Low sales for the first 1/3 of the month

After the first week of March, when the weather turned nice, our sales have been down.  We turned in our lowest ever return on investment in March…just 2x dealer rent in sales.

In the first eight sales days of April, the percentage dropped to just over 1.5x rent.  Our first week was the lowest sales total since the first week in September!  Dealers who have been in the store and working their booths are for the most part holding their own.  What is selling are items which are low priced, with the exception being primitives and furniture (in the $50.00 to $150.00 range.)

A couple weeks ago, Debi and I made the decision to begin an advertising campaign in the Peoria Journal Star.  This was mentioned in the April Newsletter.  Results have been mixed.  Folks are finding us, especially on Saturdays.  In fact, thanks to the ads, Saturdays have remained quite strong.

Being new antique mall owners, Debi and I were taken by surprise at the sudden drop in sales.  We’ve been told by several experienced dealers that the first weeks of good weather are always slow, as shoppers turn their attention to outside pursuits.  I’ve seen this myself as I’ve watched our neighbor, “GroUp”, a garden store, enjoying good traffic these past few weeks.

That is the bad news regarding “Spirit”.

The good news is that we saw excellent traffic in the store on Tuesday, April 10th.  And sales for a Tuesday weren’t terrible.  The weather was nice and perhaps antiquing is once again on the minds of some folks?  We certainly hope for such.

The worst case scenario is that the weather stays nice the next couple months…and the community determines as a group to garden every square foot of available of space!  Sweet corn growing up the length of land in the middle of Park Sreet….radishes and carrots sprouting from a freshly tilled ‘Mineral Springs Park”…those weird upside down tomato plant sacks hanging from every window downtown!  If this happens, April and May could test the resolve of our dealers.

Of course, Debi and I continue to do everything we can think of to promote sales.  We could use for some dealers to update their booths.  Some are very empty and/or filled with product with some age of shelf life (it’s been in the store awhile.) 

The best case scenario is that the new “Peoria Journal Star” ads, as well as our other advertising, continue to let shoppers find the store (we are ten months “new” this Friday and have yet to find much of the local community.)  and after a month of low sales, the gardening and outside labors are mostly complete…and we get back to the level of sales we’ve enjoyed since we opened!

There are some events in the area which will aid our cause.  “Military Uniform Supply”  opened it’s doors on Tuesday.  We wish them great success.  Alan, the owner, is also a dealer in “Spirit” and is commited to refer shoppers to the store.  “Amanda’s Closet”, “One More Time”, “Derby Street Antiques”, and others are also strong, cooperative friends that let folks know about us.  “One More Time” recently expanded after Amanda’s Closet’s old space became available.  The owner, Donna, has always let people know about us.  She is now having estate sales!  She is just a block 1/2 away and in this industry anything that draws shoppers to the area is good for all the stores!

If I had to predict, I’d say that April will end up being similar to last September, perhaps slightly worse.  If we come out of April with another 2x rent, I won’t be entirely upset.  It seems this is the season for slower sales…and still in our first year of business, our first real slow down probably upsets me more than it does the experienced folks we have renting space in the store.

Oh, I’ve had a good look at the new Web Page and Web store which is in the works.  It looks great!  Debi and I are preparing to get it up and running soon.  I know…I’ve said that before.  We HAD a finished product in February, but we didn’t like the amatueristic look of the sight and hired a professional company to start from scratch and build an online store which we can all be proud to utilize to display our products.  Soon, we’ll have “Spirit” merchandise selling online, and once the bugs (if any) are worked out we’ll offer up the online service to our dealers for a low percentage of the sales.

There are going to be some “rules” to selling on the Web Store. 

First, I THINK the percentage we will charge will be 15% of the sale.  That is similar to the ultimate price one pays in commisions to Ebay…yet we will be doing all the posting, and shipping, so our dealers will not have that burden.  Don’t hold me to that price.  We need to see if there are fees we are not aware of…I think the credit cards might have a slightly higher fee…not sure.  We WILL NOT have additional fees…the percentage will represent our entire charge.  We need to see what our costs will be before we commit.

Next, items posted will be at our discression.  No dealer will be required to participate, but if they so choose, we will pick items to post based on:  appeal, value, condition, ease of shipping…just pretty much figure we’ll post items as best we can, as much as we can, when we can.  We will not be posting anything under $20.00.  We’re going to spread the efforts to everyone who participates…no favorites.  Honestly though, the items we’re concentrating on will be the unique and higher end ANTIQUES and true VINTAGE items which will add spark to the Web Store.   

We will ONLY offer the Web Store service to persons renting space in “Spirit”.  We’ll have to expect that those who participate keep their areas well organized.  We’ll have to replace tags with new ones which will include an identification number so we can track internet sales.  Remember, these items are going to be available in store, and online, we’ll need good communication if a dealer removes items with the Web Store tag from the store.

Obviously there is much I could get into regarding the Web Store.  Some quick, important aspects.  Discounts will not be offered online, nor will negotiating.  The price will be retail and fixed…no bidding.  We’ll be spending some money to promote the Web Store…we’ll absorb those costs through our own investment.  It may take time to establish online customers.  Although ordering product will be available to anyone within the United States, we are going to seek markets (antique stores, large collectors) in bigger cities and areas where antique prices run much higher than central Illinois.  Let’s face it, our immediate area is amongst the lowest, if not THE lowest, of places where antiques can be purchased.  If we wind up with several stores using us as a location to fill their shops…at the prices we are comfortable to sell…why not!?!?  We will seek to establish longterm relationships with our online customers.  Hey, I met Debi online!  Online relationships can work. 

The bottom line, for our dealers, is that we are not offering to take requests regarding what makes it to the Web Store.  We’re going to be very busy posting the quality products that everyone stocks in the store…and the last thing we can promise anyone is immediate service.  It will take time, but it will get done.  Once we get caught up…things may be different.  I’m sure everyone understands…this is a big step…and one which should put the “premium” in the premium service “Spirit” wishes to offer to it’s dealers.  Perhaps down the line we could consider offering an “Immediate Posting” option for a higher commision?  I don’t know…not sure anyone would be interested. 

For now….it is important to get the thing up and running, FINALLY.  I’m sure everyone in the store community knows that Debi and I will be fair and make every effort to set this up to work well for everyone involved. 

We’re also going to be utilizing our online marketing through the Web Store, new Web Page, FaceBook, and our new blog to reach customers for the brick and mortar store.  One idea I’ve had is to establish either on the blog or on FaceBook a community of “member” customers and dealers where anyone can post.  It could replace the “Wanted to Buy Box” to some extent and give the buyers and sellers a place to talk!  It has been months since we’ve made efforts online to promote the store…well, not really…the efforts have been in building a better place to gather online!  The fact that it has taken longer to build the online site than it did to design and set up the physical store site still frustrates me.  But finally…finally…we are seeing the finishing touches being put on the thing.

I wonder if anyone is still reading?  If so…a bit of a personal thought.  Recently, I had an experience which was mildly disturbing.  (“Spirit” receives constant compliments from customers regarding the looks of the store…and for just being a place to shop when so many antique stores have dissappeared over the years.)  A gentleman came in the store and quickly walked the aisles….this used to happen when we first opened…some folks came in and commented on the “empty” shelves…questioning how soon “Spirit” would go belly up as antique stores are a thing of the past..those sort of negative things.  This guy went through the store barely looking at the product.  The same kind of walk I’d seen from those others when we first opened.

He questioned outloud why anyone would ever shop an antique store when they could get the same things at garage sales and auctions, or online?  I answered him, but he didn’t hear a thing I said.  He left, and I’m sure he figures he’ll drive by an empty storefront some day…he was so sure of himself.

Well, “Spirit” has turned a slight profit each month from the end of July until now…and we will again in April even if the sales remain slow.  (Now..if the dealers are patient and stick around after a slow month is indeed a question, massive exits could put us back for a short time.)  Debi and I are not going to get rich operating the store…unless this Web Store takes off and we’ve no idea what to expect regarding that.  But, we are well past fears of failure.  “Spirit” is going to be around a very long time.

Now, how I would have liked to answer the gentleman…had he been willing to listen:

“You sure can find quality antiques at garage sales and auctions.  In fact, we’ve several dealers, including ourselves, in the store who do just that!  They spend their time and gas, and use their expertise, to locate THE BEST products available.  Then they gather them in one place, and for a slight fee (price) which is never going to earn them a hotel on Boardwalk they offer items for sale to folks who can count on a clean, air conditioned, year round open, staffed, comfortable environment in which to shop!  Heck, most days shoppers can count on cookies and coffee!  And, shoppers get a selection of vintage and antique items not mixed amongst the microwaves, baby clothes, and press board furniture!  Hopefully, they also get interested, friendly service from the store staff who earn a living making the cutomer experience their primary concern!  They may just get a chance to visit with human beings…talk about the weather, or interests…or anything on their minds.

Regarding the internet.  Obviously Debi and I see no problem with it as we are setting up the Web Store.  But we consider it a different sort of animal.  Some folks prefer being able to lift up an item and examine it.  Some folks still actually like to shop in a real, brick and mortar store.

Why does “Spirit of the Past Antiques” exist…and why should it?  Just over a year ago, Debi and I were just shoppers ourselves.  We’d seen antique stores closing at an alarming rate.  Shops like we enjoyed were getting harder to find.  It just so happened that we’d determined to start a small business.  It was a dream of ours.  We considered several options such as an ice cream shoppe…a consignment store…even a water tubing location on the Mackinaw!  (I still like that idea.)  But, we just kept coming back to the idea of an antique mall, the kind like we liked to shop in.

“Spirit” came from the idea that if we like to antique…so do others.  And maybe, if we did it right, we could buck the odds and make a place for folks like us…perhaps we ARE all kind of stuck in the “Spirit of the Past”?  We weren’t worried about failure.  To us, looking forward 25 years…if we never tried…we would regret it.  So, just starting it was better than not..even if it didn’t work!  Well, it has, to some degree.  It will exist…now I would obviously like to afford to buy a new car again someday, but if we never get to that level of income, no bigee.  There are many rewards to owning an antique store that go far beyond income.  Personal pride in offering a good store…..seeing someone find that special item they always wanted…meeting some trully remarkable people…just, many good rewards.

So, we did find enough like-minded shoppers to allow us make a living owning an antique mall.  And, we’ve found enough dealers to keep the shelves full, either because they are very successful (and many are) or because they are hobbiests satisfied to make rent and a little better.  I don’t know why some stay…perhaps because the Web Store is coming and they see opportunity on the horizon.  I don’t question it…nor do I expect folks to stay if it gets too tough effort wise or their sales don’t measure up to their needs (one month lease…no one is expected to stay if they wish to leave…it is one reason our shelves stay maintained and product is fresh.).  Anyway, the point is, it is working.

And even if, EVEN IF, the Web Store takes off and income from it would allow us to close the door and sit back and simply ship to buyers all over the country….”Spirits” doors will NOT close.  “The Spirit of the Past Antiques” is an antique mall, a brick and mortar shop where folks can walk in and enjoy the…spirit…of…the…past.  A time when shopping was an event, not a means to obtain an item.  A time when the guy behind the counter cared that the shopper feel welcome.  (I hope I do…I try.) 

I guess I’m remembering “Tillman’s Variety” back in my hometown.  Around 1968 or so…and after school I’d step in to spend a quarter or so on candy…or something.  And those ladies (two cash registers… busy dime store it was) made me feel like I was ten feet tall.  I guess that’s what I want to try to keep alive.

And maybe, Mister….while garage sales and auctions and buying online all have their place, and I would never say they don’t…maybe an antique mall still has some value?  It might not be your kind of shopping…no biggie…but why come in and tear something down when others still enjoy it?  Come back sometime and instead of stepping quickly down the aisles without even looking around…instead of preaching about how the ways you prefer to shop are better…maybe take a real look around, and maybe you’ll see why a store like “Spirit” has it’s place as well?”

Anyway, that’s what I’d have liked to say to the guy.

Ah…I guess this little tale is just a way to get though the slow sales?  Everybody get those gardens planted and get back in the store…I miss you.  Later this year…bring me some tomatoes. :^)

   

  

   

       

April Newsletter

Sales in March were disappointing.  Dealers will have averaged somewhere around 2.2 to 2.3x rent for the month after tomorrow.  This month was quite a letdown to Debi and I as we’ve enjoyed such good sales since the beginning of November.

We had already planned on becoming more active in advertising in the Peoria area, and the slow sales motivated us further.  We have committed to a year of coupon ads in the Peoria Journal Star.  The “Spirit” coupon is a 2″x 2″ ad which will appear three times each month in the “Star” as well as everyday on PJStar.com

The first coupon appeared on Thursday, and sales that have come directly from traffic generated by the ad have already paid for the ad (sales spread out throughout the store…some folks coming in with the coupon still opt to purchase even from dealers not associated with the promotion!)

The coupon simply offers a 15% discount on “Spirit” tagged merchandise.  However, several dealers have chosen to honer the coupon as well.  We will be changing the coupon to read, “15% off merchandise from participating dealers.”

We urgently ask all our dealers that are just finding out about this promotion to contact us if you wish to participate!  We will try to contact everyone asap.  It is NOT a requirement.  The ad should benefit those who participate as well as those who don’t simply by generating foot traffic.  We are requiring that a coupon be presented, otherwise we will continue to offer traditional discounts (or not) as we have done in the past…allowing each dealer to determine for themselves what discount, if any, they wish to offer.

Other interesting events:

April 14th will mark the 10th month that “Spirit” has been open.  For a new business, we’ve encountered few obstacles, and enjoyed great success!  Debi and I thank all our dealers for your efforts.

“Spirit” merchandise seems to be spread all over the store.  In the coming weeks, Debi and I will be doing a massive reset of our products.  We intend to create a clearance section for “Spirit” products and to liquidate inventory which is over 10 months old.  As we do this, space will open up.  As always, we encourage expansion amongst our dealers…we will always make room for those who wish to invest more time and energy into creating bigger displays.

We have mentioned that through attrition (not replacing dealers who chose to leave) we have hoped to lower our community of dealers from nearly 40 to a more manageable 20-25 persons.  We now stand at 28 dealers.  We are seeking to have at least 2/3rds of the square footage of the store be occupied by dealers.  “Spirit” is a bit short of that mark.  Debi and I have about 40% of the space at this time.  If expansion doesn’t fill the gaps, we will sign new dealers.

We are looking forward to what appears to be many new customers from our “Journal Star” ads!  One kind of cute story.  “Spirit” enjoys the visits from a great husband and wife team who shop regularly in our store.  They are from Northern Wisconsin, yet somehow manage to visit us frequently.  They are dealers themselves, and enjoy the great prices our dealers (and Debi and I) offer.  They were in the store and overheard our determination to advertise…and the wife lamented that now others would find us and buy up all the good stuff!  I assured her that all our dealers are hard workers…great shoppers…and would continue to keep their shelves full!  (I’m sure of it.)

So, folks, while we took a slight step back in March (not nearly as bad as it sounds…some of the drop in percentage of sales to investment were the result of our price change) we have also reacted with positive determination to expand our network of customers.  Many of you know that I (Dan) would break through a steel door to provide better service for both our dealers AND our customers.  I dearly love a good challenge and consider April the next inning in this baseball game.

And…finally.  Pekin’s resale/antique and vintage shopping opportunities continue to grow!  “Derby St” has been open around one month…”Amanda’s Closet” has moved to her new HUGE location…our own dealer, Alan, will be opening “Military Uniform and Supply” next to “Amanda’s Closet” in April…”One More Time” is expanding”…and there are many other shops in town open for business as well!  Cooperation and a great friendship is developing amongst all these fine small businesses.  Pekin is poised to be a tremendous town to visit for the wonderful shopping experiences. 

Isn’t it something…I can’t help but shake my head in amazement at how all this is turning out!  To our dealers who have been patient…struggled at times, and those who have enjoyed good sales every month…I truly believe we’ve only scratched the surface of where “Spirit” is heading!

Please, remember to let us know if you want to participate in the “Journal Star” coupon.

Yours,

Dan (and Debi who is wisely sleeping to be ready for a busy Saturday)

2/3rds through March!

Sales have been good overall, rivaling our best month of December and there is a good chance we can pass that total.

Sales have actually been spread out better around the store!

We’re finishing up the design of a reoccurring ad in the Peoria Journal Star.  We’ll run this a few times each month for several upcoming months…introducing ourselves to Peoria.  Kind of scary to imagine the kind of traffic this might bring in.

We’re going to be doing a massive reset of “Spirit” inventory and creating a clearance section to sell anything we’ve had in the store since before our initial opening.  We expect that we’ll have created some open spaces to offer to our current dealers for expansion, and then to select new dealers.       

March updates after first 12 business days of 27 this month

We stand about $4.00 per day short of beating December’s record sales.  Currently, dealer sales are at 2.2x rent.  That is much lower than the 3x rent which is always the store goal.

Good news is, in February we started out slow..at the same point in the month (12 business days) we were at only 2X rent.  The following 13 sales days actually beat the store goal to bring the avg. much higher by the end of the month.  The same could happen this month as well…Debi and I are certainly hopeful.  I can’t imagine tax refund season is over just yet.

We’ve got 15 more days of business in March!  However, due to the huge variances in results between dealers…we’ve already had some good folks decide to end their lease at the end of March.  We believe that is for the best.  As mentioned many times, I (Dan) can’t stand expecting payment for rent from someone who has had poor sales.  I much prefer handing a nice sales check to dealers.

I guess this is one way to reach the goal of 3x rent…if those not making it pull out.  Perhaps that is to be expected with a new store?  Fortunately for those staying, and for us, Debi and I are doing pretty well with our own sales (figures we never include when computing dealer percentages) so the store is in good shape. 

We’ve some decisions to make, however.  We do not, can not, and won’t consider, trying to have a store without dealers.  We think a good mix of our own products and about 20-25 productive, successful vendors is the way to go.  But we may have to open up spaces to some new dealers if expansion does not take place.  We don’t want to dominate floor space much beyond the area we already use ( in fact…we already use more than we think we need.)  If that means more dealers…then that will be the way we go.  Dealers will need to be self-sufficient in that case, as our time will be divided among the many, not the few.

If we open up space…we will be patient and careful to sign up dealers that fit the community.  Proper products…effort, etc. 

In today’s economy…it is perhaps to be expected…the most successful dealers have been selling items in the $15.00-$25.00 range.  Furniture is also starting to move as we’d hoped after opening the third room.  Especially furniture that is priced up to around $150.00.  Even higher priced furniture has moved, at a slower pace.

As we mentioned at the Dealer Apprieciation pizza party…Debi and are are grateful for all the efforts put forth by our dealers.  You folks occupy over 2/3rds the square footage of the store!  The fact that we’ve ALL created a successful antique mall in the middle of a tough economic stretch says much about all of our efforts.  But there is something I wish to caution….

Gas prices are rising drastically…that means inflation on items such a food as well.  With high unemployment, although the national economy is improving, we’re a long way off from seeing the kind of consumer confidence that will promote big ticket purchases.  That goes far beyond Pekin, by the way.  Despite increased traffic from Peoria, and planned marketing strategies to get the “Spirit” name to new customers, don’t expect us to easilly find high dollar buyers.

I had an economics professor in college during the recession of the 1980’s explain a simple strategy.  In tough economic times…buy stock in hot dogs.  Currently, the average price of an item Debi and I stock is under $10.00.  We want to raise the quality of our products…but people aren’t buying alot of steak right now. 

“Spirit” is working, it’s doors are open and will stay that way as we are past the level where anyone need be concerned.  Debi and I are excited about future plans.  Folks, we’ve grown a good crop in the middle of a drought, we should all be proud. 

Dan and Debi 

   

March Newsletter

Hi everyone!

February started out slow for the first week, but sales increased throughout the month and by month’s end dealers had sold 2.5 times their investment in display space!  We’ve seen sales of items priced in the $100.00 to $150.00 range increase, especially furniture.  We’ve also seen the average total sale increase.  One final indicator is that unlike January, most sales have been cash purchases.

All these indicate that tax refund “season” is upon us.  March enjoys 27 days open for business, five of which are Saturdays…by far the busiest day of the week for us.

Debi and I feel it is very likely we will see tremendous final sales figures for March.

At this time, selecting new dealers is suspended unless a dealer comes along with great experience and great product.  We will be offering expansion to our current dealers, certainly with open shelf units and likely a locking display case or two.  We do not have any open booths at this time but if any come open they will be offered to current dealers as well.  Please let us know ASAP if you desire to expand, offers will be extended on a first come/first serve basis.

We’ve finished bringing our own inventory from Rapatee to the store.  Some of it waits to be inventoried and priced.  We had a major hurdle to overcome when the computer at work died on us…but it has been replaced and all bookkeeping information is once again current. 

Cathy Trotter has agreed to help behind the sales counter a couple days each month.  She will be in the store with Debi this coming Sunday, and will watch the store on her own this coming Tuesday.  Debi and I will be attending a memorial service that day for my sister Betty, who passed away last week.

Everything from the new Web Store, to Debi’s new office, and many other projects, are still under “construction”.  We’re progressing as fast as we can, and we feel that “Spirit” is moving quickly in the right direction.

Sales for the first day of March, today, ended with dealers reaching 3x rent!  That is on a Thursday!  I (Dan) strongly urge our dealers to maintain your display space well this month…bring in new product, keep the displays looking good.  We’re going to see much product moving out the door this month…might as well do everything we can to make the most of it!

There is much more I could get into…but after lasts months “thesis” I’m determined to keep it short this month.  Thanks to all for the efforts in February…Dealer Appreciation night was fun for Debi and I, and we hope to do that sort of thing again…new antique stores are opening, or opened, or coming soon…to Pekin and we’re seeing great results already from cooperating with our neighbors.  We have enjoyed good comments regarding the new third room..and customers are finding us from the surrounding areas!

Again…March is going to be a blast!

Dan and Debi

Rapatee is nearing completion

One more load of merchandise waiting to be brought to Pekin.  Another in the van, and our storage areas in the store are full.

But, with some concentrated pricing efforts we should be able to finish the job of getting these items on the shelves and on sell within the next couple of weeks!

We’ll have the last load in the store by Monday, 2/27. 

My sister Betty has passed away.

Betty had been sick since Spring of 2011, not feeling like herself.  But she didn’t let on to many about just how ill she really was.  Her faith in God was very strong, and she chose to put her health in his hands.  She was busy promoting her knew book, “Is it yet Tomorrow?”, doing book signings while at the same time writing a sequel.

This past summer when Debi and I opened “Spirit of the Past Antiques” Betty traveled from her home in Michigan to join us, and support our efforts in every way she could.  She held a book signing, and lent her sparkle and spirit to the festivities.  I know she left an impression on many folks, Betty always did.  She had a true zest for life. 

I couldn’t tell how ill she was.  She never let on.  While she was visiting she took the chance to spend time with us, and our brothers Ernie and Del and some of their families.  She had a great time! 

Then by early fall, the cancer she had not let slow her down came expecting payment and when she finally sought treatment it was too late.  She’s been very, very ill the last four months and at 10:50 pm on 2/16/2012 she passed away.

It is perhaps evidence that when anyone is ill, they should not put off seeing a Doctor.  There is the perhaps…if sooner…if.  There is also though, so much of Betty….her way of living, making the most of each day as it came, always trying new things.  She couldn’t always allow herself to be distracted…and I say that she packed more into each day than most of us!

I’ll know more tomorrow about if there will be a funeral, or any other facts.  I do believe years ago she donated her body for research…so there might not be a funeral.  That is more evidence of Betty right there…she couldn’t imagine just laying around even after she passed away.

So, Betty is with God, and Lord…you best have a list of things to keep her busy or she’s going to come up with her own ideas!  I’ll miss you Betty until I see you again.  I love you.  Say Hi to Mom and Dad.

Dan 

Nine days (open) into February

The start of the month was slow, dealer sales were down under 2x rent the first five days.  But the last four we’ve kicked it in strong and dealer sales for the month are now up to 2.5 times rent.  I was particularly happy that the last four days averaged 3.2 times rent.

One concern is that we have a month where some dealers are hot and others have barely sold at all.  But nine days is hardly a large enough sample to get any idea of trends.  As we saw today (over 6x rent) things can change in a blink of an eye.

Sixteen days to go…hopefully we’ll see the strong sales continue and we can get closer to, or perhaps pass for the first time, 3x rent.  I (Dan) think it is important to see a positive trend as rent investments are increasing in March. 

As to our own sales, the opening of the third room has gone better than expected, and we are very excited by our own numbers.  Debi and I have discussed the benefits to the dealers that this creates.  We can use rent to pay bills and what is left over can be used to advertise the store.  We want to open up our efforst to let Peoria know we are big enough to be worth a trip to Pekin.

Today, from 10:15 until after 4pm, we had many folks shopping.  The lot was very full, as were the aisles.  We’ve noticed a trend where the more people are in the store, the more likely every shopper is to purchase.  We wonder if shoppers kind of “feed” off each other. 

Anyway, this post seems all to “money” related and the most important thing was we saw many people having a good time.  Debi says the busier the store gets..the goofier I get.  I did notice most folks were laughig and enjoying the “show”.

We managed to conitnue to price Rapatee items…getting closer to the day we are done. 

Guess I’ll play a game of Risk against my arch enemy the computer and then get some sleep for tomorrow.  Sunday, Debi and Jaime will be running “Spirit”.  In the morning I’m cleaning out what will become Debi’s new office and then going out to do some marketing.

February Newsletter (Book)

“Spirit of the Past Antiques” February Newsletter

Chapter One:  “Making Money”

Hi everyone!  This WILL end up about half a book, so much to talk about!  I apologize if it gets a little long, or if I cover things I’ve said before.

January sales were down.  Dealer sales ended just above 2x rent, around 2.2.  That falls short of the goal of 3x rent, and represented the first time we failed to increase from the month before since September.  Debi and I had been concerned there would be a decrease in sales in January.  We believe it will be a natural occurrence.  Our “trends” have followed those of most retail stores…and actually differ from the typical antique store.  We found December’s Christmas shopping to be strong.  It will be a hard month to repeat and may be our best month for, oh, one or two more months before our natural growth catches up to it.

Likewise, January followed the same “retail” pattern of lower sales.  If these patterns continue we can expect very good sales in February and March.  The next two months are “tax return” season and shoppers should be able to afford higher ticket items.  We’ll see.  I’m (Dan) betting from past experience in retail that I’m right.  Seriously, I am betting on it.  We’ve brought in a great deal of furniture expecting to see higher investment items sell well over the next 60 days.  (More on this later)

On a related note, I had a conversation today with a dealer about what can be done to increase sales.  I have to say that I get thrilled when folks make every attempt to create as much sales success as possible.  Debi and I DO NOT want to make a living collecting display rent checks from people who are not enjoying good return on their investments and efforts. 

Before we opened the store, Debi and I had never been dealers in our lives.  In fact we’d never owned a store of any kind!  But over the last eight months or so (most of which we’ve been open and more still learning the ins/outs and preparing the store) we’ve learned much from 50 hour weeks in “Spirit” and our research and that experience led us to enjoy our personal best month of sales in January…despite it being a slow month!  I’m mentioning that not to brag, but as a precursor to some suggestions I would make to anyone investing in display space in “Spirit”.

First, the average antique mall sells (turns) about 10% of its inventory in a month.  Our own inventory turns slightly higher than that rate.  That means that if everything you sell is priced right, displayed right, and is desirable merchandise, you can expect 10% or slightly better to sell.  If you stock $1,000 in inventory…you should expect $100.00 in sales in a month.

IF you are achieving that turn, and yet struggling to profit because rent seems too high, or price of product is too high, then you have options available that can help. 

Increase inventory.  A $60.00 shelf unit has 40 sq. ft. of space.  That is five 2 ft by 4 ft shelves.  The top and bottom shelves are difficult because they are 2 ft. wide and merchandise is hard to display, it gets lost in the back.  There are ways around this by placing larger items on top…or lowering the height of the top shelf.  The bottom shelf can be used to display wider products.  But even if we FORGET ABOUT those two shelves entirely…we’ve still got 24 sq. ft. of display space.  Let’s say we desire to sell THREE TIMES our rent of $60.00, or $180.00.

24 sq. ft of shelf, $18.75 every 6 sq inches, can we accomplish that in inventory?  Not with $1.00, $2.00 items which take up too much space.  Examples that fill about 6 sq inches and that sell for $18.75 or more?  Coffee grinders, oil lamps, primitives, art glass, even two or three sets of salt and pepper shakers will fit in 6 sq inches and combined can easily sell for close to $18.75!  Averaged with the oil lamp that takes up 6 sq inches and sells for $30.00 and it all works out. 

So it is about a large enough amount of inventory, number one.  If a dealer fills the three middle shelves with a total of $1800.00 inventory, and manages to fill the top and bottom shelves with half that, or another $600.00.  That’s $2400.00 inventory.  10% turn and surprise, the dealer has grossed not 3 times rent, but FOUR Times rent!

Cost of goods is another concern of course, that is an area dealers need to answer for themselves but  a common goal seems to be buy for no more than 1/3 what you plan to sell that same item…and frankly 1/3 may be a bit high.  There is something about cleaning up a vintage or antique piece, and putting it in a retail environment that seems to magically increase its value!  The truth is, it is the hard work and determination that dealers exhibit to gather valuable items into one location for ease of shopping which is the true magic.  Between gas and time spent locating items, and the effort to research and price them, then display them, expecting a reasonable profit margin is completely fair.

Large enough inventory and then if sales fall short of the 10% turn? 

The first thing to look at is how your items are displayed.  Have you done anything to attract the shopper’s eye?  Bright colors, linens, anything to draw attention can only help get your product noticed.  Next is cleanliness.  Are your products cleaned?  Are your display areas cleaned?  It is in the lease that Debi and I clean the common areas, and that cleaning display space is up to the dealer.  There is a reason for this as if Debi and I spend every day cleaning, and it would take every day, we simply can’t do the job of selling your products, or walk the store providing security, or do the bookwork to get sales checks done on time.

Regarding the display, too much inventory can hurt as well!  Consider that if you were a shopper, would you reach to the back to look at an item if it meant lifting something off of it, or moving items to get to it?  Can a shopper even SEE some of the items at the back?  There is a point where too much inventory will hurt your sales.  At some point, it may be viable to consider expanding to more display space if you are trying to make more money.  (Another point here, the most valuable small items are jewelry, coins, perhaps even collectables such as pocket knives.  Those things obviously fit in pockets and as such are the first items stolen from display areas.  They are hardest for Debi and I to protect.  Any items that are small enough to fit into a pocket are likely to end up in a pocket if not locked up.  It costs about $70.00 plus lock for a decent locking shelf display case.  It is worth it.)

 Finally, if your inventory is of proper investment, if your display is clean and appealing, and you are not making sales, you can consider your prices.  Selling for too low can cause a potential buyer to have doubts of an items authenticity.  Selling for too high, well, you won’t often sell anything when it is priced too high.  It is important to research your items well and price at a value that is correct for the area market.  (Book prices, even Ebay prices, can often be a little higher than the Pekin/Peoria market will pay.  Why not sell on Ebay?  In some cases it may be a better option, but consider the time spent, the commission, and sometimes an antique store IS the better choice.)  We would add that including any research by way of good descriptions of the item either on the price tag or perhaps included on a little sign attached to the item helps as well.  People like to know the history of the items they are considering buying. 

Again, if you are selling less than 10% of your inventory each month, and your display is done well, you need to look at your pricing.  Even if you are managing the 10% turn, watch closely items that have been on display past seven, eight months, they are reaching the point where they should have sold.  Perhaps they are not something attractive to area buyers?  Perhaps they might be replaced with something else?  Debi and I do not suggest a reset every one or two months, we feel that even six months might be a little early, but at that point it wouldn’t be “way too soon”.

Well, I said this Newsletter would be half a book.  And I’ve just about covered the first chapter: “Making Money”.  Other ideas are seasonal decorating, seasonal merchandise.  One thing we DON’T think helps a great deal is discount signs.  Everything is Twenty Percent Off!”?   We haven’t seen many shoppers come in looking for the “bargains”.  Many assume prices have been fixed (raised to make the discount pretty much meaningless).  What Debi and I do, is when it is time to lower a price on an item which has been in our inventory too long, is simply change the tag.  Crossing out a price, and writing a new one?  It worries us because any shopper could have a pen and do the same to any item in a display area where a dealer has already set the “example”.  And, how do Debi and I tell the difference between a legitimately crossed out tag and one that is a shopper applied “discount”?

We have done our best to explain what we’ve seen work and what we’ve seen that doesn’t work.  Of course, leasing display space means each dealer is their own boss.  Please take our suggestions with the helpful and hopeful intent we have to provide advice to anyone who desires it.  The main thing, because honestly folks none of us including Debi and I are likely to get rich at this, is to just have fun! 

Chapter Two:  “Some Neat Stuff!”

We have ONE booth available in the first room starting on March 1^st.  It is 8’x6’ and rents for $120.00 per month.  We will offer it to the first dealer who asks!  After this booth, any others that come available will be offered based on a waiting list we are beginning NOW.  So if interested in a booth…let us know asap. 

We have up to three new dealers joining us in February.  Welcome new folks! 

Sunday, February 26^th, at 5pm we are having a Dealer Appreciation night.  Let us know if you plan to attend.  We will have pizza and soft drinks in the store and it will give everyone a chance to meet other dealers! 

Feb 1^st we opened the “Third Room”.  This 800+ square foot addition to the store is where Debi and I will display most of our own merchandise.  We have found that selling our own products is profitable.  It pays the bills, puts money in our pockets, allows us to keep rental prices low (reasonable), and gives us a chance to display items which smaller display spaces can’t afford to keep around waiting for a certain buyer.  A good example of this is furniture.  We are not known to carry much furniture due to the display design of the first two rooms.  There just isn’t much room for big items.  As such, people haven’t come in specifically looking for furniture…and those types of items have not sold at the 10% turnover (or better) that our smalls have enjoyed.  We will “take the hit”, and stock furniture to build a reputation of having such items.

The third room will include a “rest area” where customers can enjoy a cup of coffee…someday we’ll have snacks available also.  There will be a table and chairs.  Dealers should also use this area to sit down and price items if needed.  Use of this resource will allow customers to move about the store more freely.  It would be a shame for a dealer to lose a sale because the customer cannot see everything on display.

We want to stay a mall.  We can’t even imagine trying to constantly stock our own inventory for a store the size of ours.  There may be concerns regarding the third room, but it amounts to about 1/4^th the entire area of the store.  We are not trying to sell only our own product.  No one renting a full display area is going to ever be asked to leave in favor of our own merchandise.  But, we ARE going to use what space we need for our own products, for the reasons already mentioned.

 “The Pekin Daily Times” is going to do an article about us in their business section!  It will help of course get word out about “Spirit of the Past Antiques”.  We are pursuing our regular advertising and marketing strategies, considering some additional efforts, and have some things in the works which we are not ready to disclose just yet.  And some things which we will not disclose because we’re the only ones in the area doing them and we kind of like having our own secret “fishing holes”. :^)

Coming soon, we’re going to redo the lease.  Nothing will change for our current and “new” dealers.  The wording may be simpler, that’s pretty much it.  For future dealers who sign up, we are going to change the lease to require a first and last month’s rent and an initial 3 month commitment.  After 3 months the lease will become monthly as everyone enjoys right now.  We find that dealers often start out slow.  It takes a bit for shoppers to see the new items and think about them, or tell others about the new stuff, before things really start to move!  A three month commitment is our way of making sure we sign up people prepared to go the distance.

We also wish to stress that as sales increase, all dealers be as self-sufficient as possible.   If we spend time doing your research, or helping mark your tags, we are taking time from doing the work that sells your merchandise.  And, as much as we enjoy visiting with our friends, we must make economical use of our time.  If we have to step away from a conversation, please understand that we are at work and just doing our jobs.

We’ve hired a company to set up our Web Store.  We found that our design was simplistic (we’re not experts in this area) and didn’t present the kind of look that we desire to express online.  The Web Store is coming, that’s all we can say at this time.

We are expanding our security system by adding cameras not only to the third room, but additional motion sensors and another camera in the first room where shoplifting has been most prevalent.  Our own recent inventory revealed that of over 1,000 items, we were “missing” four.  In this economy, that is not an overwhelming number.

A reminder that as of March 1^st shelves will rent for $60.00 per unit.  Locking cases will rent for $90.00 per unit.  Please inform us no later than February 20^th if you wish to downsize or terminate your lease for this or any other reason.  Regarding expansion, let us know soon if you wish to expand.  We currently have a little space left that we prefer to make available to our current dealers.  We also have a large amount of our own inventory and as we research it, price it, and display it, we will be less inclined to remove it at a later date.

To be completely honest, in less than eight months of being open Debi and I have seen many dealers enjoy great success, and a few that have not.  We know it can be done.  We THRILL at handing out sales checks to the success stories, and we get a sick feeling in our gut to collect rent from those struggling.  But, so often there isn’t a thing we can do to change a dealers results.  We are already doing everything we can.  We’ve learned that being a mall has its own brand of stress that doesn’t come from selling our own product.  We’re watching as sales increase and gleeful at the progress in just these short months.  Our community deserves to be proud of the early results, and should be optimistic about the future.

But, where I can see the store ending up is with Debi and I selling our own inventory along with 20 or 30 solid dealers.  Keep in mind that is less than the amount of dealers we currently enjoy.  No, we will not toss anyone out in favor of our own inventory.  But as natural attrition (people leaving for whatever reason) takes place…we will FIRST offer expansion to current dealers, SECOND either take the space for our items, OR ad carefully selected new dealers.  Our vision is to be a good quality, profitable, premium service, antique mall where dealers feel they get top of the line representation and everyone from the newest shopper who just happens to find us to the longest tenured dealer feels this is the place they wish to do business.

We think the Web Store will add a new dimension to the possibilities available to everyone. 

We know that adding the third room, and the great opportunity provided by the upcoming opening of “Derby Street Antiques and General Store” , will help draw customers from greater distances.  Debi and I wish there were many antique stores in Pekin for that very reason.  I’ve mentioned before that we could “enjoy” the 33,000 residents of Pekin as the only antique mall in town, or DELIGHT in sharing those 33,000 and the 100,000+ residents of Peoria and the many more beyond!

We think we’re heading in a great direction friends!  Our customers continue to comment in many positive ways about “Spirit”, from the layout, the prices, the service, the products, we’ve all done a great job and things are going to get better and better.  Just think of it, the strides we’ve made in less than a year!  The first year is supposed to be about struggling, what great evidence the results to date are regarding the rewards the future brings!

We are so happy to have so many good folks with us on this ride.  No one is going to be thrown off the bus, or have their ticket revoked.  But as we progress we envision widening the seats a bit when room allows and being more “first class” for the passengers. 

Thanks everyone for the great times and ties we’ve enjoyed!  And for those we enjoy in the future!

Dan and Debi      

10 days into January

We’ve finished 7 of the 25 days we’ll be open in January.  Sales are at pace to equal or slightly beat November’s totals.  One trend that continues is a noticable discrepancy between dealers who are already at or above rent, and those struggling to just make rent.

Debi and I haven’t been long in the business, but with some experience behind us we’re seeing what works and what doesn’t in the store.

For our part, our biggest struggle has been selling furniture.  This was addressed in the January newsletter.  With the purchase of “Simple Country Pleasures” in Rapatee, we’ve acquired a number of decent quality pieces of furniture.  Several items are in the store already.  We’re selling these at good prices, lower than we would ask in most circumstances.  Our purpose is to establish a reputation as a good store to shop for furniture. 

We’re also in the midst of expanding into a third room at “Spirit”.  The latest word from the Landlord is that his part of the construction will be completed this coming Sunday or Monday.  Once we can get in, we will paint, set up fixtures, and move in as soon as possible.  We’ll then bring many more bigs in to the store.  Again, as mentioned in the newsletter, our intent is to expand the customer base to persons shopping for bigs.  Let’s be honest…we just haven’t had many in the store and we can’t expect to attract this new customer base without the merchandise to offer!  It may take a bit to start a trend towards larger items.  We know that, and we don’t expect our booth dealers to use precious display space.

To those that do bring in furniture, we hope our efforts will succeed in helping your sales.

Now, as to the subject at hand about the differences we’re seeing in results for our dealers.  If folks are looking to improve their sales, some of the best results have been:

Coming in often to clean and rearrange/decorate display space.  Those dealers that do this, simply enjoy better sales than those that don’t.

Good pricing.  Good products.  Large and varied inventory.  Better results have come from dealers who bring in antique or vintage items, and price them according to the Pekin market.  Primitives/vintage glassware/signs/jewelry have all been selling.  There isn’t a noticable trend except that reproductions and “newer” (we’ve some in the store which we really shouldn’t have) items aren’t moving.  We also have many items which have been in the store in dealers booths since we opened.  Is it time for a price change, or a product change?  It would be a good idea for dealers to walk the store and check pricing.  How do yours compare?

“Spirit of the Past Antiques” has enjoyed sales close to the triple rent figure we aspire to achieve for two full months and it looks like January will be the third.  It can be done.  It is being done by many.  We do not believe we’ve even come close to the best sales figures we can achieve.  We’ve only been open seven months!  And, we’ve many dealers who are just as new to this as Debi and I.  A learning “curve” is to be expected.  We are very happy with the community of dealers we’ve extablished.  The store is currently completely full.  When we finish setting up the third room, we hope to have opened up some spaces in room one for expansion.  All our current dealers will be offered what space is made available before we contact people on the waiting list.

One announcement which will be “official” in the February Newsletter.  We’ve noticed that the single shelf dealers..either using open shelves or those in locking cases..do tend to struggle the most to earn profitable returns.  As of April 1st, we’re going to end the opportunity for anyone to rent less than a full shelf unit or locking case.  We’ll certainly strive to offer expansion to those folks (to a complete unit) first.  We don’t want to force anyone out…but we never feel right taking payments for rent when a dealer isn’t earning profits from the display space.  And single shelves are just not big enough to “absorb” a bad week.  They are too “hit and miss”.  Obviously the few pegboards do not lend themselves to expansion, so we’ll keep offering them in the same manner as we have since we opened.

Debi and I have our hands full with the expansion.  Not only are we opening up the third room, but we will be setting up a business office for Debi where the current storage room is located, and we will be remodeling (rearranging extensively) the sales counter area.  Behind the counter we will be setting up displays of our products…thus keeping more of the floor space available to dealers.

We also think removing the “paperwork” in favor of an “old country store” appearance will give the customers a little more enjoyable shopping experience.

Because we’ve got so much on our plates…the Web Store continues to be tauntingly close to completion..but still out of reach.  We’ve decided to hire outside help to check out the design and make the Web Store as atttractive and efficient as possible.  It is coming…no new projections as to when because I’ve optimistically made too many already.  All I can say is…it is on the way. 

When I (Dan) say we’ve got much on our plates…I’m not kidding.  The items we’ve brought in from Rapatee have just scratched the surface!  We worked all but one day in December and all but one day so far in January to move items, research and inventory them, price them and get them on the sales floor!  Our attention is on the details of timing to get the third room open, and all previously mentioned, done as soon as possible.  If at times we’ve seemed tired, or unintentionally “short” to anyone…please understand it is simply because of all we are trying to accomplish in as short a time frame as possible.

“Spirit of the Past Antiques” will be a stronger business entity due to the work we’re putting in this month.  We’ll be a better place for shoppers, and a better place to be a dealer.  One of the last things we want to see is folks that have struggled to date to make rent decide to give up prematurely.  But, we set up our lease to be one month at a time because it would be worse to us to see dealers want out and be stuck in a lease.  We’ve had many people coming in wanting display space.  We are well stocked ourselves with items to display.  If anyone does want out…we hope they don’t decide to stay for fear of hurting our feelings.  Debi and I feel the friendships we’ve made with our dealers go much further than “rent”.  And if anyone does decide to pull out…we’ll understand.

As the title mentions, it is 10 days into January.  On the 14th we’ll have been open for seven months!  We’ve been through a summer, fall, and Christmas shopping season.  Results overall have been more than Debi and I expected this early in the process of establishing a store.  But, we’ve also seen enough months for folks to determine if their personal results are acceptable.  (Some dealers have expressed that “making rent or a little better” is about what they expect…if they are happy with that and being a dealer is more of a hobby, we certainly understand and have no issue there.  It does throw off our statisitcs a bit…lowers the results overall…but why not have room in the store for those doing this as a “hobby”?  It’s ok by us!)  Perhaps what I’m trying to get at is this simple…as a dealer at “Spirit of the Past Antiques” are you having FUN?  If you are…wonderful!  If it is going to take better sales, well, we’ve offered some suggestions, we’ve seen the store work for many so we know it can work for anyone.  If a dealer isn’t satisified, and especially isn’t having fun…the 20th is the last day of the month to give us notification that you wish to end the monthly lease agreement.  We’ve got folks who want to expand…we’ve got our own product…and we’ve got folks that want to move in.  You won’t hurt our feelings and in fact you will releave us of feeling so rotten to be taking your rent when you aren’t making any money!

Now, I suppose I’ve rattled on and on again…and I hope I’ve created the right “tone” in this post.  I don’t want to sound like I’m pushing anyone out…and I don’t want to sound like I don’t understand that some folks are just having a good time and not worried about “profit”.  Though we ARE going to end the single shelf rentals…we’ll find room to offer expansion to those folks.  No one is being asked to leave.  Likewise, no one is being asked to stay if they wish to get out.  “Spirit of the Past Antiques” was started with the intent to be a fun place to own, or be a dealer, or shopper….that is the point I’m trying to make….if you are having fun, stick around, we think it is only going to get better.  If you are not having fun, or not making enough sales to make it fun, don’t worry about us…do what is right for you!

Dan