Threats...

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What does everyone see as the biggest threats that loom on the horizon (a market slowdown, new regulations or increasing competition, for example)for the framing industry as a whole?

...Ideas on how to prepare for them?...
 
Chain stores with bad quality are the worst threat to the industry. As for how to prepare, educate yourself and provide a good product. Work well with the independents in your area.

(Note: I am not saying that ALL chain stores are bad, I am saying that chain stores have the ability to move the market and IF they provide a bad product we all suffer.)

Sue
 
I agree on the chain stores. Unfortunately they take people before I get the chance to educate them and make them a long term customer. Also the under capitalized competition that opens and after a month or so offers a 50% discount on everything! Custom Framing, Fine Art, Framed Art. etc.. This has actually happened in my market area several times in the past. What happens? the get a market share (drop in sales for me) and eventually (6 months - 1 year) they close their doors.
I have a quick story about a competitor that opened 1/2 mile from me about 15 years ago and remarkably is still in business. We had been in business about 10 years. We had a storefront with a bright yellow awning. They opened and what did they put up? A yellow awning. Well, our awning was 5 or 6 years old so I decided to replace it with a Grey one. What did they do? Replaced theirs within 1 month with a grey one as well. About a year later a wind storm took ours down so I replaced it with a maroon one, and you guessed it. They did as well. We moved to a location about 5 times larger after that(and took the awning with us). It's been over our loading dock and recently developed a rip in it. I think I'll have to call and tell them it's time to replace it.
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A friend of a mine lives in the same neighborhood as the other store owner. The owner told her one time that she loved operating her frame shop. It was so much fun! and as long as she ran it at a loss her husband (who earned big bucks) did'nt care because he considered it a tax write off.
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(It's good that I don't own one.)
I guess I must be doing something right but it makes you wonder with out people like I've described? "I could've bin uh contenda"
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curlyframer, CPF
 
Curly,
That really sucks, I don't know what I would do in a situation like that. So far everything that has gone thru my mind would put me in prison for a long long time. Have you talked to an attorney? I had a competitor years ago that just copied my adds exactly as I ran them, If I made any changes he would follow suit. He even claimed in his adds that he was the originator of the adds. I ignored him completly, he finally went belly up, he was one sleasball.
John
 
It's tempting to think that the influx of large, well-managed, big-box competitors into our industry poses a threat to those of us who have small shops.

The big companies certainly have changed our industry, but it's not all bad news.

Large companies spend big budgets on advertising and marketing. Sure, their offers of deep discounts erode prices, and that's a competitive reality we have to deal with. We can do that.

On the plus side, their big, frequent, professionally produced ads are reaching consumers and raising awareness of custom picture framing on a scale we could never achieve. In an industry visited by fewer than 20% of consumers, That's a benefit for all of us -- when they promote their own framing, they're promoting framing for all of us.

Competition is good. As an industry, we are now being forced to clean up our act. Framers who fail to recognize or understand the changes, those who fail to adapt, will suffer a painful of their businesses. Those who keep abreast of what's going on will find ways to compete and thrive. It's the free market's version of "survival of the fittest".

As I see it, our industry is polarizing. Eventually there will be two kinds of retail frame shops: Those that appeal to price-conscious consumers with simple needs, and those that appeal to more discriminating consumers who are interested in quality, service and superior framing more than price.

The next five years will be an interesting time in our industry. I hope all of you are among the fittest who thrive.
 
Oh, I almost forgot -- if big box competition isn't a major threat to our industry, then what is?

The same as always: Poorly-operated businesses and poorly educated framers.
 
One of the biggest problems I see looming at the moment would have to be the supply of good quality timber to the market.
In the six years that I have been framing I have noticed a definite shift in the quality of timber used here(NZ) and in Australian and Italian mouldings.
 
The Goddess really thinks that we are our worst enemy!
Perhaps I am just some sort of cock-eyed optimist, but I truly think that there is enuff to go around and if we keep ourselves educated and flexible we can keep pace with whatever "threats" present themselves. Isn't there a saying about disguised opportunities?
I would consider my biggest worries to be more personal-- staying sane and healthy!
Although, I must admit that the lumber/natural resources thing is troubling. hmmmm... time to rethink???
-FG
 
Goddess is absolutely correct. Like Pogo said, "We have met the enemy, and it's us". The fact that so few people make a decent living is tied directly to the fact that most folks don't know how to make a decent profit. Only recently, has the industry addressed this issue. But it is really pretty pedestrian information, further highlighting how far most have to go to become competent business-people. You're kidding yourselves if you think the big-box guys are your biggest threat. They will continue to do a fair job for the clientle that buys on price, primarily.
 
Lance is right about the wood. More and more moulding with opaque finishes is coming through with areas of decay inside, for which full price is charged, and the framer must work around it if joining and hanging hardware is going to hold. For such finishes the idea of synthetic moulding has appeal, but so far no one has executed it well enough.
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by Bob Carter:
...The fact that so few people make a decent living is tied directly to the fact that most folks don't know how to make a decent profit. Only recently, has the industry addressed this issue. But it is really pretty pedestrian information, further highlighting how far most have to go to become competent business-people. <HR></BLOCKQUOTE>
I would be interested in hearing your opinions on what the people who are not making "a decent profit" are doing wrong, and how they could correct the problem(s)
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by Jim Miller:
Oh, I almost forgot -- if big box competition isn't a major threat to our industry, then what is?

The same as always: Poorly-operated businesses and poorly educated framers.<HR></BLOCKQUOTE>
Jim, I respect your knowledge of the industry. I want to expand on the particular subject of "poorly educated framers" in particular. For instance, would you (now vs when you first opened) hire an employee for your shop whom had no experience? How long do you feel is resonable for this employee to learn...specfic tasks and finally be able to do a full job without having to be supervised/checked up on? ...More questions on this, but thats all for now. Thanks!
 
Keep Framing-Maybe a better response would be to tell us if you make a great living and how you do it.I'm not trying to get personal, but most framers don't have a lot of good business sense. Witness the questions struggling with equipment purchases, inability to get loans, hiring their first employee, etc.I'm afraid that a lot of people in the trade would be better served as employees than owners. But that's the beauty of the free market system. Anybody can open a store with as little as $3000 as posted earlier, with unsurprising results. Lacking any real perspective of running a business, most don't understand if they are making money or not. Read Goltz's column in Jan. PFM. The fact that it had to be written at all speaks volumes to this problem. But it's a start and every journey has to start somewhere
 
I am a systems engineer - My job title is Network Administrator. My money goes to college, in process of getting MBA. My limited experience, 20 years, tells me that no matter what field you pursue there is money to be made...just depends on how far your willing to take it/yourself.

What qualties do you feel must one possess to be a succesful owner?
 
Well, people, mark my words down. In ten years from now we'll be all buying Keep Framing's tapes. This young lady has brains and uses them well. In my opinion, we need to encourage her enter this business, teach her the little we know best and help her become one of ours.
 
Well, people, mark my words down. In ten years from now we'll be all buying Keep Framing's tapes. This young lady has brains and uses them well. In my opinion, we need to encourage her enter this business, teach her the little we know best and help her become one of ours.
 
Keep Framing-There will always be successful entrants in any field, you're right. But the paradigm shift in this conversation is that success in the NBA is $20 million a year; the same measure in this trade? less than 6% have sales of 500,000 or more; less than 8% make more than $12/hr. These are according to PPFA. So remember to measure your committment with these staggering statistics. Why don't more people make money(success in business)? They limit their ability to succeed by cost saving measures, while not taking full advantage of margin improving measures. For example, How many of this trade would ever spend $50-60/sq ft in rent? How many would spend $100k in leasehold improvements? How many would spend $50k in equipment and fixtures. I'll bet the same 96% that didn't fit into the two stats above. If the axiom "You've got to spend money to make money" were ever truer, this is the case.Never let spending money get in the way of making money. As soon as you say I can't afford to grow your business, guess what? You won't.Until you're committed to lay your bucks on the line because you know you've got a slam dunk winner concept, you're wiser working for somebody or in another trade. But if you are a true entrepreneur, words like I can't afford or it's too risky, or I've got to take it slow, or I don't want to borrow money, these are the true killers of any business. You get what you pay for. And please before anybody writes in with some lame pollyanna excuse that success isn't always measured by money, this is business. If you feel you're making a difference in the world and money isn't important become a school teacher or a nurse. At least, while you're not making much money, you can truly say you're making a difference. But for those truly to committed to being an entrepreneur, step up to the plate and take the plunge. For those that are simply framers, you're masquerading as business people. But the good news? Anybody can change, and I don't mean a 1 hour pep rally at the trade shows. Enroll in a few accounting classes, take a marketing class. The same time you spend on The Grumble you could take a distance learning class on the net. Better yet, go to a College or University for a few classes. There probably isn't a person out there that needs to learn to cut a better mat or dry mount a print. Do you think that's true for analyzing a P|L? It starts today, Keep Framing, but it requires the same diligence that acquiring your MBA will
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by B Carter:
Witness the questions struggling with equipment purchases, inability to get loans, hiring their first employee, etc.I'm afraid that a lot of people in the trade would be better served as employees than owners. <HR></BLOCKQUOTE>

B.C.

I dont think "struggling" would be a correct description of how certain people address the many issues of operating or developing a business. Who better to ask about buying a piece of equip.than the people who have the most expertise with that equip. Where better to find those people than here.

Also, I truly feel that there exists more business savvy within this community than you assume, dont believe everything you read Bob.
I've got a degree in Music w/a minor in business. A degree in anything doesnt mean crap, but one of the many things I did learn in college is when and where to ask questions. Just because a question is asked doesnt mean that the person asking doesnt have any idea of what the answer may be. You see alot of question asking here on The Grumble and thats great. Some Q's are more challenging than others and some may seem silly, but who am I to judge. A question is a question and the fact that people are asking shows they have a desire to find the answer. They also know just where to go and ask it. THATS one of the many traits of an intelligent business person.

KF: apologies for getting away from topic.
...back to "threats"
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by TADPORTER:
B.C.

Just because a question is asked doesnt mean that the person asking doesnt have any idea of what the answer may be. B]<HR></BLOCKQUOTE>

Couldn't have expressed it better myself! I think it is important to not underestimate the abilties of anyone, cause while your not paying attention they just may take your market share. Parnoia is good, talking is good, asking question is good.
 
Tadporter-Please don't read more into my comments than intended. I was answering specifically from KF the question she asked me about being a successful owner. I thought I had done that direct and to the point. My comment about equipment purchasing has more to do with the hand wringing over the procedure, not getting information to make the decision. But I stand by my assertion of lack of business savvy by asking you to reexamine the stats I listed. It's kind of like that old expression "If you're so damn smart, why aren't you rich?" This is not a rich(successful) trade and figures bear it out. If you care to rebut this please do so with your annual sales and number of employees; otherwise take it with a grain of salt. I thought I was giving KF my most accurate answer to her question. For the record, Avril (KF) did email me personally asking if I would consider being a mentor. That's the kind of advice a mentor should give a student. I'm sorry you took it so personally, but take off the rose colored glasses and look more closely at the facts. Earl Weaver said "Wisdom is what you learn after you think you know it all". I think we could all use a little wisdom, now and again

[This message has been edited by Bob Carter (edited February 02, 2001).]

[This message has been edited by Bob Carter (edited February 02, 2001).]
 
Yes, by modern American standards, our industry is relatively poor and unsophisticated. It is populated by many more hobbyists and novices than most retail industries. Most of us came from some other career (Paul MacFarland calls us refugees).

And, like many other labor-intensive small businesses (such as electricians, plumbers, construction workers), framing attracts good technicians who know nothing about business, but think they do. They are the ones who start without a business plan; they either learn enough fast enough to survive, or they die off.

But the times they are a'changin'. Sophistication and management savvy are soaking into our industry rapidly, and we'd better adapt. The days of "learning as we go" may be gone.

Personally, if I were interested in making big bucks I would not have entered this business -- I would have stayed in my old career. I do this because I like it, and I run a tidy, profitable shop. So long as there's gas money for the Road King and I have time to ride it, I'm a happy camper.

Having said that, Rob Markoff, Jay Goltz and Marc Bluestone would be quick to remind us that BIG money can be made in this industry. Those guys are doing it, and what's more, they're willing to help *us* do it. I recommend their classes.
 
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