It’s an odd time to be an American. On one hand, day-to-day life continues. People go to work, break bread, visit friends, fall in love and download Internet entertainment. On the other hand, Starbucks just introduced instant coffee (yesterday’s luxury lifestyle is today’s Sanka) and every day brings more bad news: layoffs are surging, state governments are bankrupt, tent cities are forming in the heartland and perhaps most worrisome, Gwyneth Paltrow started Goop.
What’s going on? Is this really happening? Thank you to Chicago’s design community for sharing their thoughts on the economy:
Lazy Dog Antiques
Lisa Piemonte
Lazy Dog Antiques
(Our business) hasn’t really been affected for which we are very grateful. We do definitely have some slow days, but we had slow days before too. In order to keep our customers happy, we consistently keep our prices as low as possible. We have $1.00 items and we have very high end items as well. We have tried to accommodate the current economic situation by having a big sale. 40% off all of our basement items, 30% off all of our jewelry and 10% - 50% off of other pieces! Because of the sale, we had a big turnout over the weekend. Everyone was very excited about it. I think people want to shop . . . but the news has made them afraid to shop.
I think we can help each other by continuing to live our lives as we did before-if you must cut back a little, then do so, but don’t stop living!
As retailers-try to keep prices fair. Make less of a profit if you can afford to do so. As friends and neighbors, try to continue to support your local small business in any capacity you can. The bright side? I feel that the situation is not as bleak as the press is making it out to be. Everyone I talk to still has a job, still has a car, and still has a roof over their heads and food on the table. The press is comparing this to the Great Depression. Sorry but not even close! Don’t forget people were waiting in soup lines for food because they had no money and had no food and were STARVING. There were no jobs to be had. So when the negative news comes on-shut it off and think about what you DO have instead of what you DON’T have. (Then go shopping!)
Troscan Design
Deirdre Jordan
Troscan Design
Our business is down 30% or so. Buying furniture isn’t a priority for a lot of people facing economic uncertainty . . . not sure if this will stabilize or stay flat or decrease yet? We are focusing on the positive and continuing to do new product development. We see the slow down as a good time to re-focus our efforts on the creative side instead of just trying to “keep up” with the work load. WE are reaching out to our local clients who are very supportive and looking to keep their relationships strong in these challenging times.
We personally are making efforts to support our local economy by spending in small, specialty shops and restaurants and supporting the local talent. We are cautious but see pockets of optimism out there. We are concerned about the arts losing out in all this and trying to support them more.
We see people hanging out a lot in cafes (maybe they are unemployed?) and seem to be re-connecting and enjoying their friends more. I don’t think there is an upside when friends are losing jobs enough to say there is a bright side to this…but it is more of a media hyped doom than I am personally seeing. I think people are not looking to buy expensive and unfortunately everyone is looking for a “discount” …which is not helping the economy or local work force.
Scout
Larry Vodak
Scout
I’ve had 5 record months. Customers are buying - they are just being VERY careful in their purchases. This “category” of product that Scout specializes in is no fun if it is overpriced. That was the original premise for Scout. And, today, people can sniff bad price/value a mile away.
Also, I hear something along this line almost daily: “If we’re going to be stuck in that house for the next 2 years, we are gonna get a new dining room table. No debate. Case closed.” That thinking is good for business. Real good.
Come to Scout. And, let’s have fun.
Arthur Swirgon LTD
Arthur Swirgon
Arthur Swirgon LTD
After a slow December (more people were looking for small gifts like chocolate or scarves/gloves), I was looking for slow January and February but the beginning of 2009 was very good for me. I never ran my business when economy was doing well because I opened my store one and half years ago. I also don’t have a problem selling stuff everywhere to everyone (web, store, shows, eBay, trade, auctions, to another dealer).
Personal contact with the owner is the best way to make a good business. People dont like answering machines, decision making by computer and poor customer service calls.
We must be more realistic. We are here in Chicago in this economy. I know a lot of dealers who are too attached to 1st Dibs prices. Today people are more often looking for used furniture in good quality and good condition, and they try be smarter by avoiding retail chains or IKEA catalogs just to save a little money.
Smythson Yeats
Richard Rosen
Smythson Yeats Antiques
The economic situation has had a dramatic effect on my business. We are seeing fewer people and those that we do see are “just looking” and not buying at the same rate as when the economy was better. People who are buying are looking for less expensive pieces. Fortunately there are enough customers to keep us going during this time.
I counter the downturn in business by offering larger percentages discounts then I usually offer. I am also offering for sale a very small quantity of lower quality of goods.that I hope will not have a long term effect on my better goods. I now offer layaway with a minimal down payment.
I am not sure how the public can help except by making purchases. People like you help by making the public aware of our shops. Unfortunately most magazines and newspapers cover only new shops or shops that sell “modern” goods, both of which quite often go out of business after a year or so.
The bright side is that people are looking to sell more of their family antiques and collectibles. Dealers also seem to be visiting more.
Johnathon
Johnathon Gray
Johnathon
I am VERY happy report we are doing great- (just had 100k sale yesterday to a client). No negative news to report as far as business with the recession. Were all very thankful and blessed.
Axis of Evelyn
Evelyn Daightman
Axis of Evelyn (Vintage Clothing - by appointment only)
axisofevelyn@gmail.com
My business has been in fits and starts this winter. I’ve had record sales, but surprisingly slow events with my clothing. To generate new business, I sometimes invite people who know my collection to have an event or party here with their friends. I offer a discount for everyone, and I also give the person who brought their circle of vintage-loving friends an added discount. I play great music and serve cheese, crackers, juice and wine . . . sometimes I bake a tarte.
It’s a funny thing, once people are here they want to share the whole experience with friends, it’s so unique and relaxed at the same time.
Bright sides are everywhere. Friends want to help and be supportive. I feel closer to my first circle and it has reminded me it’s not so much what you do in life as it is the people and the “fertile soil” that their love and interest in my well being provide . . . something i learned from going through Sept. 11th while living in New York.
Caste
Brad Rowley
Caste
We are grateful to report that Caste is faring well. Having only been open for just more than a year, I don’t have anything to compare the current business too…This is very likely a blessing, though I certainly don’t feel like we are missing anything.
Though our activity is steady, we are working on multiple fronts to ensure we support our core collection and business. This includes the development of two new lines. One will be a production line…the other, a super high end collection with extremely limited editions.
I feel the current economic conditions have further inspired us to keep moving forward in order not to become complacent. There is a climate of doom and gloom that Ty and I are committed to overcoming. Perhaps this is an opportunity for those who are generating great work to really stand out in the marketplace as many consumers are beginning to consider, more carefully, value overall. Designers could very well dig deep for a shot of inspiration and freshness in order to survive! Ultimately, the result may be a lot fewer offerings that are pedestrian.
The Found's Albert Tanquero
Albert Tanquero
The Found
Sales have slowed a bit on eBay which is obviously frustrating but understandable. I think people are still buying collectibles but being more cautious about what they buy. People are still shopping but buying less expensive items. For instance, photos that might have sold for $30 or $40 dollars just months ago are now selling for 15.00 or 20.00- slides that would fetch 100.00 are selling for 30.00 or 40.00. This makes it challenging because Chicago doesn’t have flea markets year round like California - so you don’t have access to lots of merchandise.
I think the challenge is in distinguishing yourself from other sellers and making sure that your items are different than others. How you advertise/market your items is key. I am now having to go into my very best inventory and pulling that out to entice buyers. I clearly have to provide the best service which means answering questions quickly, shipping items asap, providing extra touches like a thank you note with every purchase, etc.
It can all get very depressing until you think about just how challenging people in third world countries have it. Or even in some places here. I might not be able to get carry out everyday anymore but I can still eat everyday. I might not be able to afford my favorite 8.00 bar of chocolate but I can still grab a 3.00 cookie (every now and then). I still have a roof over my head. I still have heat and I still have my family and friends and I feel like we are all really in it together. I have never felt like so many people had my back.
It’s frustrating but you have to stay positive. I believe people will always want to buy antiques and collectibles you just have to ride the wave. It sure feels bumpy but you make adjustments.
Angela Post
Post 27
It’s hard for us to gauge, we are in our first year of business, although we have seen a decline in sales of larger furniture pieces (not sure if it just the season, or the economy).
We have cut down our employee’s hours, and have slowed down on buying a bit, and have put a hold on our in house design projects, due to high start up costs. I think it is important to buy local from smaller local businesses and being choosier about what you buy (quality)
We are being more creative when entertaining with friends, definitely spending more time at our and our friends homes, themed movie nights i.e. “Big Lebowski night” – pitching in on a bottle of kaluha, vodka and cream.
Anonymous Antique Dealer
Business is really tough. Even my internet stuff on 1st Dibs has virtually come to a halt. I also just did a count and out of 1658 postings on 1stdibs last week only 14 sold (these are nationwide postings). The other thing that is happening is 1st Dibs has created a “on sale” area where we can mark down inventory we already have posted. A lot of dealers are marking things down drastically sometime more than 50%. The sad truth is that this has only encouraged the customer to think this is a fire sale and they usually call offering considerably less than the sale price.
We are just trying to take it one day at a time and tighten our belt. Its sad because I would really encourage people who are looking for items for the home that now is a good time to be looking, there are a lot of deals out there and a lot of dealers are dealing. Also it would be helpful if local designers would be supportive and go to local dealers and support them.
TwoSided
Todd Mack
FourSided and TwoSided
So, yeah…the economy ain’t so great. It’s been beaten into my head now for almost a year. When they talk about unemployment on the news it feels like no one left in America is employed. We haven’t been doing much different as far as sales are going, from last year. We had built ourselves up to expect the worse, when we ran our numbers, and found that we did about even with last year. One store did even better than last year. That’s the kinda news I like. We were surprised. Our business is more effected by weather rather than economy. I know that sounds silly, but it’s true. When it rains or snows badly, our sales are guaranteed low. When it’s sunny and warm, the door doesn’t stop swingin’.
The people who are making out like bandits are places like the Targets and Kmarts of the world. Target has a brilliant ad campaign out right now about reinventing your entertainment. Instead of going to the movies, stay home and buy one from Target. Instead of getting your haircut at a salon, buy a pair of clippers and do it yourself. Although brilliant a campaign it is, it comes at the cost of small business owners. The internet is another HUGE competitor of ours. People are much more willing to NOT leave thier house to go shopping. I feel like the , “BUY LOCAL” campaigns run by chambers of commerce accross the country, should be pushed up several notches.
If people continue to not utilize local business they shouldn’t be surprised when they disappear and get replaced with a bank vestibule or, my favorite, a nail salon. Nail salons are survivors. They are the cockroaches of bad economies. They live no matter what.
As far as “strategies” goes, we don’t have one yet. For 17 years I’ve relied on word of mouth and window displays. Strategies are not my strong suit. Although, we did put a coupon on the back of the Jewel reciepts that has turned out to be nothing more than a fancy waste of money. Not doin’ that again. There is one strategy we refuse to participate in and thats SALE signs in the window. A store, who perpetually , has 30% off in the window is basically telling everyone who sees that they are struggeling and desperate. That’s how we look at those anyway.
The bright side? I’ve certainly had a little more time to make some pieces and reinvent things that have been sitting around for awhile into new products. My dying goal is to beat people over the head with ways in which they can reuse the past. I sometimes have to use a very large club.
Anonymous designer / boutique owner
I have to say the economy has been a good thing for me! I’m not sure I would want this published because I suspect most folks don’t feel the same, but here it is: As a “combative” stance to the economy, I raised my rates, decided to be more selective in who I choose to work with and have signed on for more advertising! As a result of my new stance, I have landed the largest job I’ve had to date, the shop is selling like crazy and the newer clients are nicer and easier than ever before!
Andrew Stansell
Andrew Stansell
Andrew Stansell Design
Like everyone else, I’m struggling, getting resourceful, following up on leads just a little bit more without being a pest and doing side work. I also have been building sort of odd little things with some materials on hand speculatively (garden armillary; small tables, repurposing antique parts, etc.) and so far have sold all of them. Things are slower but still going. I’m doing more custom work than pieces of my own design. Also, a jeweler friend of mine pointed out that it’s not a good idea to watch Charlie Rose before going to bed - makes for a bad night’s sleep.
Come buy something and stimulate the economy (instead of arguing about whether you’re paying for your neighbor’s extra bathroom). On the plus side, I am visiting more friends lately. Another designer and I meet weekly for coffee. Also, I have more time to actually build some of the things that have been sitting on the drawing board for awhile. Finally, I”ve been broadening my fabrication skills by doing all this custom work.
Anonymous (and now very flexible) antique dealer and newly certified yoga instructor
Given we are still in our first year our plans were thankfully conservative so we are more or slightly less than where we planned we would be. The biggest difference is foot traffic (much of that is perhaps due to seasonality). Aside from that the client is much more thoughtful about higher ticket purchases. The immediate impulse buyer is taking pause and thinking it through in greater detail. At the end of the day, “price value relationship” is of paramount concern now. They want and expect value and I think value is defined differently by each client. It’s an interesting shift in their thinking and ultimately behavior.
We are working on a number of initiatives including consciously trying to build in approachable price points in key classifications of our furniture offerings (for example chairs). We are further emphasizing the vintage accessory category that offers a unique an hopefully unexpected “reason to buy”. Given the emphasis on “value” we are further developing our services - including extended on-approvals, complimentary delivery, scouting out specifics pieces for a home / project and re-furbishing pieces to client specifications.
As independent “neighborhood” retailers I think we have an opportunity (possibly an obligation) to collectively build the reputation of the area in addition to our own unique businesses. Some friends of mine in NYC reference “Goodwill is the new Gucci” - and I believe there is an opportunity for business owners to cultivate goodwill in the area. There is a “sameness” in every mall or high street across America which is a fundamental problem and frustration with consumers causing them to spend less. It offers an opportunity for unique neighborhood retailers. For example, the Andersonville neighborhood business owners take a leadership role and build the personality, profile and presence of the area and each other in a collective format it will cultivate and build the sense of community - residents are likely to spend in a much more localized manner.
Customers are “nesting” again, and there is a safety and political correctness in spending money on your home. Entertaining at home is coming into fashion and will be on trend again. I believe they tend to see the lasting value of a unique decorative piece of art or furniture that adds to the comfort of their home. The idea of carrying the “it” handbag is no longer viewed with admiration but rather with a sense of pretension and the consumer is responding in kind. I think there is fundamental shift in consumer consumption that isn’t about how much they are spending but what they are spending it on - again, price value relationship.
That said, I’m almost certified to teach yoga . . . so there are other benefits.
And I’m in down dog as I type (not an easy task).
Thanks to everybody who responded. For those reading, there are ways to help. If you have disposable income, spend it supporting the type of businesses you dig the most. If you love quirky little independent neighborhood shops then shop there. A recent study by the Andersonville Chamber of Commerce found that local business spend more money in their community compared with local outposts of national chains.
Tate Gunnerson is owner of Strange Closets and a friend of C.H.I.P.s . I met him through Twitter - he can be followed at @strangeclosets
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