Craft Industry Today Winter 2015

WINTER 2015

The

Business

of Running Your

BUSINESS • Theft: How to prevent it from happening in your store • Advice for Successful Retailing: A fictional case study on how to avoid the pitfalls • Business Laws: Make them work for you instead of against you • Foster Customer Loyalty: How to create lifetime business relationships

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contents

Winter 2015

14 Safe & Sound

What you need to know about store security 18

Saving Sally’s Store Keep your business successful by avoiding the

8

pitfalls from this fictional case study

22 Know the Legal Code Properly managed, the laws of running your

business can be exciting and asset-producing

10

In Every Issue 4 The Buzz

12 Trend Report

8 Industry News

27 Index of Advertisers

15 Little Life Lessons for Retailers 2015 Board of Directors, CHA at NAMTA and Creativeworld, New “Blogger” Membership

10 Chit Chat

Give Value to Get Customer Loyalty A Q & A About Buying and Selling Online

A Breath of Fresh Air

28 New Products

12

36 Do-It-Yourself

An Origami “Money” Tree Makes a Lasting Impression

38 Creativity is Our Business Designer Directory

36

Winter 2015 Volume 5 No. 1

Craft

Industry THE CRAFT & HOBBY ASSOCIATION MAGAZINE

Editorial Maureen Walsh mwalsh@craftandhobby.org Keri Cunningham kcunningham@craftandhobby.org Jason Baum jbaum@craftandhobby.org Catherine Martell cmartell@craftandhobby.org

Advertising Tim Braden tbraden@fwpi.com Darlene Ryan darlene@fwpi.com

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Publisher

Fahy-Williams Publishing PO Box 1080, 171 Reed St. Geneva, NY 14456 800-344-0559 Fax: 315-789-4263 fwpi.com Craft Industry Today is distributed to CHA members on a complimentary basis. Subscription fee for nonCHA members is $25 a year.

Craft Industry Today is published quarterly for members of the Craft & Hobby Association (CHA). CHA is an international not-for-profit trade association consisting of thousands of member companies engaged in the design, manufacture, distribution, and retail sales of craft products worldwide. For more about CHA, the value of membership, or its award-winning Conference & Trade Show, please visit craftandhobby.org.

The Craft & Hobby Association 319 East 54th St. Elmwood Park, NJ 07407 201-835-1200 Fax: 201-797-0657 craftandhobby.org facebook.com/CraftandHobby twitter.com/CraftandHobby youtube.com/user/CraftandHobby pinterest.com/craftandhobby/ linkedin.com/groups/Craft-Hobby-Association-1565337 CRE8TIME.org Additional copies are available upon request pending availability. To order, contact CHA at 201-835-1207.

Copyright © 2015 The Craft & Hobby Association. The contents of this publication may not be reproduced, in whole or in part, without the prior written consent of the publisher.

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The Buzz 15 Little

LIFEforLESSONS Retailers

by Rich Kizer & Georganne Bender

The following is an excerpt from Kizer & Bender’s Retail Adventures Blog, recently recognized by PR Newswire Media as one of the retail industry’s best blogs.

T

The things our friends and followers post on Facebook each day are a constant source of inspiration to us.

While we were toying with the topic of this piece, we posted one of our favorite “life lessons,” and were amazed at the flood of positive responses – and other personal stories – that it generated. Check it out.

“Years ago, we got to spend some time with a group of our speaker friends while presenting at a conference in Las Vegas. We all had a few hours to spare before catching our respective flights, so we decided to have dinner together. As you can imagine, the majority of the conversation centered around who was doing what and where. We swapped leads and shared stories until one of the speakers asked us all to share a personal goal.

“One said that her goal was to do more marketing.

Another shared that he planned to write one book each year. There was some pretty lofty stuff flying around the table. And then it was Georganne’s turn. Her goal, “Not to miss any of her son’s football games that year,” was met with a jawdropping silence.

“Rich was up next.

Someone said, ‘So Rich, what’s your goal?’ like somehow whatever he said would make up for the bomb Georganne had just dropped.

Rich said, “My goal is to make sure that Georganne doesn’t miss any of John’s football games this year.”

Even when you own the joint, it’s okay to have goals that are bigger than your business. Things can get pretty intense in our office sometimes. Between clients and prospects and promises and deadlines, it’s easy to get lost in the minutia of the everyday and lose focus on what’s really important. And that’s not good, for us or for our business.

There is a chalkboard wall in our office that we use to keep track of our musings, rants, notes and advice to one another; you know – the things we try to embrace to make our lives richer. In no particular order, here are some of our favorites.

1. Do something out of the ordinary. Sometimes you have to do things that break

begin to tell you the number of business people we’ve met who think that they can wait until tomorrow to do whatever is important to them. Don’t wait too long.

That career opportunity will pass, your kid will only be little once, your spouse deserves your attention, and your dog needs to be walked.

Your business is important, but don’t let it be everything.

“Between clients and prospects and promises and deadlines, it’s easy to get lost in the minutia of the everyday and lose focus on what’s really important.” your pattern. Know what we do? We go fishing. We never catch anything, but that’s okay because that’s not really the point. There’s something about sitting in that peaceful environment that sets our creativity on edge. Some of our best ideas have come while sitting with our feet in the water, enjoying a warm PB&J.

2. Start now. We can’t

No one on his deathbed ever said, “I wish I had spent more time at my store.”

3. Find what makes you happy. You can’t escape running your business, but you can delegate the things you would just rather not do. If you like teaching classes, teach classes. If you like playing with displays on your sales floor, then go

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for it. Here’s the thing: If you don’t like doing something, you won’t do it well. Hire or assign someone to do it for you.

4. Hang out with your friends. Start

dollars per square foot in the world.

Every designer and chain puts its best foot forward in Las Vegas. Indies do, too. It’s a one-stop, idea shop! The food’s good, too.

your day with associates or fellow business owners at your local coffee shop. If there’s no time for that, then spend a few minutes catching up with friends on Facebook. Make lunch or dinner plans with friends at the trade shows you attend. Or better yet, go in a day early and visit local shops with your pals.

9. Stop playing it safe. If you’ve ever heard yourself say the last seven words of a dying company, “But we’ve always done it that way,” you are in a big rut. Great things can’t happen if you are not willing to stretch and learn. Don’t just put your toes in the water; jump in!

5. Own it. This one is simple – no

Roseann Kermes, owner of Rosebud’s Cottage in White Bear, Minnesota, and her intrepid husband Bob, take a lot of road trips. We like to follow their colorful adventures on Facebook.

Sometimes we’re not sure how they ever make it to their destination because Roseann tends to make frequent and unplanned stops at indie retailers along the way. But that’s really the point, isn’t it? There is a wonderful world of retail out there to behold, but you have to be willing to leave your comfort zone to experience it.

more passing the buck. If you did it, said it, or bought it just deal with it.

6. Reinvent your business. It’s been said, and we wholeheartedly agree, that every year 10 percent of your business disappears. Items stop selling, trends fizzle and fade, new product and applications replace those oncesacred cows. Your job is to reinvent your business to the tune of at least 10 percent each and every year. If you have done nothing in the last five years to reinvent your store, you could be close to being 50 percent obsolete.

Make reinvention a priority.

7. If your original path isn’t working for you, choose another. Your store is a living, breathing entity; nothing about it should stay the same for very long. Shake up your sales floor. Add a new line or new department or two.

Nuke what isn’t working and find something that does.

For one retailer friend, that one thing was her store. So, she bought a mobile food truck, set it up as a boutique on wheels, closed her store and took her show on the road. She’s happier than she’s ever been, and business is booming.

8. Visit Las Vegas. Every single retailer should visit Las Vegas every couple of years. The retail landscape there is phenomenal – the Forum Shops at Caesars alone boasts the highest retail

10. Become a retail explorer.

11. Say thank you and really mean it. It feels good when someone notices something you did for them and says thank you, doesn’t it? Make a point to send a handwritten note each week to someone who did something nice for you. Georganne found the teacher who had a big impact on her life and sent her a note – 30 years later. There’s no statute of limitations on a sincere thank you.

12. Toot your own horn. You are really wonderful. Did you know that? Does your community know it?

Contact your local media and pitch stories about your store, product lines, services, in-store events and promotions, things you do for charities, your people, trips to trade shows and all the other cool things you do. Eighty percent of the stories in local media come from a press release, so send one for each legitimately newsworthy thing you do in your store.

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14. Change your selftalk. The things that you think and say to yourself

say, “I tried that before and it didn’t work...” or “I don’t have time/staff/money…” or “If it wasn’t for those big box 40 percent off coupons I’d be in great shape…” OMG. SHUT UP! This woman made Saturday Night Live’s Debbie Downer look like an optimist.

Everything that came out of her mouth was negative. And she wasn’t too happy when

my inspiration

Always a surprise.

Inspirations, trends, and international ideas. Discover new creative materials and techniques to fascinate your customers at the largest trade show for hobby, craft and artist supplies. To stay up to date with news, events, and trends, sign up for the Creativeworld Newsletter: creativeworld.messefrankfurt.com/news

Jan. 31 – Feb. 3, 2015 in Frankfurt, Germany creativeworld.messefrankfurt.com info@usa.messefrankfurt.com Tel. 770.984.8016

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DU: 05.09.2014 USA

It’s like brainstorming, plus one. It can’t hurt and that little “What if?” just might lead to an even better idea.

have a huge effect on who you are, and how you are perceived by others. Change your self-talk and your attitude will improve. Really!

We spent an entire year one day with a retailer who was in knee deep in you know what, and she knew it. We had lots of ideas to help her, yet every time we suggested something she’d

59490-002_CRE_allg_Craft Industry Today_117_4x193_6 • CD-Rom • ISO 39 • CMYK • tg: 31.07.2014

13. Before you put that big idea into action, stop and ask yourself, “What if we _____________?”

we pointed out that she and her crappy attitude were the crux of her problems.

So, we worked on helping her silence her inner critic by pointing out the good things she did.

We helped her reframe her self-talk, from focusing on the negative, to celebrating the positive. It takes time but it can be done. And it’s definitely worth the effort.

15. Partner up. The retailer in number 14 was struggling alone. There’s a lot to be said for partners, official or otherwise – colleagues, employees and friends work, too.

We have a framed quote on our wall from a 1987 article entitled “In Praise of a Partner” written by creative industry pioneers Linda Queen and Wanda Zeagler. It reads: “Many of you don’t have partners. That’s fine if it works for you. You obviously are not among the ‘Shared Brain People’ who inhabit this Earth.

We are and we are very comfortable, each of us, with our own portions of our brains.”

Some people who read that quote won’t understand it, but those of us with partners in crime do, and that’s all that counts.

So, take a look at where you are today and where you’d like to be tomorrow.

Are you happy with the choices you’ve made so far? Ferris Bueller said, “Life moves pretty fast. You don’t stop and look around once in a while, you could miss it.”

That’s sound advice from a fictional high school senior who was smart enough to realize that sometimes everyone needs to refocus on what’s really important.

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Industry News Visit Craft Industry Today Advertisers at the CHA 2015 MEGA Show!

Artistic Booth #2765

Avery Elle Inc. Booth #2313

Brother International Booth #1575 Clover Needlecraft Booth #809

Crafter’s Companion Booth #1268

Design Master Color Tool Booth #1526

Sakura of America Booth #1734

Eclectic Products Booth #2720

Sizzix Booth #2321

Testor Corporation Booth #1311

Lawn Fawn Booth #435 Magnum Magnetics Corp Booth #1730

Wikki Stix Booth #2469

Plus Corporation of America Booth #1675 Dare 2B Artzy Booth #2307

Ranger Industries Booth #2521

CHA Announces New Blogger Membership Type

A new “Blogger” membership type for professional bloggers has been added to CHA’s “Industry Professional” category. Blogger membership includes free admission to the CHA 2015 MEGA Show, membership in CHA’s Social Media Section, a subscription to Craft Industry Today magazine and discounts on education programs and services, in addition to CHA’s usual member benefit offerings. For more information please visit www.craftandhobby.org.

CHA currently offers three membership categories: “Industry Professional,” “Suppliers” and “Retailers.” The Industry Professional membership consists of companies whose principal business is providing sales services to craft, hobby and creative-industry members, or those companies in the business of designing, educating and demonstrating.

This category includes manufacturer representatives, designers, educators, demonstrators, professional crafters and bloggers.

Witzend Workshop LLC Booth #411

CHA at

CHA is sponsoring the U.S. Exhibitor Pavilion at Creativeworld in Frankfurt, Germany. With more than 8,000 global attendees, it’s Europe’s biggest trade fair for the creative sector. Discounted booth packages for the event are available for CHA members.

This is your chance to see international trends, from Saturday, January 31 to Tuesday, February 3, 2015! Visit www.craftandhobby.org for more information.

Save the Date!

In 2016, the 75th Anniversary CHA Conference & Trade Show (CHA MEGA Show) will take place January 8 -12 at the Anaheim Convention Center. This is the Show that you won’t want to miss.

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Meet the 2015 CHA Board of Directors David Murray, Chair Ellison

Jo-Ann Stores Inc.

Chris DiTullio

Philo Pappas

Chuck McGonigle, Vice Chair

Jessica Goursolas

Michael Popson

Sarah Hodson

Frank Rizzo

Artissimo

Jim Thielen, Secretary

H. A. Kidd and Co Ltd.

The Creative Network, Inc.

Sarah-n-dipitous Designs

Michaels Stores Inc.

Wilton Brands LLC

The McCall Patterm Company

Kollabora, Inc.

Rosebud’s Cottage

Roseann Kermes

Tony Sheridan

Judi Atkinson

Mark Lee

Maureen Ruth, Immediate Past Chair

Nora Abousteit

A Great Notion Sewing Supply

Dream Solutions Marketing

Sara Davies

Valerie Marderosian

Crafter’s Companion Limited

CHA at

Art Materials World 2014

In partnership with the International Art Materials Association (NAMTA), CHA will once again host an Exhibitor Pavilion on the trade show floor of NAMTA’s 2015 Art Materials World, scheduled for Wednesday, April 15 through Friday, April 17 in Denver. In 2014, NAMTA’s Pittsburgh event was the largest in several years. Year-over-year exhibitor registration numbers for 2015 are running ahead of last year’s numbers as of September. For more information, visit www.namta.org.

Create and Craft

Creative Marketing Solutions, Inc.

iLoveToCreate

CHA’s Paper Arts + Show, the educational showcase and trade show focused on paper products PLUS so much more, will take place Tuesday, July 21 through Thursday, July 23 at the Renaissance Schaumburg Hotel & Convention Center in Schaumburg, Illinois. Crafters’ Home will host its annual Showcase there, exclusive to Crafters’ Home retailers and partner vendors, beginning on July 20. The two events will combine to offer four full days of education, networking and business opportunities.

Please visit www.craftandhobby.org for more information.

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Chit Chat

GIVE Value to GET

Customer Loyalty Q&A with Chris Green of ScanPower

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When it comes to establishing your brand and successfully growing your business, creating customer loyalty is something you should take seriously. You’ve probably heard a lot about how important it is to turn one-time patrons into lifelong customers, but how do you do that?

To find out, we talked to Chris Green. Chris is cofounder of ScanPower, a company that offers a streamlined Fulfillment By Amazon (FBA) inventory processing system; and the author of the book Arbitrage, about the business of buying and selling online.

Chris has been selling online since 1999 and has sold

over $2.5 million worth of products on eBay and Amazon combined. His highest year of sales was over $600,000 on eBay, and his single-highest Amazon two-week payout was over $30,000. As a result, he is extremely familiar with the online consumer, what it takes to build a brand and how to keep customers coming back for more.

We had a chance to speak with Chris about ways to build a long-term following, loyalty and community. Here’s what he shared with us.

Craft Industry Today: What are the top three easiest ways to turn buyers into loyal customers?

Chris Green: 1.Give. 2.

Give. 3. Give! What do you give? Value. Giving value is what people and businesses can do to start a relationship that leads to customer conversion. Buyers have choices and buyers will choose to do business with people they know, like and trust.

To get customers to know, like and trust you, create

context with your potential customers, and give first.

Give them value in some way. Sometimes it’s as easy as entertaining them with a funny Facebook post. Sometimes it’s a how-to video on YouTube showing them how to use the newest accessory.

Sometimes it’s a coupon code. But a company can’t just ask for sales with every interaction and push product.

Think about what businesses are doing that you like, and think about what businesses are doing that you don’t like.

Do what works and stop doing the rest.

How do you create a brand identity that will foster a loyal customer base?

Establish yourself as the go-to expert and most knowledgeable source of information, not just as a place to buy stuff. You can do this by simply finding people who are talking about your products or industry in general, and then joining their conversation and helping them. You can search Twitter, join forums or Facebook Groups, and generally just help people by answering their questions. As long as you are a knowledgeable source, people will notice and follow you.

You can also share valuable information on video sites like YouTube. Include a call to action to find and follow you on other channels.

But in my opinion, the biggest thing you can do to establish yourself as an expert is to write a book. Self-publishing and print on-demand services are basically free; all you have to do is compile your thoughts into a long Word document. A published book on Amazon says a lot and separates you from everyone else in your industry.

In addition to hosting in-store events, what other customer relationship programs can craft industry businesses take part in to boost loyalty?

Rewards programs, club cards and price-matching come to mind, but it’s all about giving people a reason to buy from you instead of the competition. What you can provide at the store level is expertise. Give that away.

Help every customer to not only buy, but also to use your products. Find out what people are working on and what same questions they keep asking, then answer those questions on video. Share

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them online to help others.

People search YouTube for answers as much as Google, especially for how-to videos.

What tools are available to help reach out to potential new customers?

Social media is the easy one of the day. Facebook and Twitter are mature platforms.

You can search for people talking about anything on Twitter and join the conversation and answer people’s questions. You can run Facebook ads targeted within “X” miles of your zip code to reach people interested in pretty much anything. Give your content away using this strategy and build an audience.

How do you keep engaging with customers once they’ve shown an interest in your business?

Give them what they want and don’t be afraid to ask what that is. So you’ve built an email list or a following on Facebook or Twitter, or you have a group or forum.

Now what? Either keep doing what you did to get people to connect with you, or if all else fails, just ask them. Send out a survey asking what types of things they want to see from you.

How-to videos? Coupons?

Product reviews? Q&A? Once you have context and engagement with your customers, you have the ability to connect with them and ask.

It’s important for businesses to not always be thinking about going wide to try to reach new people or sell to new people. They may already have great

customer bases that should not be ignored. You want an audience that cares enough to read what you post, to watch what you share, and to buy when you sell. Forty people out of 100 taking you up on a promotional offer is better than 20 out of 1,000.

Go deep over wide.

How do you convert that engagement in to sales?

By giving so much value over time that it creates a leveraged relationship. It’s almost like guilting people into buying from you. If you give value truly from the heart over time, people will

want to buy from you. The Internet and social media have given individuals and businesses the ability to connect with people at scale, so it’s actually become easy to give value to your customers and potential customers.

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Trend Report A Breath of

The colors in women’s fashions this spring and summer will be “soft cool hues blended with subtle warm tones to create a soothing escape from the everyday hustle and bustle,” says Leatrice Eiseman, executive director of the Pantone Color Institute. In September, she unveiled the following list based on feedback from designers presenting at New York Fashion Week.

• PANTONE 14-4313 Aquamarine

• PANTONE 16-4725 Scuba Blue

• PANTONE 14-5714 Lucite Green

• PANTONE 19-4052 Classic Blue

• PANTONE 14-1213 Toasted Almond

• PANTONE 16-1720 Strawberry Ice

• PANTONE 15-1247 Tangerine Here’s how our industry’s manufacturers are using them.

Spinrite Paton’s Silk Bamboo Yarn in Aquamarine A luxurious blend of 30-percent silk/70-percent bamboo, this yarn knits and crochets beautifully. It offers a marvelous drape, supple softness and an elegant sheen.

Doodlebug Design Washi Tape in Tangerine Swiss Dot This eye-catching tape complements Doodlebug papers and products, and is excellent for borders and layering.

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Fresh Air Sandylion Strawberry Cake and Ice Cream Dimensional Stickers Not only do they smell good, these scented stickers add unique finishes and instant dimensions to scrapbooking projects.

Bo Bunny Double Dot Double-Sided Textured Cardstock in Aquamarine Use is to design invitations, greeting cards, scrapbook layouts and more. It features non-embossed dots on one side and a mottled coloring on the flip side.

Coats Red Heart and Sole Yarn in Toasted Almond Permeated with aloe vera, this multi-colored yarn guides smoothly on needles and hooks, and knits up in striped or Fair Isle patterns. It’s ideal for home decor accessories, sweaters and socks.

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Safeand Sound A break-in, a shoplifter pocketing product, an employee skimming from the cash drawer … we don’t realize how vulnerable we are to theft until it happens at our store.

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by Roseann Meehan Kermes, Rosebud’s Cottage, White Bear Lake, Minnesota

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Sadly, I’ve been a victim of theft and the experience taught me a lot. Awareness beforehand can help lessen the devastation when it occurs. Here are some steps to consider as you evaluate your store’s insecurities.

Step 1: Secure the Outside of Your Building

The dusting powder police use for collecting fingerprints is hard to remove.

To avoid having to deal with that issue, start by securing the perimeter of your building and then work your way inside.

Do everything you can to discourage unwanted visitors.

Keep Your Store Well-Lit

Most break-ins occur when it’s dark, so lighting the outside of your store helps to make it burglar-proof. If you’re concerned about electrical costs, have an electrician set the lights to come on with a timer. Use motion-detector lights to illuminate back doors and side entrances.

Floodlights on a sensor will surprise thieves by literally shining a spotlight on them.

Secure Your Doors

Most burglars can open a door in five seconds.

Make it harder for them by discussing your options with a locksmith before a breakin happens. He or she can provide you with a number of options to fit your budget.

The type of lock you have on your door is important.

Deadbolt locks make doors more difficult to open by sliding a tool between the door jam and door. It’s essential for the bolt to go deep into the door frame to prevent someone from getting inside.

If you have a glass door or

a window next to the door, avoid a lock that is controlled by a handle. The glass can be broken, allowing a burglar to reach inside to open it.

Use a door guard. It’s a metal plate that exposes the key hole but seals the space where the door jam and door meet. A locksmith can install a heavy guard that is suitable for your style of door.

The plate is screwed into the frame of the door, making it difficult to remove. It covers a substantial area and extends well past the frame of your door. The locksmith fits it to your door and allows only the key hole to show. It’s a good solution if you have a deadbolt that won’t go into the frame deep enough, or as a secondary precaution. Install guards on all exterior doors.

Criminals love back doors because they are hidden and often in the shadows. Use a door bar to prevent the door from being pushed in. If there’s a window next to the door, block it. Resist propping a back door open during the day. Not only is it an easy entrance, but you also might forget to shut it at the end of the day.

Step 2: Take Preventative Measures Inside Your Store Invest in an Alarm System

Criminals aren’t deterred by sound alerts; a siren merely notifies them that they need to work faster. The best system silently calls for police backup and sends you a message. There are many types of detection systems – motion detectors, photo beams, door sensors. An alarm company will be able to tell which works best for

Theft prevention during special events If you have a display or booth at a community event …

• Plan your layout so there is only one entrance and exit.

•R educe the number of supply bins, expensive kits and tools out in the open. Leave a few on display and keep the remainder at your counter.

• Keep the least-valuable items near the exit or in the front of your booth.

• Hire extra staff.

• Create a system that helps you identify paid items – use clear shopping bags or staple the receipt to the front of a customer’s bag.

For in-store events …

• Have a second cash register.

•P lace someone at the door to monitor people as

they leave.

• Watch the bathrooms. Shoplifters have ingenious methods for hiding and redistributing merchandise

in the restroom.

your type of building. A word of caution – never go to your store alone to investigate an alarm. Call the police and ask them to meet you.

Keep Some Lights On

Inside your store set several lights on timers.

Police patrols will be able to see suspicious people easily if they notice someone inside during your closed hours. Do you light your windows for the holidays? Leave the lights up all year long to create one more layer of lighting.

Protect Your Cash

At the end of the day empty the cash register.

Leave the key in and the drawer open. Take large amounts of cash away from the store each day, especially if you are having an event.

Store your daily cash in a safe. Experts agree that it’s better to have a safe that is

out in the open instead of hidden. Anchor it to the floor or the wall so it can’t be carried away. Keep the door to your office locked, even when you’re in the building.

Keep Employees Informed

Make sure your employee handbook clearly defines how you want your staff to handle break-ins or robbery.

Step 3: Establish a Relationship with Local Law Enforcement

Forming a partnership with your local police department can be a great asset to your business. The police can provide guidance on security systems, robbery prevention and more. Ask your local police department for an analysis of your store.

Have a police officer walk through your store to point out issues you wouldn’t normally consider, and have Craft Industry

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him/her suggest solutions for the weaknesses they discover.

This is especially crucial when you are changing locations.

Invite the police to attend merchant meetings to talk about the best ways to keep businesses safe. The officers can help you set up a network to spread the word about criminal activity, and create a phone tree with neighboring businesses to alert them to suspicious customers or events.

Step 4: Define Your Policy on Keys

Make sure you have a key policy and be ready to enforce it. You want to be the one person responsible for making keys, not your employees. Decide how you want to handle lost keys, or deal with an employee who duplicates a key.

Account for keys when an employee leaves, and rekey if necessary.

Step 5: Develop Strategies to Prevent Shoplifting

As discouraging as a burglary is, shoplifting is more personal. The worst feeling as a shop owner is realizing customers are taking things from your store. We can’t believe they would do that to us!

Good Customer Service is the Best Deterrent

Greeting customers and talking to them as they roam your store allows you to be friendly, yet vigilant. In order to be successful, shoplifters need privacy and if you’re engaged with them, they have less opportunity.

imagine where you’d stand if you wanted to take something. Look at sightlines and visibility to see where you are vulnerable. Place your shorter displays closer to the cash register and larger displays near the wall. Take photos of your store from various angles – both high and low – for a new perspective.

Keep Your Store Neat and Tidy

Stealing from a messy store is easier than stealing from an orderly store because it’s harder for you to tell if items are out of place or missing. Straightening displays is a great way to keep your eye on customers without being too obvious, so direct your employees to tidy up when customers are

present. Arrange your store so there are fewer hiding places and corners, and keep the more expensive products closest to your cash register or in a locked display.

Use Affordable Theft Prevention Tools

Install security mirrors so you can see into hidden corners and halls. A real video camera with a monitor is more expensive than a fake one, but worth the money if you have chronic shoplifting problems. If you have a backroom, attach a remote door chime in the rear of your store so you can hear if someone comes in or goes out.

day. They come in all ages and walks of life. Shoplifters often work in teams because it’s harder for a store employee to keep his or her eyes on separate individuals.

Don’t be surprised to see them walking around in different directions. Some groups will have one or two people pointing out samples or products while one person steals items. Pay attention to shoppers who are sending you around the store in search of various products.

Strollers, coats and large bags are handy places to hide products. Offer to watch them in a controlled area.

Learn to Identify Thieves

Have a Shoplifting Policy Ready

Most shoplifters look like the people you see every

Your shoplifting policy should be established before

Protect Your Samples

In creative businesses, samples make the sale. Nothing is more discouraging than having them taken. Not only does it prevent you from selling a pattern and supplies, it also deprives the designer of an income. In the quilting industry, samples aren’t easy to replace. We go to extraordinary methods to protect them.

Secure samples and display items to make them harder to take. Fold the tops of quilts or linens over a rod, then clip them to the rod, and secure them with safety pins. Use fishing line to secure totes, pillows and other small items. Place samples high and behind tables or counters. Hang things from the ceiling, too, if you have room.

Think Like a Thief

Tour your store and

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you need it. Be ready to enforce it. If you suspect people of shoplifting, don’t be confrontational. Resist grabbing or touching them.

Ask if they changed their mind about something they were looking at. Be nonchalant and friendly.

Spread the Word

Try to remember details about a suspected shoplifter, including facial features, hair and manner of speech. Call the police even if you think the value of what was taken is low. Many retailers think they shouldn’t bother the police, but law enforcement needs to be aware to prevent

attempts at other businesses.

Talk to other shop owners about suspicious individuals, and compare notes to protect each other. Don’t be afraid to use social media to talk about shoplifting incidents and what actions you have taken.

Doing so puts everyone on notice that you are aware and won’t tolerate stealing.

Step 5: Establish Procedures to Deal with Employee Theft (it’s one of the hardest thefts to deal with) Screen Job Candidates Thoroughly

When hiring new employees, ask for references

and check them.

Be A Great Place to Work

Review Your Checkout Policies

If you treat employees respectfully, they’ll be more ethical. Don’t make them feel like you owe them.

Be selective about who is allowed to checkout employees and their relatives.

Discourage laying away purchases for later. Adopt the policy of chain retailers and implement purse checks when people leave shifts or take breaks.

Don’t let thieves take the fun out of your store. Planning ahead to keep your products – and profits – secure will go a long way toward allowing you to enjoy the customers who aren’t trying to rip you off!

Rosebud’s Cottage is located in downtown White Bear Lake. It’s known for its quality quilting fabric and patterns, wool appliqué supplies, and a great selection of stitching and doll-making patterns.

Visit www.rosebuds-cottage.com, or e-mail rbcottage@gmail.com.

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Saving Sally’s* Store *Sally Johnson is a conglomeration of several retailers, and her resemblance to any one

person, living or dead, is purely coincidental.

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Keep your business successful by avoiding the pitfalls from this fictional case study.

by Nicole Leinback Reyhle and Jennafer Martin

L

Like many people, Sally Johnson* spent years dreaming about doing what she loved for a living and being her own boss. Finally, she was able to make her dream a reality by opening her own craft and hobby store. Between getting her store open and ordering inventory, hiring staff and keeping the books upto-date, attending trade shows, creating educational opportunities and more, Sally soon found herself overwhelmed and in over her head. Quickly facing the reality that running her own store wasn’t exactly what she dreamed it would be, Sally closed her doors just 16 months after opening them.

While many facets go into keeping a business strong, Sally made three large – and, unfortunately, common – mistakes that greatly factored into her store closing. Had she followed the solid advice from successful retailers and business professionals in this article, she may have avoided these mistakes and still be in business today. Read on for the helpful input of real-life retail experts on how to avoid the mistakes this fictional shop owner faced.

Mistake #1: Sally moved forward without a plan.

The Problem Sally believed her enthusiasm for crafts and hobbies, paired with her long-time experience as a consumer, were enough to get her business off the ground, so she didn’t set an overarching strategy or plan. Her initial opening was successful, but within a few short weeks, sales waned. Trying to make up for slow sales took her deeper and deeper into the red, and she found herself trying to make up lost ground to stay afloat.

The Fix Take time to set a long-term, overarching strategy/business plan to use as a guiding point for your business through strong and lean sales times.

Spending your days surrounded by items and experiences that you love sounds wonderful. But keeping your

store profitable isn’t always as easy as you hoped or dreamed it would be.

“No one opens their store planning to run it by the seat of their pants, but this is often exactly what happens,” explains Cathy Wagner of RETAILMavens.

Wagner, who’s consulted with hundreds of retailers, believes that many are trying to get by in business by “doing the best they can.”

“I’ve been a retailer myself,” Wagner says. “I found that my best wasn’t good enough, and, as a result, my cash flow and sales kept spiraling down. I had to get a strategy to survive, and so I did. It worked beyond what I could have imagined.”

An overall strategy will include planning for, and lessening the effects of, slower sales times, giving you options to keep your momentum – and the cash flow – going. “There’s still time to gain momentum when your business hits an all-time low,” shares Christian Kratsas, digital marketing manager from SnapRetail. “It’s up to you to evolve with your customers’ purchase decisions and habits.”

To write up your business plan, consult with a business consultant or visit the local small-business group center near you.

as she was, and those that did sell only sold a few units out of the dozens she’d purchased. She ended up taking a loss on most of the products and wondering where she went wrong.

The Fix

Purchase merchandise for your store based on impersonal data rather than your personal preferences, and make

Mistake #2: Sally didn’t manage her inventory well.

The Problem “One of the perks of owning your own store is filling it with fun products you love,” Sally believed. With that in mind, she purchased products she wanted for her store, certain they’d sell like hotcakes because her customers would love them as much as she did. But she soon discovered not all her customers were as enthusiastic about the products she picked Craft Industry

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Retail Tips for Success at the

CHA MEGA SHOW

Share your secrets for success – and learn more tricks to keep your doors open and your store profitable – by joining us at the Independent Retailer Conference at the upcoming Craft & Hobby Association’s MEGA SHOW, January 9-13, 2015, in Anaheim, California. You’ll be able to participate in FREE educational sessions presented by some of the industry’s leading retail thought leaders and experts, including many of the professionals quoted in this article. You’ll get valuable insights to keep your business strong and profitable. And emceeing the entire event are retail experts Kizer & Bender, making this event one that’s not to be missed!

Learn more at craftandhobby.org/chashow. purchases modestly.

“As a rule of thumb,” says “The Retail Doctor” Bob Phibbs, “keep your opinion separate from what you believe will sell.” Objective standards for purchasing can give you a good indication of what products will sell. Some components of objective standards include • what your customers like,

• what products have already sold, and • what your customers have asked for.

Make plans for purchases with that data in mind. But even if you believe products will sell based on your objective criteria, don’t purchase too much. “Do yourself a favor and avoid buying too

much merchandise because it will be your money sitting there staring back at you every day when it doesn’t sell,” Phibbs says.

Mistake #3: Sally didn’t display her merchandise effectively.

The Problem Sally believed that stocking

her store with great products was all she needed to attract customers and get sales.

Her product displays made perfect sense to her but weren’t always eye-catching or inviting to customers. She was confused about why customers weren’t buying up products quickly and her sales sagged.

The Fix Create visually engaging product presentations that draw customers in and turn great products into great profits.

“Having great products alone won’t keep your doors open,” says David Nawrocki of Retail Studio Effect. “You need to make sense of your (continued on page 38)

*so

LE C

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Your product was shipped to the store, now what? Is it on the shelf? Is it in stock? Has your space been lost to a competitor? Is your messaging lost?

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Physical inventory/cycle counts and vendor managed inventory assistance for greater product visibility

✚ Demo Events/Product Demostration New product customer engagement/ introduction, seasonal support and in-store retail associate training

✚ Real Time Retail Insight Visit validation, in-store visibility with photo capture capability and detailed data collection and analysis Our North American coverage includes all of the U.S. and Canadian provinces Customized service schedules available in Michaels, Joanns, AC Moore, Walmart, Shopko and many more retailers!

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LEARN MORE ABOUT FIELD MERCHANDISING SERVICES: Contact Barbara Moffitt at 704-998-3214 or Barbara.Moffitt@baker-taylor.com Craft Industry

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Know the

Legal Code

Properly managed, the laws of running your business can be exciting and asset-producing 22 Winter 2015 • Craft Industry today 2015_Winter_CIT.indd 22

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Know the

by Tammy L. Browning-Smith, J.D., LL.M

Legal Code

T

There are “exciting” parts of running a retail craft business and there are “boring” parts – like the laws governing business ownership, employee management, buying/selling and marketing. For most retailers, the laws governing their operations are kept at the back of their minds unless a legal issue occurs, usually the result of some type of conflict with a customer, employee or governmental entity. Then forget boring. Legal issues can become downright scary. But don’t worry – here’s a review of some of the legal aspects of your business, along with tips on how to make them work for you, not against you.

“For most retailers, the laws governing their operations are kept at the back of their minds unless a legal issue occurs, usually the result of some type of conflict with a customer, employee or governmental entity.”

Basic Business Formation

Most retailers meet with some type of professional (legal or accounting) when they start and except for taxes, most retailers never review their formation documents and the requirements that those formation documents placed on the business. Sometimes, retailers get a tax ID number, sales tax ID, and register some type of formation document with their appropriate state office, but fail to complete the other documents necessary for business formation.

As a general rule, most retailers should have the business formation/operating documents I’ve listed here reviewed and/ or updated annually. Many states require quarterly tax and employment filings, but annually a business should take a look at the initial application to insure that the initial basis of the filings hasn’t changed. Examples would be the addition or removal of employees, a change in the square feet of your business, a change in business location, types of products sold, and many other small and not-so-small business events. The exact type of document will depend on whether or not your business is a

Limited Liability Company

Corporation/ Sub Chapter S Corporation

Tax ID/Sales Tax Application

Tax ID/Sales Tax Application

State Required Employee Reporting Forms

State Required Employee Reporting Forms

Articles of Organization

Articles of Incorporation

Operating Agreement

Shareholder Agreement

Pension or Employee Benefit Documents

Pension or Employee Benefit Documents

Occupancy Permits

Occupancy Permits

Member Accounts

Stock Certificates

Annual State LLC Filing

Annual State Corporate Filing

Limited Liability Company or a Corporation (or Sub Chapter S Corporation), and your state requirements.

Insuring that your business’s general formation or corporate documents are up-to-date can save you time, money and frustration. Updated documents give you, the retailer, the opportunity to review the current status of your business and insure that it is consistent with how your company was originally formed. Many accountants review business formation documents annually when preparing annual tax filings for a business, while others do not. Our firm encourages our clients on April 1 of each year to review their business documents – the reminder works! So, give it a try, set April 1 as the day you review your business documents to make sure all is in order.

You’ll be glad you did!

Employees

The most valuable asset your business has is your employees. Single business owner, that’s okay – you’re an employee of your business. Employment law can be a challenge for most retailers and is considered a specialty for most attorneys. However, there are a few basic items that every retailer should have for every employee.

An Employee Handbook

This is a general document for all employees. Most employee handbooks cover dress code, working hours, emergency procedures, non-discrimination, sexual harassment reporting, general employee expectations and employee complaint procedures. This does not have to be extensive, but it is a necessity. Each employee should sign an acknowledgement that the handbook was received.

Employee File for Each Employee

Each employee or independent contractor for your business Craft Industry

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Know the

Legal Code should have a file in the main business records. The file should include the following information: • Copy of a Signed Employment Application along with a resume when applicable • Copy of Two Forms of Picture ID • Applicable IRS Documentation

Annual Employee Evaluations

The evaluations can be as extensive or as simple as “Keep up the good work.” However, employees need some type of written feedback annually.

Additional Employee Notices and Postings The liability for notifying employees of rules and regulations falls to the employer. The following is a list of notices that each employee should have along with a recommendation or two: • POSTED Federal Notices • Written Description of Job Duties • Social Media Policy/Expectations – Employees need to understand what can and cannot be said or displayed on Social Media.

• Employee Meeting – These should be held at least quarterly.

An active business owner can prevent several of the challenges that an employee could present. While micro management is not encouraged, retailers who take the responsibility directly to at least be present and have a working knowledge of their employees’ job duties and performance can prevent a majority of employee based challenges a business faces.

Employee challenges that are addressed early tend to create less impact on a business in the long term, both legally

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and financially. Employee matters should be thoroughly documented utilizing as much detailed information that can be gathered. While it may be tempting to speak to an employee first, it is usually best (absent an urgent situation) to have an employee conversation after your documentation procedures are complete.

When you do speak with the employee, if at all possible, have a second person present.

If you wish to record the employee conference, please proceed with extreme caution and a thorough knowledge of the law. There are additional requirements; some of which can be very complex, for recording employee conferences.

Vendors

Tammy L. BrowningSmith, J.D., LL.M holds a Bachelor of Arts Degree from Graceland University, a Juris Doctor from Thomas M. Cooley Law School and a Master of Laws – Intellectual Property from Thomas M. Cooley Law School. For more than 13 years, the BrowningSmith P.C. team has been working with its clients to help protect their valuable business assets through registration and when necessary litigation.

Their team works daily with clients large and small to address their copyright, trademark and licensing needs. Their main client focus is on those who create.

Vendors normally serve as a silent “partner” for a retailer. The relationship between a vendor and a retailer should be a strong business asset for the retailer. The best way for this relationship to help a retailer is to get everything in writing – product specifications, invoices, pricing, delivery requirements and so forth. Telephone calls should receive a follow-up email summarizing the important points of what was discussed. This type of recording keep does not have to become a burden, but it needs to become a routine.

Should a problem arise with a vendor, the best policy is to act quickly. The longer a problem sits, the more rights a retailer may lose to correct the problem. While it may be a simple mistake, there could be a larger problem or pattern that needs to be addressed. Most retailers understand this principle, so this will serve as a reminder. However, the best legal advice is sometimes the best common-sense advice. If something doesn’t seem right, it probably isn’t.

The Digital World

It is difficult to find a retailer today that does not utilize,

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Know the

Legal Code at a minimum, the Internet. Most retailers utilize the vast amount of social media marketing available to them to bring traffic to their store and/or website. Thanks to the digital age, many new retailers have been born and thrive. However, retailers face unique challenges operating in the digital age.

Retailer websites offer convenience and some of the best “bang for your buck” marketing. Most retailers fail to truly see the website as an extension of their retail outlet (if the retailer operates brick and mortar), or online stores fail to see their website the same as a brick-and-mortar store. A retail website needs clear and concise language that states the retailer’s policies and procedures. The location of the disclosures must be conspicuous, but it does not need to overpower the website.

There are stories of retailers using a small (4 point) or white font, and failing to put a link to that portion of the website.

These strategies get retailers in trouble. Customer service wins every time, so treat your customers with full disclosure. Legally and financially, you will be glad you did!

A retail website should include the following, at a minimum: • The full legal name, address, telephone, and email address of the business • Hours of contact for a “live” person or store hours • Any geographic restrictions (only selling in a certain state, pick-up only, et. al) • Privacy policy • Terms of use • Refund policy • General store terms (tax, shipping costs, order turnaround, stock availability) • Pricing policies • Intellectual property notices (proper use of all designations of trademark, copyright, patent)

Certain states have additional requirements, which may include disclosures regarding the use of the website for minors, products that contain hazardous substances and

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Know the

Legal Code additional return policies.

Most retailers outsource its website design and hosting.

Unfortunately, you, the

retailer, are still responsible for its content.

Social media continues to challenge and inspire

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retailers to utilize this growing resource to drive profits. Social media usage offers endless opportunities

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and endless challenges.

Once again, a retailer’s social media presence is an extension of its own store.

Every retailer should have a written social media policy in place, even if you are a one person store. It should cover the following: • Which social media sites will be utilized • Who will be responsible • Clear user names (user names should be directly related to your business) • Posting policies (sources of pictures, timing, content approval) • Friending or liking policies (who/what do you want to associate your business with) • Monitoring Responsibilities • To sell or not to sell • Employee Usage

As an active participant in your retail establishment, you are your company’s best legal defense. Common sense, proactivity and consistency provide many retailers the opportunity to make the law work for them instead of against them.

The information contained in this article is for educational purposes only and does not constitute the practice of law. Furthermore each individual should consult his or her own legal counsel as this article does not constitute an attorneyclient relationship. Finally, laws may be different in your state and this information is not guaranteed or warranted.

CIT

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Craft

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New Products EasyGrip Fingertip Moistener from Lee Products adds grip without using saliva – to better manipulate fabric, handle paper or work with small pieces.

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The Artistic Wire 3D Bracelet Jig (patent pending) allows you to design perfectly round, continuous bracelets using wire and beads.

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Dare 2B Artzy designs high-quality stamps and matching steel dies in a wide range of fresh, new styles – including zentangle-inspired! Sets include multiple images and words to allow more ways to be “Artzy.”

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New Products Avery Elle’s new “This Book” Clear Stamp Set and coordinating “This Book” and “Bookmark” Elle-ments Die Sets create adorable bookmarks, bookplates, stationery and more! With over 180 stamp and die sets to choose from you are sure to find something at Avery Elle.

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Timeless classics never go out of style.

Introducing a new collection of craft room favorites for traditional and mixed-media artists Soft pastel chalk and oil pastel colors lay down smoothly to allow for beautiful blending and layering techniques. Color and watercolor woodcased pencils have easy-to-grip triangular barrels. Double-ended brush markers have highly intense dye-based ink and are water soluble.

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Distress Spray Stains are now available in a 52-color distress palette that includes White Picket Fence and three metallics!

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Testors is the premiere choice for completing craft projects exactly as imagined! A one-stop craft and hobby shop, with highly recognizable brands and a variety of supplies, premium products include brushable and aerosol paints in several textures and finishes, the Aztek airbrush system and small project tools.

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With four great brands, Testors® is the best choice for finishing a craft project exactly as AIRBRUSH SYSTEM imagined. Testors® paints are available in enamels, acrylics and lacquers, along with tools and adhesives to bring iconic Testors® colors or textures to almost any surface.

See the full Testors® product line at testors.com.

AIRBRUSH SYSTEM

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MAKE LIFE A HOBBY™ AIRBRUSH SYSTEM

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New Products Add sparkle to your projects with the Rhinestone Starter Kit! Kit contains materials needed to create one-of-a-kind, personalized rhinestone designs. To get started, you’ll need a PC, internet access and memory device.

Use Rhinestone Wizard in ScanNCutCanvas to personalize your projects – choose from 100 rhinestone patterns.

Simply create the design, cut it out with ScanNCut and iron onto fabric.

Craft Décor Chalk Writers are designed to give the appearance of chalk without the mess and dust. These vibrant, blendable colors write smoothly and dry quickly, leaving a smear-free chalk finish. With an incredible retail price of $2.49 these Chalk Writers are perfect for making designs and messages that stand out! multicraftimports.com

brother-usa.com

Handy Art Face Paint is specially formulated to be paraben-free and fragrance-free! These creamy and bright opaque colors are great for parties, team colors, events and holidays. Face paints are made in the USA and conform to ASTM D 4236. Also safe for use as body paint. Available in 12 colors.

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handyart.com

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Rose & Meyer’s Double-sided Crepe Paper from Germany is actually two pieces of crepe paper bonded together to create a sturdier crepe paper that will hold up to larger flower making. The fun part is that each side is a different color, creating a two-toned effect.

New Sizzix Inksheets allow crafters to easily simulate popular metallic foil and chalkboard trends to create a truly unique inkless impression. Use the wafer-thin, chemically-etched dies or embossing folders to transfer designs and impress colors onto cardstock, craft foil, leather, magnet sheet, wood paper and more! Each pack of five sheets can be used multiple times, while creating imprints that are permanent. No heat or adhesive required.

roseandmeyer.com

sizzix.com

Spectrum Aqua combines the performance of water-based color with the convenience and value of a dual-tipped marker.

The high-quality dyes give flawless, even coverage with definition and vibrancy to deliver outstanding results. Diffuse with water and seamlessly blend colors, adding depth and realism to your work. Available in four color-themed packs of twelve. crafterscompanion.com

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ht Plating Finish

Quick Coverage | Brig

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Do-It-Yourself Step 2

An origami “money” tree is a gift fit for any occasion and makes a lasting impression.

With a hot knife, cut the craft foam to fit inside the vase. Set the foam in and then add floral moss and marbles before inserting a branch or floral spray into the foam. Cover any exposed foam with moss as needed.

by Linda Swingle

Step 3

Foliage

Fold colored paper in half and cut leaf shapes on the fold with scissors. Wrap the leaf shape around branches and secure them with a small dab of hot glue.

Step 4

Origami Money Shapes

Once the origami shapes are assembled, wrap colored craft wire onto each shape, adding extra at the bottom for tying it to the branches.

Randomly place the shapes for a natural appearance.

Step 5

Step 1 Gather your supplies

• 1 natural branch or silk floral spray •Colored craft paper •Colored craft wire • Origami money shapes in various denominations

Stand back and enjoy!

•Small glass vase •Craft foam •Glass marbles • 1 small pack dried floral moss •A hot glue gun •Scissors

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Linda Swingle is a professional artist whose versatile talents and professional approach combine to create all kinds of art, crafts and home decor. Linda provides services that make your product lines shine!

ProArtServices@yahoo.com

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Saving Sally’s* Store products within your store environment so that your customers understand them and, ultimately, want to buy them. Presentation of products is key.”

Retail experts Rich Kizer and Georganne Bender say that it’s common for retailers

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to get so involved in running a business that they miss opportunities to present products in ways that pique customers’ interests. “Look at your store through your customers’ eyes,” they advise.

Note what a customer sees in the first 10 seconds

Creativity Is Our Business

of walking in the door, and notice which displays seem more effective at drawing sales, as well as which ones are least effective. Then adjust as needed to ensure your product displays are eye-catching and make customers stop to check them

out further.

By following these useful tips from successful retail experts, you can avoid the pitfalls Sally Johnson encountered to make your business launch successfully and be successful for a long time.

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Contact a designer today to schedule a class, arrange for a consultation, improve your social media or solve your design dilemmas.

beth | watson

DESIGN STUDIO CHA Designer • Instructor Mixed Media Artist bwdesignstudio.blogspot.com

beth@bwdesignstudio.com

Reserve your space in the Designer Showcase of Craft Industry Today magazine by calling Darlene Ryan at 800-344-0559.

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DIMENSIONAL DESIGN, ENDLESS POSSIBILITY… Allure Dimensional Design Adhesive Paint™ is unlike any ordinary paint product.

It maintains dimension, allowing you to create AMAZING projects that weren’t even possible… ‘til now! Allure™ is available in Gloss, Metallic, Glitter and Puff varieties and are made with Technisheen™ Technology, creating vibrant colors and tones unlike anything else in the market.

Use Allure™ on your next project and only be limited by your creativity – not the paint.

Witness the difference yourself at the CHA Show in Anaheim

•

January 10-13, 2015

•

Booth #2720

The color palette is only half the story.

by Eclectic Products

www.eclecticproducts.com Stay connected with us on

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Learn more — www.ArtisticCreativeProducts.com 40 Winter 2015 • Craft Industry today 2015_Winter_CIT.indd 40

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