Bill Edwards on sun 31 aug 03
Just an observation. But Wally World aka Wal-Mart has
to be considered on another level. Small towns like in
rural Alabama and many others do not have the larger
net work or business such as say, New York, Chicago
etc. People are scattered further apart whereas the
large cities or metro areas still have a township
infra-structure. These large Wal-Mart and K-Mart
stores simply put small business owners out of
business. These are business's that have been in
families for many years. So they do impact towns in
different ways. While NY may have Wal-Mart the
dilution is no where near what it is in out back
Alabama or some other place where competition is tight
for the dollar. These huge empires can basically
dictate the price they are willing to pay for a
product simply because they buy a warehouse full of it
at a time. No small business is ever going to get a
REAl deal buying a thousand dollars worth of inventory
where a huge company can buy a million dollars worth.
Also the manufacturers at times are even put in a
position of protective sales and exclusivity in some
cases while it may not be recorded, it still happens!
Potters are effected by economics in all its hidden
ploys. Pottery made by hand is popping up all over
these larger stores but they are mass produced low
fired most times and done in other countries. Doesn't
change the mind set of those looking for a deal, many
don't know the difference even if we think we have
worked hard at training them. It hasn't been that long
since I was at a show and heard a woman tell her
friend that she seen a vase at Wal-mart that looked
like the vase so and so artist had in his cache of
goods but she got hers for 8.00 and this potter was
asking 80.00 for his, she lamented that he was out to
ROB someone blind! The point is this mentality is set
up through good marketing and yes I know just a wee
bit about marketing since I had it to do once upon a
time. Its just frustrating to know that people take
sides without fully exploring the vastness of our
economical mess. Pottery is now found in tourist areas
and galleries (not exclusively). How often do you see
Wal-Mart shoppers from rural (Pick a town) on a daily
basis shopping galleries and taking vacations verses
running to Wal-Mart or the mall, heck they even shop
those stores on vacation because this is sold and
shoved down everyones throat till we are made to
believe nothing else is better. Local down town
business for the little cities and less densely
populated areas are folding up faster than a potters
show in a thunderstorm. I speak from experience since
my family owned a small hardware store that got a
double dose of Wal-Mart and Big K. Anything our store
offered that was carried by the larger stores was left
on the shelf because they could buy it at a cheaper
price. We would call our suppliers and they would tell
us we could maybe get 5% less or so if we bought
2500.00 more on this the next shipment. That would
still leave us with pricing the product at 15% more
than the BIG business in town and plus we paid what
was called a truck fee reducing the over-all profit to
less than 30% whereas most larger business won't even
talk to a vendor for less than 60% discounts with
special emphasis on terms and many times free shipping
is included. Potters are subject to the same things
since its an easy sell for theses companies once they
hit it big. The product is in your face, the product
is marketing through name brand recognition and its
all under one roof making it the place to shop because
of ease of use. Who cares if a pretty vase is made in
Mexico or some other place if its compared to what a
hand made piece of Artistic pottery might be priced?
If you set a booth up outside the front door of
Wal-Mart and sold your work while they were still
pottery within the store they would sell 3 times more
pottery from within the store than you would sell
outside even if you could mark your product down to a
comparable price. Once more, its a mental issue or a
mind-set and if anything you simply would be promoting
this idea for them. PCB Florida where hundreds or
airbursh artists used to reside were all doing
business for many years. Wal-Mart moved from the old
side of town to right on beach front property and
included an airbursh business, now just who do you
think is about the most successful business in town.
Visit there sometimes and just look for yourself. If
they are going to allow that kind or art in its
stores, then anyone can be up against the wall. You
just are going to get a better deal and thats what you
go to Wal-Mark and larger stores to do. if something
is moving and its a HOT item, they will soon have some
version of it or a way to market it.
The playing field is shrinking out there. I hope
potters can find ways to reduce the future damages in
some fashion. I know many who work very hard keeping
the lights turned on and their families fed. Seeing
floor space in Wal-Mart known as The Artist Gallery
could really put a whipping on many local artists if
they ever chose to add this to their hyped marketing.
Then the potters and painters will face self
destruction unless they move out further and further
or agree to sell cheaper and cheaper till the margin
of profit is mostly benefiting the already well
organized money machines.
Bill Edwards
=====
http://www.tallapoosariverpottery.com/
Bill Edwards
PO Box 267
Lafayette, AL, 36862
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John Rodgers on sun 31 aug 03
Bill, you have hit the nail on the head!
When I was in Alaska, Wally World in all it's glory came to Anchorage
in two forms - a Sam's --- and right across the road ---- a Walmart
SuperCenter.
There was great hue and cry........ For --- by many consumers cheering
the lower prices they expected to pay, and Against - by the small
businesses that could foresee the shadow of doom. There has been a
horrendous impact. You could virtually hear the life blood being sucked
out of the small businesses in town as they began to dry up all over.
Downtown is now a mess.
It was announced that the new Super Center would have an Alaskana Gift
Shop, and I was contacted about putting my Alaska Figurines in the new
store. I had misgivings, but did look into it. Walmart want a HUGE order
initially (which ment a lot of expense to me - labor and materials).
Terms dictated by Walmart were that all product delivered to Walmart
that did not sell within 45 days had to be picked up, including all
instore damaged goods, with a credit to Walmart, AND Walmart had 60 days
to pay. There was no way I could cary Walmart for 60 days. Wasn't going
to happen. There was no "give" by Walmart in that area.
I told them to put it where the sun didn't shine in the summer time Alaska.
Never went back.
Later, I learned of some other ceramics businesses who tried dealing
with them went bankrupt. I decided I did good!!
Walmart finally went to a Indian Arts and Crafts out of Seattle and got
Alaska looking stuff that was made in Taiwan, and sold cheap. One of my
pieces would sell for $60 to $100 a piece. A comparable piece from
Taiwan was $25-$35.
In time, I discovered there is a Walmart shoppers mindset, and they buy
based on the nickel (or dollar as it were). Not on the quality. For
them, the price dictates all. Everything else is secondary. For me, I
was making and selling not based on price points, but based on subject,
art, quality, originality, location of production, and the name of the
artist. Walmart didn't sell that, and their customers were not buying
that. The Walmart shopper was using cheap as their value, rather than
quality as their value. It showed in the kinds of things they purchased.
In time, I found that Walmart hurt me not at all. I found that there
were those who were going to buy cheap, and i could sell them anything,
no matter what, unless I got the price down to Walmart price. Of course
at that level I couldn't realize a profit. So, I didn't sell. That meant
that the Walmart shopper didn't get my high quality goods, And I didn't
get their small amount of money for my high quality piece, so my piece
stayed in inventory and was able to be sold at the higher price to
another buyer. I came out ahead. I got my price.
This whole thing reminded me of something an older friend said to me.
The lady had been in the fleamarket business for a number of years,
having a small booth in a local market. I suggested that I might like to
put some pottery into her flea market. She told me not to do it. And of
course I asked why not? Her reply was, "You won't sell anything at a
reasonable price. People that come to flea markets are looking for
fleas!!!!"
I was stunned!! This whole business was suddenly very clear!! I have a
market out there, and that market is clealy NOT the same as Walmart, and
I am successful in my market because my stuff sells. They simply don't
sell in my market niche.
I have never been fretted with the likes of Walmart again.
Walmart does do a lot of damage to small business, but as for crafters,
there are markets out there in which Walmart will not, cannot compete.
Walmart runs on high volume, low margin, and cannot really compete where
there is a quality product made by a local artisan/artist.
I like to relate my experiences in Alaska of having my designs ripped
off and copied in Taiwan, and how it ties back to the subject of
competeing with the big sotres.
I made a porcelain ornament - "Pup-in-a-Muk" - I called it.......a husky
pup hiding in a mukluk. Made with fine porcelain, finished with china
paints, sold for $15 in the JC Penny Alaska Giftshop in Anchorage. I
went into the store one day, just to check and see how my stuff was
moving, and Low!!! hanging on the wall right next to my ornamaents was a
Taiwanese ceramic look-alike, a copy of my design, done in earthenware
clay and a matching glaze. Gawd!!! Those things were ugly. And the
Price.... - $2.95. I had been ripped off.
Well, I learned that a company in Seattle had ripped them off, sent them
to Taiwan, had them made and then shipped back up.
In time, I discovered that the Tourons were a divided camp when it came
to purchasing my porcelain. There were those that bought on the basis of
quality, and especially since it was porcelain. Then there were those
who bought the Taiwanese stuff because it was priced low. My sales
never flagged!!
I have made a point to try and stay out of that low-end niche and that
has worked for me.
Regards,
John Rodgers
Birmingham, AL
Bill Edwards wrote:
>Just an observation. But Wally World aka Wal-Mart has
>to be considered on another level. Small towns like in
>rural Alabama and many others do not have the larger
>net work or business such as say, New York, Chicago
>etc. People are scattered further apart whereas the
>large cities or metro areas still have a township
>infra-structure. These large Wal-Mart and K-Mart
>stores simply put small business owners out of
>business. These are business's that have been in
>families for many years. So they do impact towns in
>different ways. While NY may have Wal-Mart the
>dilution is no where near what it is in out back
>Alabama or some other place where competition is tight
>for the dollar. These huge empires can basically
>dictate the price they are willing to pay for a
>product simply because they buy a warehouse full of it
>at a time. No small business is ever going to get a
>REAl deal buying a thousand dollars worth of inventory
>where a huge company can buy a million dollars worth.
>Also the manufacturers at times are even put in a
>position of protective sales and exclusivity in some
>cases while it may not be recorded, it still happens!
>Potters are effected by economics in all its hidden
>ploys. Pottery made by hand is popping up all over
>these larger stores but they are mass produced low
>fired most times and done in other countries. Doesn't
>change the mind set of those looking for a deal, many
>don't know the difference even if we think we have
>worked hard at training them. It hasn't been that long
>since I was at a show and heard a woman tell her
>friend that she seen a vase at Wal-mart that looked
>like the vase so and so artist had in his cache of
>goods but she got hers for 8.00 and this potter was
>asking 80.00 for his, she lamented that he was out to
>ROB someone blind! The point is this mentality is set
>up through good marketing and yes I know just a wee
>bit about marketing since I had it to do once upon a
>time. Its just frustrating to know that people take
>sides without fully exploring the vastness of our
>economical mess. Pottery is now found in tourist areas
>and galleries (not exclusively). How often do you see
>Wal-Mart shoppers from rural (Pick a town) on a daily
>basis shopping galleries and taking vacations verses
>running to Wal-Mart or the mall, heck they even shop
>those stores on vacation because this is sold and
>shoved down everyones throat till we are made to
>believe nothing else is better. Local down town
>business for the little cities and less densely
>populated areas are folding up faster than a potters
>show in a thunderstorm. I speak from experience since
>my family owned a small hardware store that got a
>double dose of Wal-Mart and Big K. Anything our store
>offered that was carried by the larger stores was left
>on the shelf because they could buy it at a cheaper
>price. We would call our suppliers and they would tell
>us we could maybe get 5% less or so if we bought
>2500.00 more on this the next shipment. That would
>still leave us with pricing the product at 15% more
>than the BIG business in town and plus we paid what
>was called a truck fee reducing the over-all profit to
>less than 30% whereas most larger business won't even
>talk to a vendor for less than 60% discounts with
>special emphasis on terms and many times free shipping
>is included. Potters are subject to the same things
>since its an easy sell for theses companies once they
>hit it big. The product is in your face, the product
>is marketing through name brand recognition and its
>all under one roof making it the place to shop because
>of ease of use. Who cares if a pretty vase is made in
>Mexico or some other place if its compared to what a
>hand made piece of Artistic pottery might be priced?
>If you set a booth up outside the front door of
>Wal-Mart and sold your work while they were still
>pottery within the store they would sell 3 times more
>pottery from within the store than you would sell
>outside even if you could mark your product down to a
>comparable price. Once more, its a mental issue or a
>mind-set and if anything you simply would be promoting
>this idea for them. PCB Florida where hundreds or
>airbursh artists used to reside were all doing
>business for many years. Wal-Mart moved from the old
>side of town to right on beach front property and
>included an airbursh business, now just who do you
>think is about the most successful business in town.
>Visit there sometimes and just look for yourself. If
>they are going to allow that kind or art in its
>stores, then anyone can be up against the wall. You
>just are going to get a better deal and thats what you
>go to Wal-Mark and larger stores to do. if something
>is moving and its a HOT item, they will soon have some
>version of it or a way to market it.
>The playing field is shrinking out there. I hope
>potters can find ways to reduce the future damages in
>some fashion. I know many who work very hard keeping
>the lights turned on and their families fed. Seeing
>floor space in Wal-Mart known as The Artist Gallery
>could really put a whipping on many local artists if
>they ever chose to add this to their hyped marketing.
>Then the potters and painters will face self
>destruction unless they move out further and further
>or agree to sell cheaper and cheaper till the margin
>of profit is mostly benefiting the already well
>organized money machines.
>
>Bill Edwards
>
>=====
>http://www.tallapoosariverpottery.com/
>
>Bill Edwards
>PO Box 267
>Lafayette, AL, 36862
>
>__________________________________
>Do you Yahoo!?
>Yahoo! SiteBuilder - Free, easy-to-use web site design software
>http://sitebuilder.yahoo.com
>
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