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!

...Become an "Inspiration Destination" to get your Share of the Craft Dollar!

There are certain people who emanate creative light---you know the sort  I mean---each idea is more inventive than the last, their humor is infectious, filling the world with laughter, and the day is just a tad sunnier for having encountered them.  Steven Berg is that guy for me.     I met him at a TNNA trade show a few years back and have spoken to him only a few times since.   He probably doesn't have a clue that  I am a groupie because our contact has been infrequent.

Nonetheless, I have followed his career with interest.  I yam what I yam----a  Steven Be groupie.

Steven grew up around yarn.  His mother, Christina, owned a yarn shop and taught Steven to knit at an early age.   The shop was in a charming turn of the century building, that was evocative of Ike's General Store from The Waltons television show, replete with dome glass counters.  Steven learned the importance of ambiance at an early age.  He had an eye for fashion and was designing elaborate Barbie clothes by age eight. His love of design brought him to the fashion industry where he had an international career throughout Hong Kong, Milan, Paris and Miami.   However, corporate settings have a way of putting distance between the artist and the artistic process, leaving Steven clamoring for a more creative experience.

After 30 years in the fashion industry, Steven moved to  Rosemount, Minnesota and went into business with his sister, Monika.  The pair founded The Yarn Garage in 2003.  The endeavor proved to be an immediate success and he branched out with his latest venture,  Steven Be, located in Minneapolis.   The store is housed in an old firehouse that Steven lovingly restored.  It is off the beaten path in a not quite "up and coming" neighborhood, but Steven figured that someone had to start the gentrification process and decided he was going to be the one. 

He has created something special and he has the cash register receipts to prove it.  In a location with little visibility, in a city that has its share of economic challenges, Steven Be is growing.  The store is profitable and revenues are increasing every year.  Impressive, indeed, at a time when craft stores are shutting the doors with depressing regularity.

So what is Steven Berg doing right?

Lots!  He is warm, talented, engaging, confident and delightfully eccentric, with hints of vulnerability peeking through when you least expect it.  Frankly, his complete and utter humanity is enchanting.  He clearly has a great deal going for him,  but the key to his success lies with his ability to truly inspire others. He makes magic. Where the average knitter might see a ball of yarn as nothing more than a  pretty possibility, Steven sees the MAGIC of its potential.  Hang with him long enough and you see the magic, too.   He is infectious and inspiring.  In Steven's world "There are no mistakes, only variations."   I like that philosophy....it is easier to try something new if you can't fail and Steven makes you think that failure is damn near impossible. 

His store is overflowing with delightful fiber confections.  His has an eye for the best and most unusual in fibers, earning him the nickname the "Glitter Knitter."  There are fanciful  and luxurious samples everywhere!  Do you want diaper bag trimmed in Possum Fur for your daughter in law?  No problem...he will whip one up!  Rocker Son desires a shirt made from VHS tape for his American Idol debut?  Easy enough!  His advice to new knitters....Don't make something that you can buy in a department store.  His customers quickly develop pride in, and an appreciation for, the art of fiber craft.  Lucky them!

Steven is an artist with a keen eye for business.  He has an incredible staff to handle Social Media as well as some of the more annoying "process oriented" tasks that seem to plague us artistic types.  His space is a mecca for other yarn artists---beautifully appointed, with comfortable chairs throughout to encourage communal knitting.  The show stopper is an amazingly opulent chandelier that is delightfully decadent.  He even has a stage that is used on Sundays and for special events, where he features musicians, artists, and other creative types to entertain his customers. He is all about giving back to the local community---offering up-and-coming artists a place to showcase their work, seeking out and paying young fiber artists the price that they need (and deserve)  for the beautiful yarn that they dye and spin for him.  As is often the case with those who give without expectation of a return, Steven's generous heart has cultivated a cult like following.  You know, the whole karma thing.

He believes that it his job to educate himself and to bring his customers along with him on the journey.  He spends a lot of time on research, although he admitted that he orders inventory with his heart, rather than his head.  Steven noted that although he is not impervious to the effects of the recession,  he believes that if you inspire your clientele, the spending will follow.  True that!  The stores that have devolved into little more than a place to warehouse product are going to be hard pressed to survive.  Every crafty retailer knows that virtually any product can be purchased more cheaply online than at the local craft store.  It is what does or dos not happen at the store that will drive customer in---or away.  Steven worked seven days a week for two years to bring Steven Be from a gleam in his eye to the destination shop that is has become.

Special events rule the day at Steven Be.  Steven's customers go to him for community, inspiration, and excitement and he makes certain that there is something going on ALL of the time....catered lunches, concerts, knit-a-longs, specialty classes, fashion shows, live demonstrations, even Skype interviews with industry stars.  Steven is a believer in technology and has made it a friend rather than a foe.  Customers are encouraged to use the store computer to find patterns and crafty inspiration. He identifies a niche and fills it.  For example, Steven is aware that many yarn store owners look down on crochet and has therefore vowed to become a crochet Mecca, using fibers not traditionally associated with crochet to craft fuzzy masterpieces.

He is quick to give kudos to industry giant Jennifer Hanson of Stitch Diva Studios for her role in the current crochet revival.  Jennifer's sexy and contemporary designs have brought crochet a long way since your mom's granny square toaster cover.  Her designs feature sophisticated stitches such as broomstick, tunisian, and hairpin lace crochet.  Really yummy stuff....I used her Baroque pattern a few years ago and trimmed it with Swarovski crystal yarn.  It is a special piece, for sure!

One of Steven's epic wins is his marketing of Store Memberships, which are available in a broad range, from the  $19 "Glitteroti Day Pass" to the "Glitter Diva Lifetime Membership."  The high end membership costs $459 and entitles the recipient to 10% off all merchandise, reduced class and event fees, and 40 hours of month of Steven Be-Inn time.  I wasn't surprised to learn that he has more than 50 Glitter Diva members.  The man is a marketing genius with a genuine interest in making his customers happy.

Steven told me that he surrounds himself with youth and I urge you not to underestimate the importance of maintaining a youthful vibe.  No matter how hip we are at 50, lets face it, we are talking being "hip" at "50."  My kids would say that the two are mutually exclusive.  The meanest of them would also add that he had just thrown up in his mouth.   Whatever.  There is definitely a cool version of 50, 60, 70, 80 and beyond, so long as the folks who are judging are equally age endowed.  Am I right?

That being said, retailers need to stay relevant.  There is a HUGE group of crafters in the under 30 category.  Despite what you think, many of them are big spenders because they have real jobs and no kids.  Do not overlook this market!   The best way to know what is "cool" is to surround yourself with cool!  Pick the brains of the young crafters and artists in your market.   I recently took a tatting class at a relatively staid "typical" yarn store.  The gal who taught the class was a generously pierced and colorfully tattooed young woman who shared with the class that she had only recently taught herself to tat by watching hours and hours of You Tube Videos.   True Confession:  I was expecting to be taught by a 107 year old European woman who had learned at the feet of her whiskered grandmother.  Go figure...serves me right for assuming.  The tatting instructor was a store employee with true passion for fiber crafts.   No one in the area has offered a tatting class before and I have been wanting to learn, but lacked the desire to spend hours and hours watching You Tube videos.  The young teacher has an obvious desire to learn new skills and Store Owner was smart to have hired her even though she did not fit the store customer demographic.   She adds a different perspective to the "classic" yarn store.


But I digress....


Steven likes a youthful vibe in the shop, but he is intractable in his quest to hire staff members who are very strong technically, well versed in the craft and art of fiber.   He cares less about past retail experience than love of fiber, noting that he considers himself a "Fiber Mixologist."

The passion shows.  He is selling an experience and stressed the importance of  maintaining a stage face, because, in his words

....It is a wonderful day everyday at Steven Be!

I am a believer.

Steven Be
A Yarn Garage Workshop
3448 Chicago Avenue
Minneapolis, MN  55407
612-259-7525
Email  Steven here.
Sign up for his newsletter here.


SPECIAL HOLIDAY  INVENTORY POSSIBILITY:

I happened upon this adorable knitting glassware during my daily web travels.  BreadandBadger is owned by Amanda and Sean Siska, a husband and wife team on Etsy.  They create a variety of gift  items for the knitting enthusiast, including a soap dispenser, various containers, and assorted bar ware.  Best part...they offer wholesale pricing.  Check them out if you are interested in adding some gift items to the sales floor this holiday season!



IN OTHER NEWS
Check out my stitching blog!  We are having an awesome give away featuring the hand dyed embroidery floss in Sunset, pictured in the martini glass above.  Your name will be entered in the drawing when you leave a comment on this weeks post,  Losing my Mojo, Rosie's Garden, and the Search for Tranquility.

Can't we all just get along? Bashing your Competition is bad karma, bad for business, and just plain yucky.

Crafty Retail can be awesome, but some days it is kind of like high school.  Yup, high school with wrinkles.  Snarky competitors love to make snide comments when your customers are in their stores, and snarky customers love to come back to you to spread the news....all in your best interest, of course.  They just "think you should know."  Sigh. 

A wise friend once told me that every fight she ever had with her husband boiled down to one of two basic scenarios:  one of them felt that his/her sense of security was threatened, or that his/her sense of significance was threatened.  SECURITY and SIGNIFICANCE...wow....she is right.  Think about your last fight with a significant other....I bet that you can see security or significance at play.   I see it in myself, and I see it in my family.  Heck, I even see it in my dogs.

It is the exact same in Crafty Retail!   When the economy is great, and there are as many customers  lined up at your door as are at the door of your competitor,  you can afford to be magnanimous.  You know----C'est La Vie, Live and Let Live and all that chirpy stuff.  However, when you are worried about making the rent payment, you might not always be up to singing Kum Ba Yah with the lady stealing "your" customers/money/ideas, etc.

 
The economy is a bitch so the security and sense of significance for crafty retailers is under attack.   Although it is not surprising that there seems to be a tad more bitchy going around these days,  it is kind of gross.   I am always a little bit amazed that smart, savvy business owners fall into the trap.

 

The most common form of  Crafty Retail Snarkiness  that I hear about is the casually dropped "I've heard that her store is not doing so well."  This is typically said in a hushed sympathetic tone that implies that the Rancorous Retailer would actually be upset if the competitor closed.  PUH-LEESE! You aren't fooling anybody and your bitchiness is showing.

You might do it the same way that my sweet voiced Texas 'friend' does...she ALWAYS punctuates her Acid Sweet Snarkiness with the phrase---- "poor little thing!" as if it will serve to neutralize her bitchiness:

"Have you seen Suzie?  My God, that dress she has on makes her look ridiculous!

...poor little thing!"

YUCK!  I admit, it is funny as hell, but it is still yucky.

Don't fall into the Rancorous Retailer trap!   I get that we are in a business that is riddled with estrogen.  I get that we are stressed out, that our parents need extra help as they transition from old age to infirm, that the babysitter quit, and that you are worried about making your rent payment, but still....don't do it!


I know one shop owner that truly has the patience of Job.  She has held her head high and kept her own mouth shut while dealing with a competitor who is mean spirited, at best.   This Rancorous Retailer has spread ridiculous rumors about her, which include, but is certainly not limited to, the one where she tells folks that the Crafty Retailer has a disabled child that she leaves at home --all alone--because she is uncomfortable being around the wheelchair bound child.  Bear in mind that the "victim" retailer has no kids!  WTF?

Weird, huh?  I mean, seriously!  Where does the lady come up with this stuff?  Both women have been in business for years and each has a loyal following.  The Crafty Retailer is growing frustrated, her feelings are hurt, and she worries that her business is impacted by the slander.


What is the Crafty Retailer to do?

This is a tough one.  I think that I would consider either of the following:

1.  Contact the Rancorous Retailer and ask to schedule time to get together to work on a joint marketing venture. Send her an email so that you don't catch her off guard. Completely ignore the past animosity and work on something together.  Yes, really!  Consider a Shop Hop or a project that requires a visit to each store.  This woman is a bitch because she is insecure...remember, it is all about security and significance.  This will appeal to both and make her feel weirder about trashing you in the future.  You really DO catch more flies with honey than vinegar!

2.  Ignore it.  Who has time for the drama?  Note:  ignoring it means REALLY ignoring it.   If you are whining about it, you are not ignoring it.  Give yourself a 24 hour whine limit per occurrence, otherwise you are playing along. 

What about you?  How would you handle the Rancorous Retailer?  Inquiring minds want to know!

In other news:
Looking for an inexpensive way to expand your market base?  Consider starting a Meet Up group.  It is not the same as a ladies night out, or a stitch and bitch session because you have the chance to attract people way outside of your normal reach.

I had an opportunity to attend a Beads Meet Up group hosted by Holly Hancock of Beads last week.   Fourteen women attended and a local restaurant delivered dinner for anyone who was interested.  Holly had a sweet little spiral bracelet project on the agenda and sent everyone a supply list before the event.  Some ladies came with all of their supplies, while others (like me!) bought everything they needed (and then some!) that night.
 
Holly told me that although the group started out slowly, it built up over time and is now an important part of her store "community."  It has attained the status of "special event" and sales make it well worth the effort.  It was certainly apparent that the MeetUp members agree.  Barley, the shop mascot, ran to the door with each new arrival, even barking at some favorites as he saw their cars pull into the parking lot.  Store Regular Bonnie Anderson  entertained me when she got Barley to do a "high five" to earn his treat.

Holly has organized two separate groups...one for beading and another for dichroic glass.  The cost to the organizer is minimal.  In fact, two weeks ago I formed my own little Fiber Meet Up group in my area, to be sponsored by new "Retail Lite" venture, Urban Stitch Studio.   We already have 10 members and I will be hosting our first meet up event this Saturday.  Wish me luck!  

 

Refine Your Crafty Business to Get the Life You Want!

We have been blogging a bit about the state of the brick and mortar craft store and it is fair to say that times are changing. There was a time when a creative individual with a passion for knitting/beading/scrapbooking/etc. could open up a store with relative ease.  I opened my store that way...I loved to bead, wanted to spread the love, had a tolerant husband and some friends who were willing to go into business with me. Voila!  I was a retailer.  The rent was reasonable, customers were plentiful, competition was non-existent.  Life was GREAT!

...until it wasn't.  I lost my motivation.

Several competitors popped up and many were much better financed.  Customers became more demanding as the craft world became larger and the choices more plentiful.  My partners and I started squabbling. Internet stores began to appear and I recognized that the competition would  be an additional burden. The business took too much time away from my family.    My husband became less tolerant.   I felt frazzled and frustrated.  I was busier than ever, but seemed to be accomplishing less.  I was burnt out. My partners were burnt out.  Sound familiar?  It wasn't working any more and the bead shop was sold.  It was a happy day for all of us ---a great burden had been lifted from our shoulders, but only one friendship survived.

Running a successful retail business is not easy.  It takes a wicked amount of time, energy, focus, and money.  It is hard.  It is getting harder.  It is no longer enough to have a well stocked shop and a knowledgeable staff.  Today's Crafty Retailer must  master Social Media (if you are not on Facebook, GET on Facebook!), design inspiring classes, have an interactive e-commerce website,  plan promotional events, send out weekly newsletters, and more.  It is exhausting just thinking about it.

Many retailers are deciding that the personal sacrifice is no longer worth it.  I had an opportunity to speak with Kim Schweitzer, who recently made the decision to close her bead shop, EmMi Beads, in upstate New York.  Kim was a savvy retailer...she has a business background as well as a creative streak.  She opened her store 5 1/2 years ago and watched her business expand and grow over the years.  She was lucky to have a wonderful support team.  Her husband did her books, her artistic and bead loving daughter worked at the shop, and her mom was her right hand relative to operations..  She recently took on a larger space and business was good.  Unfortunately, life happens and Kim found that the demands on her time were growing exponentially.  Her daughter's interest understandably waned as she entered college, her father grew ill and her mother's focus was required elsewhere.  Kim believed that she was no longer able to be the mother/daughter/retailer that she wanted to be....her plate was beyond full and she "felt as though [she] was not doing a single thing well."  I absolutely know where she is coming from and I bet that you do, too.

The loss of her father was an awakening...we all experience that "Aha" moment where we come to grips with just how finite life is and Kim knew that something had to give.    She missed having lazy moments with her young son, longed for the joy of creative discovery, and  missed her life....so she decided to make different choices.  Kim conducted a priority triage and determined that the store was no longer a good fit for the life that she wanted to live.  She has no regrets.  She learned from her experience and has moved on, acknowledging that she simply "can't do everything and that walking away is a viable choice."

She is dead on!  One of the lessons that I learned after lots of bumps and bruises is that just because you CAN do something, it doesn't necessarily follow that you SHOULD.  Sometimes the smartest life decision is to close the business and feel good about it!  I was tickled when Kim reported that yesterday was eventful for her:  she had the time to paint her toenails and had learned to knit!  She was exhilarated by  her crafty accomplishment and said that it was a joy to feel the happiness that her customers felt.  Congratulations, Kim!

While some retailers are closing the doors, others are opting for Retail Lite.   Consider renting booth space in a store.  Jewelry Designer Sheryl Stephens of Cool Moon Beads has chosen that option.  Sheryl made the stunning necklace pictured at left and has experienced success in selling her designs, as well as bead inventory, by maintaining a booth at a local antique mall.  While she does not earn enough to support herself, she is able to contribute to the household income, and is fulfilling her creative desires, without sacrificing her life.  Way to go, Sheryl!

Others are sticking with Brick and Mortar, but are defining the terms.  I know one crafty retailer who closes the store on the spur of the moment to deal with a sick pet or to attend a child's school play.  It certainly annoys customers who have driven across town to make a purchase, but she is training them to call before they make the trip.

Life changes and the crafty retailer will transition to accommodate it.  My business has been in a state of flux for years!  Young children...my business needed to change.  Seriously sick dog...my business needed  to change.  Husband involved in a  new business...my business needed to change. Fortunately, the ability to choose something different is one of the coolest things about being a grown up!   I find that I am continuing to evolve.  While sales for my wholesale business have flattened with the economy,  I am getting more teaching opportunities, as well as more requests for retail kits.  Moreover, Swarovski recently asked me to join their Create Your Style Ambassador team, which is totally cool and provides wonderful exposure. It is all good.....the timing is excellent....my youngest child is heading off to college, my husband's business is growing, and I have more control over my time. 

Although I am no longer interested in brick and mortar retail, I am drawn to something more "Retail-Ish"  and am working on a retail website, Urban Stitch Studio.  It will serve as both a personal branding site for my workshops and will feature my own line of hand dyed fibers.   It is a work in progress and I would love your feedback.  Additionally, I have started a more personal blog to catalog some of my crafty adventures...please check it out.  Finally, I have a companion store on Etsy and will have my Facebook page up soon.  I started a Fiber Arts Guild a few days ago and will have our first get together at the end of the month.  WHEW! I am doing all of the things that I have been urging others to do for years.  It is slow going, but I have realistic expectations and am willing to move at my own pace in order to craft a retail business that will best suit my life. 

Want to join me?  We have an incredible group of women over on Facebook...exchanging information and feedback with Crafty Retailers from  the U.S. and abroad.  It is nice to feed off of the knowledge and experience of others, and even better when you do not have to re-invent the wheel.  If you are in retail and would like to participate in the dialogue, send me a friend request on Facebook with a request to join the group.  Please identify your store and website.  The group is closed, so the posts are only visible to group members. 

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!