The 3 R's of Retail Success can help you Navigate a Tough Economy

While many Crafty Retailers are closing the doors to look for greener pastures, others are digging in their heels in anticipation of a brighter future.  This week's Crafty Retail Rock Star knows the importance of the 3 R's of Retail Success:  Relevance, Relationships, Reevaluation.

 

Kelli Burns, one of the forces behind The Hole Bead Shop in Bartlesville, Oklahoma, is a retail survivor.  She is also one of the kindest and most generous people in the industry.  I first met her about five years ago when she became a customer.  She quickly became a favorite of mine and now I am lucky to call her a friend.  I had a chance to speak with Kelli today about the state of the industry and she offered the following advice:

Stay Relevant!

Check out your competition.  Find a void and FILL IT.  No one in the area is offering resin or metal work?  Great!  Make it your mission to be the best in that area.  Learn everything you can about  the subject and pound it hard.  Make IT your niche.  Design classes around IT, submit designs to magazines featuring IT,  become the national expert in IT.  Kelli, together with Husband Michael and sister Tarlee, have made Lucite Flowers their "IT."  While the store is well stocked with industry basics such as seed beads, glass beads, and lamp work, it is the lucite bead collection that is the star of the show.   The team sells the loveliest lucite in the bead industry, custom dyeing many colors not offered by any other vendor.  Kelli believes that the bead stores that carry only "standard" inventory are doomed, and I tend to agree.  Today's consumer is much more savvy than she was when I owned my bead shop.  She can get on the computer, do a quick Google Shopping Search, and find out exactly where to find what she needs if she cannot find it from you.  Stay RELEVANT and keep that dollar in your store!

Reinvent Yourself!  Kelli's bead store had an interesting start.  She traded some tired Avon inventory for some tired bead inventory and suddenly she was a Crafty Retailer.  She has been in business for about six years and has Refined and Reinvented herself the entire time.  The Hole Bead started out as a traditional bead store, with classes and bead parties.  However, Lucite sales took off and the store morphed into more of a shipping station for all of the website orders, and classes and bead parties slowly disappeared.  In fact, the website currently accounts for about 75% of store sales, with the Brick and Mortar shop accounting for the remaining 25%.  Are there any retailers out there who still think that they can get by without an e-commerce companion site? 

Of course, Kelli has been dealing with the same stagnant economy as the rest of us and reports that she and her husband now travel to six bead shows per year to supplement their income.   The store provides a salary and is the main source of income for the couple, who are considering adding classes and bead parties back to the shop menu.  Nothing is static....there is a constant need to reevaluate and refine, and Kelli does it with great success.

Cultivate Relationships!  People do business with people they like, period.  We all know the importance of focusing on customer relationships, but many of us drop the ball when it comes to industry relationships.  Not Kelli!  She makes it her mission to send out generous product samples to key players in the industry every year. Magazine editors and large vendors are always on the look out for interesting components to use for customer projects and "how to" articles, so  Kelli wisely makes it easy for them to consider using Lucite! Smart gal, that Kelli. 

Kelli does not have the budget to advertise, so she has employed other methods of getting her brand noticed.  For example, she works diligently to design amazing work and works just as diligently to get it published.  She regularly submits her designs to national and international publications and often hits the coveted cover spot.   Once the magazine hits the stands, The Hole Bead Shop offers kits for sale so that consumers can easily make the project as designed.   Moreover, Kelli has become a Facebook master...her posts are always funny or informative....very "real" and never contrived.   Frankly, Kelli  keeps her name "out there" in a way that is quite charming.   

Although her work has been published more than 30 times, she possesses none of the artistic ego so prevalent with many other accomplished artists.   She is a constant source of amazement to me with her willingness to share techniques, resources, etc.    She has encouraged me to submit my own work, sending contact names and advice regarding the process.   When I was tearfully navigating oncology treatments with my four legged pal, Rosie, I returned home on many occasions to find a well timed note of encouragement from Kelli, who had recently "been there, done that" and knew just what to say.  

 Ever the promoter, Kelli has generously offered blog readers a 10% off coupon good for 24 hours only at The Hole Bead online store!  The coupon code is CRAFTY and can be used for either wholesale or retail orders, but wholesale account holders must have a brick and mortar storefront.  If you do not have a wholesale account yet, please contact Kelli to get approved prior to placing your order. 

There is a saying in marketing that "Giver's Gain" and it is certainly true of Kelli!  Her happy heart, generous spirit, and work ethic guarantee that she will continue to delight her customers for many years!

IN OTHER NEWS:

I am no stranger to Reinvention and have a little going on myself.   I am delighted to report that I am the newest member of Swarovski's Create-Your-Style Ambassador program.  It is a thrill to be working with so many talented individuals and was just the affirmation I needed as I make the transition from Mom to Empty Nester.  I am doing a great deal more teaching these days and will soon be launching a new Retail site which will feature my own line of hand dyed ribbon, merino wool top and silk yardage,  as well as a selection of Swarovski sew on embellishments and crystal yarn.  There is so much more to report, but things are still under wraps as we work out the final details.  Look for an update soon.  Such fun!
 

...OOPS!  I ALMOST FORGOT!

A while back we tried to get an online retail networking group off the ground.  The Ning network proved clunky and difficult and the project was abandoned.  Happily, the new Facebook "groups" function has served to breathe new life into the endeavor.  I have established a Facebook group for Crafty Retailers to share their joys, triumphs and tribulations, project ideas and promotional events in a spirit of comraderie and friendship.  After all, if the industry succeeds, we will all succeed!  Although the members names are visible, all posts are private.  If you are a crafty retailer --on line or brick and mortar--and want to participate, send me a Facebook message and a friend request, as only Facebook "friends" can be added to Facebook groups!

Is the Brick and Mortar Craft Store still a viable Business Model?

Kinda sorta.

I guess it depends on what you mean by "viable." 

Clearly, the market for crafty consumers is strong.  56% of US households crafted at least once during 2010. The jewelry/bead craft industry  boasts 2.3 billion in annual sales, while the needlework craft industry is even larger---generating 2.9 billion dollars in 2010.  

Despite what appears to be a solid customer base, many Crafty Business Owners have decided they are making too little money while expending too much effort, shutting the doors in  impressive numbers.  Blue Moon Beads recently filed for Bankruptcy.  Homer Hillis, of HHH Enterprises, is closing the last brick and mortar store of what was once an 8 store bead empire, preferring to concentrate on his online retail business.  

Homer, who once described his shop as "a hardware store for women"  is one of the most personable, driven, craft loving guys I know.  I first met him in Tucson at the To Bead True Blue show and have come to respect his business longevity and his marketing acumen.  Despite his passion and his experience, Homer believes that the Crafty Business Model has changed so dramatically in the past few years, "the juice just ain't worth the squeeze."    No doubt about it, the large chain stores and major Internet supplies have had a deleterious effect on the local craft store.

It is easy to make the discount internet craft retailer the "bad guy," but the challenges facing the Crafty Retailer are more complicated than that.  Consider the experience of Jackie Goff, a former Crafty Retail Rock Star.  Jackie recently closed the doors of her Toledo, Ohio yarn store, Uptown Fibers.   Jackie did not go into retail as a starry eyed crafter looking to turn her hobby into a business.  She is a savvy business woman who did an inordinate amount of research before signing her lease.  She had a supportive husband and a plan for success.  She crunched the numbers, developed a budget, knew how much yarn she needed to sell at exactly what margin in order to meet her expenses, and decided to GO FOR IT.  She developed innovative and exciting classes which often had waiting lists.  She advertised locally to increase her customer base.  She held in store events to generate interest and excitement.  She encouraged crafty community and sent out regular emails.  She lost thirty thousand dollars her first year.  Undaunted, Jackie upped her game.  She increased her marketing, and wrote a killer email to her customers explaining the economies of running a Yarn Store.

She lost thirty thousand dollars her second year.  She had an email list of 2000 and a customer snail mail list of 500, yet as the economy worsened, her core customer group stood at only 400.  Jackie's shop was located in an area near Detroit.  The local economy was dependent upon the automotive industry,  an industry that has been decimated in recent years.  One third of her customer base had suffered a job layoff or had a spouse who had been laid off or worried about being laid off.    Fear kills the impulse purchase and folks simply didn't have the disposable income to sustain her shop.  Sales fell far short of the $600 required each day in order to meet her expenses.  Inventory started to grow stale and Jackie was reluctant to invest more money in what was starting to appear to be a black hole.

While she was dealing with a depressed local market, Jackie also experienced the double edged sword of the internet.  Her store was stocked with thousands of dollars worth of books and patterns, but her cost conscious consumer knew that she could go to Ravelry and download something similar for free.  Classes that were once a major customer draw started to stagnate as You Tube exploded onto the Craft Scene.  Suddenly it was possible for a wannabee fiber aficionado to learn to knit or crochet FOR FREE at midnight while sitting in her jammies on the couch.  Paying for the privilege quickly became less attractive to her cash strapped customer.   Thrifty shoppers came to the store for inspiration and companionship, but many would order their yarn from the online discounters.

Jackie did everything that she could to minimize her expenses.  She was forced to let go of virtually all of her help, was not on the payroll, and was operating on a shoestring.  She realized that she would soon be in a position where she could no longer pay her bills while servicing her debt.  Finally, after losing another thirty thousand dollars during her third year, Jackie made the decision to close.  I asked Jackie to identify the final straw and was surprised when she told me that the decision was easy.  In fact, the decision had actually been made before she opened the store!  In typically thoughtful Jackie fashion, she and her husband had decided how much money they were willing to invest before they signed on the bottom line.  Smart people, those Goffs!  They took the emotion out of the decision and were proactive rather than reactive.  They defined what they would invest as start up capital, and determined how much they would be willing to invest/lose along the way.  They promised one another that once those funds had been expended, the jig would be up.

Three and one half  years into her journey, it is over.  The fixtures have been sold, the remaining stock will be sold or donated, and Jackie is ready to call it a day, despite the fact that she will be responsible for a $2500 lease payment through October.  She doesn't think that she could have done anything to have brought about a different outcome and I tend to agree.  Timing, and a wicked economy, were against her.   In the end, the adventure will have cost her between $150,000 and $175,000.  Uptown Fibers was  more than a small business statistic....Toledo has lost a gem.

So...is the Brick and Mortar Craft Store still a viable Business Model?

Yes---for those retailers who are in an area with a more forgiving economy and who have crafted a niche market---retail is not just doable, it can be profitable.  Join us next week when we meet a Crafty Retailer who shares her secrets for defying the odds as she slugs it out in a crowded market!


In the Studio
My blog posts have been infrequent of late....all the work has been studio focused!  My youngest is graduating from High School next week and the Empty Nest is looming large.   I am endeavoring to look at this next stage of life as a wonderful opportunity ... creatively.  For the first time since I had children I will be in a position to travel easily and I am looking forward to new teaching opportunities.  The past few weeks have been a bit of a fiber frenzy as I prepared a number of workshop proposals.  Here is a "bits and pieces" preview of my submissions to Swarovski....wish me luck!

 

Speaking of workshops, I was delighted to learn that I will be teaching at the Southeastern Animal Fiber Fair in Fletcher, North Carolina this Fall.  The event is always spectacular for fiber lovers and I cannot wait to do some shopping while I am there!  The festival is October 21-23 and I will be teaching four workshops.  Two of the classes involve "hands on" fibery fun, while the others are geared toward crafty marketing.

Maybe this empty nest thing won't be so bad after all!

Blow Out your Dead Inventory and Improve Your Bottom Line!

Dead Inventory = Dead Money. 

We all make mistakes when buying inventory.  Years ago I couldn't keep Crystal Square Frames in stock...they flew out the door as fast as I could get them in and sourcing them was a real challenge.  After much thought and deliberation I opted to meet the manufacturer's minimum order quantity ("MOQ") so that I could have the stones specially produced for me.   Mind you, the MOQ required a $5000 commitment per color---it was scary, but I ordered 4 colors.   It was awesome!   Those stones sold like hotcakes and I found myself placing another large order.

Oops.

Sales inexplicably flattened, and there I was....sitting with boxes and boxes of very expensive "cold" product.   I was overly attached to my inventory in those days and refused to discount the stones to move them----they had been  hard to get and might be  hard to find again.  The stones are truly magnificent--they remain my personal favorite to this day---and I didn't want to let them go for a pittance!

Unfortunately, while I was busy sticking to my guns, the internet retailers had taken over and were offering the stone for a retail price that was only 30% over my COST as a wholesale distributor of Swarovski Crystal Distributor.  Yikes.   I put them on a shelf and tried to forget about them for a while.  I eventually decided that some return on my investment was better than no return on my investment.

I got busy and got creative with merchandising: I put the stones into grab bags, turned them into necklaces and sold them to local boutiques, used them for door prizes, recast them in challenge kits, etc.  Finally, I sold the the bulk of the stock for about 1/2 of my cost.   It hurt, but the cash influx enabled me to purchase fresh inventory at a time when money was short and new inventory was needed.  It was an expensive lesson, but it was a lesson that stuck.  Life is funny that way...the painful lessons seem to be the most effective, don't they?  I sure as hell don't want to go down that road again so I am much more careful about my purchases these days.  I will often pay a bit more to purchase a smallish quantity  from a distributor, rather than dealing directly with a manufacturer in order to avoid the onerous minimum purchase requirements.  After all, dead inventory presents a bigger risk than a slightly reduced profit margin! 


I am also much more aggressive about rotating my stock.  I start marking down merchandise earlier in its life cycle---preferring the fast nickel over the slow dime.  NOTHING is allowed to sit for long.  Sitting inventory has a deleterious impact on your business:  it slows down cash flow and tells your customers that you are broke or disinterested, which will impede cash flow even more!  If you have some duds on your floor, make it your mission to get rid of 'em to make room for winners!

Re-arrange your store regularly.  How many times have you heard a customer squeal with delight over something "new" that was simply old stock that had been relocated to a more visible spot?  It happened every time I moved products around in my store.

Make something that you love, using at least some of the duds. Feature it as a class, free tutorial, or sell it as a kit.

Host a craft challenge using the duds. The copper components that I am featuring in this week's challenge are the last of a slow seller.  The product line was beautiful, and I use the materials in my own work all of the time, but it didn't sell well.

Most important .....Think outside of the box!

Saturday, May 14, 2011 is "Give Your Stuff Away for Free" day.  Seriously.  The idea is that we are major consumers and have accumulated lots of stuff that we do not use and do not need...so GIFT IT AWAY.  The project founder,  Mike Morone, is hoping to create the world's largest recycling event, urging folks to drag "for free" items to the curb for others to enjoy. 

Why not participate in the event, but give it a crafty twist like Cynthia Deis of Ornamentea has chosen to do.  She is brilliant!  Cynthia sent out a quick email blast introducing the concept and urging her customers to bring in unwanted craft supplies.    I bet the email resonates with her clientele...it certainly struck a chord with me.  I have a huge box filled with fiber that I will never use. I  feel too guilty to throw it away, so it takes up precious closet space.   The materials would be a real find for the right taker and I would love for the box to find an appreciative home so that I can reclaim my closet.  I am sure that I am not alone!   Those that give, can also take.  You can see Cynthia's upbeat, cheery newsletter here.

The Bonus:  this is a perfect opportunity to unload some of that dead inventory you have been dragging around...it will make someone smile.  Better yet, the excitement --and extra sales generated due to the event--- will ease the sting of having to give away "perfectly good stuff."  It ain't good if it ain't selling.

IN OTHER NEWS 
It has been a busy time in my home.  My youngest is graduating from High School and my middle son just graduated from the University of Florida.  I will be turning 50 the day after I drop my daughter off at college. WAHHH!  Sigh.   I have been pouring through generations of family photographs, laughing and crying...you know the drill.  It is a time of  celebration and reflection, for sure!  

Perhaps that is why I was so delighted to come across the Dream Boxes manufactured by HHH Enterprises---they are perfect for creating wearable memories!   Designed to hold collages, dimensional items and photos, the Dream Boxes have a hinged glass door so all you need to do is open and place your favorite image, momento, or design.

They retail two for $12.99.  The company's owner, Homer Hillis, offers retailers excellent wholesale pricing.  He and his wife, Ronda, have established a solid niche offering interesting components for  mixed media and altered art.  I spent quite a bit of time perusing the site and was impressed---the product line would nicely supplement the inventory offered in the "typical" craft shop and the price point should be particularly attractive to those bead stores looking for crafty alternatives to pricey gold and silver.   Readers can get FREE SHIPPING by simply using Coupon Code crafty11 on any order over $25.
 Now for the really good part:  Homer has graciously agreed to provide 10 dream boxes for the current Crafty Throw Down!  10 lucky particpants will receive a Dream Box and the kit pictured below:

  

The kit includes a generous selection of copper components, only a few of which are pictured, as well as hand dyed silk ribbon, and Swarovski crystal beads in Rosaline, Light Colorado Topaz, and Sand Opal.  There are also some Swarovski pearls and squaredelle spacers....YUM!

The rules are simple!

We will draw names for the participants on Monday 5/17/2011.  The dream boxes and the kits will be mailed out by Friday 5/21.  Participants will have until June 30 to create something using the components as a jumping off point.  

Create anything.  Use any medium. 

Theme:   Change/Metamorphasis 

Send us pictures of the completed project on or before June 30 with a brief description of the techniques employed. We post the pictures and everyone OOHS and AAHS.  The pieces remains yours to keep, sell or give away.

Wanna Play?

Send me an email if you want to be entered in the drawing.  Please include your address and contact information. 

Coming next week:  The Fiber Cuff Challenge BIG REVEAL! 

Charity Craft Challenges and the Case for Sound Reasoning....

This is a tough time to own a small business. Two of my favorite crafty retailers just told me that they were closing the doors.  One was a customer and one was a Crafty Retail Rock Star.  The former had an opportunity to sublease her costly retail space and jumped at the opportunity to get the hell out.  The latter is closing the doors because the numbers just aren't working and she has done everything she can think of to make them work.  She is sad and frustrated but will not let emotions get in the way of sound business decisions, and sometimes the soundest decision is to cut your losses.

Man, Oh Man.

I know how they feel and I bet you do too.  We have either been there before, are sitting there now, or harbor fears that it could happen soon.    Let's face it....with the bleak national economic news pressing in on us from all sides it would be difficult not to have some concerns.

....and yet.....

I am ordering new inventory and adding fresh product lines.  I am developing a new line of kits and scheduling workshops.  I am planning for tomorrow.  While I am hopeful for the future,  momma didn't raise no fool.  A bad inventory decision is a bigger deal today than it used to be, so my decisions have to be more calculated than emotional.   I do a lot of research and ask too many questions.  I try not to make big decisions when I am rushed because mistakes are usually more costly than the time required to fully analyze the situation.  No doubt about it.... I am making inventory decisions very thoughtfully, and with much less exuberance than I did a few years ago.    There is big difference between "sound reasoning" and "reasons that just sound good"!  Today's financial climate requires that I remind myself of that difference on a daily basis.  So as I look to the future I try to work hard, employ sound reasoning, stack the odds in my favor, create, and, most of all... to pray.  After all, what else are ya gonna do?

IN OTHER NEWS

I am tickled pink and totally excited....the Etsy Craft Warrior Charity Site is officially up and running.

The CONCEPT

It is so easy to get caught up in the drama and tumult occurring in our little spot on the map that we can  forget to think about those who could use a helping hand.   I figured that  an ongoing Charity Craft Challenge would be a great way to combine work life with my desire to be of service to the larger community --- and the Craft Warrior was born.  The lady on the logo is my husband's Great Great Aunt Celia.   I never met her but I sure do treasure the picture...dour face, swollen ankles, bosom hanging low...I mean, what's not to love?  We tease my beautiful daughter that Aunt Celia looked EXACTLY like her when she was a young woman.  We think it is hilarious.  My daughter does not. 

...but I digress....

We announced our first challenge a few months ago and the deadline for submission was April 15.  Every artist who participated received a box of goodies from Aussie Threads and Fibers to use as a jumping off point.  The finished projects were donated and posted on the Etsy site, with all proceeds benefiting the Special Operations Warrior Foundation.  Wow!   I was humbled by the quality of work submitted.  We had a generous and very talented group of artists participating...including several national instructors and Swarovski Create Your Style Ambassadors.  The work is amazing and it is all available for purchase on Etsy.   Er......Did I mention that all of the proceeds are going to the Special Operations Warrior Foundation?
 
Yup...every cent.  

 Aussie Threads and Fibers will bear the Etsy expenses and fees. Please take a moment to see the terrific work and read about the talented creators of the "Pearls with an Attitude" submissions HERE .  After that,  head on over to Etsy to do some SHOPPING!   We priced every single article at the same low price to make it painless for you and profitable for the soldiers.  Let's raise some money for the families of folks who have sacrificed for our great nation. Make Aunt Celia proud!

Wanna participate in our next CRAFT WARRIOR CHALLENGE?  The kit is "TABAC TEMPTATIONS" and includes vintage and specialty coated Swarovski crystal, as well as some incredible beads and baubles.

Shoot me an email if you want to be entered into the drawing!  The finished project will be due on or before June 15.

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!

Define the life you want and refine your business to accomodate it.

It is time to hit the "applause" button.  We deserve it, dontcha think?  Those of us who have survived the last few years and lived to tell about it are due a pat on the back and some raucous applause.

WHOO HOO!  You go, girl!

We have downsized, belt tightened, sold off dead inventory, kept folks employed and tap danced to keep customers happy.  We have paid bills on time and scheduled marketing events and sent out emails.  We have worked harder than ever to keep the doors open.....and they are still open.  It feels good.  In fact, my little business is in a bit of an expansion mode at present.... and THAT feels really good.

You see, not too many years ago the story was much different.  I had huge sales numbers and thought that I was kicking ass.  Ironically, my business was in a crisis mode but I was totally clueless until it was almost too late. Oops.  I didn't realize that the economy was cyclical and that I had simply been riding a wave. [ Errr...you mean the good times don't last forever?   Who da thunk?]    I was more artist/marketing strong than process/accounting strong.  I didn't like the yucky stuff like bookkeeping and there was always a squeakier wheel to grab my attention.   I had a family with three busy teenagers.  My internet business was home based, and in my head that meant that I was a stay at home mom...meeting every need and expectation except for some important ones required by the business.  It only took a few unexpectedly slow months for the world to crash in on me.  Cash flow seemed to disappear overnight.  Gulp.  I had way too much inventory....WAY too much.  The debt appeared to be unsustainable.  Hubby was pissed.  I was freaked.   I couldn't meet my financial obligations for the first time in my life.  I talked to a bankruptcy attorney, but knew that I would not be able to live with that option.  It was a dark time.

Fortunately, I am as tenacious as a bulldog and failure was not an option.  I refused to bankrupt the company --it was a  moral issue for me.  I also determined that my my family would not risk financial security to pay the price for my foolishness.   Some how, some way I needed to pull a miracle out of my ass.  I found a business mentor, learned some humility, and got it together.    I spent the next two years working 12-15 hour days in a state of barely suppressed  panic.    Bad choices necessarily forced other choices and I paid a heavy price for my irresponsibility.    I had to forgo a  paycheck, no money for perks,  not enough time for my family and certainly no time for crafting....every penny was thrown at the debt and every hour was thrown at the business.  It was awful, but it was effective.  Although I am not yet completely debt free,  I am getting close.  The remaining debt amount is insignificant enough to make a banker yawn.  Yup, I have morphed into a halfway respectable business person...my Quickbooks balance actually matches my bank account balance.  It is a beautiful thing!

My two years of  Panicky Debt Hell ended when I realized that I was actually Going To Make It.  I had dodged a bullet---the business was going to survive, the debt was going to get paid.    Now what?  I did what I had to do when I had to do it, but I was no longer willing to work  12-15 hour days.  I wanted more time with my family, with my dogs, in the garden and in the studio.  Once I had defined the life I wanted, it was easy to refine my  business to accommodate that life..  I downsized, dropped some product lines, said good bye to some high maintenance/low margin customers, tightened my belt, watched my inventory like a hawk, and cut back on my work schedule.  If I don't have cash, I don't buy.  It works.  Another benefit?  I learned to work smarter, not harder.



Of course, I continue to refine the business as my life morphs from one stage to the next.   I will soon be presiding over an empty nest. Sigh.  One minute I am a teary, weepy mess as I bid adieu to my daughter's little girl self, and the next I am excited by the new opportunities that await me.  [Menopause, manic depressive, or normal?  You be the judge].

I am putting the finishing touches on  a number of workshop proposals as I seek to increase  national teaching opportunities for 2012.  Additionally, I am getting ready to launch a new line of felting kits, which has me totally jazzed.   I have more ideas than time and  cannot wait to wake up in the morning.   The funny thing is...I am working 12 hour days again, but it doesn't feel like work.  I am happy and invigorated.  I am thankful for the lessons that I learned during those difficult years.  The economic challenges of today seem small by comparison! I will never, EVER, EVER get into debt again. My heart is filled with gratitude and I look forward to each day.

Fortunately, not every retailer has to learn the hard way.  There are many who have good instincts and get it right the first time.  Carol Garfield, of Dancing Beads in Medford, Oregon  is just such a Retail Rock Star.  You first met her a few posts back.

Carol owned a retail bead shop from 1995 to 2006.   The shop was her day job and it needed to support itself and her, so for 13 years she made certain that she was the "go to" place for beady inspiration.  However, as her 50th birthday approached, she decided that she was ready for a change.  [Menopause, manic depressive, or normal?  You be the judge].

Carol was able to close the doors debt free because she had always "paid as she played."   [insert sound of wild applause here].    She packed up her gorgeous inventory and went home, where she started a home based web design business.  Fast forward to June 2010.  Carol was not enjoying the isolation of her home office and decided to rent some space.  While looking for an office, she found the perfect retail space:

As I stood in the middle of the room I was astounded by the light coming into the space.  There were two rooms, and the smaller one was a sunroom!  Hardwood floors, a fireplace, and walls painted a great color further charmed me.  As I stood in the middle of the room soaking it all in a gentle voice declared with much authority, "You just found your bead store."  I didn't even know I was looking.

Carol's return to crafty retail after a two year hiatus came with some surprises....the out of control price of silver, for example.  However, most surprising was the dramatic way that marketing had changed.  

I think I closed the old shop at just the right time, and I know I've re-opened it at just the right time.

I've been amazed at how much the world changed in the two years I was gone.  Of course, the price of metals is beyond ridiculous, but as a red head, I prefer copper anyway, and have gotten my customers excited about it.  Shipping?!  Sheesh, twice as much, and twice as slow.  The online competition is daunting, and before long I will have an online catalog.  I do have a website, a blog, and a Facebook page for the shop, all of which I maintain myself, so the catalog is slow going.

What I've been the most amazed by has been the change in marketing.  I've always been a good story teller, and I've blogged since 2005.  Social networking wears me out, but I do it.  I tend to be more social face-to-face, than online.

I'm celebrating National Craft Month (along with everyone else in our industry) and have sent out an email newsletter to the nearly 600 bead lovers on my email list.  I've started a monthly 'Make and Take' and aa result... I've made bag stuffers outlining all the fun that will be happening this month.  I'll be making bag stuffers every month as I have all my promotions, events, and sales scheduled for the year.  There is dead inventory in the closet that will soon go away as grab bags, challenges, or a donation to a homeless teen center.  I talk about The 3/50 Project to anyone who will listen.  I'm blogging, and posting my status on Facebook as often as possible.  Yesterday, the shop reached 100 'likes' on FB and lucky number 100 has a $10.00 gift certificate waiting to be collected.  I'm filming things around the shop I think might interest my customers.  I email a newsletter every other week, and I make certain I tell everyone thank you.  They're the reason I'm working so hard. weekly Beading Circle.  Seven people volunteered to help me teach classes this session, and we've scheduled 24 different projects, and techniques as

Community.  I had no idea what a hole I'd left by closing in 2008 until re-opening in 2010.  My old customers have been coming back in droves.  They missed the shop, the vibe, and excitement.  They love the new space.  The economy may still be rough, but people will always want to be surrounded by beauty, and are willing to spend a little to fulfill their need to create.  We're in the best business there is, we get to fulfill those needs, and our own at the same time!!

Wow....I couldn't have said it better myself.  Carol's brand new business is supporting her and she has recently expanded.  Her tips for success:

Make a Daily TO DO List and DO IT.  Carol always starts her day with a clear vision of what it will hold for her, whether it is a three hour marketing session or benign store housekeeping issues.   She does what she has to do before she even thinks about doing what she wants to do.  No quick peeks at Facebook, no playing with the inventory, no NUTHIN'....until the list is finished.  

Put your hopes and dreams out to the universe.    "I would like to make X dollars today."  Carol says that more often than not, she finds that she gets what she needs.  Don't laugh.  The universe currently knows that I am looking for a used leather couch for my studio.  It will come.  

Stay Fresh:  Constantly explore new techniques.  Carol loves to teach and says that as she learns and changes, so do her customers.

Be "Other Oriented."  Ask yourself what you can due to improve the shopping experience of every individual who walks in your door.  This one seems so obvious, but ask yourself....When was the last time someone treated you like that?  It is so rare that when it happens, loyal fans are born.  Carol spoke the truth when she told me that her customers are hungry for what they cannot find from on-line retailers...Human Connection.  

Say it, Girfriend!  Unh hunh, Unh hunh.

IN OTHER NEWS: 

Those of you who have been with me a while know that I went through hell and back when I lost my dog to cancer late last year.    I did what I swore I wouldn't and  adopted little Cooper, in part because he had a certain Rosie-ish  shape to his face and in part because he needed a family.   

  Oh.  My.  God.

He is a terror.  An honest to goodness Demon Dog.  He pees with gleeful abandon the second he comes inside....after peeing quite happily and productively outside.   He hangs by the cat litter box looking for tasty treats.  He has slaughtered several of my chickens and even managed to kill the meanest rooster that I have ever owned.  This rooster was huge and had two inch spurs---I cannot even imagine how it happened.   The Roo was an ornery cuss  and would regularly attack  me when I stepped too close.   I guess Cooper actually performed a bit of a favor there, but I have to protect my hens!   

I  Googled "how to stop a dog from killing chickens" and learned ---from resource after resource---that it was fairly easy to do.  It merely involves tying the dead chicken's lifeless body to the dog's collar and letting it rot there for a week.  It is widely suggested that the dog be separated from the family during this process as the flies can be overwhelming.  Wow.  That kind of training is sure not going to happen in my lifetime.  Sigh.  Yesterday I found him in my bed, happily gnawing on the leathery foot of a long dead turtle carcass.  Today he cremated a baby finch hopping about the driveway.  Louder Sigh.    

My dog-loving daughter confessed that she wouldn't be upset if Cooper found another home.  My dog-loving husband thinks Cooper is a nightmare.  Of course, I am into "high maintenance and difficult," so I already adore him.  He looks quite the imp with that little patch over his eye and a dead turtle hanging out of his mouth.  What to do?

I guess it is time for me to pull another miracle out of my ass.  After all, he does remind me of Rosie.  She used to exult in Rooster Chasing, too.  So....Game On.  I am going out whisper the Dog Whisperer.  I am going to win this battle.  I hope.  Oops...gotta go...Cooper is heading toward the cat litter box again!

Pray for me....

Target the Cross Over Crafter to Increase your Sales!

Crafters fall in and out of love pretty easily.  We are a somewhat fickle bunch...one day it is beading, the next day knitting is what rocks the world.  I crocheted feverishly all winter but will not pick up my hook again until Fall, content to have the colorful "not quite an afghan yet" granny squares decorating the wall in my studio for now.  Florida is already getting too hot  to have a lap filled with wool---what with Menopausal hot flashes and all.  Besides...I want to focus on jewelry for the moment.     Fiber is my passion and fiber jewelry in particular is what tends to make my heart go pitter pat...there is something intoxicating about the marriage of fiber and sparkle that makes me giddy.  I will admit that there was a time when my affinity for fiber jewelry made me a bit of a pariah.  I was a fashion DON'T with respect to my fetish.   

Not so any longer!

One cannot peruse a fashion magazine or scan the web without spying some sort of fibery adornment these days.   It is everywhere!  All of Anthroplogie's recent collections feature fiber of some sort.  The "Layers of Grace" bib necklace pictured below retails for $158.00  PUHLEASE!   A snippet of lace and some brass chain.   A Crafty Retailer could teach her customers to whip up something similar for a fraction of the cost!

 

Chances are, most Crafty Retailers won't think to do it.  Fiber jewelry is a bit "out there"  for  many standard bead stores.  Yarn shops tend to ignore it as well, concentrating more on garment construction.  The clumsy felt ball necklaces of yesteryear might have scared everyone away---I wouldn't be seen in such a necklace, either!    A quick Google  search for "felted jewelry" turned up over 10 million breathtaking images---the art has clearly evolved beyond the ball and your customers are all over it! 

Fiber jewelry is cost effective...many of the most beautiful creations center upon reclaimed/recycled components.  An old sweater can become the base for a felted cuff.  A broken piece of granny's jewelry can become the centerpiece for a spectacular new necklace.  A sliver of satin becomes a fabric bead.  Use your crafty Know How to fashion classes that your customers can afford!   Need some help?  Maricel, owner of the Etsy shop SolBijou offers a tutorial for making a vintage inspired Re-Creation--featuring delicate ribbon flowers-- like the one pictured above---for a mere $10. 

Check out some of the other fanciful creations I found in the cybersphere:

 

The spectacular brooches pictured above feature zippers and recycled sweaters.  The artist, Odile Gova, maintains an enchanting  Etsy shop, Woolyfabulous.

  I rarely suffer from jewelry envy but did not pause too long before raiding my "new video camera savings stash" to buy the flower brooch pictured at left.    Sometimes survival is a matter of perspective.  What I think of as "necessary" and what my husband perceives it to be are a little different. Economy be damned.   People are still spending---if you are offering something they want to spend their money on!

Ivy Long, the artist behind Edera Jewelry, creates some of the most romantic and ethereal crochet jewelry that I have ever seen.   The drop earrings pictured below are certainly drool worthy, wouldn't you agree?

The work of Gail Crosman Moore caused me to take back my snide "felted ball" comments---her work ROCKS.  I am inspired!  Hmmmm.......I might have to re-think the whole balls thing.

 Feeling inspired?  Wholesale customers can use coupon code TCR5 to save 5% off any purchase that includes fiber through April 5 from my online store. 

IN OTHER NEWS

 

The judges have spoken and we have a winner for our FIBER EARRING THROWDOWN!  We got a surprising number of entries and our judges were hard pressed to find one winner amongst the fabulous earring submissions...they really were all quite different and each was very lovely. However, life is cruel and decisions had to be made.  First prize went to Angie Shan for her exquisite folded ribbon creations.  Angie will receive a prize package valued at $150.  There were nine winners in all .....Check out all of the winning entries HERE.

We will be announcing two new challenges in April:  

Craft Warrior Challenge will be announced April 20

  Crafty Throwdown will be announced on April 27.  

Come play with us!

Eek!  We have run out of time!  Check with us next week when we feature survival tips from Crafty Retail Rock Star Carol Garfield, the owner of Dancing Beads.