Some Bright Spots in Year of Economic Downturn
by Mary E. Petzak
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About the Survey The Crafts Report’s Economic Impact Survey is an informal study conducted by The Crafts Report staff. It was designed to: • determine
the effects of the past year’s economy on crafts businesses; The survey was published in The Crafts Report’s October and November 2002 issues, which is mailed to subscribers and sold on newsstands nationwide. It was also made available on The Crafts Report’s Web site, which is accessed by both subscribers and non-subscribers. Respondents were
from: Not all respondents answered every question. Where this occurred, the number of responses to a question is indicated. Overall results are based on 75 total respondents (56 craft artists, 18 retailers, 1 show promoter). Percentages were rounded to the nearest 10th. |
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The people in the crafts industry, along with many other Americans, have struggled to find new markets and maintain income through a second year of economic uncertainty.
The stock market, losing ground at the close of 2001, has made only small attempts at recovery in 2002. And companies just trying to stay in business have continued to announce layoffs.
According to the readers responding to our 2002 Economy Survey, consumers have reacted to these upsets by continuing to buy, but scrutinizing every purchase and balancing every financial outlay against changing priorities and diminished pocketbooks.
While 60 percent of the respondents to the Survey report the economy hurt them in 2002, almost half (46 percent) say their sales were actually up or the same as in 2001. And almost equal percentages of craftspeople believe their personal financial outlook (41 percent) as well as the financial outlook for the crafts field (40 percent) is excellent or good as we begin 2003.
In addition to completing the Survey, many respondents also commented about their personal ups and downs in 2002 as well as the efforts they made to tailor their businesses to the changes they saw in consumer buying.
Some remain optimistic despite the overall worries. Some made changes that improved their bottom lines in 2002 and might prove profitable in 2003. All of the comments show a determination to succeed in the crafts field even in the face of a year of downturn or negative growth.
We feel the Survey results would be incomplete without a look at these comments revealing the very real craftspeople still working to succeed behind the raw numbers.
Luxury versus lowered expectations
Opinions varied considerably among artisans and retailers when it came to what was still selling and at what price in 2002.
Celia Dionne, a fiber artist from Alabama in business for more than six years, says the public is still indulging in luxury items. “I had fewer ‘tire kickers’ at shows,” Dionne reports.
A bead artist from Nevada, in business for less than a year, was also upbeat, saying, “People continue to spend money for crafts that reflect their tastes for their home, and adornment as an expression of who they are.”
Lesli Mash, a Missouri artist whose necklaces and bracelets sell at art fairs for $110 to $250 thinks “people will buy something unusual for any price” if they like it enough. “I am banking on the fact that [catering] to a smaller purse is not going to work in the long run,” says Mash, “but who knows?”
On the other hand, Bev Ludlow, a California wire jewelry artist in business for more than six years, says her lower-priced items are the ones that are selling now. “I’m selling fewer pieces in the over $50 range this year than last year,” Ludlow reports. “Luckily, I can fill this niche. [When conditions improve,] I can go back to selling more of the higher-priced items.”
A retailer in the state of Washington agrees. “Larger luxury items and large furniture purchases were not selling [in 2002] like in past years.”
In business for more than six years, this retailer added that small gift items under $100 were still selling in his gallery.
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Then there were some craftspeople who were just happy to see customers buy anything. Janice Worthington, a silk floral artist and a retailer in Mississippi, says despite “big ticket” items not selling in 2002, the economy did not hurt her business. “I think people are choosing the more unique, personalized items when they decide to spend money,” Worthington reports.
Sales at retail shows helped some artists
Some artists report sales at retail shows were off in 2002, while others claim these venues saved their bottom line.
“Wholesale is up and retail is down, but I can’t explain it,” says Doug Little, a blown glass artist in Indiana.
Harold Engelke, a wood artist from Missouri, believes that the economy in 2002 definitely hurt artists who sell at art and craft shows. “People want inexpensive items,” Engelke reports. “They don’t understand what it takes to get into some of these shows and the expense on our part to participate.”
A Maryland wood artist in business for more than six years reports “working harder and making less” at retail shows in 2002. “Though my total sales appear to be nearly the same, we did more shows and more expensive shows in an effort to make more sales,” says this artist who also reported an increased advertising budget in 2002. “My net sales are off 50 percent from [2001].”
A Wisconsin pottery artist who did 12 retail shows in 2002 agreed, saying sales were up but it was harder to do. “I have had to work harder to sell,” this artist says. “[Doing] better shows helped a lot.”
Janet Bailey Burch, a painted wood artist in Kentucky, says the problem was not lack of buyers at retail shows. “Customers were more careful with purchases, but certainly came to the shows,” says Burch, who had hopes that holiday sales would be profitable. “People will continue to buy gifts … a one-of-a-kind piece is more personal and from the heart.”
Mash is among artisans who still believe in retail shows. “I am slowly adding retail shows and see growth,” Mash reports. “I have had little luck with the wholesale market.”
But Susan Hargrove, a mixed-media artist in California says she did not have much luck with any shows in 2002. Hargrove says she does mostly wholesale shows but sales have been down at both wholesale and retail shows for her. “I have talked to many artists who are feeling the same as I am,” Hargrove reports. “My arts usually sell very well, but galleries are not doing as well this year and they are slow paying, slow ordering and unsure. A lot of artists I know have had to take part-time jobs for the first time in years to just stay in business.”
Tourist and visitor dollars lacking in some areas
The vagaries of summer weather and tourism also took its toll on craft sales in 2002.
Shana-Elaine Brewer, a Tennessee artist in semi-precious jewelry, says “the whole world-wide situation” has hurt everyone. “My state’s economy has been depressed and tourism is down in my area,” Brewer reports.
Beverly Prevost, a functional clay artist in California who says her business was hurt in 2002 by the layoffs in other professions, relies on tourist dollars for the majority of her sales. “My studio is in a retail location with many tourists, so I gratefully don’t have to do retail shows,” Prevost reports.
A fused and stained glass artist in Missouri says the weather hurt the craft business there more than the economy this summer. “The heat and humidity this summer was unbearable and hurt sales,” says this artist who has been in business for more than six years.
Retailers struggled to stay even
Deanne
McKeown, a craft artist and retailer in Arizona for 22 years, says sales at
her Isadora Handweaving Gallery in Sedona were almost the same as in 2001,
which “was far below” the usual sales. “Although my own
sales and gallery sales have been fair considering the economy,” McKeown
says, “I’m concerned for my artists in general, many of whom are
seeing rough times.”
Touchstone Gallery in North Carolina reported that “pottery sales were
almost dead even with markdowns, but glass, jewelry and paperweights up to
$100 were hot. Sleek sterling silver jewelry was slow, while funky/chunky,
mixed-material jewelry up to $60 was sell
Touchstone’s
owner, who in October was projecting lower sales in 2002 than 2001, adds,
“Garden stake ornaments and table top fountains were strong for four
or five years, but now are extremely slow.”
Another retailer, in business for more than six years in the state of Washington,
says business was down despite an increased advertising budget. Citing competing
sales outlets, this retailer says, “There’s too many retail shows,
too much online sales and too many price increases. Retailers get squeezed.”
But artist Patricia Hendershot who makes jewelry in Colorado, says retailers blame artists and make new demands when sales are slow. “Retailers want us to have color slides and photographs, color brochures and catalogs, and Web sites, which all cost money,” says Hendershot who has been in business for about five years. “I will have to sell my work at wholesale prices at retail shows to just make some money to live.”
Other retailers have some good news, however. The owner of Purplebabydaddies who is also an artist in painted metal sculpture in Florida, says sales in her gallery were up in 2002 over sales in 2001 and wholesale sales also continue to grow. “Our art fair shows, though, have been running 50 to 70 percent lower than usual, which I can’t explain,” she says. “We’re just hanging on and waiting for the other shoe to drop.”
And a retailer in Arkansas says their gallery was not hurt by the economy in 2002 at all. “I am in a growing area with a better than average local economy,” says this retailer, who also reports increased purchasing in 2002. “My downtown location is good because the city continues to improve and promote the downtown district.”
Many artists made changes to find customers
Artists and retailers are not hesitating to make changes and adjust to the demands of customers and markets.
A California artist in fashion jewelry and glass reported plans to relocate to a better economic climate in 2003. “I am moving from California to another state where I can afford to grow my business (I have been working out of my small apartment) and can afford more help than I can here.”
Megan Patrick, a Florida retailer in business for about two years, says she did more advertising to help avoid being hurt by the economy in 2002. ”Increased advertising helped with traffic through the store,” Patrick says.
Another California artist thinks people always find pleasure in buying handcrafted items, but still made changes that helped encourage sales. “Having unique products in very good colors and adding new items in lower price points has helped,” says this bead artist in business for more than six years.
Bob Cory, a glass artist in business for more than six years in Massachusetts, says he made several changes to maintain sales. “Price points [had to] come down a bit, but volume has compensated for that.”
Cory reports his business was hurt by the economy in 2002 but he thinks the outlook for 2003 is still good.
“Despite a stock market that’s in a tailspin, people still want to own and buy real things from real people,” Cory says.
Q. McDonald, a beadwork artist who owns Bead Seeds Studio in Virginia, says she tries to add benefits for customers, new products or new services each year. “I will be teaching a course on ‘How To Sell Yourself as an Artist’ on the continuing education level,” McDonald says. “I have also returned to school to become a creative coach.”
A California artist in fashion jewelry and glass also reported extra efforts were needed to keep sales up. “I haven’t felt the downtown in the economy until recently,” says this artist who has been in business for about five years. “My third and fourth quarter figures were very close to the third and fourth quarter in 2001, but I did a catalog mailing in 2002 which brought in additional money and I didn’t do the catalog sales last October.”
Some craftspeople have had to delay changes they had in the works. “I was going to quit my job as a bank officer and design my jewelry full time in 2003-2004,” says the owner of Barbara’s Beads & Baubles in Illinois. “But the future looks too risky. I will have to retire later and make do with part-time designing.”
There are still success stories in 2002
There were craftspeople who remained optimistic and reported business success despite the economics of 2002.
Katie Palmer, a glass artist from Nebraska in business for about two years, says her sales were up and she was not hurt by the economy. “Business for me is better than ever,” says Palmer, who also increased her advertising budget in 2002.
Kim Eubank, a metal artist in business for more than six years in Virginia, reports her business was not hurt by the economy in 2002 and she thinks 2003 will be excellent. “My sales were up,” Eubank says. “I feel that the ‘nesting’ trend and people staying at home and redecorating has helped my sales.”
Retailer Nancy Thompson says sales were up at her shop in Minnesota and she was not hurt by the economy. “I think when the dollar is tight, the customer is looking for value for the dollar,”
says Thompson who also increased her advertising in 2002. “I feel that the work of professional crafters offers that value.”
And a basketry artist in business for more than six years in Oregon remains steadfastly upbeat despite reporting little change in sales for 2001 and 2002. “Your sales are what you make them,” says this artist who reports not being hurt by the economy and increasing his advertising in 2002. “When the economy is bleak, get more clever. I really just do my own thing and don’t listen to the news. I weave very cool baskets. I love what I do and people buy my work rain or shine, day in, day out.”
The future for the crafts industry is always going to be bright as long as craftspeople with this attitude fill the marketplace.