o borrow a phrase from political strategist James Carville, “It's the economy, stupid" seems to best characterize this year in craft sales.
Based on the responses to our Insight Survey, covered in depth on page 14, and responses to many of the show surveys we've conducted throughout the year, the economy played a critical role in artists' sales in 2004. Artists who historically relied on only one or two venues in which to sell, such as wholesale and retail shows, had to come up with additional sales opportunities, such as through their own studios, the Internet and through sales direct to galleries, in order to make ends meet. While some artists reported they felt stretched thin at times, many reported that the slow economy actually helped them view their overall sales plans in a new light. Having to come up with new income streams — not having all their eggs in one basket — was actually a good thing.
In business, this theory of diversification allows people to try out new strategies without sinking the whole ship should plans fail. In crafts sales, it's the same thing. Several years ago when a large gallery chain declared bankruptcy, while owing many artists several thousands of dollars, the lesson learned was that you should never allow one account to become too large a portion of your income. In 2004, many artists could no longer count on the one big wholesale show or that one gallery that always places a big order. Artists became more resourceful and found other ways in which to sell. Throughout 2005, we'll continue to explore these growing sales opportunities and shed some light on how artists and retailers can diversify their sales strategies to meet the changing and evolving needs of consumers.
The economy also put the value of customer service to the test this year. Artists, retailers and show promoters learned quickly that when money gets tight, keeping customers happy becomes a more creative task. One artist we talked to who makes copper plant starters and bud vases now includes fresh flowers with all of his sales and says that by going that extra mile, his sales have grown. Some show promoters even lowered their commissions this year and have spent more money on the "little" things, such as offering food and beverages to the exhibitors, booth sitters and other courtesies.
Even with the economy showing signs of stability, indicated by the latest interest rate hike, we hope the lessons learned from this year will prove valuable for years to come. We hope that artists, retailers and show promoters will show the same level of accommodation as they did this year. Being able to weather the ups and downs of consumer trends, business practices and technological advances is what sets a successful business apart from the competition.
