Costs Are Up ... Sales Are Down, Why?

 

         
   


How did you handle it?
What did you learn?

The Crafts Report is seeking short commentaries (400-500 words) from crafts-people describing experiences and decisions that significantly impacted their craft businesses. Share what you learned with others in the industry. All commentary received will be considered for publication.

E-mail: publicopinion@craftsreport.com; or answer online here.

Send responses to: "Voices of Experience," The Crafts Report, Box 1992, Wilmington, DE 19899; fax: (302) 656-4894.

Anonymous responses will not be published.

 

his month, we received a question from one artist who is frustrated with the rising costs associated with exhibiting at retail shows, while sales seem to be flat. We've heard this question before from many artists around the country. We thought the best way to respond was to go straight to the source for an answer from a guild director/show promoter about booth and membership fees.

"Fine craft show booth fees have significantly gone up this year, although the economy certainly has not shown any sign of recovery. My gross sales as of mid-year are half what they were the previous two years for the same time period. Craft guilds are also increasing their membership dues and charging all sorts of extraneous fees. It has gotten to the point where I might have to drop my membership in a neighboring state's guild because of the increases. Don't these people realize how bad things are? I feel like I am being squeezed out of the industry.

My medium is hand-painted silk accessories. With the detail put into each piece, and not being able to raise prices, wholesale is not an option for me. People simply would not pay retail prices that would allow me to make a decent return on 50 percent of the retail price.

I do not know what the answer is, but would like to hear from show promoters and guild presidents as to why they feel such price increases are justified in a definite down market."

Kathleen Olson-Grumich
Painted Silk Scarves
New Orleans, Louisiana


"Our yearly membership dues did go up this past year. The membership committee voted at our yearly meeting to raise dues from $50 to $75. This was the first increase since the early eighties — in 1981 a postage stamp cost 18 cents!

The Guild is a nonprofit, but our vendors are not and we pay the same rates for services as other businesses for electricity, insurance, supplies, shipping and other business expenses. We had a choice, to either cut services or increase dues — unanimously, we voted to raise dues.

Our members-only show is held the first weekend in December at the Mississippi Trademart. After a craftsman becomes a juried member, there is no additional jury for our other venues, which include the Chimneyville Crafts Festival, which has been in existence for 29 years, and is reported by many to be their best venue. A single booth is $250; I know of no other show that delivers for that price. This does represent an increase from $225 last year, but advertising rates are up and the choice had to be to raise fees or cut advertising.

As part of the decision process, the board decided that the fees for a second booth (for those artists who choose to reserve one) would absorb the largest part of the increase. We are aware that many of our craftsmen struggle, and felt that those needing a second booth were in the best position to pay for the show's increased expenses. All increases will go toward the advertising budget.

Other Guild membership benefits include being able to hang out with some great Southern craftsmen — we represent artists from 18 states. All that Southern hospitality is not an exaggeration. We have two galleries and our sales there are up 16 percent over the past year. Within two years our galleries go into warp-speed — that's when we move into our new building on the Natchez Trace Parkway, a 20,000 square foot building — 3,500 square feet of it gallery space. This $7.06 million building is being built by the state of Mississippi with additional monies from the Mississippi Department of Transportation - no mortgage.

Kit Davis Barksdale
Executive Director
Craftsmen's Guild of Mississippi

Regarding the question about whether your work would be profitable in the wholesale arena, we suggest you visit a wholesale show (if that is possible) to see where your work might fit in. You might also do some market research to determine if you are pricing your work to its fullest profit potential. If you decide to consider selling your work in the wholesale arena, you might have to adapt your production techniques to accommodate larger orders and price your work for profit. There are lots of resources available to you from all the major wholesale show promoters and wholesale Web sites. For resources visit www.craftsreport.com.

- TCR Staff


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