Marketing Tips

Your antique mall business depends upon both the dealers who
occupy your booths and cases as well as the customers who shop at
your mall. They are interdependent and can't exist independently
in the long term. Despite the general nature of the antique mall
business, each mall tends to develop its own "personality". Each
and every one of the 470 malls which form our client base is
distinctly different from any other mall.

This "personality" is based upon the interests of management, the
dealers and the customers who patronize your mall. It's in your
best interest to find out what your customers want and convey
that information to your dealers. When you determine what your
customers and potential customers want, you will then have the
information you need to seek the new dealers and merchandise you
need. It is important that your focus be strongly customercentered.

This is the only way you can guide the development of the
"personality" of your mall to meet market conditions. Otherwise,
it will develop on its own and in a way which may not be to your
liking. Additionally, having this information will provide the basis
for better targeting of your advertising dollars.

Being a Destination or Taking Advantage of One

If you are going to develop your "bricks and mortar" mall into a
thriving business you need customers. That is, you have to be a
destination or take advantage of one. If your antique mall already
is a destination please accept our congratulations and admiration.
You have already invested an enormous amount of money in
advertising, have good dealers, have great management in place
and have attracted and retained the customers you need.

As such, your goal is to continue to be a destination while
avoiding the pitfalls of being at the top. You have to attract new,
qualified customers and keep the old ones coming back for more.
And you have to avoid the deadly sin of complacency. If your
antique mall is located in a destination area or is near to a
destination, your job is somewhat different. If your business is in
a destination area, i.e., part of a group of antique malls, antique
shops, or other attractions it becomes necessary for you to induce
people to visit your antique mall in addition to or instead of your
competition. Therefore, the focus of your market development efforts
will change accordingly.

Cooperative advertising, joint brochures, maps, billboards and other
effective methods of getting the word out will pay big dividends. On the
other hand, if you are near to a destination with a deep pocket
advertising budget your approach should be different. They are pulling
visitors into your area with their big dollar advertising campaigns,
bill boards and state funded tourist centers. So take advantage of your
good fortune.

A clean, attractive facility with excellent signage becomes important to
attract the customers you're looking for. Large, well lighted parking lots
and plenty of open time are a real plus. Well trained clerks and floor
personnel play an important role. And, it never hurts to consider a theme
orientation in keeping with the customer's initial destination. Take advantage
of state or locally funded cooperative advertising dollars and be inventive
about how you spend them. Pay very close attention to the demographics
of those who visit your destination. If your visitors are older and come by
bus, they sure won't be buying furniture.

Attracting the Right Kind of Customers

As the antique mall business becomes more competitive,aggressive, active
dealers become harder to retain. Costs increase and the dollars devoted to
advertising just don't have the same effect. So, differentiating your mall from
the malls down the road becomes even more important despite the fact that
you really do need them around to help draw traffic.

You have been working on your mall's "personality" and are well on your way
to becoming a destination (April 1999 Antiques SOS e-Journal). So what do
we do next ? Whether your business model consists of simply renting square
feet of floor space or you have a commission structure or you have encouraged
consignments, or feature your own merchandise, you have a common need.
What common need is that you ask ?

That common need is for qualified customers. You aren't going to be in business
long if you don't have qualified customers. The important word here is qualified
as opposed to most bodies who walk or are forced through the door. Qualified
customers are customers who (a) have an interest in what you are selling
(b) know enough about what you are selling to make a decision to buy and
(c) have the financial resources to purchase what you are offering. How do
you know who these qualified customers are ? First and foremost, use your
shop's sales history and mailing list. You do have one don't you ? Here's
where you can really use it ! That list is pure 24k gold to you and, most likely,
there's a diamond or two tucked in there somewhere.

Here's one approach. Plan a series of related seminars. The potential subjects
are virtually limitless. Pick the subject based upon the personality you have
chosen for your mall. If you are near a destination with a particular theme, try
to tie your seminar into it or a related parallel theme. We recommend a series
of seminars spaced approximately one month apart with the series ending near
a major buying season. Obviously, the series should focus upon your best
qualified potential customers. If there is an opportunity to do so, try to arrange
a co-sponsorship with a qualified local or regional club, study group or
organization. Their influence and mailing list can be beneficial. Advertise
locally and regionally. Print fliers and otherwise make sure that
your potential customers know about the seminars. Charge a small fee for those
who attend to convey the impression that they are getting something worthwhile
and to cover the cost of light refreshments, etc.. Or charge enough to help
benefit your co-sponsor. You have to decide which situation fits your needs.

Remember, this is a long term project. There will be some immediate results but
the real benefit will be intermediate and longer term as you gain credibility and
your business builds. Start small. Make corrections as you go based upon the
feedback you get from attendee comment forms. So, go to it !

Premium Customers/Premium Treatment

The competition for your potential customer's attention and dollars has never
been greater and it is constantly increasing. Your mission as a mall owner or
manager is to figure out how to capture both. It means rising above your
competition and coaching your dealers to offer very good, very well presented,
fairly priced merchandise. It means making a trip to your mall more attractive
than the dozens of other things that a customer can do on any given day.

There are literally dozens of ways in which you can make your mall and
business more attractive to customers. Part of the key to doing so is to know,
and I mean really know, your customers. Know what they buy, what they have
paid, what information they require, what interests them, and what they find
objectionable. Consider that your mall has its own personality and that it is a
social organism all its own. Consider that you, as the mall owner or manager,
have the opportunity and the duty to shape your customer's perception of your
mall.

Your goal is not to sell your customers just one thing ! It is to sell him or her many
things over a period of time and to establish a very long term trusted relationship.
Anything you do to facilitate that will pay enormous long term dividends.
Concentrate on maximizing the long term benefit of being your customer. Look at
your mall's expenses related to customer acquisition and retention. How much do
you spend on advertising to acquire customers? How much do you spend to retain
your good customers -- those who have already spent and continue to spend
significant amounts of money with you? Couldn't some of your advertising dollars
be very profitably diverted to "best customer" development and retention.

Find ways to differentiate your customers. You need to know more about them to
do this. How long they been your customers ? How much and how frequently
have they purchased from your Mall? What is their projected long term value ?
Certainly, they are worth more to you than an occasional customer and far more
than an unknown customer who walks through the door for the first time.
Differentiation also enables you to predict which customers will grow in value to
you over time. The value of customers can vary widely. Some buy more over
time. Some bring other good customers. Some have a negative value -- that is
they are troublesome or argumentative. The really important thing is how much
you know about each of your customers. Get rid of your negative value customers
or at least invest nothing in them. Your resources are too precious to waste.
Treat your best customers as if they really are your best customers. And, work
to upgrade your occasional customers to "best customers" status.

Technology permits you to efficiently achieve these goals. We'll be talking
specifically about these issues in future editions. The internet, email, databases
and Antiques SOS (tm) mall management software enable you to do this quickly
and efficiently. The business world is changing at blinding speed and technology
permits you to harness the power you need to succeed. Because you have
successfully identified your best customers and know what they want, their history
and their individual characteristics you can offer them opportunities individually.
Rather than interminably trolling for new customers for your merchandise, you will
know, virtually immediately, who wants it, who has a history of having purchased
similar things and what they have previously paid.

Your business model determines the long term value of a customer to you. What
do I mean by the term "business model" ? It is the method of planning and
operating your business you employ to create revenue and earnings from
your mall. The simplest business model is probably space rental. More
complicated and potentially more lucrative models exist -- both direct and hybrid.
For example, some malls may derive their revenue from commission only, some
may combine space rental and commission, still others may have significant
revenues from consignments and so on. Depending upon individual circumstances
each model can be quite productive if properly executed. Because these and
derivative issues are so important, we'll talk more about them in subsequent issues.

Marketing to Your Best Customers

So, you're saying, "What does that somewhat cryptic title mean ? More especially,
what does it mean to me and my antique center" ? What it ultimately means is
more sales for greater dollars to repeat "best" customers. And, it means
attracting new customers who have the potential to become one of your "best"
customers. Most especially, it means working with customers one at a time,
focusing upon their perceived needs, wants and individual concerns. Its an old
saw that 80% of your business comes from 20% of your customers. In the
antiques center business, the ratio is likely to be quite different from business
to business. None the less, the concept is valid. Most of your business comes
from repeat "best" customers. Long term, the value of these customers to you
and your dealers is exceptional.

Your repeat "best" customers need to have:
* an interest in what you are selling
* sufficient knowledge to make a decision to buy
* the financial resources to purchase what you are offering
* been well treated and satisfied with past purchases
* trust in your business

So, how do you appropriately establish these criteria ? First, use that customer
list and database we keep talking about. It's the foundation of all that you do.
You have one, of course. And it is based upon quantities of information which
you have captured and to which you have organized access. Some of that
information consists of a customer purchase history that you have included
in your database. You've also included information about your customer's
collecting interests and passions. How does your customer earn his or her
living and what do you know about their financial capabilities ? You really don't
want to invade their privacy, of course. But over time, as you get to know them
better, the chances are you will learn this information, either directly or indirectly.

How likely are they to spring for that spectacular Tiffany lamp? Do they know
someone who will ? Second, we ask them to provide us with a detailed "wants" list
so we not only know what they have purchased in the past but also what they
want to purchase in the future. Third, we ask them for permission to keep them
informed about what we are finding and what is coming into your antique center.
People of this caliber usually have a private email address and will give it to you
if you have an adequate privacy policy.

Most especially, "best" repeat customers and those who have the potential to
become "best" repeat customers require special treatment and skilled
development. Each customer is an individual and must be treated as such.
Each sale is conditional, that is, it is conditional upon the customer being
satisfied with your product and your service. Once established, you are in
control of your customer's relationship with your antique center. They are your
customer. Your dealers need not and should not be involved in the transaction
in any way. Ignore this point at your very great risk.

Many transactions can and should take place outside of the main space of
your bricks and mortar establishment. If the merchandise is sufficiently
valuable it should be taken to the customer, if all possible, once interest
has been established. If it is not possible to take the merchandise to the
customer, either extensive photographic documentation should be provided
or arrangements made for a private viewing or examination. You should,
with skill and determination, be able to establish a very lucrative high end
business much of which takes place in privacy. Consignment items, in
particular, can be sold to top level "best" customers quietly and with little
or no fanfare.

Keep in mind that your customers may not dislike the actual antiques
shopping process but they absolutely do dislike the associated hassle.
Therefore, make dealing with you and your business as hassle free as possible.
The way to obtain your "best" customer's current and future business is to
work with them one on one, as an individual while providing other services to
select groups of them. One of the major things your business will depend
upon is information. That is, information you have about your customer and
about the merchandise, that you present to your customer.

When looking for new "best" customers, ask your existing "best" customers
for referrals. Ask for referrals in categories which do not compete with
the customer's interests or which exist at a different level of sophistication.
It certainly never hurts to be filling up the ranks of your "best" and "sorta best"
customers list with promising candidates. Never, ever, surrender control of your relationships with your own "best" customers to anyone else. Never sell or rent your customer
list to others. It will infuriate your "best" customers causing you great risk of
loosing them and it will expose them to your competition. Talk about handing
the burglar the keys to the safe !! Never provide any information about your
relationship with your "best" customers to anyone for the same reasons. Any
contact with your "best" customers must appear to have come from you so
you remain uppermost in the mind.

Create a privacy policy and very strictly adhere to it. When you ask for, receive
or otherwise obtain information about or concerning your "best" customers tell
them exactly how the information will be used. Such information should be held in
strict confidence, never provided to anyone else for any reason and destroyed
when it is no longer needed for legitimate business purposes. Your goal is to
create a long term customer. Now that you have considered how you are going
to do this, its time to implement your plan. The process is a step by step process
and will not happen over night.

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 perceptible 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.
All of this despite the apparent collapse so many dot com businesses.
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 ? It's people! Yes, people and their needs and interests !
Technology, in and of itself, is absolutely worthless unless and until it serves
a beneficial societal purpose. It is people and the lack of commitment to
address their needs and concerns and build solid long term relationships
that are 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.

The Importance of Great Brochures

Your brochure is a very important part of your marketing system. The brochure
is your silent salesman. But to be effective, brochures must be strategically
placed and distributed. Take one boxes in strategic locations are very effective.
Use your brochures as fillers in direct mail (the letter sells, the brochure tells).
It makes a very potent combination. Have your dealers distribute your brochures
at shows and in their mailings.

Chambers of Commerce frequently provide rack space for their members and
include your information with their handouts. Tourist centers and information
kiosks offer an excellent place to locate your brochures. Make sure that your
brochures are professionally designed, up to date and inviting. Having at least
one color to dress up the brochure is quite important. After all it is a sales piece
describing the benefits of stopping with you. Tie your brochure into those for
other attractions. Join a multi-attraction brochure. Consider a special free gift
for bringing in your brochure on a first visit. Do combination mailings with
other attractions. Arrange special discounts at local restaurants, motels, bed
and breakfasts and at other attractions in which your customers could have
an interest.

Emphasize your mall's personality by explaining what sorts of merchandise
a customer could anticipate finding. Include a map, your telephone number,
an email address, and your web site's URL. Print your brochure on slick
heavy coated paper to convey a quality impression. Use short sections with
short sentences, words and paragraphs to make your brochure highly readable.
Your brochure helps to establish credibility and explain things visually and verbally.
It helps to convince the prospective buyer that the product offering proposition
and the organization behind it is real. The brochure tells and the letter sells.
Your brochure tells people what to expect and provides information about your
mall -- use illustrations, drawings and photos effectively. Make sure that the
brochure accurately reflects your mall and that you can deliver what your
brochure promises.

Direct Mail Marketing -- An Essential Part of Your Marketing Mix

Direct marketing is that ever-present industry which seems to account for
an increasingly large percentage of the mail which arrives daily in your
mailbox. Direct marketing companies ' sales skills are legendary. Their
catalogs, coupons, offers and incredibly well crafted sales letters are
ubiquitous. And, even more important, they sell huge volumes of
merchandise to very large numbers of people. So, what does that have
to do with my antique mall you ask ? Isn't direct marketing passe ? The
respective answers to these questions are: a great deal and absolutely not.
Properly carried out, direct marketing can make a significant positive addition
to your efforts to market your antique or craft mall and increase traffic. Direct
marketing's continued growth as a marketing method is due to its consistent
cost effective success and you can benefit from it.

With the mailing list you have so carefully compiled and maintained from
your customer file, you are in an excellent position to conduct a direct
marketing campaign. The variations you can employ are virtually limitless.
You can promote special events, open houses, mall wide sales, new services,
seminars, or the arrival of special merchandise. Avoid the breathless high
pressure hype and your customers will welcome the information. Is the effort
worth it ? It certainly is. You can reach large numbers of customers and
potential customers which are generally unavailable to other mall owners or
dealers. And, they will respond if you really have something to offer them.

Why a Web Site Isn't the Only Answer

Successful marketing rarely relies upon just one advertising medium to
get a businesses' message across to its potential customers. Antique and
Craft Malls are no exception. Traditionally, most antique and craft malls
advertise in related print media publications and use "take one" brochures
placed at tourist information areas. Some use billboards where they are
available and economically attractive. Although the internet has increased
in importance, it significantly trails the use of print media and brochures in
importance.

Why ? First, the internet isn't as mature a media as weekly or monthly print
publications. Second, print publications have a subscriber base who receive
the publication week after week or month after month. They do not have to
search elsewhere for the information; it is organized and presented in a
logical, usable way. Third, print publications allow all of the mall ads to be
grouped or presented so they are easily found. Fourth, to this point in time,
antique malls haven't exhibited all that much skill in how they approach their
advertising. That is, most do not take advantage of the true power of the
internet, print media or any other means of getting their message out to
their potential customers.

At least for the near future we suggest that you maintain a well developed
balance between the advertising media available to you. Print media is
consistent and can be effective, although geographically limited and
expensive. Brochures are very powerful and effective, have good longevity
and are relatively inexpensive when compared to their effectiveness.
The downside to brochures is that their geographical distribution is relatively
limited. Billboards tend to be expensive except when they are rented on an
interruptible, space available basis. They are, however, very effective at
attracting traffic from major highways. You need a really good list, an
attractive offer and a reason for people to return. Targeted direct mail,
especially to your house mailing list, can be extraordinarily effective in
promoting special events, sales, seminars, or other traffic builders. If your
business model is designed to take advantage of increased traffic, direct
mail can really pay off for your mall.

Newsletters, either included in your targeted direct mail or as "take ones" at
your mall, can also be great traffic builders and offer you a way of getting
more complete information delivered to your potential customers. Again,
when employed in combination with an appropriate business model, newsletters
can add significantly to your bottom line. Under certain circumstances, as
determined by local conditions, special events and your business setup,
both radio and TV (including cable) can bring significant additional qualified
traffic to your mall. And, both radio and TV can be quite attractive from an
economic standpoint. Obviously, we aren't talking about Super Bowl ads
(although it's something to shoot for) but rather radio or off hours local TV
or cable ads. Be clever in your approach. Think outside the box and figure
out win-win deals with other businesses or attractions. Even with a limited
budget you can win … and win big.

Advertising

Advertising can pay big dividends. As you well know, however, advertising is
very much a chicken and the egg situation. You need revenue to advertise
but advertising can generate revenue, revenue hopefully well in excess of
the cost of advertising. Whether your advertising budget is directed toward
print media, brochures, TV, radio, fliers, etc really depends upon your business
model, business plan and your advertising plan. You also have to consider
whether your advertising should be directed toward so called institutional
advertising or toward specific merchandise, dealers or events.

Institutional advertising is directed toward selling customers upon the great
idea of visiting your mall. Advertising specific merchandise can result in
the sale of that merchandise but it can also result in bringing in new customers.
The best approach is to start with a reasonable advertising budget and
progressively increase it as revenues increase. It should be very clear
that your business model has a very significant impact upon your advertising
budget. A good approach to funding at least part of the advertising costs you
incur is to assess your dealers on a regular basis. Make sure, however, that
it is very clear that they are deriving definite benefits from the assessments
they pay.

Your Business Focus

What do I mean by the term "Your business focus" ? Quite simply, each
successful business must, if it is to succeed, have a clearly defined focus.
Why a focus ? Having a clear and precise focus to your business, or any
other business, has never been more important. Virtually all of us have finite
resources. That means that we have to concentrate those resources where
they will create the greatest positive impact upon our businesses. Similarly,
there has never been a time when it is more important to highlight what makes
your mall different from all other malls.

Again, this is a direct effect of the large number of choices of ways each
customer faces about how to spend their limited free time and available
money on a daily basis. Ask yourself the question "Why would anyone
come to my mall as opposed to someone else's mall, going fishing, a taking
in a concert or some other form of entertainment. Answer the question
honestly and you will see that you probably have work to do.

There are a limitless number of apparent "opportunities" that present
themselves to both you and your customers. They compete for your
potential customer's time and interest and yours too. If you try to be
all things to all people it will only be a matter of time until you are
subsumed by more clearly defined competing interests. If you actively
consider and act upon an "opportunity" presented to you, it must be
evaluated in the context of your business plan. More importantly, it must
be considered with your customer base clearly in mind. Whatever you
do must be in your customer's best interests. Never forget that your
business is not about you. It has never been more clear that the antique
or craft mall business is really about your customers. If it isn't good for
them, it isn't good for you.

Your focus has to be upon your customers because your business will
grow and prosper only if you excellently fulfill and exceed their expectations.
And, oh yes ! Don't forget that you have at least two and perhaps three
unique sets of customers. There are those who walk through the door of
your bricks and mortar operation. There are those who purchase from
your internet offerings. And, there are your dealers and consignors. You
may face quite a balancing act because each set of customers can
sometimes have somewhat different interests.

The Critical Importance of Great Dealers

The successful implementation of all that we have talked about Upon one thing.
That one thing is having a cadre of excellent dealers who are very active and
who offer really good merchandise at fair prices. Lets face it, if you do
everything else 100% right but fail to provide the merchandise that your
customers want, you have achieved nothing.

Of course you want to solicit, attract and retain dealers who will complement
the personality you have chosen for your antique mall. And, you want dealers
who have a proven record of success or who have a strong promise of future
success. Or you want very promising newer dealers who will grow into the type
of dealer that you want to retain.

The dealers you attract and retain should have a loyal following of financially
capable customers. Your business plan and the business model it is built
upon should be designed to tap into the expected enhanced revenue your
mall will generate. And, you should be willing to spend some of your earnings
to reward your best dealers and invest in advertising and promotion. Great
dealers are the heart of any active and thriving antique mall business. Plan
to work very diligently to acquire them, keep them happy, help them in any
way possible and go all out to retain them.

The Marketing Tips published on this page are all copyright by David P. Cunningham, P.E. and may not be reproduced in any form or media without the express written permission of David P. Cunningham, P.E.

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