EDITORS NOTE:  Please excuse this delayed edition of Market Insider.  Due to summer show schedules and vacations, the August issue was not sent. 

 “Entrepreneurs who plan poorly can find themselves scrambling.”

So says a recent New York Times article published last month.  While the article doesn’t provide any specific data, it does offer several anecdotal stories to highlight the point that innovation keeps a business running. There’s the pipe organ company that now also makes furniture and airplane parts.  Then there’s the travel agent who went from full-service to specializing in tours of Italy after the September 11 nearly halted the entire travel industry.  There’s also the pinball machine manufacturer who stuck it out against the odds, and is now the only company in the country that makes pinball machines.

These lessons are particularly important this time of year, now that the trade show season has come to a close.  Many artists are busy filling orders, taking new orders from contacts made at a trade show, or getting reorders already.  Once orders are filled, it’s time to take a look back at the year to see which products sold, which products may need tweaking, and which products might need to be discontinued. 

Here are four tips to help you figure out what’s working, and what isn’t. 

• Take the long view.  Look at sales figures over the past several years.  Don’t base your decisions about expanding or cutting a product line on a single year’s sales.  Sales trends go up and down as consumers’ tastes fluctuate.  If a line is more often up than down, then you might just need to tweak it for the next year.  If not, it might be time to come up with a new design.

• Make sure your marketing is working.  Looking at sales without looking at what you did to market your work is like driving with one eye closed.  You just can’t get the full picture.  What did you spend this year in advertising, direct mail or other promotions?  Did you use any tracking methods to know if they resulted in sales?  If you didn’t, you might want to consider implementing one for 2008.  If you did, then see which marketing activities brought in the highest sales volumes, the best sales, the most qualified customers. 

• Keep costs down, efficiencies up.  One way to keep your work marketable is to make sure it is being produced in a cost-effective manner.  Review how your studio operates and the costs for your raw materials.  Is your production efficient, or can you find ways to increase production without spending more time in the studio?  Is the cost of raw materials rising?  These are two of the key factors in pricing, so making sure that your processes are efficient and your own overhead costs are manageable will go a long way to ensure businesses viability. 

• Be aware of larger consumer trends.  You don’t necessarily need to follow them, but trends can always be a good point of reference.  But what you do need at every show is new products.  Artists are the trendsetters, but they don’t design in a vacuum.  Take a morning and visit your local bookstore (one that has a good magazine rack).  Spend a few hours just paging through them to see what’s new and exciting.  At best, the trip will be inspirational; at worst, it will be relaxing!

Remember, the name of the game is to review, revise and plan for 2008.  Review your sales and your work; revise it as necessary; and make a plan. 

Got a good tip for reviewing your product line?  Share it with the world at the Wholesale Matters blog.

ABI is coming to you!
You may have missed the Visiting Artist Program at the last Buyers Market, but there’s plenty of time to check out other Arts Business Institute workshops.  The next workshop will be in Fargo, N.D. on September 29, 2007.

This conference will be a one-day event with faculty member Milon Townsend and guest presenter Stacy Simbrom. The Fargo conference will include educational seminars designed specifically for artists, individual mentoring sessions, and the opportunity to ask questions and network with ABI faculty and other artists. The topics covered at this conference will be wholesaling, marketing, booth design and product line development and other topics related to these subjects.

All Arts Business Institute programming is designed to provide you with the information you need to take your arts business to the next level.

Sign up online at www.ArtsBusinessInstitute.org. 

Wholesale Matters Blog-Watch
Wholesale Matters, the official Buyers Market blog, is updated almost every day. Find out what’s new in wholesale, get wholesale tips and tricks, find cool online business tools, and more at http://buyersmarketblog.typepad.com. Here are a few recent headlines:

• Entrepreneurs who plan poorly can find themselves scrambling.
• Congrats to Greenjeans
• BMAC Summer Review

OPPORTUNITIES KNOCKING
LAST CHANCE TO ENTER THE 2008 NICHE Awards
Entry deadline for the 2008 NICHE Awards has been extended to September 7.  Go to www.AmericanCraft.com to download your application TODAY!
Categories include Ceramics, Fiber, Glass, Metal, Wood, Jewelry, Home Furnishings, Goblets, Judaica, Mixed Media, Narrative, Recycled, Teapots and more. New categories include Handmade Beads and Polymer Clay. 

Finalists are invited to display their work in the NICHE Awards exhibit at the February Philadelphia Buyers Market of American Craft, February 15-18, 2008, and will be included in the Winter 2008 issue of NICHE magazine. Winners will be announced at the February 2008 Buyers Market and featured in the Spring 2008 issue of NICHE magazine.

Call for 2008 Emerging Artists Nominations
The NCECA Emerging Artist program is intended to give early career artists, who show exceptional promise, the opportunity to present their work to an international audience at the NCECA Annual Conference. Emerging Artist nominations are welcomed from professionals in the field of ceramics, or artists may self nominate with the support of two professionals.

***Please note that ALL proposals must be submitted electronically***
Submittal deadline is September 15, 2007.

Visit www.nceca.net/conference/eartists.html for more information.

Washington Guild of Goldsmiths
“Metalwork 2008”
March 11-April 4, 2008
Exhibit at the Creative Partners Gallery in Bethesda, MD

All levels of craftsmen are eligible: Professionals, Students, Independent Artists.

Jurors: John Fix and James Meyer

Work will be published in the Show Catalog.

Deadline for Application: Sept. 15, 2007

For show information or to join WGG contact Mia Schulman (after July
23) at 301.216.5546 or by email at

m-mschulman@comcast.net

Quote of the Month:
Let us beware of common folk, of common sense, of sentiment, of inspiration, and of the obvious.

Market Insider Archive - MI newsletters from previous months.