Washington DC’s Shauna Lee Lange Arts Advisory recently attended one of Art Business News’ webinars to be able to offer DC artists the latest in art merketing trends. The session, Prepare for the Challenges Ahead, was moderated by ABN’s Managing Editor Jennifer Dulin Wiley. Presenters were Marketing Strategist Brand Launcher Rafael Mael and Masterpiece Publishing’s Randy Slavin.
Overcoming Difficulties in Today’s Weak Art Economy: Art is a discretionary purchase but art is also durable. If you have an art gallery, you face an uphill battle in today’s economy. Sales are always driven by marketing and the smart gallerist must wisely spend resources. Traditional marketing will not work in a depressed economy because it leaves the prospect with two choices, buy or goodbye.
A better way is called “next stepping” where you focus on getting your prospect to take the next step where the marketing is based on relationship development. Next stepping only works if you take the time to carefully build the relationship. You must plan and nurture your relationships.
1. Outbound marketing pieces – clean pursuasive copies are a must.
2. You must have a targeted message.
3. You need a call to action – a specific direct request to do something (click here, call here, visit here).
We live in a digital age – artists and gallerists MUST have a good website. E-commerce enabling is nice, but not where most of your business will come from. People are looking for ligitimacy, sophistication, and value when they visit your site. The site must have a theme executed with style. The site must offer real value, showing the customer who you are. People are drawn to passionate people, so let them see your enthusiasm. Allow visitors to your website to “opt in” by signing in with their email for recurring newsletters. Focus on one step at a time.
And when you do finally connect with the customer, SLOW IT DOWN. There is a direct correlation between time invested and money spent. Let customers touch the art – the more the client touches something, the more they will buy. Offer food, drinks, have mood music and create an enviornment that invites browsing – this is called “effective state”. Reduce the pressure and increase the allure. The longer they stay, the more they buy! You also need “the give (or the get)” a small gift or gesture (not a kickback) thanking them for their time and attention. Your goal is “top of the mind positioning” – when they think of art, they think of YOU.
Now you can target the client with an irresistable offer – the offer should be specific, value added (special framing, free hanging, design counsel), specific discount (don’t use coupons, use gift certificates), the offer should also have urgency with a hard expiration date. When you have a sale, you have a customer and that’s when the relationship really begins. You want raving testimonials, encouring referrals, staying in touch. You want to create “lifetime value” – the amount your new customer is worth over the lifespan. It costs more to acquire new customers than to keep existing customers. The bottom line is all about the genuine relationship – the cheapest marketing is word of mouth and you can only plant the seed and wait for the sales to start blossoming.
How Do You Take Advantage of Opportunities Created by a Downmarket? The darker the cloud, the brighter the silver lining and there are opportunities in a downmarket. Downmarkets create shake-outs where a variety of artists and companies won’t survive the downturn. Some artists will choose to go into commercial art or devote attention to other professions creating fewer entities. You may be able to acquire top sales people when competitors reduce staff levels, close down, or reduce hours. Look to other markets (luxury goods) for qualified sales. Competitors will reduce the number of artists they carry, go out of business, or drop collectors by dropping artists – you will find collectors who are looking for a new gallery home.
There are opportunties in regional locations where you can take advantage of higher-end retail which may be abandoned. Being able to put into action a plan to take advantage of these situations is critical. Put out the word that you’re looking for top performers, people who produce quality art, people who can sell – and often these people can bring a new customer base. Tell local realtors you are interested in particular streets or areas. The real estate market may bend to keep revenue flowing. Commercial market values will decline. If you are in a good space now, renegotiate your lease.
Identify the artists you’d like to carry and make them and their representatives aware of your intentions. Be careful not to overcommit but plant the seed. Avoid artists who willingly and recklessly drop their current gallery because you pick up the phone. There is always a love/hate relationship between the artist and the gallerist, but you want someone who is professional and consciencious. If you pick up new artists, ADVERTISE THEM.
To get a hold of new collectors, create a buzz in the market about your shows and your events. You are something special in the market and everyone wants to do business with those perceived as successful and stable. High profile and high end events should be held. Reach out to charities, professional organizations, and high level social organizations. Offer your space to these groups to get them into the gallery when they might not otherwise find their way.
Do NOT use personal credit cards to fund these ventures in a downmarket. Be sure to write formal agreements on all your ventures. Be sure to think about transparency and documentation. Look for “angel investors” people who are willing to support you, but who are not looking for anything in return. Make sure your relationships can withstand the stress of doing business together.
Strengthen your relationship with your banking representative, when you have someone pulling for you, providing you information, and working with you, you will be much better off in the end. Relook at your business plan and ensure it accurately covers costs, assets (at REALISTIC fair market values) and revenues in a down economy. Think about how to keep your costs down and put it in writing. When dealing with the bank, ask for a loan rather than a line of credit. Lines of credit represent money in reserve where a loan is taken full amount up-front with interest from day one. Banks are still lending money – try smaller banks like local banks, regional banks, trade banks, or credit unions.
Image Credit: http://www.hope-house.org/arts/chesapeake/images/park.jpg
