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gemsmom

gemsmom

SGF, Supreme Grumble Framer
Joined
Oct 10, 2000
Posts
3,576
I went to my local Micheals last night to pick up something I needed, only to find the store closing. They have been there for longer than I have been in business, first as a LeeWards. I have never considered their customers my customers, but I'll be curious to see what kind of effect, if any, their closing has on me. Myself, and one other framer will be the only framers within a 25 minute drive of here.
 
I would call it a Christmas present, unless that other framer is a big discounter. Actually, that may be even better, discounters at our level, usually don't last all that long. You could end up being the ONLY framer within 25 miles. The people who used Michaels will definitely show up at your shop, and they will definitely bitch about your prices and leave, but they will be back.

Congratulations,

John
 
John, The other framer is not a discounter, but not as visible as I. Their prices are on a par with mine. From what I have been able to figure out from people who have been to Michaels and me, my prices are a little higher than Michaels, but not much for comparable materials. I become more expensive when customers choose the "good stuff". I have found that once people buy the really nice mouldings, it is very hard for them to go back to the lower end stuff. For years, I sold alot of Decor. I dropped them a couple of years ago when the better quality mouldings outsold them. Now, I look at Decor and think "how could I ever have sold that stuff?" With all the coupons Michaels runs, people have the misconception that they were saving money. On the other hand, what good is saving money when the work is so bad?
 
Hi Pam,
You will see an increase in business with the closing of Michaels, if our experience holds is any indication. The Michaels nearest our shop (about 8 miles away) burned down a week before Thanksgiving and we saw an immediate jump. Of course, most of the customers were looking for the craft store we used to have. But I don't mind having to explain to the customers that our business focuses on framing and art supplies now. I can always turn the conversation to framing needs. "Everyone has something that needs to be framed."
Just curious; why did the Michaels in your area close?
Good luck. Keep telling your customers that you don't raise your prices to cover the cost of discounts. Also, remind them, customers get what they pay for!
wink.gif

Linda
 
Hi Linda, I don't know why Michaels closed, but I have my theory, which might be why I survive at the higher end of the pricing scale, and others do not. I have seen a definite trend in the discount stores, meaning department stores, in this area closing. In my opinion, we have reached a saturation point, and the people who buy at that level just cannot support all the stores available for them to shop at. Another thought, perhaps those in the lower income bracket have been hit harder than those in the mid-to-upper income bracket, so the discount stores suffer more than the stores offering higher end products.
 
I had a michaels move in about 6 years ago. What a blessing in disguise. It caused me to stretch for a higher end market and eventually created a more sound business. I now have people come in and tell me that I'm not any more expensive than Michaels. I really dont understand this because I'm one of the highest priced in my area.
What a dream to be one of only 2 shops within 25 minutes. 1/4 mile away I have a Michaels. 1/3 mile away I have a deep discount store (prices are about half of what I charge) that has been in business over 20 years. A block down the street there was a higher end business that moved about 2 years ago. Now their 2.5 miles away. Within 2 city blocks from him are 3 other high end shops. I would guess I could probably get to 30+ frame shops within 25 minutes of mine. This does not include garage framers which I know of a few. My area is extremely over saturated with framing. I feel fortunate that I'm going on my 20th year. I've seen many shops come and go. I sure hope I'm fortunate enough to watch them come and go for another 20 years.

[This message has been edited by Don (edited December 31, 2001).]
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by PAMELA DESIMONE,CPF:
...I survive at the higher end of the pricing scale, and others do not...<HR></BLOCKQUOTE>

Pamela, you're on the right track, going for the high end. Indeed, framers who try to compete at the low end, with Michaels et al, are probably doomed. And you gave some of the best reasons, too, other than the usual about the Big Box buying power and economies of scale:

...we have reached a saturation point, and the people who buy at that level just cannot support all the stores available...those in the lower income bracket have been hit harder than those in the mid-to-upper income bracket...

No question about it -- the small independents' place in the custom framing market is at the high end.
 
I would imagine, Don and Jim, that the reason you and I are able to survive at the upper-end of the pricing scale is simply quality of work. I am extremely picky about what goes out my door, and you must be, also. How many times have you taken apart someone elses work and said to yourself "this would never have passed muster in here"? I imagine discount framers let work go we would not simply because the customer paid less for the work. I always tell my workers "The customer paid alot of money for this. If it isn't right, do it over".
 
Yes, quality is essential and must be maintained at a consistently high level. That's a given.

But I think our success hinges on more than "simply quality" these days. Our list of priorities is longer -- and different -- than just a few years ago.

Marketing, merchandising, strategic planning, sound business practices, new framing techniques, new sales techniques, and other considerations are relatively new to most framers. And they are every bit as important as quality in the back room.

Our industry is now being guided by the best quality business managers, not the best quality framers. And that's a good thing, because it forces the rest of us to become better business managers.

That's why the trade publications, The Grumble, PPFA and HitchHikers, and FACTS standards, are so important in bringing us together. That's why education for framers now includes very good business courses, and why the whole spectrum of framing education is growing so rapidly.

Exciting, isn't it?
 
I'm not so sure about "Exciting".

In the early days when I worked for Aaron Brothers, before "Big Box", things were simple & fun. None of us in the company where really experts at anything, we learned as we grew. We kept trying all kinds of crazy ideas and approaches to building that company. One of the vice presidents designed and built a jig out of plywood and string for making Mini Frames. His jig worked great and we could crank them out in no time. I designed a modular shelf system that cost next to nothing to build, for retailing ready made frames. No matter what it was, we all tried our ideas out. Some of them worked great, some didn't.

Then we opened our first "Big Box" on Midway Drive in San Diego. It was the complete opposite of what an Aaron Brothers store looks like now. It was also our first million dollar a year store.

We went on a feverish program of converting our existing stores and opening new ones. All the while we were still experimenting with things to sell, everything from frames & art supplies, craft supplies to clothing and food. We sold hatch covers and empty fish barrels. It was a fun time, we got to try out every idea, no matter how outlandish it was.

The only problem with having a bunch of stores doing over a million dollars a year is it attracts the bean counters and lawyers. We soon had a bunch of business "experts" on the payroll. The fun started diminishing. Requisition forms became commonplace, paper work abounded, the company became an "exciting" growing firm.

It became so "exciting" that 100% of the original people that built the company, left, including Al & Len Aaron.

What had happened was it got turned into the boring corporate sterile operation it is today. To the bean counters who run it by computer, it is still " exciting."

It is not "exciting" to anybody with an ounce of creativity in their souls. For my part, I will keep my operation as far from that "excitement" as I possibly can.

I'm sorry Jim, but that word, "exciting" was a very over used word that the "bean counters" used as they squeezed all the "excitement" out of Aaron Brothers. Whenever I hear it used in business, my alarm bells start going off.

John
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by JRB:
[B...What had happened was it got turned into the boring corporate sterile operation it is today. To the bean counters who run it by computer, it is still "exciting."

I'm sorry Jim, but that word, "exciting" was a very over used word that the "bean counters" used as they squeezed all the "excitement" out of Aaron Brothers. Whenever I hear it used in business, my alarm bells start going off. [/B]<HR></BLOCKQUOTE>

John:

OK, so the bean counters have a different perception of excitement than we back room framers have. But the bean counters having their fun won't keep me from having mine. Excitement isn't mutually exclusive.

What's exciting is that we have innovation in our sleepy old Mom-n-Pop industry. It's a shake-up like we've never seen before. Certainly, some small shops are struggling now, and more will fail under pressure from the Big Boxes. But plenty of small shops will be stronger than ever -- and that's exciting.

The new emphasis on marketing and merchandising is exciting, and the increased consumer awareness that comes from it. The new level of competition is exciting; the new ideas that help professional framers of every stripe become better framers -- as well as better business people. The organizational successes are exciting: The Grumble; PPFA's affiliation with PMA; Decor's new ownership/management; PFM Seminars' growth and innovation in trade shows and framing education. That's exciting.

The bean counters' fun doesn't excite me and I don't share the vision of our industry becoming "boring corporate sterile". I still have one small store because I don't want to be a business administrator. (Been there, done that, got the T-shirt.) I get my kicks in the back room...and I expect to continue, with increasing profitability.

Gee whiz, John -- I just thought of something. Your business must be several times the size of mine. Where do you find excitement in it? Have you been getting too cozy with the bean counters? How many computers do you look at every day? How many hours a week do you spend in the back room with a tool in your hand? When was the last time you needed a BandAid? When was the last time you took a ride on your Harley Davidson?

Excitement is where we find it, I guess.
 
Companies like AAron Bros. and Michaels are interested in the bottom line only. It is their job to be a "bean counter" and make sure the business is profitable. I am interested in profits, and work hard to make one, but that is not what totally motivates me. I take pride in the work I do, and it is very satisfying to me to do a good job. The customer who is at your front counter doesn't care about your profits. What they want, and what keeps them coming back, is the creativity of work, the quality of work, and a sense that we appreciate the fact that they have spent their money with us. The "big boys" cannot do what we do on a personal or professional level. Those are the qualities that will keep the small businesses in this country going.
 
The point of my earlier replies is that we small shops can't thrive (or survive) by concentrating only on great quality. We have to become better business managers in every respect.

Until a few years ago, a small shop owner/framer who was a good technician and willing to work could make an OK living, even if general business acumen was lacking. One didn't have to understand the fine points of fiscal management to get by. That isn't true anymore. Now we have smart competition, able to find our weak points.

In an industry experiencing rapid evolution, as ours is now, the strongest survivors of the shake-out will be the ones who do everything well.

Likewise, the BigBox stores can't thrive by concentrating only on profits. They have to provide quality and service that is minimally acceptable to a large-enough segment of the market to support them. If they don't, they'll be gone.

No matter where we stand in the spectrum of business philosophy -- or size, for that matter -- we have to find a balance of price, profit, quality, service, location, marketing, merchandising, etc. that satisfies us and our target customers.

What's different now is that such a balance is more difficult to achieve and maintain. The balance might be upset next month, when another BigBox store opens down the street -- then what do we do? How do we keep our customers, or failing that, how do we offset the loss of revenue?

I don't know about you, but I'm studying business again. Every time I read another book or attend another course, I realize how little I really know. Successful business owners like Jay Goltz, Marc Bluestone and Rob Markoff have a lot to teach us, which is why their classes fill up so fast these days.

[This message has been edited by Jim Miller (edited January 02, 2002).]
 
Do they still hold "Farm Aid" concerts?

Maybe next year there will be a "Framer's Aid" concert.

It's not just Farmers and Framers - it's a life changing time for many people in many old fashioned lifestyle occupations.

For many people the pride in their work, not answering to someone else, owning their own occupation, and doing it "their way" is more important than the bottom line.

For some these times are not exciting, they're frightening. Some of these people soon will be wearing a blue vest and saying "Welcome to walmart" all day long.

However for those that are excited there is always great opportunity in times of change.

[This message has been edited by John Gornall CPF (edited January 02, 2002).]
 
Jim, several years ago my business was much larger than it is now. I had twelve employees and twelve thousand headaches. I was doing exactly as you suggested, all administrative and no fun. I had a huge cash flow that went out as fast as it came in. I became a master of brinkmanship, I was on a first name basis with the IRS and every credit department in the industry.

Six years ago this month I changed all that, I closed my big box wannabe and moved to a larger building on an out of the way street. I leased out the upstairs and let all my employees go.

I now have a working custom framing business that makes a lot of profit and only has one employee. I work with my hands on a daily basis, I do the bookwork on Sundays. I purchase Band-Aids in the giant family size box. I have room for every tool you could ever want in this business and I keep finding space for more.

I probably only have a few years left and I want to enjoy them as much as I can. I'm at my happiest when I have a machine running.

I own three computers, one in my rats nest office, one for my Wizard, and one at home. I doubt if my business is much bigger than yours, if at all. That was an issue for me when I was younger but not anymore.

I like making frames, waiting on customers & tinkering with my toys. The last motorcycle I owned was a BSA 650, that was back in the 60s. I now own a bicycle, mountain type, and that's it. I donated my Van to charity and gave my jeep and 280Z away. I have simplified my life as much as I possibly can.
smile.gif


John
 
Jim makes great sense. Be all that you can be. Learning more of any element can't diminish what you know from a different discipline.
 
I agree that education is a tremendous help for a framer to progress his craft and his business. I don't agree that the small shop owner is at risk anymore than the big box owners are at risk. If both are competent at what they are doing, they both will survive.

The only people in this business that are in danger of losing everything and ending up at Wal-Mart are the medium size operations. They usually have high fixed expenses, more employees than they need, and higher debt than is practical.

The ones that are making the most profit, percentage wise, are the small, Mom & Pop, and the large Big box type operations. I'm not talking just big box retail stores, it's the whole thing, warehousing, distribution, contract and wholesale.

That hurdle from medium to big is a very tough one and few people can pull it off. I think those with the most education and business acumen are the ones most likely to accomplish it.

John
 
I had to put a lot of thought into making this post. I need to applaud JRB for his candor in revealing his IRS problems and the problems in his larger store and it's credit problems. It takes more courage than I would muster to reveal those facts.

JRB's example is all to common. A person has his capacity outstrip his capability. In no way is this a criticism of John. In fact, it is a compliment that he has found his level of competency by downsizing. The problems he had are in his past. His level of capability now better matches his capacity (the size of his business).

JRB's options could have been mitigated by more knowledge of running a business, the inclusion of skilled and trained people to help run his business or both. There is no question of his mastery of his craft.

John has given us a wonderful example of self-realization. To be honest with ourselves and our ability. I'll guarantee he won't be seeing his IRS agent again. And good for him.

I'm glad John offered his story. He has regained my respect, even if we disagree on how we each run our businesses.
 
Bob, are you old enough to remember the business term that was so popular 30 or so years ago - "The Peter Principle"?
 
Well, now, ain't you guys clever. There is another old business acumen that is still popular today. " There are two ways to make money, be real small, or be real big, God help you, if you get caught in the middle" ( Len Aaron, 1976 ) I know I will never own a large business, that's 500 or more employees, how long is it going to take you fellows to figure it out?

John
 
I know that If I keep running my business the same way, I will die financially. But I also know that I am capable of doing what it takes to survive.
I have not shared my history with all of you, nor do I chose to at this time. It is private. I do have to say that it is no excuse for not being more sucessful than I am.
I believe in my abilities. I do not have the skills to be a as organized as those of you that have business background, although I am striving to be. I am not full of myself, though maybe I should be.
I know I can do this, and my heart is set to.
I am not as witty as some of you, or as knowledgeble as others, but that does not matter to me. I love ths forum so I can learn from you. Bring Prestige to our society> I am what I am. A picture framer, who does her darn best to fulfill the order, and educate the client, and up-sale as much as possible. That is all of me!
thanks
heat is gone; feel cool now

[This message has been edited by lyoncat (edited January 04, 2002).]

[This message has been edited by lyoncat (edited January 04, 2002).]
 
Lyoncat, The members of The Grumble are more than willing to help you, this is a good club and it's membership has experienced it all, including what your going through.

It would help if you let us know a little more about your operation. The dollar amounts are not important and it's really nobody's business except yours. How long have you been in business, how are you advertising or promoting, are your prices in line with your area, how is your location, etc.?

There are plenty of minds here that you could be taking advantage of. We have some of the top framers in the world if you are having quality problems, some of the top skilled business minds in our industry are members and a lot of people like me that know how to tough it through the hard times.

There is nothing wrong with asking for help. Sure we have a few idiots that will rag on you for not thinking identically to them, or asking questions that they deem stupid, but they are in the minority and not to be taken seriously. However those same idiots may have the perfect answer on your next thread, so don't give up on them completely.

Take your problems one at a time and start a thread on that subject, also try to look the subject up in the "search" area for The Grumble archives. For example, you may think you need a loan for a piece of equipment. Start a thread that's says, "Where can I get a loan?" Open the thread with the details and see what happens.

The best advise I'll give you for now is DON'T QUIT.

John
 
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