The Magazine of the Association For Creative Industries
Formerly Craft Industry Today
THINK GLOBAL
WINTER 2019
We are Your
Business Partner AMERICAN QUILT RETAILER provides independent retailers with tools to help you succeed.
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VOL. 23 • ISSUE 134
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Subscriptions • US 1 year (6 issues) $45 • 2 years (12 issues) $75 • Canada 1 year (6 issues) $90 • International 1 year (6 issues) $165
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RESOURCES Shop owners have busy schedules and multiple responsibilities. AQR wants to be a one-stop location for information on techniques, products, trends, and opportunities for you to run your business with ease. BEHIND THE SCENES Every shop owner knows that many things have to happen before fabric and patterns ever reach the sales floor. Let AQR help you better understand distribution channels and help you work with your vendors.
Free coll Marcus Above: The Sarah’s fabric io 37 of
52 |
BUILDING & NURTURING RELATIONSHIPS From the quilt shop staff members, to your customers, to your family and community, there are tips and techniques for building relationships that help you run a successful business. INSPIRATION & CREATIVITY Shop owners are required to provide inspiration to customers every day, yet they need that inspiration, too! AQR can provide that with ideas for events, classes, retreats and marketing ideas.
2 F R E E -T
BUSINESS GROWTH & SUSTAINABILITY Build your store for longterm success by learning strategies that work from experts. Explore opportunities to generate revenue to keep business on track.
How To Subscribe: • Visit americanquiltretailer.com and subscribe online • Call 641-751-3395 • Mail check to address below.
ON THE SALES FLOOR Train your staff to learn how to handle customers, upsell products, and build your customer base. And, AQR will guide you to better visuals and displays for selling your products.
AMERICAN QUILT RETAILER
101 N. Main St. • PO Box 205 • Conrad, IA 50621 • 641-751-3395 info@americanquiltretailer.com • www.americanquiltretailer.com
Winter 2019 / Volume 9 / No. 1
CONTENTS 12
Craft Industry Fears Major Fallout From New Tariff Activity
18
Fair Enough: An Authentic Approach to Social Responsibility in Business
4 PULSE Prop 65 and Your Business 6
TRENDING 2019 Retail Trends to Watch
8
MOVERS & MAKERS Meet Nicole Stevenson
10 I NSIDE AFCI The Challenges and Opportunities within the Industry, Newly Elected Officers, Creativation Seminars Spotlight, Featured Member Benefit: AFCI Health Coverage, 2018 Industry Awards & Hall of Fame 26 DIY Leveraging GDPR to Delight and Surprise Your Customers 28 THE SHELF 30 I NDEX OF ADVERTISERS
Editorial Keri Cunningham kcunningham@afci.global Jason Baum jbaum@afci.global Advertising Tim Braden tbraden@fwpi.com Ashley Cavanagh ashley@fwpi.com
Publisher Fahy-Williams Publishing PO Box 1080, 171 Reed St. Geneva, NY 14456 800-344-0559 fwpi.com Gradient is distributed to AFCI members on a complimentary basis. Subscription fee for non-AFCI members is $25 a year. To order, contact AFCI at 201-835-1207. Gradient is published quarterly for members of the Association For Creative Industries (AFCI). AFCI is an international non-profit trade association consisting of thousands of member companies engaged in the design, manufacture, distribution, and retail sales of craft products worldwide. For more about AFCI, the value of membership, or its award-winning conference & trade show, please visit afci.global.
Online • afci.global • creativationshow.org • facebook.com/AFCI.Global • twitter.com/AFCI_Global • youtube.com/c/ AssociationForCreativeIndustries • pinterest.com/AFCI_Global • linkedin.com/company/ association-for-creative-industries
319 East 54th Street, Elmwood Park, NJ 07407 Tel 201-835-1200 / Fax 201-797-0657 Copyright © 2019 AFCI. The contents of this publication may not be reproduced, in whole or in part, without the prior written consent of the publisher.
Gradient • Winter 2019
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PULSE
s s e n i s u B r u o Warning: and Y Ignoring, misunderstanding or disregarding California Prop 65 regulations can have a harmful, even fatal, impact on the health of your business. By Luisa Toro As a Senior Regulatory Compliance Scientist at Environmental Medicine, Inc. (EMI), I spend a great deal of my time and energy guiding both American and overseas-based businesses seeking to successfully navigate Prop 65 regulations. I find that a good deal of confusion exists. And when it comes to Prop 65, what you don’t know can hurt you, badly. Instituted in 1987 and administered by the California Office of Environmental Health Hazard Assessment (OEHHA), California PROP 65 requires a warning label when a product contains one or more compounds that may cause cancer, birth defects, or reproductive harm. Now, changes that have gone into effect in August of 2018, have added confusion and complexity to an already murky process for compliance. Interestingly, While Prop 65 requires labeling only for products sold in California, the impact of PROP 65 extends well beyond California. In many cases customers all over
America see the Prop 65 cancer warning on a product because, often, the product sold in California is on shelves across America. As of February 2019 the list of offending compounds published by OEHHA has grown to include more than 900 chemicals and the list most likely will continue to grow. By California law, businesses selling OEHHA-listed products to people in California must provide “clear and reasonable warnings” before knowingly exposing people to any chemical on the list, unless the expected level of exposure would pose no significant cancer, birth defect or reproductive harm risk. “No significant risk” is defined as a level of exposure that would cause no more than 1 extra case of cancer in 100,000 people over a 70-year lifetime. The law also has similar strict cutoff levels for birth defects and reproductive harm. Art supplies, electrical wires, jewelry, padlocks, dishes, flashlights, pesticides, automobile floor mats … the
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list of affected products goes on and on and is growing. If your product or products are sold or distributed in California, PROP 65 applies to you. It does not matter in what state or country your business is located. Ignorance of the regulations has a price and it can be steep. If a product you sell in California lacks the correct Prop 65 labeling, your business can be subject to penalties that can best be described as punishing. Penalties can include a fine of up to $2,500 per violation per day, being forced to remove product from shelves, and/ or bankroll significant legal costs if you choose to fight a claim in court. Prop 65 lawsuits can be directed from two possible sources. A suit can be filed either by a public enforcer such as a district attorney or State Attorney General or by a private citizen. The vast majority of Prop 65 suits result from claims filed by such private citizens. If one wonders why such a large percentage of suits comes from private citizens, it is instructive to
note that a private citizen who files a complaint that succeeds will receive 25 percent of the penalties collected. Standard procedure for initiation of a complaint calls for the business allegedly in violation to be sent a 60-day notice. If you receive a 60-day Notice, don’t ignore it. The notice starts the clock ticking on enforcement, and taking action early can lessen the expense, and burden of resolving Prop 65 claims. However, the best way to avoid the Prop 65 claim quagmire is to have your products properly labeled before they find their way to a shelf in California. This includes paper labeling in catalogs and on websites where the product is listed. As a Senior Regulatory Compliance Scientist at Environmental Medicine, I oversee the review of a client’s formula for each product to ensure that it carries the proper labeling and shields the client from Prop 65-based suits.
As many businesses are becoming aware, amendments to Prop 65 approved in August of 2016 have become active on products manufactured after August of 2018. Now, products that fall under the warning notice classification of Prop 65 are required to disclose the identity of the chemicals that triggered the warning and considered the source of harm. In my role, I strongly advocate for clients to communicate with raw materials’ suppliers. It is imperative that they ask for the USA Safety Data Sheet and require that it include explicit California Proposition 65 compliance information. When chemicals are present that are subject to Prop 65, then we consider conducting a Quantitative Risk Assessment to determine if the product, based on risk or exposure estimates, falls above, at, or under the Safe Harbor Levels.
Join my presentation at Creativation titled “S217: California Proposition 65 Explained” on Friday, January 18 from 12 to 1 p.m. I will address concerns frequently expressed by clients and outline the proper procedure for charting clear passage through the thicket of prop 65 regulations. Register for a seat on www.creativationshow.org. Luisa Toro, a bilingual environmental scientist, benefits EMI clients with an astute environmental perspective that affords valuable insights relating to regulatory issues concerning public health and environmental impact. Working in conjunction with her EMI team members, Luisa’s regulatory expertise is complemented by her comprehensive understanding of the USA consumer product regulations and the Canadian Consumer Product Safety Act.
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5
TRENDING
2019
Retail Trends To Watch By Rich Kizer & Georganne Bender You know that old saying, “The more things change, the more they stay the same”? Well, it no longer applies to what’s happening in retail. Things are changing so fast it’s hard to keep track. Some trends explode on the scene and quietly fade away, while others have staying power. Here are the trends we’re talking about right now. Small is the New Black; Small is the New Big. Every big box store secretly dreams of the freedom independent retailers have to turn on a dime; to think of something cool and instantly make a change. This year the big guys did something about it. Pop-ups are big and they are everywhere, maybe even on your sales floor. You’ll find the Market @ Macy’s, a popup marketplace that features both upand-coming and established brands, debuting on Macy’s sales floors across the U.S. If you see something you like, you’d better buy it now, because the
theme and brands are only offered for a limited time. The Market @ Macy’s changes quickly and that’s the point. Macy’s is serious about going small. This year the retailer also acquired Story, Rachel Shechtman’s unique store with the “point of view of a magazine that changes like a gallery and sells things like a store.” You may remember hearing Shechtman speak at the 2015 CHA MEGA Show. She’s a trend setter and she’s staying on as Macy’s new brand experience officer. Stores that don’t sell anything A few years ago, Restoration Hardware ditched the nostalgia vibe and became RH – an elegant gallery filled with gorgeous furniture and accessories. And none of it is for sale in the store. Instead, shoppers work with RH’s on-site interior designers to create the rooms of their dreams or they can grab a catalog and order online. Not being able to buy a thing in-store is a hot trend. Last year Nordstrom debuted Nordstrom Local, a cool inventory-free space where you can work with a personal stylist, get on-site
www.etchall.com • 623-933-4567 orders @etchall.com 6
Winter 2019 • Gradient
alterations, gift-wrapping, concierge services, shoe/luggage repair, same-day delivery, curbside pickup, manicures, wine, beer, espresso drinks, cold-pressed juices and even graband-go food, but you can’t buy things typically sold in a Nordstrom store. Any actual product can be ordered online. And that’s the point: Nordstrom Local is the service link between online sales and in-store personal attention. Augmented Reality (AR) and Artificial Intelligence (AI) Google “retail technology” and so many results will pop up, your head will explode. Augmented Reality (AR) and Artificial Intelligence (AI) are still the big ones to watch in 2019. Augmented Reality is more than a gimmick; it’s a way to make the shopping experience easier. Think “magic mirrors” that allow you to try on clothing without the hassle of a fitting room, or the ability to get a makeover by merely looking into a camera, then seeing a virtual version of yourself on a big screen or on your phone. Magnolia Market even brings the store to your home with an app that allows you to see how product will look in your home. Yes, your actual home. AI is human-like behavior exhibited by computers and machines that have been trained to make independent decisions. When we speak in Las Vegas, the Renaissance is our home away from home. On the walk to our rooms we often encounter Elvis and Priscilla, the hotel’s robots who glide along the hallways delivering whatever a guest has requested. Their job is to do simple tasks so that human staff can spend more time providing service to guests.
Amazon Go is the cashier-less store of the future. You enter by scanning a QR code on the Amazon Go app on your phone, and then whatever you choose is tallied up and charged to your Amazon account. We felt like shoplifters on our first visit, but the not having to wait for a cashier was something we could get used to. The ultimate goal is to make life easier so retailers are using AI to enhance the store experience and engage customers both in-store and online, to manage inventories and more. At the same time, AI is collecting massive amounts of data about the customer. These days, the companies you do business with really do know more about you than you know about them. BOPIS: Buy Online, Pick Up In Store Retailers are getting “phygital” – by 2021, 90 percent of retailers plan to implement BOPIS. And why not? Buy Online, Pickup In Store is the most convenient way for consumers to get what they need without having to shop a busy sales floor. It’s a win for retailers because those customers have to come to the store to pick up their purchases. Smart retailers up the sale by surrounding the BOPIS pickup area with irresistible impulse items.
For almost any craft project…
there’s a product for it. th Bo o 01 #25
TM
Come see for yourself with our free make and takes. There’s a new one each day! TM
In-store Experience You knew we wouldn’t forget this because we’re all about the in-store experience. AR and AI aside, shoppers still crave great service – that means quality human interaction. We predict that in-store customer service will go back to its roots because even shoppers who love everything high-tech still want to talk with knowledgeable store associates who can help them make the right decision. AI may be able to recommend items that go together, but it can’t create a look that suits your unique style as well as a human being can. It’s still about the in-store experience, and it will be until retailers get it right. We could fill this entire issue of Gradient with the changes that are coming to retail in 2019. Suffice to say
www.Styletechcraft.com • info@styletechcraft.com • 1-904-284-0284
@ Styletechcraft
this is the year to keep your eyes open. Adopt what makes sense for your store and be open to change because it’s not just coming, it’s already here. Rich Kizer and Georganne Bender are consumer anthropologists, keynote speakers, authors, and consultants who have helped thousands of businesses in retail, restaurant, hospitality, travel, death care, and service industries since 1990. The result of their research is literally straight from the customers’ mouth: solid ground-level intelligence you can use to better serve your own customers. COPYRIGHT KIZER & BENDER 2018 | ALL RIGHTS RESERVED
Gradient • Winter 2019
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MOVERS & MAKERS
MEET
E L N O O C S I N VEN STE
“TELL ME, WHAT IS IT YOU PLAN TO DO WITH YOUR ONE WILD AND PRECIOUS LIFE?” -MARY OLIVER From a young age, I knew that the corporate world wasn’t for me. Nearly everyone in my family is independently employed and our family ethos of entrepreneurship and creativity was ingrained in me early. I’m not cut out to sit behind a desk under fluorescent lights just working for the weekend. Those types of jobs would always make me think about that scene in Joe vs. The Volcano where he’d finally had enough with his oppressive office job and launched into a big speech about how short life is. Like Joe, I knew that I didn’t want to sit at a desk, working for “the man”. I wanted to make a living doing something artful, purposeful and filled with passion. I’m Nicole Stevenson, writer, illustrator, maker, teacher, creative business consultant and co-founder of Dear Handmade Life. I can’t recall a time in my life when I wasn’t creating. I spent many childhood afternoons combating only-child boredom by scrawling poetry and 8
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drawings on the inside of my closet door where my mom couldn’t see my own private ‘art gallery’.
in my own brick and mortar workshop space and other schools while getting a master’s degree in English.
When I was nine, I DIYed my first ‘business cards’ with Mr. Sketch scented markers and Mrs. Grossman’s stickers for my first ‘business’: a handmade stationery shop housed in a refashioned refrigerator box in my front yard. In fifth grade, I snuck into the teacher’s lounge to self-publish my first short story on the mimeograph machine.
Creating has not only been present but is the driving force in everything I’ve done over the course of my life.
In high school, my love of making continued when I almost got kicked out of my Catholic girls’ high school for submitting nude sketches for the student art show. (No regrets.) Fast forward to a post-undergrad summer spent on the Venice Beach boardwalk hawking my paintings to tourists that led to nearly a decade designing prints and imagery for my clothing line in my twenties. I juggled running my clothing line, teaching art and crafts to hundreds of children and adults
One night in 2007, over margaritas, my Aunt Delilah and I got to talking. We both noticed a gap in the market. I had grown extremely tired of schlepping my handmade wares to the big surrounding cities for markets and shows. And Delilah was looking for fun things to do in our California town that centered around the creative community. Together, we founded Dear Handmade Life and in 2008, we hosted our first event - Patchwork Show: A Modern Makers Festival. As with any new endeavor, we started with humble beginnings. Our first show included just 25 vendors but it was exactly what our town and its community needed: a way for local artists to showcase their crafts, an opportunity for customers to support
local artists and the economy, and a free, family-friendly day outside. I’m proud to say that after ten years, Patchwork is as strong as ever. We have grown to six shows annually with over 150+ vendors and artists in each location. In those early days when we desperately needed to to forge connections with our fellow creatives as well as larger brands in our field, I joined AFCI. At AFCI’s annual conventions (now called Creativation) I met some “Craftelebrities” I’d admired for years, started mutually beneficial relationships with brands, connected with my crafty peers, sourced products for my brick and mortar shop, discovered new trends and products and took skill-building workshops. As my business has evolved over the years, so has my involvement in AFCI. One day on a road trip, location scouting for Patchwork Show, Delilah and I got stuck in bumper to bumper traffic on the 101. We started discussing Patchwork Show but then the conversation evolved into a chat about another need in the independent business community. “I’ve always wanted to inspire fellow business people to take that chance and just do it!”, Delilah said. “I’ve always wanted to take a little crafty vacation where I can get my craft on and share the things I’ve learned with others”, I replied. We continued to discuss this opportunity as we slowly crept our way up the freeway. We talked about what this “crafty vacation” would look like. We envisioned a place where creatives, makers, artists and hobbyists could come together for a weekend to learn and craft and network together. A place to really connect and learn in a structured yet inclusive environment.
tears daily. This conference that began as an idea in a traffic jam has organically grown and fostered a community of the most inclusive, accepting group of people I’ve ever seen. The love and support can be felt from the moment you walk in the doors. After seven years (we’re coming up on our 8th conference in April) it doesn’t seem to be losing steam. In 2017, my long-time business partner and Aunt, Delilah stepped back to focus on her other business, Alta Baja Market (a market and deli celebrating the flavors and makers above and below the US-MX border that doubles as an amazing center for the local community in Santa Ana). While this transition has been an emotional one, I am also very excited for these new chapters in both of our lives and it has made me reflect on the history of Dear Handmade Life. I’ve heard people say, “Jump, and the net will appear.” In some ways I agree. After all, that’s what we did that first year in business. We jumped in and got to work. However, we’d spent years preparing for Craftcation Conference without knowing that Craftcation Conference would ever exist. All the vendors and guests we’d coordinated for dozens of Patchwork Shows, all of our learning we’d done with our individual businesses, the employees we’d managed, the relationships we’d built in our community, the way we’d learned to solve problems quickly… ALL of that was grist for the mill that became Craftcation Conference which became the cornerstone of Dear Handmade Life.
Even though we didn’t realize it, we had been weaving the net on which the Dear Handmade Life of today with our in person events: Patchwork Show and Craftcation Conference as well as our online offerings: workshops, blog, podcast and shop would rest on. That is what people don’t explain about the net. The net is built on your experience, relationships and expertise in your field. You don’t know if the net is going to hold until you actually use it. So there’s always risk involved. But, if your net is strong, chances are that it will hold. Maybe it will fray here and there but you’ll be ready with your trusty needle and thread to repair it. As for me, craft, business and self growth have always been my passions so I’m excited to continue to do the work Delilah and I did together here at Dear Handmade Life along with our current and growing team of creative women who inspire me daily. Nicole Stevenson CEO & Co-Founder DEAR HANDMADE LIFE: Blog, online workshops + podcast PATCHWORK SHOW: Modern Makers Festival CRAFTCATION CONFERENCE: Business + Makers Festival nicole@dearhandmadelife.com
NICOLE STEVENSON STUDIO: Illustrations. Art. Custom portraits + invitations. nicole@nicolestevensonstudio.com
In 2012, we hosted our very first Craftcation Conference - a four-day weekend at the beach in Ventura, California where we host business classes, craft workshops, self-care exercises, social gatherings, dance parties and most importantly, a safe space to be yourself. Craftcation Conference is a place where makers and business owners can openly discuss their frustrations and seek guidance amongst their peers. Every year when our community comes together at Craftcation I am brought to Gradient • Winter 2019
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INSIDE AFCI
Industry News Let’s Get Real: The Challenges and Opportunities Within the Industry
Newly Elected Officers
Join us on Saturday, January 19 from 5:30-7:30pm when key industry leaders come together at Creativation to discuss the state of the creative industry and how you can adapt to the ever-changing environment. Panelists include: Lynn Lilly, CEO/Founder, Craft Box Girls; Mike McCooey, President/CEO, Plaid Enterprises; Bobbie Medema, CEO, Notions Marketing; Ryan Newell, President/CEO, Sprinrite LP; Stacey Park, Owner, Scrapbooking Made Simple; Anthony Piperno, President & CMMO, A.C. Moore; Jennifer Vanderveldt, VP Strategy & Analytics; The Michaels Companies, Inc. A cocktail networking event will follow the discussion. Register at www.CreativationShow.org.
Congratulations to the newly elected officers of the AFCI Board of Directors: Jim Thielen – Chairman, Joe McClain – Vice Chair, Bradley Beck – Secretary. They were recently asked about their newly elected positions and what they are looking forward to most. For the full article visit the AFCI Blog at https://blogafci. wordpress.com.
Featured Member Benefit: AFCI Health Coverage AFCI is proud to offer a simple and affordable health care solution for our members. The plan covers preventive care, primary care office visits, specialist office visits, urgent care visits, laboratory services, imaging or x-ray services, prescription drugs and telemedicine. Enrollment is online and simple. More information can be found at https://tinyurl.com/y93trapk.
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Creativation Seminars Spotlight S203: Using GDPR to Delight and Surprise GDPR went into effect on May 25, 2018 and businesses worldwide must comply. Kiffanie Stahle of the artist’s J.D. LLC will discuss: why this applies to your business even if you aren’t based in the EU; what changes your business might need to make to be compliant; and how GDPR opens the door to delight and surprise your customers. S217: California Proposition 65 Explained The law was originally drafted to assure that California’s drinking water sources were protected from contamination from chemicals known to cause cancer, birth defects or other reproductive harm. In its current form, the legislation requires businesses inform Californians about exposures to such chemicals and their risks through product labeling and POS notifications. This presentation will help both manufacturers and retailers understand the law, product labeling requirements, and what it means to consumers.
2018 Industry Awards & Hall of Fame We are pleased to announce the honorees of our 2019 Industry Awards and Hall of Fame: The Meritorious Award of Honor is given to a member who has made significant contributions to the Association. This year’s recipient is Richard Brown, Chief Strategy Guy for Brown Bag Management and Consulting. He has been working tirelessly for the crafting industry for more than 40 years in a wide variety of capacities. He has served the creative industry through his participation on the Board of Directors of the Craft Yarn Council, Craft & Hobby Association and the Crochet Guild of America. Richard has been a dedicated member of the crafting industry and a generous contributor to many people, businesses and organizations.
John Laurie retired from Coats & Clark in 2017 after a 40-year career in the craft industry. Over the years John was fortunate to have been involved on the boards of many industry associations including Canadian Home Sewing and Needlecraft Association, Canadian Textile Institute, and Craft Yarn Council of America where he twice served as Chairman; and the Craft & Hobby Association where he served two terms ending in 2012. John always claimed “the rising tide raises all boats” and strove to help all aspects of the industry succeed.
The Industry Achievement Award goes to Tammy Browning Smith, Attorney at Law, Browning-Smith P.C. Tammy has significantly contributed to the growth and vitality of the craft and hobby industry for over 18 years; serving and volunteering her time to educate individuals and companies on the importance of protecting their creative assets, often pro bono whenever she can. The Special Recognition award recipient is Doug Earle, Chief Executive Officer of H.A. Kidd and Company Limited. This award is given to individuals or groups for their extraordinary contributions in positively showcasing the creative products industry. In addition to his many accomplishments, Doug has contributed creative products and services, and his personal time and energy to many charitable organizations that introduce consumers to the joy of crafting. Inductees of the Hall of Fame are pioneers who have made extraordinary contributions leading to the growth and success of their organizations and the creative arts industry. This year’s inductees are Ken & Barbara Griffin and John Laurie. Ken and Barbara worked for the Ben Franklin Stores before opening their own Ben Franklin Crafts store in 1986. The success of their store was admired by many for its family-friendly in-store experience. In addition to their business acumen, their generosity helped raise money for various organizations.
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FEATURE
Craft Industry Fears
MAJOR FALLOUT From New Tariff Activity By Abby Glassenberg “It’s just ironic,” says Kenneth Gamache, the president of QT Fabrics. “We were the last vertical company to print, merchandise and distribute our own goods in the U.S., and we just couldn’t compete because of the flood of companies going overseas. We shut it down in 2009. We were in Massachusetts, and hundreds of people lost their jobs.” QT was printing on cotton that was grown and woven in China. Even so, maintaining a U.S. plant was expensive, and the technology wasn’t top quality. Gamache moved production to Korea and Pakistan, where flatbed fabric printers produce higher quality designs. The company thrived. And last year, QT became the first quilting fabric company to print all its fabric digitally. “We went to China because they have a plant there that’s invested in high-speed machines that 12
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can produce 18 million yards a year,” Gamache says. Digital fabric printing offers the promise of a profitable future for QT, but Gamache has some new cause for concern. In March 2018, the Trump administration imposed tariffs on steel and aluminum imported from China. In July, an additional $34 billion worth of goods was added. Recently, the administration announced a third round on $200 billion more in Chinese goods and bumped the tariff from 10 to 25 percent. The new list includes a large quantity of craft supplies, such as cotton fabric. Craft-industry businesses – from large chain stores to midsize companies to solo entrepreneurs – now have to contend with the likelihood of a price increase soon on supplies imported from China.
Here’s what you should know: What is a tariff, and what actions are businesses taking? Tariffs are taxes on imported goods that are collected by customs officials on behalf of the government imposing them. With the exception of agriculture, tariffs have been very low or at zero globally over the last few decades because of free-trade agreements. The United States now is in a trade war with China that could escalate. Large chain stores, including Ohiobased JOANN, carry a wide assortment of craft supplies imported from China and would be particularly hard hit by the tariffs. “Nearly 450 of the listed codes would affect JOANN products, with the greatest area of impact related to our fabrics,” the company says in a statement. The store would pass the 25 percent price increase onto
its customers. The timing comes right before Halloween, usually the company’s most significant sales period each year. JOANN emailed its customers Aug. 21, calling the tariffs a “Made in America Tax” and asking customers to petition their elected representatives and participate in the public commenting in hopes of getting the items removed from the list. “Every day, millions of Americans use craft supplies and fabrics, such as cotton and fleece, to create handmade products right here in the United States. The Made in America Tax will hurt churches and charitable organizations who rely on craft supplies to create blankets and quilts for veterans, the hospitalized and the homeless,” the email says. Former JOANN CEO Jill Soltau testified before Congress on the issue two days later. Why not source domestically? Hundreds of JOANN customers took
These craft supplies are on the tariff list: fleece, faux fur, velour, woven cotton fabric, silk, dye, pigments used to make paint, ink, thread, polyester and nylon fabric, yarn, glass and metal beads, glue, knit fabric, paper-cutting machines, paper products, and washi and other paper tapes. See the full list here: https://ustr. gov/sites/default/files/301/2018-0026%20China%20FRN%20 7-10-2018_0.pdf (The majority of premium quilting cotton sold in independent quilt shops are imported from Korea and Japan and will not be tariffed.)
to the company’s Facebook page saying that terming a tariff on imported goods a “Made in America Tax” was misleading. Many said that JOANN should stop sourcing merchandise overseas. “Setup shop in Detroit, invest in your own fabric plant here!” wrote one commenter. “Tons of available real estate & people looking for jobs. Stop looking for who can do it the cheapest & buy in the US.” Another wrote, “Why not buy American? Stop using overseas vendors to provide and
produce your products. Support small American businesses. Help them set up business to produce the things you sell. Win/Win right?” But in its statement JOANN says, “There is no domestic source for many of the products affected by the proposed tariffs, and there is no possibility that a domestic source will develop. … And in fact, many products we sell have never actually had an American source.” Midsize craft companies report a
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Manufacturing likely will shift to other countries
similar impossibility when it comes to sourcing domestically. Jacquard Inkjet Fabric Systems, a leading provider of digital textile printing solutions based in Healdsburg, California, imports silk from China. “It’s Chinese silk. That’s what it’s called. That’s where it comes from. That’s where you get the good stuff,” says Hunter Ellis, Jacquard Inkjet’s president. Ellis also points out that a different administration could lift the tariffs in the future, leaving domestic manufacturers overly vulnerable to market forces. For solo entrepreneurs who use silk to create products, the price increase from the tariffs could prove difficult to manage.
Blake, who founded her hand-painted silk ribbon and scarf business, Quintessence Silk Art, in 2009. “One thing that’s frustrating is that silk fabric is not made in the U.S., so it seems unfair for them to tariff silk fabric since all the companies who sell in the U.S. have to import the fabric.”
“I am still in the process of finding out how buying silk from China is going to affect me,” says artist Shauna
Blake says if the price of silk goes up, she will be forced to raise her prices, something she’s hesitant to do.
According to many executives, rather than encouraging domestic manufacturing, the tariffs will cause companies to simply shift their sourcing from China to other countries, David Goff, the vice president of Dharma Trading Co., a leading seller of fiber arts supplies based in San Rafael, California, says at least 30 percent of his company’s merchandise will be affected by the tariffs. “What’s going to happen is people will shift their business to India and Pakistan, and that will happen long before anyone will shift their business to the United States because simply put, it’s so much more expensive to manufacture in the U.S.” Asher Katz, president of Jacquard, a manufacturer of paints, inks and dyes and parent company of Jacquard Inkjet, concurs. “It’s not going to benefit Americans at all. It’s going to have exactly the opposite effect. So
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it’s really a political optics move I think, and the real winner is going to be India in a major way.” Katz says American consumers can only tolerate a small price increase before they begin looking for alternatives. “At a certain point, a hobbyist is only willing to pay a certain amount for a bottle of paint.” Uncertainty and a heated political climate For many companies, the tariff issue is creating a sense of uncertainty that’s making it difficult to conduct business as usual or plan for the future. Several craft companies sent emails to wholesale and retail customers warning of possible price increases, but this can also prompt a backlash. Goff at Dharma Trading sent out an email that he says was meant to be informative. “We wanted to help connect the dots so that people who are watching the news are thinking about this in terms of how it’s going to affect you, because it is. It’s not just international politics. The price of everything you buy is probably going to go up in the next six to nine months.”
The company received a handful of replies that “took that email very politically as if we were bashing the administration and saying they were doing everything wrong,” Goff says. “Things are so politically charged right now, so polarized, but that wasn’t our intent.” Next steps If the petitions to get craft supplies taken off the tariff list aren’t successful, JOANN will apply for a company exemption once the tariffs are finalized, according to a company spokesperson. The mounting backlog of exemption requests could mean a long wait before its waiver is processed. But if approved, the craft chain could come away with a distinct competitive advantage over smaller businesses with less bandwidth to lobby D.C. and that would remain saddled with the 25 percent tariff. Gamache at QT Fabrics says he has a plan if the company has to move out of China, but he’s definitely feeling uncertain. “Those large corporations, they can afford it. At 10 percent, maybe we could have absorbed it, but 25 percent? We can’t eat it all. We’d have to pass it on to our customers. It’s nervous times for us right now. We’re hoping that it won’t go through, or that it’s not 25 percent, but time will tell.”
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ENOUGH
FEATURE
FAIR An Authentic Approach to Social Responsibility in Business
By Maureen Walsh When you’re thinking about supply chain partners, whether you’re sourcing raw materials or finished product for resale, do you ever consider actively seeking out fair trade collaborators? Are you familiar with fair trade and how it may help your business succeed while empowering farmers, artisans and business owners around the world to alleviate poverty? The fair trade movement was born in 1946. Edna Ruth Byler first brought back to the U.S. intricate lace work from Puerto Rican artisans living in poverty. She sent fair compensation directly to the workers. Her work 18
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grew into Ten Thousand Villages, founded in 1958, which remains the largest fair trade retailer in North America. This pioneering maker-tomarket movement continues to make a significant positive impact in the lives and communities of its makers. After WWII, fair trade partnerships were instrumental in helping refugees and aiding in the economic recovery of Europe. Over subsequent decades, the movement for fair trade gained momentum as U.S. and Canadian-based entrepreneurs formed organizations to encourage and promote fair trade, including the World Fair Trade Organization, among others. Since 2000, as fair trade sales and
consumer awareness increases, more and more businesses are recognizing how participating can positively impact their own brand and bottom line. Businesses in the creative industries, particularly small business entrepreneurs, can generate economic opportunities through direct trading partnerships with marginalized producers in developing nations. What is fair trade? Fair trade is much more than a pretty label on your favorite coffee beans. Though around for many years, the fair trade community has often struggled to explain itself, says Chris Solt, executive director of the
Fair Trade Federation (www.fairtradefederation.org), a membership organization of businesses who practice 360° fair trade. As a result, there is understandably some marketplace confusion about the true meaning behind this commerce model and social movement. As defined by the Fair Trade Federation, “Fair trade is an approach to business and to development based on dialogue, transparency, and respect that seeks to create greater equity in the international trading system. Fair trade supports farmers and craftspeople in developing countries who are socially and economically marginalized. These producers often face steep hurdles in finding markets and customers for their goods. Fair trade is a strategy for poverty alleviation and sustainable development.” Simply put, fair trade means fair compensation for quality work. Yet it is, in fact, so much more. “Fair trade is about more than just paying a fair wage. It means that trading partnerships are based on reciprocal benefits and mutual respect; that prices paid to producers reflect the work they do; that producers share decision-making power; that national health, safety, and wage laws are enforced; and that products are environmentally sustainable and conserve natural resources,” states Solt. It also means that the entire process is transparent and there is accountability for adherence to guiding principles. While those principles vary slightly, as described by a variety of fair trade organizations, fundamentally they derive from shared ideals. • Economic empowerment in marginalized communities • Respect for the environment • Fair compensation • Guarding against child labor and forced labor • Safe working conditions • Equal opportunity and non-discrimination • Adherence to fair trade practices • Sustainability and capacity building Fair trade is smart business Fair trade artisans and producers have a wonderful story to tell and by working with them, their story becomes part of your own. In recent years, consumers have asked their favorite brands to commit resources to “giving back” or doing something positive for the world. As Solt states, “Shoppers want to express their personal values through the purchases they make, and this creates business building opportunities for smart business owners.” We can all get behind the idea of contributing positively to the world, yet it isn’t always an easy promise to keep,
Our New release will have you and your customers crafting the winter blues a way! *New stamps, dies, stencils, paper pads, and inks shipping to our retail partners now! www.pinkandmain.com
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CRAFT INDUSTRY Get high-quality craft industry news and information and join a community of 1,100+ business owners from Etsy shops to JOANN. See our tariffs article in this issue!
WWW.CRAFTINDUSTRYALLIANCE.ORG Gradient • Winter 2019
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particularly for smaller companies. Small and large organizations have focused on corporate social responsibility (CSR) initiatives to answer that call. Cause marketing has become an integral part of how brands present themselves to the consumer, as organizations contribute to positive change through events, donations, fundraising and volunteerism. But many would say
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that CSR initiatives, while beneficial, are not enough to create real and sustainable improvement in marginalized and developing communities. That’s where fair trade partnerships make a real and compelling difference. Working directly with fair trade producers creates improved economic opportunity at the
heart of the supply chain, which inevitably has greater impact on long-term economic change. As business owners seek to improve their own sustainability, fair trade offers a valuable and authentic way to help artisans, farmers and their communities also sustain themselves, according to Solt. When asked why members of AFCI should consider fair trade partnerships, Solt responded, “One of the most amazing benefits that business owners derive from working with fair trade partners is direct access to farmers and artisans without middlemen, allowing for inspiring collaboration and innovation.” Fair trade is about connecting individuals to create better opportunities for all. Your business may discover a new source of
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a better brush handle or picture frame using locally sourced wood. Now imagine that built into your cost is an investment in replanting trees to sustain the source of that fabulous wood into the future. Fair trade is smart business.
artisan wool, or an inspiring designer of unique handmade tapestries through a fair trade partnership. Your venture is enhanced by its unique relationship with a fair trade producer and your customers recognize your commitment to the empowerment of and respect for marginalized populations.
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The collaborative nature of fair trade is a win for all. Imagine you’re an art brush manufacturer looking for something new and distinct to improve your product, or you have a small frame shop looking to differentiate your merchandise. An artisan on the other side of the world is inspired by your inquiry and builds
Concerned about the investment? Dealing directly with producers means avoiding the costs associated with “middlemen” and allows fair trade goods to compete at the same or slightly higher cost as conventionally traded goods. The good news is more of the sale price goes directly to the makers, farmers and artisans, and their communities, helping lift people out of poverty and build a viable future, while protecting the environment. Many fair trade producers work through local cooperatives and associations that aid in making the connections.
Countries continue to recognize the importance of fair trade in improving human lives and living conditions, and protecting the environment as fair trade organizations spread the word and educate people worldwide. The European Union has shown significant support for increasing fair trade awareness through education by working with similarly minded organizations. As noted on the World Fair Trade Organization’s website (www.wfto.com), “The Fair Trade and Ethical Fashion movements across Europe joined forces in an ambitious project supported by the European Commission’s Development Education and Awareness Raising Programme (DEAR). “Trade Fair, Live Fair” aims to foster more resilient livelihoods for the producers and workers behind many of the products that European citizens consume.”
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Doing the right thing Chris Solt’s passion for his work in leading the Fair Trade Federation is evident. His message to AFCI members is this: “It’s just the right thing to do. It’s complex. It’s imperfect. Fair trade puts people and planet before profit, and working with fair trade producers adds authenticity and legitimacy to your brand’s story.” The business of fair trade is complex. It is a real commitment to the global fight against poverty, climate change and the need to put people first. Your customers want to see a commitment to “giving back.” You need to protect your business and invest your resources wisely as you seek growth and opportunity. The good news is that there are many resources available to help you make an informed decision on joining the fair trade movement.
The Fair Trade Federation provides resources to help you learn more and to help you become part of an ever growing community of fair trade partners. We encourage you to visit their website and learn more about them and the work they are doing to promote fair trade. • Here are just some of the resources available on the Fair Trade Federation’s website (www.fairtradefederation.org/ fair-trade-resources) • Start a Fair Trade Business 2018-2019 Fair Trade Stores & Cafés Guide • 2017 Canadian Fair Trade Handmade Guide • Fair Trade Principles Handout 2018-2019 Fair Trade Wholesale Guide
DIY
LEVERAGING
to Delight and Surprise Your Customers By Kiffanie Stahle For more than a year, I’d been thinking, reading, and talking about GDPR to prepare for it becoming effective on May 25, 2018. Of course, most of what I read were dire predictions. Online business is over. Email marketing is dead. Online advertising is a waste of money. But these predictions were really only true for businesses that relied on spamming, data mining, or selling people’s data. The more I thought about it, the more I realized that it was an opportunity for businesses like ours. We care about not only those who buy from us, but also those who don’t. We respect people’s time, money, and resources. And for people like us, GDPR gives us an opportunity to stand out, be different, and delight and surprise. Best of all, by taking these four steps, you are well on 26
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your way to delighting your customers (and complying with GDPR).
So the first step is to ask first before collecting information.
#1: Ask first
#2: Be transparent
We all hate it when we get a marketing email that we don’t remember subscribing to. Sometimes it’s because we downloaded a freebie that we never opened. (I know I’m guilty of this one.) But other times, we didn’t specifically sign up for someone’s email list.
We know that businesses need information on us. But we want to know what they know and how they are using it. And while privacy policies get a bad rap, they really are just about pulling back the curtain telling website visitors exactly that. Your policy doesn’t have to be long and stuffed with legal jargon. But it does need to explain to website visitors things like – • You and who else is collecting information on me? • What information is collected automatically? • What information is collected based on something I do? • When do you share this information? • Where do you use this information?
And with all the pressure of having a “big” email list, it’s not surprising that people do this. But there’s zero value (and likely negative value) of adding people without permission when you look at it from their perspective. How do you feel when this happens to you? Irritated? Do you mark it as spam? Do you delete it or unsubscribe? Regardless of what you do, it leaves a yucky taste in your mouth.
www.dare2bArtzy.com #4: Don’t collect more than you use When you stand in your customer’s shoes, this one is obvious. You only should collect information on your customers that you need and will use. You don’t need to collect their postal mailing address if you never are going to mail something to them or calculate taxes. You don’t need Google Analytics installed if you never use that data to improve your website, create content, or design new products. So your final step is anytime you collect data you have a reason to and follow through on that reason.
• How do you protect my information? • How can I ask you questions about what you know about me? So your second step is to create a policies page and share your answers to these questions.
#3: Explain the benefits of data collection Intellectually we know nothing is private on the Internet, but that doesn’t mean we want businesses knowing intimate details about us. But this goes out the window if we think the exchange is worth it. If we think we are getting something equally valuable in return. For example, I recently took the Thirdlove FitFinder quiz. And I was happy to give them extremely personal details to avoid the horrors of bra shopping and have a bra that fit arrive on my doorstep. So your third step is to stand in the shoes of your customer and tell them why handing over this information helps them, not you.
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Sure it might be easier to • ignore GDPR; • pretend that since you aren’t in the EU it doesn’t apply to you; and • tell yourself that your chances of being penalized for non-compliance are low. • But instead, I want you to take GDPR as a challenge – a challenge to brainstorm new ways to delight and surprise your customers and show them that you • are worth doing business with; • respect them, even if they never purchase from you; and • take the ethical route, rather than skirting by with the bare minimum. Want help executing this challenge? Then join me at Creativation in January in the seminar “Using GDPR to Delight and Surprise.” Register at www.CreativationShow.org. Kiffanie Stahle is a photographer, fellow creative business owner, and lawyer living in the California Sierra Nevada Foothills. And she’s on a mission to teach creative entrepreneurs there can be ease in the legalese of running a business. Kiffanie’s intuitive approach balances the law with the practicalities of running a creative business. And she cuts out the legalese whenever possible. When she’s not chatting law, she’s probably in her garden, her kitchen, or if it is summertime, catching a Giants baseball game.
MAGNET CARDS
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THE SHELF
Lawn Fawn Oh Gnome! This cute stamp set is like GNOME other! It’s perfect for lots of occasions including birthdays, friendship cards, housewarmings, and get well cards. www.lawnfawn.com
Crafters companion, The new Gemini™ FoilPress™ is the easy-to-use hotfoil system for delivering crisp, clean images on a variety of materials. Consistent plate temperature, heat controls, timer and special self-cooling function are just a few of the special features. With so many extras included in the box, the Gemini™ FoilPress™ is ready to use with the Gemini™ Junior machine right out of the box! crafterscompanion.com/foilpress
Tape Technologies StyleTech Craft has come up with more Rose Gold inspired options than anyone else. From regular craft vinyl to two types of glitter, there is a Rose Gold option for all of your craft projects! StyleTechCraft has Rose Gold varieties available in our Craft Vinyl, Transparent, Polished Metal, Ultra Metallic & Transparent Glitter product lines, 6 different options in all. www.tapetechnologies.com EUCALAN Delicate Wash Eucalan’s simple soak and spin delicate wash is the preferred choice for laundering exquisite handmade creations. Safe and gentle for everything from hand-knits, to quilts, lingerie and embellished clothing. Infused with pure essential oils, there are 5 scent options, including natural unscented. Excellent for either hand or machine washing. 800-561-9731 Pink and Main Our new ‘Sweet Carousel’ and ‘Magical’ stamp sets will bring out the joy of childhood, and will put a smile on your face while creating with them. Available now at www.pinkandmain.com.
Dare2BArtzy You will want to “shellabrate” when you see how our new collections have dies that cut the stamped images AND the images on the coordinating quality double sided papers! The Seas the Day collection has six papers and four stamp sets you will love. Check out our “What’s New” section for all of our new “Stamp, Paper, Die” collections! Dare2bArtzy.com Crescent Cardboard RENDR No Show Thru Paper is a revolutionary paper allows you to use 100% of the sketch book; no more limitations to what type of media you use in your work and no more tearing out the next page. Our patented paper will not allow any bleed or show through from the other side of the paper, no matter what media is used! Even oil paint and juicy ink markers! 110 lb white heavy weight sheets. Acid and lignin free. Sold online and at fine art supply stores. www.crescentcardboard.com
THE SHELF
Get stuck on B&B etchall Reposition/ Re-use Stencil Spray! The fine mist adhesive spray bonds strong yet peels up easily. Great for sign making. Adheres stencils to most surfaces. orders@etchall.com, 623-933-4567, etchall.com Stamp-n-Storage The Stamp-n-Storage Magnet Card is the perfect solution for organizing steel wafer dies. Each Magnet Card is made from strong magnet material and laminated to sturdy chipboard so the dies don’t fall off or bend. stampnstorage.com
PMA Industries The Crafter’s Edge™ Heartfelt Stitches Collection by Tammy Tutterow offers an array of special die sets capable of cutting wool felt, fabric, metal and more. Create a wide array of projects like dimensional succulents and baskets of flowers and finish them off with our new adorable engraved “handmade” metal embellishments. craftersedge.com
Ranger ink Create dimension and texture on all your mixed media projects with the Ranger Mixed Media Powders. Mixed Media Powders are unique blends of colored embossing powders mixed with chunkier embossing granules that allow you to achieve amazing new textures and effects in your work. Available in 8 colors. For additional product information visit www.rangerink.com.
ArtFoamies ArtFoamies are durable, bold foam stamps designed for use on many surfaces. They can be used with any acrylic or waterbased paint, inks or glazes. Use on fabric, paper, canvas, furniture, pottery, walls, mixed media and art journaling. Designers include: Julie FeiFanBalzer, N*Studio, ArtByMarlene, Lisa Walton, RedTinRoof, Rita Barakat, Rebekah Meier, Einat Kessler, Ann Butler and now welcoming Marta Harvey and Cat Kerr. www.artfoamies.com
Stamplistic Designed with the mixed media artist in mind, Stamplistic’s release of 12 new designs will take your art to the next creative level. All 12 designs are between 4” to 4 ½”. Need a little encouragement? Try them with Stamplistic’s new line of embossing dust. BOOTH 660. www.Stamplistic.com Avery Elle Create the perfect project to brighten someone’s day with Avery Elle’s adorable new Peek-A-Boo Pets clear stamp set and coordinating Elle-ments die set. With over 300 stamp and die sets to choose from you are sure to find something you love at Avery Elle. www.averyelle.com
Glue Dots Removable Glue Dots® are the compact way to make your planner into a functional work of art. With intuitive easy-tear sheets, removable dots can be placed exactly where you need them. Attach photos and other memorabilia instantly. Available in convenient 36 or 60-count poly bags and a 600-count value pack. www.gluedots.com Gradient • Winter 2019
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Tell our advertisers you saw their ad here. American Cake Decorating......americanquiltretailer.com...........16
Glue Dots Int’l.................................................................. gluedots.com...........21
American Orthopedic...........................................theraglove.com.............9
H & H Cologne.........................................................hh-cologne.com...........14
American Quilt Retailer...............americanquiltretailer.com........IFC
Honey Bee Stamps LLC.................... honeybeestamps.com..........24
Art Impressions............................................... artimpressions.com..........22
Lawn Fawn...................................................................... lawnfawn.com.............4
ArtFoamies....................................................................artfoamies.com.......... 10
Lee Products Company...................................leeproducts.com..........25
Avery Elle Inc..................................................................averyelle.com.............4
Paper Rose Studio.............................................paperrose.com.au............11
B & B Etching Products Inc........................................ etchall.com.............6
Pink and Main.........................................................pinkandmain.com...........19
Chase Products Co.......................................chaseproducts.com...........13
PMA Industries........................................... pmaindustriesinc.com........... 17
Craft industry Alliance.....................craftindustryalliance.org...........19
Ranger Industries........................................................rangerink.com......... 20
Crafter’s Companion.........................crafterscompanion.com.........BC
Stamp-N-Storage.........................................stampnstorage.com.......... 27
Crescent Cardboard..........................crescentcardboard.com..........23
Stamplistic.....................................................................stamplistic.com............. 5
Dare 2Bartzy.............................................................dare2bartzy.com.......... 27
Stitchcraft Marketing......................stitchcraftmarketing.com...........31
Design Master Color Tool.........................................dmcolor.com......... 30
Tape Technologies................................ tapetechnologies.com............. 7
Eucalan Inc..........................................................................eucalan.com............. 5
Witzend Workshop LLC................................. twisteezwire.com.......... 10
To reserve your ad space in the next issue (Spring) of Gradient Magazine contact Ashley Cavanagh by February 15, 2019 • (315) 789-0473 • ashley@fwpi.com
Being a maker is fun business! You thrive on the ‘Oh, I can do that!’ feeling. In a pile of gathered materials you see endless possibilities. We see endless possibilities too! Our sprays change the color of both delicate and durable surfaces…even fresh flowers! Choose traditional coverage, a blush of color, or use easy techniques to craft rich patinas. And, Design Master sprays are fast drying, creating more time for ‘I did that!’ smiles. see our new product reveal @ CREATIVATION booth 712
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Social media, Influencer Marketing, Digital & SEO, Branding, Strategy, Consulting What's our magic? We know the craft industry inside and out and can help you plan and implement marketing strategies that solve your business problems.
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Email or Text us! 719-239-1799 or leanne@stitchcraftmarketing.com Platinum Partner with