Tough as Nailheads
The economy may be slow, but your customers still want to spruce up their homes.
By Bessie Nestoras -- Gifts and Dec, 6/1/2008 12:00:00 AM
Gas prices are up, food prices are up, and the outlook for the real estate market is dim at the very least. We are all feeling the pinch and watching pennies as well as dollars, just to buy necessities. So when it comes to products that are generally considered non-essential — like decorative accessories — can retailers still sell them in a slow economy?
“At first I was scared, but people are fixing their homes,” says Joseph Santoro, owner of Santoro & Company Gifts, Antiques, Home Accents, Bridgeton, NJ. But they aren't shopping for furniture. It's the smaller, less expensive items that they're looking for. “My furniture sales have slowed. And I think other parts of my merchandise have picked up the slack,” says Rose Fryer, owner, Wild Rose's, Moab, UT.
“In a slow economy we find that decorative accessories tend to be greater in demand,” explains Vasilio Kiniris, owner of Zinc Details, San Francisco. “People find accessories a great way to spruce up their homes, which makes them feel better,” he goes on to say.
WHAT'S SELLING
Most decorative accessories are selling. There isn't much that shoppers aren't buying. “Lamps and area rugs and vases are always good items for us,” says Kiniris. For Santoro, large clocks are doing well, as are candles and wall decor.
It is perceived value, however, that is the most important factor in driving sales. “People are making less expensive choices and that's why imports are doing better right now. That's all I carry because that's all I can afford. I have a mirror I bought for $10 and sell for $25. For the customer that's an incredible deal,” says Fryer. Some of her better sellers include decorative boxes and wind chimes, as well as lamps.
Both Santoro and Kiniris find that their customers are willing to spend up to a couple of hundred dollars for a single item and Kiniris says that local artist-made accessories do especially well. “In fact, the hand made, artisan items are doing better than manufactured products. These items offer a better value and it is something you cannot find anywhere else,” he says.
Santoro feels that doing a little haggling with the customer is sometimes called for when making a sale. “You should haggle a little, but I do it on my terms. If someone says they have to pay the mortgage, the electric bill [and are thinking twice about making the purchase] I'll do something for them. But if they come to me at full speed [looking for a discount] I won't,” he says.
As an independent retailer you have the upper hand according to Fryer, whose shop is located in a tourist town 100 miles from any major city. “For a small retailer, chains are helping because they all have the same stuff. Smaller retailers have an advantage and an opportunity, if you do it well.” And that is the key. Find out what works for your store and make it happen. You know your customers and their buying habits. “It's a matter of how we sell ourselves. Just make it work,” advises Santoro. Project Runway's Tim Gunn would agree.
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