"The vision we have of our jobs determines what we do and the opportunities we see or don't see."

-- Charles Koch, executive 

by Jami Petersen

There are many perceptions that retailers have about competition that are just plain wrong. These perceptions are wrong among many retail categories, but they seem to have found a permanent home in the crafting industry. The perception I see that most alarms me is when I hear retailers complain that Michael's and their 40%-off coupon is killing their business. I am amazed because these retailers have admitted defeat before even trying to compete. Read this week's feature article to learn how you can change your business and compete with these larger retailers. 

Jami Petersen
newsletters@a-z.com

Sakura

Glaze® glossy 3D ink leaves a raised ink line for writing you can feel.

Use on non-porous, clean and smooth surfaces such as coated paper, acetate, vellum, plastic, glass and metal.

Perfect for adding depth and texture, using as a resist, creating stained glass and cloisonné effects, and adding bright color and shine.

Contact your wholesaler for details.

www.sakuraofamerica.com

by Dennis A. Conforto, A-Z Media Group, Inc.

One of the discussions I have most often with retailers deals with carrying too much inventory and how to get rid of it. In many ways the discussion is always very interesting as I listen to retailers who are at war with retailing. I know it sounds strange but really it’s true. Let me share with you some of the dialog that I often have.

Retailer: Dennis, I have listened to your talks and have read your articles. I finally believe you, but the question I have now is how do I get rid of my excess inventory?
Dennis: How much excess inventory do you have? Retailer: I don’t know!
Dennis: Why not? Retailer: Well, I don’t know how much inventory I should have.
Dennis: Why not? Retailer: I guess I just never learned how much I should carry; I just filled the store with product until I felt my store looked right.
Dennis: How do you know your store is the right size for your market? Retailer: Gosh, I guess I really don’t know.
Dennis: Why not? Retailer: I just never learned how big or small my store should be for the marketplace I am in.
Dennis: Ok, who is your biggest competitor? Retailer: Michaels, Wal-Mart, Hobby Lobby, Jo-Anne’s or Target.
Dennis: What makes them big competitors? Retailer: Those awful 40%-off coupons.
Dennis: Where do you shop most often? Retailer: Wal-Mart or Target!
Dennis: Why do you shop at those stores? Retailer: Because I want to save money for my family.
Dennis: Why? Retailer: Because it’s my job to save my family money and to get more for less.
Dennis: What do you think Michaels does if they are over inventoried? Retailer: They have a sales event.
Dennis: What do you think you should do when you are over inventoried? Retailer: Hmmm, have a sales event?
Dennis: What does a sales event look like to you, a shopper that wants to save money? Retailer: Price points that I know are real savings or percentage off sales.
Dennis: What percentage off will drive you to a store? Retailer: It depends but anywhere from 15% to 50% off.
Dennis: Why don’t you have an inventory clearance sale with 15% to 50% off Retailer: Because I can’t make money doing that?
Dennis: Can you make more money by holding on to dead inventory? Retailer: No!
Dennis: Do you think Michael’s losses money when they have 40% off sales? Retailer: No.
Dennis: Why do you lose money at 40% off and they make money at 40% off Retailer: Because they can buy it for less than me?
Dennis: Do you think that is unfair? Retailer: Yes.
Dennis: Why? Retailer: Because manufacturers should sell the product at the same price to everyone. Read the entire article by clicking here. . .

If you would like to comment directly to Dennis about this article or have him address a subject matter in future articles feel free to email him directly at dconforto@a-z.com.

The Memory Tradeshow

The Memory Tradeshow is the premiere market for scrapbooking and related products, family history and digital imaging.

It is the most important gathering of this industry regionally, and it’s attracting executives from all sectors: manufacturers, retailers, distributors, suppliers, sales reps, designers and press. The show’s goal is to provide the highest ROI show within the industry with a greater focus on the business of the memory industry, education and best business practices.

Learn more and save >>

Loew-Cornell, a leader in art materials, is proud to announce it is celebrating the Decorative Painter by kicking-off a fully integrated outreach program starting at
the Society of Decorative Painters annual conference in Wichita, Kansas May 18 through 22. The re-energized program introduces Loew-Cornell Spokesperson Gisele Pope, a new pay-for-publication program and an enhanced website.

“We have listened to decorative painters across the country and understand the importance of supporting these artists everywhere with not only great products, but new tools and information,” said Doug Kruep, VP/GM of Games, Arts and Crafts, Jarden Leisure and Entertainment. “We exist to support the creative capabilities of decorative painters and artists of all skill levels.”

Loew-Cornell is featuring its advocacy program at trade shows and workshops throughout the United States. Loew-Cornell Spokesperson, Gisele Pope has been painting for more than 24 years and has co-authored four decorative painting books and numerous magazine articles.
 

Gisele and Loew-Cornell will be recruiting leaders in the industry to further the movement and inspire decorative painting at key shows, including Houston Artist Expo, HOOT Convention, and the New England Traditions Art Show.
 

In addition to the advocacy program, Loew-Cornell is launching its new pay-for-publication program offering financial reward to painters who use Loew-Cornell® brushes in their published projects.
 

Both programs will be found on Loew-Cornell’s redesigned website this month along with enhanced product information and instructional decorative painting projects.

About Loew=Cornell
Loew-Cornell, marketer of artist brushes, tools and accessory products and a
subsidiary of Jarden Corporation (NYSE: JAH), is located in Erlanger, Kentucky.
Products include over 1800 items for artists, crafters and hobbyists of all ages
under well-known brand names including Loew-Cornell®, American Painter®, Arttec®, Woodsies®, Totally You®, Simply Art® and Contemporary Crafts®.