11/99

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    THE ANTIQUES SOS
    e-JOURNAL

November 1999 Vol 1 Issue #9

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This publication is intended to provide you, the owner or
manager of an antique mall, craft mall or design center
with timely, usable information. We sincerely hope that it
serves this purpose well. Please let us know what articles or
columns would be of interest to you. We welcome qualified
subscribers and will be pleased to provide The Antiques SOS
(tm) e-Journal to them at no charge. Because the cost of
printing and mailing a publication are so great, regular delivery
of the Antiques SOS(tm) e-Journal will be by email only.

(C) Software Gallery, LLC    November 30, 1999

David P. Cunningham, Editor
email: editor@antiques-sos.com
http://www.antiques-sos.com
subscribe by sending an email to:
subscribe_ASOS@antiques-sos.com

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We value every subscriber and respect your privacy. If you
received this publication in error or wish to receive no further
issues, email remove_ASOS@antiques-sos.com. You will be
promptly removed from the list.    NOTE: Our subscriber list is
strictly private and is not made available to others for any reason.

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IN THIS ISSUE.....

1. What's a Business Model and Why Should I Care ?
2. Marketing Tip -- The Internet Changes Everything --
and Nothing
3. Sales Tip -- Co-op Advertising with Your Dealers
4. Mall Operations Tip -- Mall Security - Part I
5. Dave's Soapbox -- The Importance of Focus
6. Internet Neighborhood
7. Nerd's Corner -- Digital Cameras
8. A Little Light on Windows -- "Browsers - What They Are
and How They Work"

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TOPIC OF THE MONTH

What's a Business Model and Why Should I Care ?

A business model is an integral part of the business plan that
you really should develop to help insure the viability of your
business. The business plan is an all encompassing document
which relates to how your business is to be structured,
managed, financed and operated. The business model
describes the business market you are in, an analysis of the
possible approaches to the market, and how you plan to
structure your business to meet the market approach you
have chosen.

The business model can be simple, it can be complex or it can
be anywhere in between. The chances are that if your business
is relatively simple and straight forward, then the business
model can be simple as well. Obviously, the more complex
and convoluted your business becomes the more complex the
business model becomes. In any case, the purpose of the
business model is to focus your attention upon the alternatives
available to you -- and suggest the correct one for you.

Your business model should be developed to take into account
such things as whether you intend to generate revenue from
space rentals only or whether you will charge a commission.
Will you have a "bricks and mortar" business only or will you
incorporate the internet into your it ? What business
"personality" do you want to choose and encourage ? What
dealers do you want for your mall and what merchandise do
you want them to display and advertise to encourage customers
to visit and buy.

What kind of customers do you need and how will you attract
and retain them ? How will you advertise your mall and where ?
Is there a local Chamber of Commerce or tourist bureau which
can assist you ? Will you accept consignments, where will you
solicit them and what commission structure will you employ ?
Are you willing to make an minimal initial return on your
investment to build the foundation for a much more prosperous
business ? Is there a major local or regional attraction to which
you can tie the theme or personality you have chosen for your
mall ?

And a good business model forces you to think about the
unique business aspects which you should be considering.
Who are your targeted customers and dealers ? Is your
location conducive to attracting and retaining them ?
Is your business seasonal or is it year round ?
Where are you going to operate your antique mall ? If it exists
should you consider moving it ? Is the location chosen for the
right reasons such as: high visibility, high traffic, accessibility,
suitable building, good neighborhood, sufficient parking, or
does your mother own it ?

You will no doubt come up with many questions, the answers
to which are important to you. The business model format
need not be overly formal, especially if you business is simple.
It should, however, be written and considered carefully when
you are in the planning stages or reevaluation of your antique
mall business. If you intend to approach sources for financing
your business, the business model will be very helpful.
Lenders and potential investors like lucidly conceived business
plans and the business models they incorporate.

In any case your business model will help you with sound
decision making and provide the guidance you'll need. One
major and very important reason for going through the exercise
of developing a business model for your antique mall business
is to be sure that you have given all aspects of the business
adequate consideration.

The supporting documentation for your business model should
contain information about what you considered, what decisions
you made about it and why. Most of all, what you end up with
should be a working document, to be used, periodically
reviewed, and revised if necessary. Any fundamental changes
in the business, in the marketplace or in your interests should
be considered so you don't get blindsided by them.

There are some areas of your business where the business
model analysis can be particularly valuable. It can lead you to
choose the way to structure your business revenue system.
For example, a simple floor space rental plan versus a fairly
sophisticated commission structure. Or, soliciting, accepting
and profiting from a well structured consignment business.
Sometimes adding complimentary products to your merchandise
mix or services mix can be financially attractive.

Consider your business model not just for startup. Also
consider developing one for your ongoing business. If done
properly, your business model will point up weaknesses and
potential chinks in your business armor and suggest needed
changes. Your business model will help provide answers to
questions you might ask such as Where am I ? Where do I
want to be ? How am I going to get there ? Should I expand ?

It is a powerful tool and relatively easy to use. Developing one,
especially in conjunction with trusted associates can be a very
important and worthwhile exercise.

by
David P. Cunningham, P.E.
Copyright 1999

Copyright Notice: Copyright 1999 David P. Cunningham, P.E.
This article is available upon request by from our web site
http://www.antiques-sos.com by downloading a copy. Or,
we'll email a copy to you upon request.

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MARKETING TIP
(A brief tip for marketing your mall)

The Internet Changes Everything -- and Nothing

So .. You ask, what do you mean by "The internet changes
everything … and nothing" ? You know as well as I do that
you can't have it both ways !

Let me assure you that the internet does indeed change
everything or, at the very least, parts of everything. It changes
the velocity with which change takes place -- from barely
perceptable to breathtakingly fast. The internet has the
potential to disrupt entire classes of businesses and has done
just that in many cases. Take the book selling business as
typified by Amazon.com and its online book business as an
example. And what is it doing to your business.

Few people truly comprehend the power and capability for
change inherent in the internet. Perhaps that's because they
truly do not understand the awesome opportunity placed at our
fingertips. The number and variety of ways of doing things is
exploding as you read this. Existing business structures are
being threatened and destroyed and reinvented. Are you
incorporating the necessary changes into your business to
accommodate the power of the internet ?

It is very clear from my reading and observation that at least
one major component is missing from a very large percentage
of the attempts made to incorporate the internet into business
and vice-versa. What is that missing component ?

Its people! Yes, people and their needs and interests !
Technology, in and of itself, is absolutely worthless unless and
until it serves an beneficial societal purpose. It is people and
the lack of commitment to address their needs and concerns
and build solid long term relationships that is missing. It is the
most complex and least understood component of all and one
of the most important.

Unless you address the "people" issues, whether internet or
"bricks and mortar", your business will ultimately go nowhere.
The internet is a cold, non-human environment. Frankly, it
frightens many who attempt to or will not use it. Unless we
build human friendly interfaces, address human concerns and
serve human needs, exclusively internet based businesses will
stagnate and ultimately fail.

And that is the reason why really well run "bricks and mortar"
stores will always continue to succeed even in the face of the
internet onslaught. Very well run antique malls which
thoughtfully and carefully embrace technology and the internet
and make use of their strong advantage in meeting human
needs and interests will do very well indeed.

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SALES TIP
(A brief tip on selling more to customers --local
and remote and increasing revenue)

Co-op Advertising With Your Dealers

Whether on a regular or occasional basis coop advertising with
your dealers can make terrific sense. Make no mistake about
it, advertising pays. Properly designed and executed, it attracts
qualified buyers to your mall and increases sales.

The net effect to you depends to an extent upon your business
model. If you simply rent floor space and take no further
advantage of your position, it may be that the greatest benefit
you gain is to retain dealers and/or justify the rent you charge.
In today's business climate that may be sufficient. On the
other hand, if you operate on a commission basis, bringing
qualified new or existing customers into your mall and selling to
them can be a financial benefit to you as well as to your dealers.
The option of charging a commission as opposed to rent only
may be something you wish to consider. In any event bringing
more qualified customers through the door can pay off
handsomely.

One way to do this is to target your advertising to a particular
geographic area, a special holiday, an event which brings large
numbers of people to your area, or to collectors of particular
categories of material. You can extend the effectiveness of
your advertising by buying more of it --strategically placed and
targeted.

It really isn't fair to your dealers who actively advertise and
contribute to your traffic flow to have other dealers who don't.
Your choices include an assessment of all dealers to pay the
freight or including only those dealers who actively advertise in
your joint advertising.

Print ads are the norm. However, for specific events don't
forget to consider radio ads, fliers, billboards and TV ads.
Depending upon your local market, highly targeted TV
advertising , especially in hotels and convention centers, can be
very effective and surprisingly inexpensive. Billboards ads are
expensive but they are also very effective at bringing traffic to
you from surrounding highways.

Don't forget the frequently under appreciated effectiveness of
direct mail. The mailing list that you have worked so hard to
build and maintain holds the key to making this work. Targeted
to an individual's interests, personalized direct mail, properly
designed, can produce excellent results. However, always
make sure that you and your dealers can carry out your end of
the implied bargain, always -- or you won't get many to
respond again. Keep all of your promises either implied or
otherwise.

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MALL OPERATIONS TIP
(A brief tip about improving antique
mall operations)

Mall Security - Part I

There are many areas of antique mall security. Among them
are outright theft of merchandise (shoplifting), fire concerns,
burglary, armed robbery, and bad checks. Security is best
accomplished by removing the opportunity for an aberrant
event or making an undesirable outcome more difficult.

Dishonest individuals are much more likely to pass up your
mall if it is apparent that it is a difficult target or there is
likelihood of being identified and apprehended. Of course, you
don't want to adversely affect your relationship with the
majority of honest customers who come into your mall.
Therefore, your security arrangements should be apparent but
transparent; obvious but not heavy handed.

It would certainly be nice if everyone was honest. But, it has
never been that way and probably never will. Someone will
always want to acquire what isn't theirs, either because it has
value or it is something they want. So, anyone who has
something that someone else wants is at risk of losing it to theft.

Theft

One of the major issues associated with antique mall security
is theft.

Because the stuff that your dealers bring into your antique mall
has value to someone else, you have an obligation to at least
help protect it. Frequently enough, dealers don't help
themselves but you still have to try. Admittedly too, the
merchandise some "dealers" bring in to sell, as evidenced by
the fact that it does not sell and no one will steal it, has neither
value nor desirability. That, however, is a topic for another time.

Theft or "shrinkage" is a potentially serious antique mall
problem. In the long run antique mall theft hurts everyone,
your dealers and you too. Although complete elimination of
theft is not likely to be achieved, you do have an obligation to
try to minimize it.

There is no secret or "magic bullet" to controlling antique mall
theft. Success in controlling theft is the result of many well
executed strategies, each of which contributes to the overall
effect. The reason many different strategies are required is
because there are many different ways in which theft can be
accomplished.

Some of the more obvious ways in which theft occurs are :
· shoplifting
· dealer theft from other dealers
· organized diversions
· tag switching
· existence of alternate non-secure exits
· existence of "blind" areas

Shoplifting is accomplished, of course, by concealing
merchandise and then leaving without paying for it. There are
specialized tagging and detection systems which are very
effective in detecting the concealment of merchandise. The
limitations on this system are the capital investment required
and the limited number of items which can economically
protected. Obviously, if you regularly sell high ticket items,
and you pass along at least part of the cost of protecting them,
tagging systems are an excellent way to go.

On the other hand, if most of what you sell is less expensive,
there are other methods which help to minimize shoplifting. No
large purses or bags should be allowed in the sales area. They
are best restricted to a package shelf or better yet the owner's
vehicle. Floor walkers, with case keys, should actually be
walking the floor within an assigned area rather than coffee
clatching, sitting on their duffs, reading or peddling their own
merchandise. Video cameras, strategically placed, with stop
motion recorders are a great deterrent. It should be obvious
that they are there and the tapes should be periodically
reviewed. Thieves are not deterred by empty camera bodies
which are laughable. Cases in which high value merchandise
is displayed should be located in an area which is under constant
observation and should have special high security locking
systems. Always prosecute those caught shoplifting. When the
word gets around that you do fewre attempts will be made.

Interdealer theft, as repulsive as it is, is a reality. Ideally, all
merchandise taken from your mall by exhibiting dealers should
pass through an inspection area prior to being allowed to leave
the premises. All "empty" boxes should likewise be checked for
merchandise.

Beware of diversion tactics. Diversions, involving two or more
individuals, are designed to create confusion in a particular area
while theft occurs in another. When an usual incident occurs,
only those personnel directly needed should respond. All cases,
cash drawers and sensitive areas should be secured and all
personnel not directly involved in the incident placed on
heightened alert.

Tag switching is a perennial antique mall issue. Your tagging
specifications should take this issue into consideration by
requiring at least a minimum description of the merchandise,
the price and a stock code. Security tags which break up when
removed are also effective. In any case, the goal is to make tag
switching either difficult or ineffective. To make your efforts
effective you will need to educate your dealers to overcome
their tendency toward laziness and complacency.

Alternate non-secure exits from your mall are an open
invitation to trouble and can seriously compromise your
security. Loading doors should be closed at all times when not
in use and locked or barred. Obviously, you can't chain or
otherwise block access to emergency exits which are required
to be equipped with panic hardware in accordance with life
safety codes. These doors can, however, be closed. Ideally,
any time loading doors are opened they should be supervised
by a responsible party.

"Blind" areas, that is, those areas which are not open to visual
observation, are an open invitation to theft. If it is not possible
to open the area to visual observation, there should at least be
a video camera installed to monitor activity within it.

Part II will follow in the next issue
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DAVE'S SOAPBOX
by David P. Cunningham

The Importance of Focus

Many business owners underestimate the critical importance of
focus. The key question is "What is your business?" The
answer to this question is vital because without it you cannot
focus.

You might say, as a mall owner, "My business is renting space
to dealers so that they can sell their merchandise." But is that
really your business ? If it is you may be too limited in your
outlook and need to rethink your business model. And, you
may be very vulnerable to competition whose thinking is
sharper than yours. Reexamine your focus. Shouldn't it really
be on your customers; all of them including your dealers and
those who buy from you, as well as other potential customers
you can develop.

Why focus ?

Especially as a small company, you have a limited amount of
time, money and energy to put into a business. As an example,
you can have a very large flashlight which generates a
considerable amount of light. If it is light that you are after,
that's fine. But, if you are trying to use the light to cut, shape
or otherwise do work, that isn't so fine. Take the same amount
of energy, concentrate it into a collimated, concentrated, highly
focused beam called a laser and it can do very controllable,
useful work.

Unless you have a well thought out business plan and the will
and resources to carry it out, you are more like a flashlight than
a laser. That is, you are more illuminating than effective.
Even as your organization grows, the basic truth of this
observation remains. A major element of your job is to create
and maintain focus.

Unreasonable confidence aside, just because you are quite
good at one thing does not necessarily make you good at other,
unrelated things. Expand your horizons and business with the
greatest of care. Springing thoughtlessly between unrelated
"opportunities" is fraught with hazards. Plan and prepare
carefully prior to making major changes in you business or
setting out on new ventures.

It is far wiser to carefully build upon what you have already
successfully done and expand based upon what you know. If
you have no special competency in the area into which you
want to expand, then you must either learn that competency or
purchase it and then have the financial staying power to
succeed. If you lose focus (or don't have it in the first place),
the consequences can be disasterous.

Plan very carefully, considering all of the consequences of
your actions. Think through the steps it will take to
accomplish your plans and follow them through to completion.
Remember especially that your business is built and maintained,
one customer at a time. And, focus, focus, focus !!

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THE STUFF THAT PAYS THE RENT

Antiques SOS (tm), Antiques SOS Lite (tm) and Antiques SOS
Basic (tm) are Software Galley, LLC software products which
serve the Antique Mall trade. Our products are installed in 240
antique malls in 39 states and Canada. Antiques SOS (tm) was
first installed in 1987 and Antiques SOS Lite (tm) was introduced
in 1998 to satisfy a need for computer software for smaller malls.
Antiques SOS Basic (tm) was introduced in 1999 and has been
very well received. All products are fully Year 2000/Y2K
compliant. Please refer to complete information which has been
posted on our Antiques SOS (tm) web site
-- http://www.antiques-sos.com

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INTERNET NEIGHBORHOOD

Cool web sites

http://www.foxnews.com

is the online site of Fox Broadcasting. Tired of poor, biased
reporting ? Foxnews.com is well written, reasonably complete
and occupies a really good looking site.

http://www.kbb.com

is the online site of Kelley Blue Book the auto buyers guide.
This is a very complete site with up to date values of new and
used cars as well as motorcycles. Quick and very easy to use.

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NERD'S CORNER
(A light approach for non-techies
concerning need to know issues)

Digital Cameras

In the previous issue we talked, in general terms, about images
for advertising and sales and how they are created. The
technology and its advantages and disadvantages for creating
images from digital cameras is the topic for this issue.

A digital camera is a lens equipped camera based upon a
filmless charge coupled device (CCD). A charge coupled
device is a multilayer solid state product. The CCD component
of the camera can have millions of extremely small light
sensitive diodes built into it which generate electrons in
proportion to the intensity of the light being projected upon them.

When a scene is photographed using a CCD based camera,
light reflected from or generated by a scene is collected by an
optical lens and focused upon the CCD. A signal proportional
to the intensity of the light falling upon each diode is generated
and stored in digital memory, on memory cards or disks. IBM,
for example, is offering a hard disk the size of a quarter and
capable of storing 350 MB of digital information.

Some digital cameras employ CMOS (complementary metal
oxide semiconductors) for converting light into digital images.
Although relatively inexpensive, CMOS devices do not enjoy
the same quality as CCD devices.

The image resolution of digital cameras is dependent upon the
quality of the lens and the number of individual diodes in the
CCD. Each diode represents a pixel or very small area of the
image. It should be very clear that the greater the number of
pixels, the greater the resolution. The plain unvarnished truth
is that if the resolution isn't there to begin with, it will never be
there. Some camera manufacturers claim image resolutions
based upon interpolated calculations (averaged between actual
diodes) and should be avoided.

Here are some tips on how to choose a digital camera
· You can't go wrong choosing from the big three --Kodak,
Olympus or Epson
· Go for the largest number of actual pixels you can afford
· Make sure the camera doesn't store images in compressed
format -- its like tossing away pixels and the resolution they
represent
· Avoid any camera which depends exclusively upon digital zoom
· If you can afford it buy a single lens reflex (SLR) camera
· Make sure your camera comes with a decent flash unit --
it can be important
· Digital cameras are power hogs -- buy rechargeable batteries
and keep a spare set charged and ready if you
doing a lot of photography
· A camera with 2.5 million CCD pixels or greater is best

Some of the major advantages of using a digital camera are --

· Allows the immediate review of shots
· Immediate download to computer
· Ability to edit and manipulate electronically
· Ability to transmit or post
· Can be printed if desired
· Resolution can be significantly better than resolution of
scanned photos

Some of the major disadvantages of using a digital camera are --

· For certain graphics applications the available resolution of
digital cameras is insufficient
· The user must remember to maintain charged batteries and
keep spares on hand
· The cycle time for digital cameras is very slow compared to
film based cameras which severely limits the use of
digital cameras for action photography
· Printing digital images can be somewhat expensive

Consider these potential digital camera "gottchas"

· Some supposedly high resolution digital cameras store images
in compressed format --JPEG rather than TIFF -- resulting in
the loss of resolution
· Some manufacturers claim resolutions based upon calculated
    interpolations rather than actual pixel density
· Avoid digital zoom -- the number of pixels constituting the
image is lessened which results in significantly lower resolution
· The cycle time is slow -- so digital cameras do not work well
for action photography
· Digital cameras hog battery power -- make sure that you have
a spare set of charged batteries

Digital camera operations tips

· Get in close to your subject -- the maximum number of
available pixels must be devoted to the desired image
· For close-ups use the LCD rather than the viewfinder
(and then turn it off to save the batteries)
· Bracket your shots for optimum exposure
· Shoot obvious forms which stand out against the background
· Shoot at the highest available resolution
· Shoot at high quality
· Be careful about using image compression -- once gone pixels
cannot be recovered
· Use autofocus -- with digital cameras focusing through the
view finder is problematical
· To save storage capacity scrap the shots you don't want
· Save power where possible to maximize battery life
· Use appropriate software to manipulate and edit images
· Shooting objects which are visually indistinct will result in
poor images

So, what do we recommend ?? Digital cameras will best serve
most antique mall needs because of their versatility, economy
and usefulness. For a detailed discussion of digital cameras
please refer to PC Magazine, Vol. 18 No. 20,
November 16, 1999 and Vol. 19 No. 1, January 4, 2000.

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A LITTLE LIGHT ON WINDOWS

Browsers -- What They are and How They Work

No ! Not Bowser -- Browser, Scheech !!

Very briefly, a browser is a software product which used to
navigate through the internet and view files. Currently, the
major browser is Microsoft Internet Explorer version 5.01 with
Netscape 4.61 second. There are many browsers available but
compared to those above they represent a small portion of the
overall market. We primarily use Opera, a small, fast
Norwegian browser, for much of our web navigation.
However all three of the mentioned browsers are in use at
Software Gallery.

The World Wide Web (www) is a client-server system. Your
desktop computer is the "client" and the information you
request is "served" from any of tens of thousands of computers
upon which the information permanently resides. The "client"
computer is the machine from which users submit interactive
commands and view the responses which are received by using
a browser. Browsers have become increasingly sophisticated
and perform many very complex response viewing functions
with ease.

"Servers" are capable of serving information in response to
many simultaneous requests from multiple users. The software
that supports the world wide web is called http server where
http = hypertext transfer protocol. When the client requests
information from the server, it does so using the http software
because it is what the server understands and responds to.
The rules governing the exchange are called protocols. The
browser facilitates this process so that you receive the
information you are seeking in a way that can be understood.
That is, the text, graphics and data are in a usable form.

Browsers are designed to employ a communications protocol
called TCP/IP which is an acronym for Transmission Control
Protocol/ Internet Protocol. The Transmission Control
Protocol portion of TCP/IP opens and closes connections,
disassembles the data into manageable chunks suitable for
transmission, reassembles incoming data chunks into a usable
data format and checks the incoming data for accuracy and
completeness. The Internet Protocol portion of TCP/IP
provides a unique address for each computer and specifies
how data is routed through the network to find its way between
computers.

Browser manufacturers add HTML markup tags which allow
web site creators to make their sites look good in that particular
browser. This is a big change from the early days of browsers
where the appearance of the rendered page was very plain and
quite limited.

The technology of browsers is constantly changing. Browsers
now perform well in presenting very complex web pages with
frames, animation and demanding graphics. Newer browsers
work with both HTML and XML -- extensible markup
language, a very versatile new way of presenting web pages.
XML capable browsers are built with complex components
which are written in rigorous compiled languages and permit
advanced operations and security.

The operating system (for example DOS, Windows 95,
Windows 98, Windows NT and soon Windows 2000) handles
the file input and output, network communication and database
management. There can be, however, a considerable overlap
between modern browsers and the operating system so some
of the functions they perform may be interconnected. We
fully expect this trend to continue and accelerate because of the
greatly increased internet functional use that results.

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Dave Cunningham is one of the principals of Software Gallery,
LLC the developer and owner of Antiques SOS (tm) and
Antiques SOS Lite (tm). He specializes in technical issues
which affect the Software Gallery client base. Dave's special
interests are Year 2000/Y2K issues; e-commerce and its
appropriate use; and time saving aspects of technology. He has
accumulated an assortment of wallpaper from a number of fine
institutions of higher learning as well as The University of Life.
The foregoing qualifies him to issue profound mutterings,
occasionally stumble into solutions to user problems and, when
necessary, cook dinner.

Sue Cunningham is also one of the principals of Software
Gallery, LLC. She's been writing computer software
professionally since 1964 and has been an antiques dealer since
1967. She's a self proclaimed "nerd" who even had "FOXPRO"
on her Pennsylvania license plate.

Software Gallery, LLC is a business venture of The
Cunninghams. Long active in the antiques world as dealers and
in software development, Sue and Dave Cunningham live and
work in Laramie, Wyoming after having been located in
Denver, Pennsylvania for many years.

The Antiques SOS (tm) product line has its own web site at
http://www.antiques-sos.com. More information about
Software Gallery, LLC and its products can be found at
http://www.softwaregallery.com.

To subscribe to The Antiques SOS eJournal email to:
subscribe_ASOS@antiques-sos.com

To unsubscribe email to: remove_ASOS@antiques-sos.com

_________________________________________

(C) 1999 Software Gallery, LLC

We encourage you to forward a copy of this issue (w/ all
copyright notices intact) to as many antique, craft or design
mall owners or managers as you wish. This information may
not be altered, transmitted or transferred; electronically or
otherwise for any other purpose without written permission
from Software Gallery, LLC. All rights reserved.

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