Marketing Tips

The following antique mall, craft mall and design center marketing
tips are from articles we've previously written and published. This,
however, is the first that they have all been published together. Software
Gallery hopes that you'll find the information useful and timely.

Here are the titles of the marketing tips that are published below:

Your Mall's "Personality	Being a Destination or Taking Advantage of One
Attracting the Right Kind of Customers	Premium Customers/Premium Treatment
Marketing to Your Best Customers	The Internet Changes Everything -- and Nothing
The Importance of Great Brochures	Direct Mail -- An Essential Part of Your Marketing Mix
Why a Web Site Isn't the Only Answer	Advertising
Your Business Focus	The Critical Importance of Great Dealers

Your Mall's "Personality"

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 485 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 customer
centered.

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.

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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.

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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. 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 !

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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 arguementitive. 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 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 interminable trolling for new customers for your
merchandise, you will know, vitually 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 deriative issues are so important, we'll talk
more about them in subsequent issues.

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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 which
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 an 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 information have about your merchandise, which
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.

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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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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, they
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 they 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 that 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 explains things
visually and in words. 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.

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Direct Mail -- 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.

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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.

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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.

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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" which
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
depends 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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