ornaments like the nifty tree pictured at left.  Diane's blog is always a wonderful resource for crafty How To's and I visit her cyber home weekly!

Promote economical AND fabulous by offering a free REMAKE IT-TAKE IT jewelry event.  Etsy is filled with stunning examples of artists who fashion relevant jewelry from the broken bits and pieces that all of us have in our stash.   The charming necklace at left was crafted by Etsy artist BlueMoss and reminded me that I have a number of enamel flower pins gathering dust in the back of a drawer.  I am already daydreaming about a project for my daughter. 

Check out the stylish cuff at left ---a great use of jewelry remnants by All Things Tinsel.   My mind is abuzz with the possibilities and  I am glad to have saved all of those broken pieces that were too pretty to throw away!

Get the word out FAST with a quick e-mail blast or Facebook update.  Crafty Retail Superstar Debbie Huntoon, of Alada Beads in Michigan, uses her store Facebook page as well as just about any Crafty Retailer I have seen.     Her customers have learned to check it every few days if they don't want to miss out on a great deal.  Deb uses the page to randomly --but frequently-- to announce "today only" specials.  Great marketing...after all, everyone likes a surprise!  Facebook is a great vehicle to reinforce your brand and reach out to your customers without a direct email.  Deb also puts out a great newsletter---check out the online version.

[True Confessions:  I have been slow to jump on the business Facebook bandwagon.  NO MORE EXCUSES.  Improving my Facebook presence is on my Business Resolutions List for 2011---how 'bout you?    Help me!  Anyone who goes to my page  and LIKES IT this week will be entered to win a Truly Fabulous Gift Package.  Winner to be announced next week.

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?

Hard times are Coming....are you the Ant or the Grasshopper?

This is going to be a more personal post....you know, the "pull up a chair, pour a glass of wine, and share a moment" kind of post that would embarrass friends and family if they were to read it....but a gal has to do what a gal has to do and recent events have me in need of a brain spew.

OK....here goes........

I live in Florida. The economy is bad here.  My family feels it.  Most people I know are feeling it.   Of course, your little pocket of the world might not be feeling it as acutely.   Better yet...perhaps you have been preparing for it.  That is, you might be the Ant to my Grasshopper.   Remember that?  One of Aesop's fables.  I like the cartoon version from 1934.  The grasshopper was playing and frolicking throughout the spring and summer while the ants dutifully prepared for the coming winter.  It has been my tendency to play the Grasshopper in that scenario.   I was never a saver.  I was always a consumer.  A rabid, frenzied, "gotta have it" kind of consumer.  Shopping is something that I did for sport.  I hardly even know that person any more and thank God for it.   I have scaled back.  Doing more with what I have on hand.  Enjoying the process of creating more than the process of consuming.  Several years ago I had a pivot point in my life.  I had  too much debt with too little income--in business and at home.   I had some serious decisions to make and I made them.   It was not pretty.  It was not fun.  Yet...after a lifetime of overspending, I finally "got it."  I had to stick to an austerity budget to make headway with the debt and although it hasn't been easy, it has been joyful.   It is good to feel in control of your life.   If you are not a shopper, substitute your own personal secret vice and imagine the delight in kicking it.

 The deal is....I honestly (and PAINFULLY) looked in the mirror to examine what I had done to bring me to the bed I was so uncomfortable laying in.  I did not blame my partner, my husband, my customers, or my accountant.  I don't control them, I only control me.  I was brave enough to own my personal dysfunction,  figure out what I had done to contribute to the mess and  make it better.  Cool, huh?  It isn't perfect....I still have some debt and income is down, but it is better. I am in control.  I have power.  ROAR!

 The glory of "getting it"  three years ago is that I have had some practice to prepare me for what is coming our way.  Hard times are knocking at the door, folks.

We had dinner with some friends recently.   They are good people and we have known them and loved them for years..  They are like me...Flawed, happy, solid people fighting the good fight and trying to keep it all together.  Like many Americans, they lived right to the edge of their means.  The husband is an incredibly hard worker.  They have a small family business that has afforded them a luxury lake front home and nice vehicles.  Unfortunately, their house is in foreclosure.  The husband is depressed, the wife is trying to keep him glued together.  She finds herself spending money they do not have because shopping is what she does to calm her nerves.  She isn't spending much money at all...a nail polish here, a $10 shirt there.  No, it is not much, compared to what she was spending when times were flush, but it is more than they can afford.  The business income has slowed to a trickle.  The are in the dental industry and sell what for many is now a luxury, not a necessity.  Tactics that worked before to bring in new business are not working now.  They are eating a lot of cereal for dinner because that is what they can afford.  The husband is feeling hopeless.   Hard times are coming.
 
I see it in my neighborhood.  Lots of  "for sale" signs are now dotting the lawns in my  community.  My favorite restaurant is always half empty and the owner's fear is showing.   There are more empty stores in the strip center down the street.  Times are tough.   I get it---I am living it, too.

My husband is in a state of flux....in 2009 he sold his interest in his business.  He has 7 months remaining on his Non-Compete Agreement.  He has to stay out of the only industry that he knows until November.  We have lived through this sort of thing several times in our marriage.  Nonetheless, it is always a bit scary and unsettling.     We watch the bank balance go down, while we figure out WHAT COMES NEXT.  We have never done it while facing such a grim economy and don't want to sit around and wait.  So....after much deliberation we bought a business in an unfamiliar industry because we are determined to BE THE ANT.

This week-end my husband and I went through our budget. [BE THE ANT]  There is nothing quite like trying to slash 20% from the budget to get the love flowing in a marriage.  [Was it good for you, dear?]  It is exactly the sort of thing that we avoid talking about because it is so unpleasant and presses so many buttons.  [BE THE ANT]  We got through it without an argument because we are on the same page.  [BE THE ANT]  It is not about power struggles....it is about survival.  [BE THE ANT].

The cuts we made three years ago were luxury cuts. An Excessive Clothing Allowance became a Reasonable Clothing Allowance.    A Ridiculous Entertainment Budget became more appropriate for our reality.  The cuts this time are going to cause some real bleeding ---both inside and outside of our home.  We still have the money for our NEEDS, but our WANTS have been hit hard.  Rosie the Wonder Dog has had medical bills that have left me weak in the knees.  I pray that she is on the mend because there is a limit to our ability to pay the extraordinary bills required for high falutin' medical care.  The cuts we are making are deep.  I have a housekeeper I adore.  She and her husband have worked for me for years and I care about them. My kids are grown and I can certainly deal with the house myself.  Yet, I have been loathe to end the service.   They have a daughter with serious medical issues.  I worry about the economic impact on the family because I know that they have lost a number of other accounts recently.  This is what puts food on their table...yet, I can no longer afford the luxury.  It makes me sick to my stomach.....but I gotta BE THE ANT.

  We cannot control the economic tsunami heading our way...it is coming whether we want it or not.  We are going to live though it either way so I am going to do everything in my power to keep my family safe, happy, and secure.  We can come through it new and improved or we can come through it broken.   How about you?  Are you doing what it takes --in business and in your personal life--to BE THE ANT?

Debbie Huntoon of Alada Beads is one Crafty Retail Superstar who is all about BEING THE ANT.  This woman never stops and she has the success to prove it.  Her bead store is in Michigan.  The economy there is even worse than the economy in my home state.  Yet, Debbie's store is thriving.  She is totally self supporting and cannot afford a failure, so she makes sure that she doesn't have one.  Is it easy?  Hell, no!  Is it rewarding?  Absolutely.

Debbie told me that she is the Queen of the Gimic and cannot imagine how she would get the rent paid if she was not so focused on promotional events.  She has events going on ALL OF THE TIME.  The photo at left came from PET-A-PALOOZA where customers were invited to bring their four legged pals into the shop for a photo session.  the photos were "shrunk to size" and used to create one of a kind charm bracelets for the doting owners.

 Next week she is offering Mom-a-Palooza in honor of the Crafty Moms that support her business.  There will be a number of Make and Take tables set up with special projects so that kids can make a present for Mom while she makes something  a bit more sophisticated for herself.  The photographer will be back in business so that photo charm bracelets and pins can be created for Grandma!

 Last week Debbie  hosted her 11th Carnival Event.  It is always an impressive event...Debbie works with her teachers to create some stunning make and take projects.  There are 10 different stations, each manned by a different teacher dedicated to assisting with a particular project.  The one day event resulted in $9,000.00 in sales.  Not bad for a Saturday in Michigan in a bad economy.  Debbie has a knack for entertainment.  She is willing to co-opt a good idea if she hears one and tweak it so that it becomes hers.  She took our idea for a "Sparkle and Spirits" night and it has become an important part of her crafty community.  The concept is simple:  invite customers for a free night of beady comraderie.  They all receive a nice gift to go along with the alcohol and munchies.    When I say a "nice gift" I mean it....Debbie recently spend $300 with me for the gifts for one week.  However, this is not to say that she does not have an evil capitalist plan working in the back of her little blond head.  Miss Debbie always has two samples made to highlight the gift item:  one relatively simple and inexpensive, the other more elaborate with a higher price point.  Guess what?  She sells lots of beads as a result of that little free gift.  She regularly has 25 people show up for the party every month.   She is building community and having fun.  Oh...and she is making money.  Yup, Debbie is truly a Crafty Superstar.

So, get busy....there is work to be done!


IN OTHER NEWS:

NEW FIBER CHALLENGE!

Finally, a fiber challenge for all of you "jewelry challenged" readers!  We have enough product to send out 12 kits as pictured below--for FREE--for the first 12 volunteers!  Kit includes a huge Swarovski hot fix transfer (apply to fiber with an iron), some Swarovski yarn, and assorted crystal and seed bead embellishment.  Show us what you can do!
Think outside the box!  A purse?  A jean jacket?  A journal cover?
                            Whatchagonnado?

Are you good at "showing some love" to your customers? Do it well and reap financial rewards!

Black Friday has come and gone.  Early reports have the National Retail Federation holding firm to its forecast of a 1% decrease in holiday sales this year.  The projected decline comes on the heels of a 4.4% decrease in 2008.  Ouch!  Happily, many independent craft store owners are experiencing solid sales despite the gloomy economy.  Are you among them?  If not, it is time for change.

What is the crafty retailer to do?

Take a look at your business model and fix it, of course!


I recently had an opportunity to speak with Debby Luttrell, owner of Stitchin' Heaven in Quitman, Texas.  Deb had twenty years in the "corporate world" before she became an entrepreneur.  A sales executive with GTE (now Verizon), Debby was part of the team responsible for implementing the procedures which earned the company the prestigious Malcolm Baldrige National Quality Award in 1994.  The Award recognizes companies that offer extreme customer service. Previous winners have included Nordstrom's and the Ritz Carton Hotel Chain.

Clearly, Deb knows a thing or two about delighting her customer base!
Ms. Luttrell opened a 1000 square foot shop in 1996 in tiny Quitman, a town which is home to 2030 residents.  Her store is 80 miles from Dallas, and the nearest sizable town is 60 miles away.  Deb knew that the locals would not drive enough traffic to her shop to sustain it, so a viable internet presence was always a part of her business plan.  She started with two part time employees and 600 bolts of fabric.  She liked to sew, but did not know what a "fat quarter" was and had never put a binding on a quilt.  Fast forward to 2009....Stitchin' Heaven is now a "destination quilt shop" that boasts 7200 square feet and 6000 bolts of fabric.  She employs 18 full time employees, as well as several part timers. Her internet sales are strong and she has a loyal group of customer ambassadors...both online and in her shop.   Deb writes a business column for the American Quilt Retailer, is a featured speaker on business topics at The International Quilt Market, recently launched "Sew Much Travel" to organize quilt friendly vacations, and has a successful consulting business which includes a three day "Boot Camp" for Quilt Shop owners.  WHEW!  But wait...there is more!  You haven't even heard the best part.......the business is PROFITABLE!  Yup, Deb actually pays herself!  [Insert sounds of hootin' and hollerin' here].

Deb practices what she preaches and what she preaches is CUSTOMER ENGAGEMENT.  She notes that although she likes to quilt, business is her passion.  Unlike many craft store owners, Deb concentrates on loving her customers more than loving the products she sells.  BRILLIANT STRATEGY, Deb!  We all know store owners who hang on to inventory they like because they cannot bear to discount it, others who refuse to stock a certain product because it does not appeal to them personally, or even shopkeepers who fail to embrace new trends because "that is not what we do here."  Hmmm.... those folks have expensive hobbies, not businesses!

Deb has some great advice for those of you interested in profitability and here are some snippets from our conversation:

1.  Customers vote on you with their wallets.  If someone comes into your store and leaves without making a purchase,  they have just voted against you.  You need to figure out why there was a disconnect.  Wrong product?  High price point?  Poor Customer Service?

2.  Crafting is an addiction.  There, I said it. Crafting addictions rank right up there with booze, chocolate, and cigarettes. No doubt about it....Addictions are hard to fight.  Need convincing? Listen to a group of women talk about their bead stash, yarn closet, or secret drawer filled with UFOs (unfinished objects)---they will giggle and affect sheepish embarrassment, but it doesn't stop them from coveting the next crafty fix. I have enough Swarovski Crystal in my personal stash to last for several lifetimes.  Yet, I recently saw some Swarovski Crystal Mesh that works beautifully with fiber.   It spoke to me and I haven't been able to think about anything else in days!  It is wicked expensive stuff even for a Swarovski wholesaler, but I am determined to make the acquisition. People will feed their addictions even in lean times.  In fact, crafting provides a satisfying diversion for people who find that a decrease in disposable income means more time at home. Your job is to engage your customer so that she uses her more limited resources to cast her vote for you!

3.  Learn to become an effective leader.  Debby pegged "leadership" as the weakest link for most of the business owners she counsels.  You must have a vision for the growth of your company.  Accept the responsibility of moving the business forward. Buy a copy of The E Myth by Michael Gerber and read it.  Read it again.

4.  Learn to manage your employees.  This is a tough one for many women.  We want to be liked.  We abhor conflict.  We do not want to be perceived as...well.... "bitchy."  We need to get over it!  You have a right to tell your employees how things are going to be done and they have a responsibility to follow the rules.  Do not let your employees hold you hostage.  Who's the boss?  You are!  Thatagirl!

4.  Add "Event Planner" to your Job Description.  Deb reports that her customers are "Event Crazy" and went on to note that if she didn't have events, her balance sheet would look markedly different.  Her events are geared toward both her Brick and Mortar and Online customers.  Deb's event calendar is planned several months ahead in order to allow time for proper marketing and preparation.  An event normally takes four months to morph from  Idea to Reality.   A "sale" is never, ever simply a "sale."  B-O-R-I-N-G.  Instead, Deb hosts an E-V-E-N-T.  A current promotion is "The More, The Merrier Event" where customers receive 20% off all in store and online purchases from Thanksgiving to December 24.  OK, its been done, right?  It gets better!  Every time the customer makes a purchase during this period, the discount increases by a percentage point.  Visit one:  20% off, visit two: 21% off and so on.  The maximum discount is 40%.  The event is successful because it injects some fun and levity into what would ordinarily be nothing more than a percentage off sale.  Here are some other winning ideas a la Ms. Luttrell:

*  Anniversary Event:  Deb celebrated her 13th anniversary in October.  December is the slowest month for many quilt shops so Debby has a sharp eye on inventory control come Fall.  Accordingly, starting in September customers receive one raffle ticket for every $10 they spend.  The tickets are handed out for a six week period.  The Big Event lasts three days.  On Day One customers buy 7 of one item (excluding fabric) and get 6 MORE FREE!  On Day Two the deal includes fabrics...buy 7 yards of fabric and get 6 yards free.  Day Three is Double Ticket Day....there are no discounts on merchandise but sales are brisk, because at 3:00 there is a big drawing where Debby gives away 13 finished quilts that have been used as store samples throughout the year.   This year Deb had 120 people in the store for the drawing.  13 folks were thrilled and the rest were left to dream of the next year's anniversary sale.  Winner or not, everyone left  feeling warm and fuzzy about Stitchin' Heaven!

*Class Ticket:  You can be CLASSY or SASSY....or CLASSY AND SASSY!  The CLASSY TICKET costs $60 and entitles the recipient to attend all classes FOR FREE for a six month period.  The SASSY TICKET entitles the bearer to receive 20% off all purchases for a six month period.  Best Bet:  Be CLASSY and SASSY for only $100!  Classes are taught by staff members who are paid an hourly wage, so the free attendance is not a problem.  This program is a wonderful way to encourage a sense of community!

*VIP  Coupon Program:  Customers pay $25 for a coupon book which contains lots of great store savings opportunities, including a coupon for $25 off a high margin kit.  WIN-WIN!

* Block of the Month Program.  This promotional event is a cash cow, representing a significant bit of business.  Most quilts are made up of a series of separate quilting "blocks".  Each year Deb and her crew decide upon 25 different quilt designs and make up kits for each of the blocks required to make the quilt.  Customers pay $25 to join the club.  This fee covers the cost of the pattern and associated fees.  Each month thereafter the customer pays $24.95 for the materials required to make the quilt block.  Each of the 25 designs generally has 100 people signed up for the program.  You do the math.  OK, I will do the math.  Each quilt generates $24.95 for 12 months ($299.40) plus the initial $25 fee ($324.40 per customer).  One hundred participants per quilt design works out to $32,440.00.  Now multiply that by 25 designs.  It is a nice chunk of change for a program that follows a neat and tidy formula.  Debby has a department within the store devoted to this program.  C'mon...you have to be impressed....I know that I am!  Figure out a way to make a similar concept work for you!

Would you like to have an opportunity to learn more of Debby's tricks of the trade?  Her success is no accident and she is willing to share her knowledge.  Consider a private consultation!  Although sales might be brisk over the holidays, many retailers will experience a serious slowdown come January....the New Year might be the perfect time to consider a tune up!

IN OTHER NEWS:

WE WANT TO KNOW!  HOW WERE YOUR BLACK FRIDAY SALES?

Better than expected?  Worse than you imagined?  Give us the details!  You can be anonymous if you wish, but all who comment will be entered into a drawing for 50 meters of Swarovski Crystal Yarn!

GREAT HOLIDAY TUTORIAL:  Check out one of my new favorite bloggers, Michelle of The Royal Sisters.  Michelle has a sweet little crochet tree tutorial that could be used in a plethora of festive ways:  a holiday banner, a pillow applique, an ornament and more.  Embellish with ribbons and beads for more sparkle.  Michelle has a charming blog and offers an equally good star tutorial, so get out your crochet hook and in the words of my friends from down under, "have a play!"

Delight your Customers and Energize your Sales!

The economy is said to be recovering. The jury is still out on that claim, but whether you are a believer or not, one thing is irrefutable: RETAIL HAS CHANGED AND THERE IS NO GOING BACK! The brick and mortar craft retailer is dealing with a new kind of shopper. Today's Crafty Shopper is much more sophisticated. She gets free "How To" training from online craft sites such as Craftzine, Craftster, and Ravelry. She is able to try new trends, often before you have even heard about them! Moreover, she might not feel the need for a neighborhood crafting community since she can form a circle of crafty friends through blogging and chat rooms. Yup, in the words of Bob Dylan, "the times they are a-changin.'"

The fact that you have a beautiful, well stocked store in a convenient location is no longer a guarantee of success. No location is more convenient to me than my living room couch and I can do plenty of shopping right there in my PJs!

What is the Crafty Retailer to do?

Engage, engage, engage! You will need to captivate your customers to keep their interest and win the sale. Here, in random order, are some proactive steps to take RIGHT NOW to attract new business, keep the old, and have some fun while you are at it:

1. Get active in your community. Join the Chamber of Commerce, Kiwanis, or other civic organization. They are great networking tools and you will feel good for doing good.

2. Empty out your stock room! Make sure that every bit of inventory is ready to sell. One of my favorite customers told me that she had 2 year old stock that has still not made it to the sales floor! It doesn't do you any good to keep stock in a box waiting to be entered into "the system." No excuses.

3. Time is money. Are you paying sales staff to stand around? Don't do it! Slow times should be used to further your agenda. Prepare a "script" and require your staff to get on the phone and call each and every customer in your data base! Talk about an upcoming event or the new class schedule. Tell the MIA customer that you miss her and offer her 10% off her next purchase. Make it a game. Have each employee keep track of the customers she called. The employee who has the highest number of customer store visits wins a cash prize or store credit. I can hear your groans from here. Promise yourself to make three phone calls every single day. Is it fun? NO. Is it effective? Absolutely!

4. Women notice the little details. Keep a well stocked "personal care" basket in your store rest room. The basket should include items such as lotion, aspirin, tampons, mints, etc.

5. Take a close look at your store signage, both interior and exterior. Is it friendly and easy to read? There is something off putting about signs which declare that "shop lifters will be prosecuted" and "restrooms are for customers only." I mean, really! The price for graciousness is small, but the rewards are huge. I remember the days when I shopped with three small children in tow. The shop owner who let my toddler use her restroom won my loyalty for life.

6. Keep a huge umbrella in the stock room and offer to walk customers to theirs car on rainy days.

7. Fun promotion: Offer a standard Rainy Day Discount. Customers get 15% off when it is raining. Put a storm cloud sign in the window when the sale is on in order to give drive by customers a reminder.

8. Send out email newsletters AT LEAST twice a month. Some folks will unsubscribe, but you will make up for it in new business....guaranteed!

9. Now that you have mastered Email, it is time to go after customer Twitter accounts. You can send out quick and easy reminders of store events this way. Tweet, tweet!

10. Ask every single customer if she sells her work. If she does, ask her to teach a class for you. If she doesn't, ask if she would be interested in attending a free class on marketing/selling craft work.

11. Light some candles...aromatherapy works.

12. Play music. A "too quiet" store is disconcerting.

13. Use "bag stuffers" to get the word out. The person manning the register should personally put a sales flyer into the shopping bag of every single customer, every single day. The flyer provides the staff member with the opportunity to talk about the event and serves as a visual reminder to the customer once she gets home.

14. Advertise in your church bulletin.

15. Consider buying shirts with your logo to use as prize giveaways.

16. Call your Realtor friends and ask to put a free gift or a coupon in their new home packages.

17. Be a good neighbor...contact the folks in your strip mall and ask to put coupons in their stores. Offer to reciprocate. The Wine Boutique can offer a Free Bead Class coupon with purchases over $50 and you can offer $10 off a bottle of wine for every purchase over $50.

18. Put a magnetic sign on your car touting your shop. You might as well be your own traveling billboard!

19. ...while we are on the subject of billboards...you are a walking billboard for your store! Make sure that you are well accessorized at work and beyond. The woman who complements your necklace in the elevator is a potential customer. Give her your card and offer her 10% off her first purchase! One of my favorite customers makes it a point to visit tony boutiques when she is dressed to the nines and wearing one of her handmade nuno scarves. The scarves are showpieces which always garner praise. Most store owners fall prey to her evil plan and ask about the scarf, making it easy for her to broach the possibility of a business relationship. She is slowly but steadily adding new wholesale accounts to her business.

20. Take some of your dead inventory, gather up customer volunteers to assist you, and teach a class at the local senior center. You will get rid of inventory that hasn't moved and your customers will feel good about themselves and about you. Win-win.

21. You can do the same thing at the local Children's home. When it comes to charity attention, the babies always get the focus, while the less adorable teens get the shaft. Make it your business to teach a teen to knit or crochet, if only for an afternoon. You know the comfort that crafting has provided you...give that gift to someone who can really use it!

22. Collect unwanted craft supplies to donate to the senior center or the Children's Home. Let the press know what you are doing so that you can collect on a larger scale and make a bigger impact. The fact that you get nice publicity is an added plus.

23. Join an adopt-a-highway program.

24. Host a blood drive at your store.

25. Donate slow moving product to the local high school Home Ec department and offer to teach a class. Hand out coupons for the kids to bring home!

26. Write handwritten notes to customers to thank them for their business, congratulate them on a promotion, etc. Don't just file this away under "something you know you should do"....DO IT!

27. Consider honoring the dreaded Michael's/JoAnn's 40% off coupon. It is only good for one regular priced item so it shouldn't be too traumatizing. No need to reinvent the wheel....it is working for the big boys, it might work for you!

28. Consider putting one category on sale every day (or every week), and only advertise it via Twitter. Your customers will give up their Twitter names more readily when they understand what is in it for them! 10% off all red yarn on Day 1, with 15% off all patterns on Day 2, etc. makes your place the destination of choice for crafter's in the mood for some retail therapy.

29. Keep fresh flowers by the register.

30. Food is ALWAYS a plus. Make every Wednesday cupcake day.

31. Make your displays interesting. You are in the fantasy business...you cannot afford boring and humdrum. Clean and tidy is not good enough. One shop who has set the bar very high is Suzie Q Beads of Calgary. Her displays are memorable and her color choices make for a vibrant and creative environment. Who wouldn't want to play here?


32. Be innovative. If you are not innovative, find the trendsetters and follow them closely. You know who the leaders in your genre are...and if you don't, spend a few hours researching online and you will figure it out fast. Look at their websites and see what products they are carrying and what sort of classes they are offering. Where do you measure up?

33. Spend a few hours surfing the internet every week. You need to keep on top of the trends because your customers have access to the same internet search engines. They know what is going on "out there" so it is critical that you be even better informed. I have found that a simple google blog search using craft terms quickly brings me to the sites I need to know about! Similarly, a google image search is a powerful tool to "see" what is out there.

34. Schedule some holiday Make and Take Classes. Search the web for some easy crafts that will use existing inventory where possible. Jamie Chan of Urban Fauna Studio has a gift tag idea that is too cute not to pass along. I had some fun in the studio this week-end working on the easy felted soaps pictured below. Each bar used only a bar of soap, 10 grams of fiber and a few beads. The felt covering acts as a washcloth and the flower embellishments can be snipped off and recycled into a pin. Click here for the directions.
Consider a cute crochet Holiday Wreath Pin. Its diminutive size makes it a quick and easy project that can be embellished with beads.

35. Take some chances, but limit your risk. Sounds like an oxymoron, doesn't it? Take a chance by pushing your personal boundaries. For example, pick up the phone and make that customer phone call. Limit your risk by protecting your financial exposure. For example, do not use your personal credit cards to purchase inventory. I can hear you laughing. Everyone uses their personal cards to purchase inventory. Nope. Not everyone. Small business owners do and it is risky. It will keep you up at night. Get rid of your dead inventory and pay off that credit card. Start limiting your exposure...you will sleep better.

36. Form an alliance with other business owners. It gets tiresome fighting the world all by yourself! Network with others who are similarly situated and the journey will be easier. It is great to be able to ask another retailer how many turns she gets on a particular product category or how she handled having to lay off a loyal employee. Many Bead Shop owners have enjoyed the camaraderie of the Local Bead Store Alliance. Ravelry has a group specifically for small business owners.

37. Take some time to recharge your batteries. Worry is exhausting and try as you might, you simply cannot control the economy. Play in your studio, play with your kids, play with the dog, and don't forget to play with your significant other. Rekindle your passion for your craft AND for your customers...the business success will follow!