What goes first

[Roboframer]

The credit crunch, falling house prices - recession - 34% hikes on gas (that's the stuff we cook with/heat our homes, for our American viewers; not the stuff that runs your car)

If it hits you big time, what goes first, second, third, etc?

Staff?

Advertising?

What?

[Bill Henry]

We’re taking a small hit because of the economy, too. The number of customers has dropped a bit, but the ones who are coming are spending more, so our revenues are up (slightly). Go figure.

Faced with your situation, I would start culling staff and scramble for ways to cut costs.

But, cut advertising? That’s a toughie. My theory is that if sales are down, then it’s time to pump up the budget for ads.

Last winter, when the shop was closed for three weeks due to surgery, we were hurting (no pun intended). January sales were almost nonexistent. So, in February, we blitzed our TV ads. It resulted in March sales being up ~27% over those of the previous year.

IMO, advertising expenditures should be the last to get dropped. It may be the only way to keep you from drowning.

[Roboframer]

Amen Bill!

I've been clicking my heels over our radio ad for a couple of months - not whether to drop it - just wording the new one - I do it every year - inspiration seems to fail me worse each year.

We do the same over our newsletter - supposed to be every other month - it's been quarterly at best for the last two years - even people asking where the latest one is has failed to pull out finger out.

The last one just went out and the response was phenomenal - we really should do it monthly - it costs nothing bar time (OK - and some stamps for the snail mailers - plus the photocopying paper/toner)

Anyway - I'm not actually faced with any situation - I'm run off my feet, just a case of anticipating what to do when and if the doom and gloom happens.

[Not your average framer]

I'm one of those who is still wondering what this so called "credit crunch" and all the other things like fuel costs and house prices are going to mean. I don't know, but the general expectation is that this particular crisis, (when it fully arrives), will probably be a very nasty one.

Several local businesses are talking about closing.

Quite a few customers don't appear to be in any hurry to collect their framing.

The local aution house is under threat as near by residents are trying to force the council to stop deliveries and collections from the premises. Unfortunately this could have very bad effects! Lots of old pictures bought from there are bought to me for cleaning, repairs, reframing, or just new mounts or glass. Local artists get me to cut mount for frames bought there, etc. There are also local uphosterers, furnature restorers and antique dealers who will be affected too. Many of these other tradesmen and dealers also recommend me to their customers, which leads to more framing orders.

From what I hear, I'm beginning to think that things could be slowing down quite quickly.

[prospero]

I don't think anyone is having a good time in business at the mo. Big and small. But it's an ill wind and what goes around etc...... In the end the economy finds it's own level.
Businesses big or small are desperately scrambling around to grab customers. It's amazing what deals they suddenly come up with if you threaten to switch your custom.
I switched phone co's a few months ago. Only saving about £6 a month, but WTH. Lo an behold, the old provder rang an offered a slightly better deal. "Well", says I. "If I hadn't switched would you still be ringing to offer me this new rate?" . Embarrassed answer....."errr no well. we can't really do that....blah blah waffle....."

[kev@frames]

well im going to fly in the face of opinion a bit here and suggest that many of us in the framing business have already lived through (and done ok) through at least one recession already, and perhaps the type of people who have framing carry on having framing? Maybe we shouldn't be worried (neither should we be complacent though)

Im not Robo, and im at the other side of the country, but if I were looking for the best place to use the money from the advertising it would be in another form of advertising, namely a web site for starters.
I sometimes cannot believe the high number of new local customers we get who have found us via our web site or a local internet directory listing. Its daily. and we are in a small town, maybe 20,000 population within "shopping distance".

The first thing we would cut back on? I dont think there is much we can cut back on, but I would look to improve efficiency. Maybe it needs hard times before half of us step back and look at our businesses and see where we are wasting money or heamorraging away profit, like excess stock levels, unrealistic charges for "minor" jobs etc.

No, thinking about it, I would cut back on one thing: the number of pita jobs. Someone else can clog up their workshop with those

Then I'd do what Gordon Ramsey does in his telly programme in every business he goes into to sort out: Tidy up the shop, clear out the crap, organise the "kitchen", and put a few high-profit specials on the "menu", and find some way of making the staff enthusiastic.

In fact, now that I've written it down, I'm wondering why I dont go ahead and do just that.

Im not sure a recession is the right time to cut back on your advertising spend, but maybe its a time to look at the best places to spend it.

I have a friend who is 80 this year, I first met him when he was 65, and he had just retired from the art business, and I had just started framing. Funnily enough I was talking to him yesterday, about the recession, and he said in his 50 years working in the art business, he hardly knew anyone in the business who was forced to close in a recession because of the recession itself, only because they had a poor business anyway.
I think this was echoed by John in Belfast when he said his business seemed alsmost counter-recessionary, and if you can do OK in Belfast over the years, with all manner of troubles including economic, I dont think most of us have very much to worry about.

imho the problems we all face are related to the usual staff problems all small businesses face (costs, overheads, holidays, sickness, regulations, elf n safety) etc. This is what has always seemed to stop me growing my business. Specially in an economy where people are better off on the dole than having a part time job. Last recession (early 90s) I had a waiting list of good people looking for part time work. Since we've had the "economic good times" I have constantly had problems finding and keeping half decent staff.

[Roboframer]

Nice post Kev,

I'm very fortunate - I never knew I lived in a place that could attract so much custom, but I also didn't just spring up in my present form - it all evolved by demand.

Maybe if the rug was taken out from under my feet I could survive by taking things on instead of dropping things.

Like a POS system that would help me sell what I have in stock and not what I need to order; ike a website.

It's also fortunate that what has evolved by demand ..... has evolved, we have a place that customers come to to cheer themselves up - sad buggers!

Diversification, to the extent that we have taken it, really works - we have so much that we can do less or more of depending on trends and habits, fortunately we have never ever had to skimp on the framing.

[Not your average framer]

thinking about it, I would cut back on one thing: the number of pita jobs. Someone else can clog up their workshop with those

I've already started trying to deter customers from bringing in such work, by adding extra charges. It does not deter as many as I hoped. Some customers just pay it anyway and others go elsewhere and sometimes come back after deciding my price was worth paying after all. Perhaps I was not charging enough before!

Then I'd do what Gordon Ramsey does in his telly programme in every business he goes into to sort out: Tidy up the shop, clear out the crap, organise the "kitchen", and put a few high-profit specials on the "menu", and find some way of making the staff enthusiastic.

I'm in the middle doing this and in my case it's taking a very long time, but anyone who has not done this yet, should NOT wait until the depths of a recession to start doing it. It is already paying off in increased space and efficiency. I wishing I had done it much earilier/

I have a friend who is 80 this year, I first met him when he was 65, and he had just retired from the art business, and I had just started framing. Funnily enough I was talking to him yesterday, about the recession, and he said in his 50 years working in the art business, he hardly knew anyone in the business who was forced to close in a recession because of the recession itself, only because they had a poor business anyway.

This is not only very reassuring to hear, but so far my recent experiences tend to confirm this, as I am still worked off my feet.

I think this was echoed by John in Belfast when he said his business seemed alsmost counter-recessionary, and if you can do OK in Belfast over the years, with all manner of troubles including economic, I dont think most of us have very much to worry about.

So far this appears to be correct. I had assumed otherwise, but my oder book book is growing, not shrinking. However, I'm not sure that we are in a recession as yet, so I'm still cautious about what may be ahead.