Museum Store Summer 2013 by Museum Store Association

www.MuseumStoreAssociation.org SUMMER 2013

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Y A D I L & O H IFTSSGUIDE GBUYER’ 12

TRENDSWATCH 2013

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COMMiSSiONS VS. iNCENTiVES

MSA CONFERENCE RECAP

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Summer 2013

Museum Store helps cultural commerce professionals operate more effectively, find sources of museum-quality products and contribute to the missions of their institutions.

Volume 41

JaMa r icE, MBa , caE

communications staff

StEPHaniE PEtErS COMMuNICATIONS MANAGER

KatHy ciSar SyBil FaurEr

administrative staff SySTEMS ADMINISTRATOR

aDriana HE ralD MEMBER RELATIONS COORDINATOR

ADMINISTRATIVE ASSISTANT

lEigH ruSSo

Lessons Learned at the 2013 MSA Conference & Expo Whether you were able to join your peers in l.a. or not, here are some educational highlights from this year’s event. By tHE MSa coMMunicationS DEPartMEnt

ART DIRECTOR

JacquE lyn MErrill

EDITOR

rEBEcca oStE r BacH ADVERTISING

Mary PEtillo

PRODuCTION MANAGER

cinDy PiKE CIRCuLATION

allEn nElS on how to contact us E-MAIL: speters@museumstoreassociation.org Please provide your full name, location and institution or company name.

ADVERTISING: Mary Petillo: (503) 726-4984 maryp @skies.com

A Profit-Making Match: The Store + Regular Museum Events See how these museum stores have discovered ways to reach out to museum event attendees, enhance their experience and add to profitability. By MargE D. HanSEn

sKies america publishing company

MAIL: Museum Store association 3773 E cherry creek north Dr, Ste 755 Denver, co 80209-3804 www.MuseumStoreassociation.org Phone: (303) 504-9223 Fax: (303) 504-9585

Holiday Gifts & Buyer's Guide Browse our latest buyer’s guide as you prep and plan for the holidays. By aPril MillEr

COMMuNICATIONS SPECIALIST

JEnniFEr an DErSon

TrendsWatch 2013 How can museum stores surf the trends shaping the consumer experience? By ElizaBEtH MErritt

MEMBERSHIP AND COMMuNICATIONS DIRECTOR

MEETINGS AND CONfERENCE MANAGER

Issue 2

Features

msa staff ExECuTIVE DIRECTOR/CEO

canDra HEnDricKS

Museum Store magazine (iSSn 1040-6999) is published quarterly by the Museum Store association. Postmaster: Send address changes to Museum Store association 3773 E cherry creek north Dr, Ste 755 Denver, co 80209-3804

Idea Gallery: Themed Displays View how your peers “took a theme and ran with it” in these inspiring photos of merchandise displays! 2012-2013 MSA Annual Report read MSa’s financials plus get a snapshot of our members and affiliates.

Departments 4

President’s Message We all play an important role in strengthening our community.

Executive Director’s Message MSa connections go far beyond simply networking.

Knowledge Standards Q&A What can i do to ensure a profitable enterprise? By laurEn Salazar

Operations How to buy the right amount of inventory and clear out old stock. By cHriS Walton

© 2013 Museum Store association inc. all rights reserved. Except for the inclusion of brief quotations in a review, no part of this magazine may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from MSa. opinions expressed by contributors are not necessarily those of the Museum Store association. Printed in the uSa.

By anDrEW anDoniaDiS

45 46

MSa and Museum Store association are registered in the u.S. Patent and trademark office.

cover image: istockphoto.com/©KEMal BaS

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Human Resources commissions vs. incentives: Best practices for motivating staff. New Vendor Showcase Advertiser Index suMMer 2013 | MuseuM store

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| president’s message |

We Are MSA we all Play an imPortant role in Stregthening our community.

the core purpose of MsA is to advance the success of cultural commerce and of the professionals engaged in it. An international association, MsA is governed by an eight-member board of directors.

by stacey stacHoW

am MSA. You are MSA. We are all MSA. If you were at the Membership Meeting at the annual MSA Conference & Expo held in Los Angeles this past April, you would have heard this phrase over and over again. It is an important message as we look to our association’s future. MSA has a new Executive Director/CEO, Jama Rice, and with new management comes new visions and change. But we can’t make progress without you, our valuable members and affiliates. MSA needs your help to continue serving cultural commerce professionals at the highest level. Here is just a sampling of some of the changes that have already been implemented and that we know will continue to strengthen our community: • The MSA Board of Directors recently appointed David Howell of David Howell & Company as the first Affiliate Advisor to the board. In this position, he is responsible for providing insight and input from our Vendor Affiliate community. I am very excited to have an affiliate voice on the board since our vendors are an extremely important part of MSA and need to be recognized as such. • The newly launched Education Advisory Group will be helping MSA staff develop year-round educational programming—not just for the annual conference. The group will be exploring online learning opportunities and other educational venues to ensure that the highest quality education is available to all of the membership at multiple times throughout the year. • We also revamped the short-term Nominating Committee into the new Board Development Committee. Members of this committee will serve a rotating three-year term. This group will not only prepare a slate of board candidates each year, but will actively seek out and identify those individuals with the skills and passion needed to serve the association. A matrix has been created to assist this committee in finding the leadership that the board needs for the successful future of MSA. But my thoughts keep going back to our 2013 event and the new level of energy that we all experienced. If you weren’t able to attend this year’s Conference & Expo, you missed an exciting and education-packed few days. From the opening learning excursions and Meet & Greet event to the topical educational sessions and Members Market and Expo packed with vendors, I gathered great ideas, re-ordered some of my best-selling items and found new products—all in just three days! For me, this is a show I just can’t miss. It was such a great conference that I cannot wait until Houston in 2014! I really hope to see you there and look forward to working together to make our new vision a reality in the coming year.

board of directors President

Stac ey Stachow WadsWorth atheneum museum of art hartford, Conn.

first viCe President

b arb ara le n hardt the john f. kennedy Center for the Performing arts Washington, d.C.

seCond viCe President

d av id a. duddy deCordova sCulPture Park and museum linColn, mass.

seCretary

janice wrhe l georgia o’keeffe museum santa fe, n.m.

treasurer

g lor ia Ste rn minnesota historiCal soCiety tWo harbors, minn.

direCtors at large

mic hae l higdon national building museum Washington, d.C. -and-

mark wiggin S Cia museum/emPloyee aCtivity assn. mClean, va.

affiliate advisor

Stacey Stachow Stacey.Stachow@wadsworthatheneum.org 4

d av id howe ll david hoWell & ComPany bedford hills, n.y.

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| executive director’s message |

Personal Impressions of MSA 2013 CONNECTIONS THAT GO FAR BEYOND SIMPLY NETWORKING.

’m counting the days until April 2014. Having spent time talking, learning, sharing ideas—oh, and doing a little dancing—with many MSA members, vendors and sponsors in Los Angeles, I can’t wait until next year’s big event in Houston. Most membership organizations offer an annual meeting with educational content, opportunities for professional development, inspirational messages, and a chance to compare notes about the past year’s progress and an exchange of successful professional practices. I learned so much about the business of nonprofit retailing in a very short time in Los Angeles. Having a full-time Manager of Learning on staff with an impressive background in education and experience in building content and curriculum is very promising for the Houston 2014 program. Many membership organizations organize an annual tradeshow that enables vendors to showcase new products and share the latest iteration of the long-time favorites. I was gobsmacked (a descriptive Scottish term) by the variety, uniqueness, quality and fit for cultural institutions of so much of the product on display at the expo in L.A. I witnessed many conversations between buyers and vendors about how a product might work in a particular store or potentially support an upcoming exhibit, and, if the product was not necessarily the right fit for their store, at the very least, I heard compliments about the product displayed. We’re already planning how we might enhance those conversations in Houston. I’ve been with several membership organizations in my career, and they all celebrate the value of networking among

| BY JAMA RICE

members. But there is something very special about the connections that MSA members and affiliates make. I witnessed how happy MSA members are to see each other, often having last met at the previous year’s MSA Conference. They graciously shared resources, offered suggestions and provided coaching and mentoring. There is an energy in these face-to-face exchanges that goes beyond friendship. There is a kinship among MSA members, a caring that is certainly based on years of working in the same industry together. But it is a caring that also is extended to new faces in the industry and to those who have

not been seen for a while. It was warmly extended to me as one of the newest faces in the organization. This connection that goes far beyond networking is something MSA can celebrate as uniquely its own. And I’m proud now to be a part of that culture. Let’s see…nine months, how many days and minutes until Houston?

Jama Rice, MBA, CAE jrice@museumstoreassociation.org

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4 .0 F I N A N C I A L MA N AG E M E N T

What can I do to ensure a proﬁtable enterprise?

According to MSA’s Knowledge Standards, Financial Management is defined as a comprehensive system of controlling, measuring and maximizing fiscal performance. Strategic and consistent management of financial performance is essential for a successful store. Here are some steps to accomplish this: • Develop and implement a budget. Creating a budget is an opportunity to evaluate your financial situation and to tailor it to meet the financial goals of your store. Maintaining a budget can help you track expenses, analyze income and anticipate future needs. • Select and utilize a point-of-sale (POS) system. Inventory management is critical to the success of your operation. Canvass colleagues for suggestions and reviews, follow guidelines and choose the POS system that best meets your needs. A good POS system will allow you to process sales, manage inventory levels, capture customer information, track sales and provide a wealth of data. • Understand key formulas and know your numbers. It’s important to understand and utilize certain formulas for determining the key measures of success for your operation. Familiarize yourself with the formulas to figure Net Sales, Cost of Goods Sold, Gross Margin, Average Inventory, Capture Rate, Sales per Visitor and Inventory Turn. Run the numbers, see where you stand and measure your store’s performance against industry standards, as provided by MSA. • Understand Unrelated Business Income Tax (UBIT). According to IRS guidelines on UBIT, your institution must pay taxes on income generated from sales of products unrelated to your institution. Know what is related and what is not. Knowing what’s appropriate for your institution will guide your purchasing decisions. • Utilize a purchasing plan such as open-to-buy (OTB). How do we control purchasing to ensure an adequate level of inventory? Necessary steps include: gathering and analyzing sales data, forecasting sales based on past performance/ seasons/upcoming events/exhibitions, determining the appropriate stock to have on hand, and finally, defining the dollars available for purchases. Monitor and adjust the OTB monthly, seasonally and/or yearly. You can build one OTB to cover all merchandise purchases, or create one for each category and season. • Follow money handling procedures for maximum control. Cash is essential for retail, but it also is ripe for mishandling and theft. Staff needs to be trained in the appropriate procedures to safeguard against mistakes and forestall theft. Procedures implemented and followed include those for daily register and safe counts, change requests, reconciling against sales and making deposits. Following the steps above will provide you with the tools you need to understand your financial picture and optimize profitability. A thoughtful and strategic approach to financial management will be a key component in the success of your operation. Lauren Salazar is the Head of Merchandising for the Hillwood Estate, Museum & Gardens, Washington, D.C., and has been a longtime member and past MSA Board President. She was also on the Education Task Force, which developed MSA’s Knowledge Standards Program. For more information, visit www.MuseumStoreAssociation.org.

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OpeRATIONS

Make Room for Success HOW TO BUY THE RIGHT AMOUNT OF INVENTORY AND CLEAR OUT OLD STOCK.

| BY CHRIS WALTON

istockphoto.com / © carmen martínez Banús

low-moving stock is like a millstone around any retail manager’s neck. We have all been there. Maybe your orders arrived later than expected and almost missed the season, the weather or political issues impacted visitor numbers, or you purchased more than you needed to get that extra discount. Sometimes it’s just that the stock didn’t appeal to your visitors as expected. Whatever the reason, it’s not having slow stock that damages your profits so much as not dealing with it quickly enough. At three months you should be using every trick you know to get that stock moved out. Remember, you just want your money back—just ask for cost price and tax; it’s the most effective damage-limitation strategy there is. Then, you can reuse that money to buy stock that will turnover many times and make up your margins. One of the most common misconceptions amongst buyers is that you must buy

$1,000 in sales), the next 25 percent you reduce to half price (125 at $2 for $250 in sales), then the last 25 percent you “write off ” (125 at $0 sales), then you have in fact achieved sales of just $1,250 for your initial investment of $1,000 and your profit

Cut once and cut hard and learn from the reductions you have had to make by trying to understand why it didn’t sell at full price. large quantities to get higher margins. In fact, in most cases you aren’t saving money by buying in bulk if you cannot be certain of selling it all at full price within one season. Look at this example: • If you bought 500 souvenirs at $2 each, total cost would be $1,000. • If you sell the product at $4 ($2,000 in total), it gives you a profit of $1,000. • If you end up only selling half of them at full price (250 at $4 for 8

is only $250. (For the purpose of this example I have ignored tax.) • If you had just bought 250 of these you would probably have paid $2.20 each and could have sold them for $4.40, making sales of $1,100 and a healthy profit of $550—or keep them at $4 and make sales of $1,000 and a profit of $450. Either way you win! My advice when looking at an item is to ask yourself two questions: 1) how many can I sell and 2) how much would they go

for? Then ask for the cost price and make a decision on quantities. Also, try asking your supplier if the item is going to be a success. When they say “yes, of course,” challenge them to supply you smaller quantities at the discounted price because, after all, when they sell out you will order more! Okay, so how can we move that slow stock? Here are some ideas: • If the stock is postcards, greeting cards or note cards, try bundling them in packs of six or 10 and include your most popular (they go to the front) and some of your old stock. Sell the pack at a high enough price to take full margin on the popular lines and cost-recovery on the old stock. You can use a simple clear plastic bag to hold the bundle with a “special offer” sticker on the front. • Give away a pen or pencil with every guidebook, have a “lucky dip” bag for children’s toys or make up “party bags,” including new stock and old. Higher

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priced items could be offered as fundraising prizes or even sold on eBay. • If the old stock is giftware, then you could try the usual buy-one-get-onefree, or again, link them to a popular item as a bundle. Get your volunteers to make up pretty baskets with a mixture of slow-moving gifts and top sellers. Price to cover your costs plus profit on the good items and work out the overall price by keeping the slow-moving stock at cost. • You could offer slow-moving products to your membership team as incentives for joining and write them off for that purpose. • If you have books that are moving slowly—and a lot of books are old stock—then you could have a bargain book event one evening with wine and cheese and clear them out at the event. But do make sure you have reduced them far enough to clear them out. People love a book sale!

Whatever the stock, if it isn’t selling, cut the price as far as you can. Do not get in a situation where you have incremental reductions and the stock just gets dirtier and handled too much. Cut once and cut hard and learn from the reductions you have had to make by trying to understand why it didn’t sell at full price. We all make mistakes; what makes a good store manager great is recognizing the mistake quickly and dealing with it decisively, and then moving on to buy better. When clearing slow-moving stock don’t dump it all in a bin, but display it just as carefully as the rest of your stock. Don’t stick massive red “sale” stickers on it; simply present a subtle “reduced prices” sign amongst the products. Try having a special “sale day/week” at the end of your busy season with members getting a special preview evening. There is no point holding your sale in January if your visitor numbers plummet then—you need a critical mass of shoppers to make a sale work for you.

Finally, in accounting terms, your stock value should be reduced by 30 percent every year after purchase, so after three years its value is just 10 percent of the price you paid. At that point it should be written off your books and disposed of. (Far better to act fast and recover the full cost price in year one.) Auditors may not implement this rule because the store belongs to a nonprofit organization, but if the shop were commercially controlled and sold to another business this is the valuation they would give. Chris Walton has been working in the cultural commercial sector for more than 20 years and has held several senior posts, such as Managing Director at The Kew Gardens, London, and Director of Business at the National Maritime Museum, Greenwich. Now a consultant, her passion is to support the generation of sustainable income for nonprofit venues. Her nonprofit website, www.secondaryspend.com, is a free resource for museum stores worldwide.

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HUMAN RESOURCES

Commissions vs. Incentives

t is my belief that most museum stores do well without incentivizing their staff beyond simple gestures expressing a sincere thank you. However, that doesn’t mean you shouldn’t consider some type of rewards program to help motivate your staff. You just need to determine what will work best for you and your team. First, you need to understand that there are two basic types of incentives. Most often commission refers to monetary compensation paid to the store staff based on a percentage of the sales price or a set amount for selling a product or membership. Incentive is typically used more broadly to describe a commission and/or many additional forms of remuneration including discounts, gift cards, passes to activities, etc.

| by ANDREW ANDONIADIS

• How do you manage the potential downside of commissions triggering overly aggressive sales tactics? Some guiding considerations, generally applicable to both commissions and incentives, include: • Make it fun. • Adhere to the K.I.S.S. principle (Keep It Simple and Straightforward). • Some incentives can be always available, others can be used for targeted events and some can be a surprise. • If you’re providing incentives, it’s more impactful and motivating to do so as quickly as possible after they have been earned.

Incentives for the sale of memberships can be relatively generous because of the potential far-reaching and long-term benefits to the museum. Before you begin, there are several things to think about regarding incentive programs: • Are store management and other non-sales personnel eligible for team incentives? For example, both the buyer and someone who merchandises and creates displays for the store have a heavy impact on the store’s success. • Non-commission incentives are often paid because their worth can be perceived to be more valuable than the monetary compensation that is the result of a commission calculation. What types of incentives do you think your staff will value most? 10

• Incentives on individual sales or actions are easier to manage than rewarding a team based on an allocation formula. Team incentives are a worthy goal, but it may cause problems if a team member isn’t carrying their weight. Posting progress helps to keep everyone focused on the common effort. • It’s okay to set minimal qualifying goals, but be careful if the goal isn’t attainable due to reasons over which the staff doesn’t have control; for example, a special exhibit drawing fewer visitors than expected. Incentives must be measurable and manageable. Basing the commission on

istockphoto.com / © Josh Rinehults

BEST PRACTICES FOR MOTIVATING YOUR STAFF TO SELL.

top line numbers, i.e., figures that are the least affected by adjustments, enhances integrity. For example, if you are basing a commission on the overall performance of the store, it’s cleaner to make it a smaller percentage based on Net Sales than a larger percentage based on Net Profit. The reasoning behind this is that there are many expense lines between Net Sales and Net Profit on which the sales staff has no impact and which could negatively impact their commission. This also can apply to the sale of original art, jewelry and other higher-priced items, by basing the commission on the sales price rather than a number net of related expenses. Specific and clearly stated goals are critical, but they don’t have to be based on just revenue. Rewarding high average transactions or number of units per transaction may move the store closer to its revenue objectives and allows a part-time worker, who has less opportunity to generate overall numbers, the opportunity to win. Also, make sure to take

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into account that there is little the sales staff can do when visitation is slow, so focus most incentives on busy times when there is the opportunity, as the idiom states, to make hay while the sun shines. Impactful and exciting perks for an individual or team members can incorporate some of the following ideas: • Cold hard cash. • Something staff wouldn’t normally do for themselves. • Discounts on merchandise with as few restrictions as possible as to which products are eligible. • Museum café and store or third-party gift cards. • Free parking. • Staff party. If you can afford it, hold the party in the home of a senior museum administrator or board member, or at least away from the store. • Extra personal time to be used any way the recipient chooses. It can be a day off or the chance to sleep in or leave early. • Does your museum have an event venue to which it controls the ticketing, or can you distribute promotional tickets? • Random acts of kindness, especially those tailored for the recipient. This, plus the element of surprise, is a wellreceived combination. • Give them what they really want. First, ask the staff what they would like and then tailor the perk to what an individual listed or let them choose from a smorgasbord of choices. This reduces the chance that what you think is an attractive perk is seen differently by your staff. And who knows, their ideas may be easily and inexpensively implemented. • Incentives for the sale of memberships can be relatively generous because of the potential far-reaching and longterm benefits to the museum. • Don’t underestimate the value of recognition delivered by someone the

recipient may not have even realized had noticed. The best commercial enterprises share their success. Helping a cultural institution meet its mission is often compensation enough, especially for volunteers. But if you want to try additional rewards, remember, it’s your responsibility to determine if incentives are legal, allowed within the

regulations and guidelines of your museum, and if volunteer salespeople are eligible. Andrew Andoniadis is the principal in Andoniadis Retail Services, a consulting firm that has specialized in revenue-generating strategies for museum stores for 21 years. He can be reached at (503) 629-9279, Andrew@MuseumStoreConsult.com or www.MuseumStoreConsult.com.

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TRENDSWATCH 2013 By ELIZABETH MERRITT

useums are relatively new to the realm of strategic foresight. Retail, on the other hand, has been all over trends forecasting for years. It’s

high time we united the two realms—how can museum stores surf the trends shaping the consumer experience? Here are a few ideas, building on some of 2013” report (available online at www.futureofmuseums.org). 12

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ISTOCKPHOTO.COM/© MARK WRAGG

the forecasts in the Center for the Future of Museums (CFM) “TrendsWatch

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STRATEGIC MANAGEMENT

3-D Scanning and Printing he rise of home-scale digital fabrication is encouraging new forms of creative engagement with objects. In a world where any object can be turned into data, and that data back into an object, we can “replicate” anything we can scan. What does that mean for museums? Collections are at the heart of the museum experience, yet, in many ways, they are the hardest thing for museums to share. How many museums have the capacity to offer reproductions of their own collections? Even museums that do so have to strategically select the few items they will reproduce. The proliferation of inexpensive software and technology for 3-D scanning and printing may change this state of affairs. We are not far from a time when a museum can offer a visitor the opportunity to select any 3-D object from the collection to “print on demand” and pick up at the store on the way out. While such replicas are relatively rudimentary now, they are good enough to be desirable mementos of a museum experience, and the sophistication of affordable 3-D printers is rapidly increasing. Museums also have the opportunity to embed themselves in the growing “maker” community by offering programs on 3-D scanning and printing, selling 3-D printers in their We are not far from own stores, and encouraging users to create, modify and print their own a time when a museum objects using data provided from the museum or from their own scans. can offer a visitor To demonstrate the potential for such products, browse MakerBot’s the opportunity to Thingiverse website (www.thingiverse.com), which currently offers digital select any 3-D object data for more than 190 objects from museum collections, including the from the collection American Museum of Natural History, the Victoria and Albert Museum, to “print on demand” The Field Museum of Natural History and the Walters Art Museum. Some of these scans were created by museum staff, some by artists or hackers and pick up at the invited by the museums to work in their galleries. The entries range store on the way out. from scans of original objects (a Roman head of Mars, a suit of armor, a taxidermied bear), to models of museums themselves (the New Museum, the Menil Collections’ iconic ceiling fins) to objects (cookie cutters, chess sets, a puppet) made by manipulating scan data. As of the end of last year, Thingiverse, a platform where users can share their data for free, hosted more than 25,000 digital “things” available for download, and those things had been downloaded more than 8.5 million times. Even for skilled hobbyists, museums have a role to play in this economy of digital things—providing access to our data and our original materials. But not everyone has the technical skills to scan and print, or owns the equipment needed to do so. I think there is a clear market niche for museums to fill by harnessing the potential for 3-D technology to create replicas or personalized modifications of museum objects.

The Internet of Things y 2015, 75 percent of the world’s population will have access to the Internet, as will some 6 billion devices. This global system will encompass everything from mobile phones to traffic cameras, heart monitors to home appliances. The ability of this vast network to collect, exchange and act on data will revolutionize our world. Commercial retailers are already exploiting the potential for this growing “Internet of things.” Some stores are deploying mannequins outfitted with cameras (in their eyes, of course) that use facial recognition software to evaluate the demographics (age, race, gender) of shoppers, and use the resulting data to adjust the store’s displays, music and staff accordingly. There are mobile

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TRENDSWATCH 2013 phone apps configured to compare a user’s shopping interests to their GPS location, and push out alerts when a potentially desirable store or sale is nearby. Add to this the fact that people are consistently opting to share ridiculous amounts of personal data via the Web, and you have an environment in which retailers can “mass customize” the shopping experience for users. This growing network of interconnected devices has vast, if somewhat creepy, potential for museum stores. Museums are increasingly adopting indoor GPS to guide visitors through the galleries and providing apps that enable users to both download content and contribute feedback (“love THIS painting”). How might these technologies integrate with museum retail? Imagine an app that keeps track of your members’ special occasions (birthdays, etc.) as well as preferences of potential gift recipients (Jimmy loves fossils) cross indexed with current inventory. You, as a museum member, might opt into receiving

messages like “we notice Mary’s birthday is next week, and we just published a new exhibit catalog about one of her favorite artists.” Any visitor, rating their experiences as they move through the museum, might be presented with a list of store merchandise related to the objects and exhibits they liked best. A visitor who delves deep into optional online content might be provided with a list of related titles in the book section of the store. These interactions can be intrusive if users don’t have the opportunity to opt out, or control their personal data, but many people appreciate personalized shopping help. (Just look at the success of Amazon’s You Might Like recommendations!)

Disconnecting to Reconnect elentless digital connectivity has a price, in the form of digital fatigue and digital addiction. If you think “addiction” is too strong a term, consider that 57 percent of the U.S. Internet population (ages 8–64) will own a smartphone by spring 2013, and

more than two-thirds of smartphone owners already say they “cannot live without” the devices. (A third of adults also say they would rather give up sex than their cellphones, at least for a week.) A growing backlash to our “always on,” digitally tethered society is fueling the growth of low-tech, offline experiences. Restaurants are offering discounts to diners willing to surrender their cellphones at the door. Hotels and resorts are offering “unplugged” vacations. Forprofit and nonprofit companies are hosting “digital detox” events to promote face-toface, no-tech human interactions. The good news for museums (especially those that aren’t ready or able to invest in high tech) is that they are pre-adapted to provide disconnected experiences. People want alternatives: parents want to reduce the amount of screen time their children are exposed to. Even a majority of the most connected generation in America—the Millennials—say they feel guilty about the amount of time they spend on cell phones, social media sites and the Internet. Museum stores

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can offer zip-lockable cell phone pouches to help visitors temporarily lock their mobile devices out of easy reach. (McDonald’s distributed such phone “vaults” during its “A Day Offline” campaign.) While the museum itself promotes offline attention during visits, museum stores can provide wholesome, traditional, low-tech games, as well as materials, inspiration and instruction about arts, crafts and other hands-on endeavors. The “maker” movement is swelling, with an ever increasing number of people knitting, crocheting, costuming and machining. Museum stores can help encourage the maker culture and become go-to places for reference and resources. Participatory culture and science is also on the rise—with “citizen scientists” and “citizen historians” looking to museums for help in pursuing their passions. While curators and education staff provide training and opportunities to engage in real work, museum stores can be the resource center for equipment, supplies and reference material. 3-D printing, the Internet of things and disconnecting to reconnect are just three of the trends CFM featured in its 2013 report. Perhaps the other three—the rise of dense urban centers, the development of microcredentialing to validate diverse forms of learning and the changing expectations of museum donors and supporters—have implications for museum retail as well. I’d like to hear your thoughts on how these trends are playing out in your community and at your institution, as well as your observations about trends we have not yet explored. Elizabeth Merritt is the founding director of the Center for the Future of Museums (CFM) at the American Alliance of Museums. She blogs for CFM at www.futureofmuseums.blogspot.com, tweets as @futureofmuseums and can be reached at emerritt@aam-us.org. CFM helps museums explore the cultural, political and economic challenges facing society and devise strategies to shape a better tomorrow. The Alliance created CFM to be a think tank and research and design lab for fostering creativity and helping museums transcend traditional boundaries to serve society in new ways.

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MERCHANDISE PLANNING

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Y A D I L & O E S H IFT’S GUID GBUYER

N O S

EA S E V I T S E F A R O F OW N s smart retailers know, it’s never too early to think about holiday shopping. AN L “We often see stores bring in products too late in the shopping season to have P them be as successful as they can be,” says Barb Rainville of Maple Landmark

Woodcraft, Middlebury, Vt. “The hecticness of the holiday season keeps people shopping in their comfort zone.” She advises prompting holiday shopping as early as possible. “A small Christmas corner year round isn’t a bad idea either,” she adds. Angie Whitney of Glass Eye Studio Corp., Seattle, Wash., encourages buyers to make a plan today. “If you’re confident in your chosen items, place orders now for later ship dates,” she says. “Our company isn’t able to hold stock for later dates but early orders definitely help us get an idea of what will be hot so we can prepare our production schedule to meet the demand.” When ordering, think about how the products will display. “Holiday shoppers are into themed gifts,” says Hillary Burns of baabaazuzu, Lake Leelanan, Mich. “A welldesigned display can influence gift store consumers to purchase a number of pieces presented in the arranged products.” All vendors recommend the benefits of using social media as a marketing tool. Ask shoppers to Tweet their favorite exhibit or gift shop item for a chance to win a gift certificate, promote in-store events on Facebook or create Pinterest boards for holiday gifts. And don’t overlook preparing your team for the season. “A little extra customer service training never hurts,” advises Kateva Rosato of Safari Ltd., Miami Gardens, Fla. Browse our buyer’s guide as you prep and plan for the holidays. >>>

BY APRIL MILLER suMMer 2013 | MuseuM store

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Y A D I L S &DE O H IFT’S GUI GBUYER [1]

YouCanLearnKits strives to inspire creativity in young and old alike. The company’s doll kit is the most popular with pre-cut body pieces for a Native American, Colonial or AfricanAmerican doll. Each kit contains all supplies needed to create one doll— stuffing, thread, needle, pins, fabric and more. Plus, each includes easy, photo-illustrated instructions.

[2]

Pixie Vases are the newest product addition for Seattle’s Glass Eye Studio Corp. Available in three floral-

vintage-inspired jacket, flight cap and glasses, with a silky scarf that’s imprinted with the Boeing logo for authenticity. Great for collectors or children ages 3 and up. Small bear measures about 6.1" in height. Large bear measures about 9.8" in height.

inspired color mixes and three petite shapes, they make an affordable and easy-to-pack American-made gift. Tulip Mosaic are available in the 4.5" tall raindrop (not shown), 2.75" diameter bubble and 2.75" tall genie shapes. Each piece is made by hand; no two are exactly alike. Sold individually. [3]

One-of-a-kind, handmade fine jewelry—earrings, pendants, bracelets and necklaces—are available from Mata Ortiz to You. All are made with Mata Ortiz pottery shards and .950 silver by one Nahuatl Indian in Taxco, Mexico. Every high-fashion yet affordable piece combines the stories of the past with the fine workmanship of today. Each item comes with a story card for provenance.

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The Boeing Store’s bear is braver than the average bear! This aviator teddy is ready for takeoff in a dashing

[5]

Ladybug, ladybug, how does your garden grow? No childhood is complete without a few friendly ladybugs! This Folkmanis ladybug glove puppet fits growing hands of all sizes, from child to adult. The innovative six-fingered design may be worn on either hand. Ladybug puppet includes an educational hangtag featuring “facts of interest” and an original children’s rhyme.

[6]

Each piece from William Spratling is an original Spratling Silver reproduction design, made with solid sterling silver. Some also include

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ASIAN ART

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FOLDING PAPER The Infinite Possibilities of Origami 978-0-8048-4338-6 hardcover $24.95 full-color photographs throughout 9 X 9 96 pages

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GIRLIGAMI KIT 978-0-8048-4270-9 kit $16.95 20 models; 64-pp. booklet with 25 color photographs and 194 diagrams; 60 sheets of 6” folding paper in a 8¼ X 8¼ box

ORIGAMI PAPER SAMURAI PRINTS LARGE 978-0-8048-4346-1 paper $6.95

978-4-8053-1244-5 kit $14.95 20 projects; 60 sheets of 6” 2-sided color designer paper; two sheets with 150+ stickers; 48-pp. full-color booklet in a 8¼ X 8¼ box

8 projects; 48 sheets of 2-sided color paper; 8-pp. booklet 8¼ X 8¼

ORIGAMI PAPER SAMURAI PRINTS SMALL 978-0-8048-4347-8 paper $5.95 6 projects; 48 sheets of 2-sided color paper; 8-pp. booklet 66¾ X 6¾

QUIET BEAUTY The Japanese Gardens of North America

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precious and semi-precious stones, exotic woods or abalone shell (shown here). Spratling—an architect and designer—started the Mexican silver movement in the 1930s. All designs are produced under the supervision of the Ulrich family, the only producer of his designs. [7]

[8]

Red Fish Toys’ violin and snake puzzles are just a few of the eco-friendly items available from the company. Quality materials and craftsmanship make each a multi-generational keepsake. All products are handcrafted of rubber wood, using nontoxic paint or coatings. The violin is a new item from the musical line that includes treble clef, trumpet and note puzzles. Buddha Boards come in three styles and encourage one to live in the moment. Shown is the original Buddha Board with Zen River Rocks

(sold separately)—a mindful and reusable gift. Simply paint on the board’s special surface with water and watch your image spring to life and then slowly fade away. Also available in laptop and mini sizes. [9]

This full-length opera jacket in 100 percent dupioni cream silk from Janet Egan Design is hand-embroidered with dragonﬂies—a sign of good luck—and reverses to gold. With slit pockets on one side and no front enclosure, it’s excellent for travel as it’s two outfits with one jacket. The style contours and ﬂatters the figure, concealing any problem areas. Available in cream/gold or blue/black in sizes XS–3XL.

[10] The Victorian Paperweight Company offers a selection of glass paperweight kits inspired by photo paperweights from the early 1900s. These paperweight kits give customers a timeless

Y A D I L S &DE O H IFT’S GUI GBUYER way to display a cherished photograph, artwork or small mementos. Each paperweight is beautifully handcrafted in America and gift boxed with illustrated instructions. Custom design services are also available. [11] Indy Plush handcrafts unique ecofriendly plush dolls in the U.S.A.; all items are made in Los Angeles. Each doll has his or her own story: Owly was born in Canada and has relatives in Finland, Catskelly travels the world making peace with

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[13]

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isual Arts, Inc. oup Company. ghts Reserved.

Y A D I L S &DE O H IFT’S GUI GBUYER

g a beautiful wo n i t rld rea ! NEW! Deco Owls

mice and Wooly Cat comes from Siberia and climbs mountains. All made of sustainable and recycled materials. [12] Baskets of Cambodia produces original products that shine for their attention to quality, detail and craftsmanship. The company’s bestselling Saraye Tatami style purse line starts with grasses of the Mekong Delta that are hand-selected, dried and hand-dyed and woven into distinct textures, colors and shapes. The juxtaposition of reed and baked ceramics creates a novel work of art. [13] Maple Landmark Woodcraft’s piratethemed products (puzzles shown here, many others available) are perfect for any seaside museum or attraction. Bright, colorful designs will attract any landlubber! The Vermont-based company has more than 30 years of crafting experience and uses locally sourced materials and finishes. Name-dropped or customized items also available. The company offers low minimums and set-up costs. [14] Not only do they sell whimsical mismatched socks, Solmate Socks sells unique, slightly mismatched hats. Warm and wonderful, these hats are anything but boring. You look at them and smile. Knit in the United States with recycled cotton yarn and available in bright, dark and winter assortments, these hats are an

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Y A D I L S &DE O H IFT’S GUI GBUYER excellent holiday gift for men and women. [15] The Sketch & Go Charcoal Drawing Kit from General Pencil Company contains everything needed to draw anywhere. Includes five charcoal pencils, pencil travel bag, drawing journal, eraser, sharpener, pencil point protectors and a how-to-draw project and technique booklet. Features step-bystep art lessons with artist Sean Dye including learn-to-draw nature scenes such as a vineyard, bird and leaf. [16] Made from upcycled wool garments and adorned with a vintage button, the new baabaazuzu tablet envelope is one-of-a-kind, eco-chic and makes a perfect gift (or keep one for yourself ). Each envelope is silk lined and features an exterior pocket. The case fits a variety of tablets— iPad, Nook, Galaxy and more—plus doubles as a handheld clutch. [17] Just in time for the 2013 holidays comes “The Pretty Village” from Applewood Books. The first three books in the series are reproductions of a boat club, a schoolhouse and a gambrel-roofed house from a popular Victorian toy town in the collection of the Winterthur Museum, Garden & Library. These easy-to-assemble, punch-out books include additional historical content perfect for children, ages 6–10. [18] Journey through time with authentic 24

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dinosaur collectibles from Safari Ltd. Each replica is created for the dinosaur lover in all of us; individually handpainted with vivid designs that stimulate imaginations of all ages. Expertly sculpted, the educational figures are suitable for children ages 3 and up. Educational information in five languages is included online. All are phthalate- and lead-free. [19] EDC Publishing’s Cuddle Bear is the hero with hugs for everyone as he comes to life in this heartwarming plush. Hugging the soft, loveable Whatif Monster will help a child’s worries vanish as he watches Jonathan James learn to overcome his fears and try new things. Both come as a boxed set, complete with a hardback book and plush toy.

REACH BUYERS Advertise in ...

[20] American Heritage Chocolate, manufactured by MARS Chocolate North America in Elizabethtown, Pa., is an authentic recipe from 1750. It’s certified Kosher and made with all-natural ingredients and no preservatives. It’s available as a chocolate block for baking, a finely grated chocolate for drinking, and baking and bite-size chocolate sticks. It’s a delicious way to remember a visit to your site! [21] Mudpuppy’s “So Many Stars” board book contains 26 pages of Andy Warhol’s hand-drawn So Series from the 1950s, including never before published images and a mirror embellishment. The green Andy Warhol Soup Can 200-Piece Puzzle features one of his iconic Campbell’s soup can paintings and doubles as a trendy decorative object. Both are new formats for the company.

Contact Mary Petillo to reserve space in the next issue.

(503) 726-4984 | maryp@skies.com

April Miller is a Cleveland-based writer and a regular contributor to Museum Store. She last wrote the Made in America Buyer’s Guide in the spring 2013 issue. SUMMER 2013 | MUSEUM STORE

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Holiday Buzz on ShopTalk Holiday in-store events create excitement and draw customers to shop your museum store for unique gift ideas—here are just a couple of examples of successful events that your peers have shared on ShopTalk! “In November, we hold a private shopping night—we’ve now got three under our belts and each one is better than the year before. We hold it the night of the museum’s executive board meeting and our development director does encourage them to attend. Last year we had two local artists (who are well loved in the community) plus an author on hand. It may have helped that we introduced the one artist’s ornament at this event. We have a guitar quartet come every year and we set out seating so customers can have some wine and cheese while their gifts are wrapped. We also have bookmarks made that highlight this event as well as our other double-discount opportunities that we talk up for the month prior to the event.” —Karen McNeely, Milwaukee Art Museum “We offer some wonderful piece of merchandise only to members for the first month that it is available in the store. We send out information and add it to the website—that draws in members at the holidays. We set up a table with all kinds of gift wrapping paraphernalia and let the customers do their own or take some of it home. Folks loved that, but I doubt that anyone came in because of it. (I had inherited rolls of gift-wrap paper, as well as ribbons and bows, so the only expense on our part was scotch tape.)” —Rebecca Petrie, Ah-Tah-Thi-Ki Museum

RETAIL BUYER’S GUIDE American Heritage Chocolate, made by Mars Chocolate North America www.americanheritagechocolate.com (800) 800-7046 See our ad on page 48 Applewood Books www.awb.com (800) 277-5312 See our ad on page 37 baabaazuzu www.baabaazuzu.com (231) 256-7176 See our ad on page 5 Baskets of Cambodia www.basketsofcambodia.com (425) 778-8000 See our ad on page 11 The Boeing Store www.boeingstore.com (866) 926-3464 See our ad on page 2 Buddha Board Inc. www.buddhaboard.com (604) 709-5667 See our ad on page 46 EDC Publishing/Usborne/Kane Miller www.edcpub.com (800) 475-4522 See our ad on page 14 Folkmanis Inc. www.folkmanis.com (800) 654-8922 See our ad on page 7 General Pencil Company, Inc. www.generalpencil.com (650) 369-4889 See our ad on page 33 Glass Eye Studio Corp. www.glasseye.com (800) 237-6961 See our ad on page 31

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Indy Plush www.indyplush.com (310) 902-1651 See our ad on page 33 Janet Egan Design www.janetegandesign.com (774) 202-2190 See our ad on page 9 Maple Landmark Woodcraft www.maplelandmark.com (800) 421-4223 See our ad on page 39 Mata Ortiz to You www.mataortiztoyou.com (520) 744-0639 See our ad on page 36 Mudpuppy www.galison.com (212) 354-8840 See our ad on page 15 Red Fish Toys www.redfishtoys.com (917) 767-2915 See our ad on page 46 Safari Ltd. www.safariltd.com (800) 554-5414 See our ad on page 30

The Emperor’s Porcelain

Solmate Socks www.socklady.com (866) 762-5523 See our ad on page 15 Spratling Silver www.wspratling.com See our ad on page 32 The Victorian Paperweight Company www.victorianpaperweights.com (800) 381-9263 See our ad on page 37 YouCanLearnKits.com www.youcanlearnkits.com (877) 548-7101 See our ad on page 31

Pieces are individually signed and handcrafted in the USA, and are approximately 4” in height. They capture the essence of classic Chinese forms as well as their rich hues, esthetic lines and opulent glazes. David Changar | 718-842-6362 | F 718-842-6965 | NY NOW #9200 David@DavidChangar.com | www.DavidChangar.com SUMMER 2013 | MUSEUM STORE

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STRATEGIC MANAGEMENT

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A Profit-MAking MAtch: the store

regulAr MuseuM events By MArge D. hAnsen

he holidays have always been the definitive party season and a great time to promote a museum store as the perfect destination for unique gifts. Turns out that if you have an event with an entertaining theme at a great venue, namely your institution, with the value-added attraction of being able to do a little shopping, too, no matter what the calendar reads, they will come—and buy. Fun-raising goes handin-hand with fundraising. A number of museum retail operations have discovered ways to reach out to event attendees, enhance their experience and add to profitability. PArty nights

conventional daytime destination, after-hours museum parties are making a big impression and have become part of many museums’ community event schedules. PEM/PM at the Peabody Essex Museum (PEM) in Salem, Mass., is a terrific opportunity for Boston-area adults to learn, play, socialize and shop at the museum. The PEM/PM events are held in the museum’s central atrium and like any good party, offer snacks, a bar and plenty of space to spread out. “The museum store opens onto the atrium. We also have a pop-up shop, so sometimes, in addition to having the main store open, we bring the pop-up to the event. We want to be where the action is,” Lynne Francis-Lunn, the museum’s Director of Merchandising, smiles. A few months ago, Nick Cave, the inventor of Soundsuits, wearable fabric sculptures made of multiple materials such as beads, sequins, twigs, sisal and feathers, rocked the PEM atrium. The interactive performance, enjoyed by 800 guests, was very physical. The store responded with a line-up of Cave’s 5-foot-tall, inflatable, punchable sculptures. Visitors were invited to bob and weave with the almost life-sized inflatables. Some purchased them as is; others opted for the boxed version to be pumped up later. At PEM, the Merchandising and Education Departments meet about three times a year to identify upcoming events and product tie-ins. The inflatable sculptures, as an example, were the perfect product to extend the experience of the recent high-energy evening. >>>

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A Profit-MAking MAtch: the store+ regulAr MuseuM events The Milwaukee Art Museum (MAM) hosts MAM After Dark about 10 Friday nights during the year. The cash bar and snacks, do-it-yourself area, photo booth and DJ are a big draw. The recent “Mad Men”-themed evening attracted a record 2,400 people, many of whom stopped to shop, due to smart planning to increase foot traffic to the store. “MAM After Dark activates various spaces throughout the art museum, including a rotation of the Collection Galleries, which visitors must pass by the store to reach,” Donele Pettit-Mieding, Marketing Manager for the MAM store explains, noting that the popular DIY station is strategically positioned right next to the store. To make a visit to the store irresistible, the entrance is decorated with accessories like colorful scarves to tempt do-it-yourselfers to wander

in. The store’s Happy Hour also offers special drink pricing and a ticket to enter an in-store drawing. “They must be present to win, so it encourages guests to return to the store a second time to find out if they won and collect their museum store gift certificate,” Pettit-Mieding adds. When possible, After Dark is held on the same night as Milwaukee’s city-wide Gallery Night and Day, a quarterly art venue-hopping event that always attracts large numbers of visitors.

Retro game nights at the Orange County Regional History Center draws hundreds of visitors—and shoppers.

Voted the “Best First Date Night in Orlando,” Retro Game Night, offered several times during the year at the Orange County Regional History Center in Orlando, Fla., has been “wildly successful,” says Assistant Director Kimberlee Riley. Attendance has soared as high as 800, with

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gamers spread out over three floors doing their best to be the evening’s Risk, Mystery Date, Monopoly, Jenga or other classic game champ. Favorite arcade games from the ’80s, like Pac-Man and Space Invaders, add to the fun. The events are always themed, such as nights when everyone wears their favorite sports team attire. Because the front desk and store are located at the entrance to the Center, Game Night guests can’t help but notice the highly visible museum shop. Riley doesn’t think it is necessary to invest in new or different products for every gathering. She does see an advantage to adding special displays in the store and thoughtfully exploring themed items for future event evenings as attendance increases. “Game Night is a great event for us because it’s such a huge revenue generator (over $2,000) with entrance fees, food (beer, wine, pizza and snacks) sales and caricature drawings or other seasonal activity,” Riley reports. “We know this is an event that can sell memberships because members are free. We also are looking at raising the admission price and charging members, but still offering them a discount and opening up early so they can grab their favorite games and tables first. That should launch this fall, and we expect it to go over well.”

PoP culture connection

rends and fads offer stylish possibilities for themed events. Galactic Encounter Day is one of the busiest days on the Orange County Regional History Center calendar. Star Wars characters dramatically open the event. The store, of course, is stocked with Star Wars lunchboxes, bags, books and more. “Let’s get small, really small” at the Discovery Center Museum in Rockford, Ill., recently had guests delving into the complexities of nanotechnology, but in a casual, fun way. Wood-fired-oven pizza, drinks and 20 percent off in the gift shop were added incentives. And a few hours down the road, the Joliet Area Historical Museum in Joliet, Ill., is enjoying great success with near sell-out events that showcase an important piece of SUMMER 2013 | MUSEUM STORE

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A Profit-MAking MAtch: the store+ regulAr MuseuM events

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Be PrePAreD

“We’ve found the more exhibition-focused the merchandise is, the better we do. More people are coming, and sales are growing.” —lynne francis-lunn

At a Members-Only Pick-A-Candy Cane event, museum members were offered a secret incentive in addition to their 10 percent member discount that could amount to another five, 10 or 15 percent off their purchase. So many members took advantage of the one-day-only offer that it put a dent in overall margins. “This year I’ve got to be more proactive about pricing items higher, as we move closer to the event date.” —Laura Firestone Akron Art Museum, Akron, Ohio A crowded event is great, but without careful preparation “we can lose the ability to service well in the store,” cautions Riley, referring to how the History Center intends to streamline their already very successful Galactic Encounter Day. “This year, we are planning to do online and pre-sales for the event to hopefully decrease that negative aspect and also plan other logistics so we can improve. Having said that, our store buyer advises me on these busy days we have an uptick of 50 percent in our business. It’s just that we know we have more visitors and should be able to do even more than that.” —Kimberlee Riley Orange County Regional History Center , Orlando, Fla.

the city’s history: beer. Once home to three plus breweries and riding the craft beer trend, the museum’s development director got together with a local beer distributor to showcase something locals love in a unique setting. “The museum store ties in with a Breweries of Joliet t-shirt that I usually sell right at the venue,” says Elaine Stonich, Museum Shop Manager. Pop culture is all about passing the word along. A short Discovery After Dark video on the Discovery Center Museum website is a great marketing piece that highlights hands-on experiments, as well as a smiling bartender and his cocktail shaker to attract visitors to their events. PEM/PM events are

backed by ongoing online marketing and social media around upcoming events. The fact that the museum store will be open is always highlighted. MAM has had success with pre-event bookmarks that serve as “save the date” announcements and also publicize enticing, double-discount opportunities. “Each event has its own demographic, and the most effective way to get the word out varies depending on these audiences. For Retro Game Night, for example, we do well with getting the word out through Facebook, Twitter and Meetup.com. With Galactic Encounter Day, in addition to the traditional and social media channels, we have the organizations that provide costumed characters help us spread the word to their audiences. We incorporate store product and information into our marketing messages for all of these,” says Riley.

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Event-oriented and collaborative planning are sales strategies that pay off. PEMâ&#x20AC;&#x2122;s Francis-Lunn points out that, â&#x20AC;&#x153;Like other stores, our product selection is encyclopedic with our collection.â&#x20AC;? Sheâ&#x20AC;&#x2122;s found that well-attended exhibitions, like the British milliner-to-the-stars Stephen Jonesâ&#x20AC;&#x2122; â&#x20AC;&#x153;Hats,â&#x20AC;? for which the PEM Merchandising and Education Departments organized a fashion show that sold out, result in an impressive jump in store sales. â&#x20AC;&#x153;When we have a good handle and match our products to what drives the visitors to come, we sell much more product,â&#x20AC;? FrancisLunn confirms. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve found the more exhibition-focused the merchandise is, the better we do. More people are coming, and sales are growing.â&#x20AC;? Marge D. Hansen is a freelance writer based in Broomfield, Colo., who regularly contributes to Museum Store. She recently wrote about direct-mail catalogs as part of the marketing mix. The article, â&#x20AC;&#x153;Selling by Direct-Mail Catalog,â&#x20AC;? appeared in the spring 2013 issue.

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BY THE MSA COMMUNICATIONS DEPARTMENT

LESSONS LEARNED AT THE 2013 MSA CONFERENCE & EXPO

his year’s MSA Conference in Los Angeles was jam-packed with thoughtful presentations that sparked great discussions and got attendees energized and ready to head back to the store to implement some new tips. But what happened in L.A. doesn’t need to stay in L.A. Whether you were able to join your colleagues this past April or not, here are some educational highlights from this year’s event.

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LOOK MOM, I’M ON TV! his 30-minute session provided attendees with 10 action items to follow when implementing a social media program. A few of the tips: • Be a user—follow the top consumer brands to get ideas. • Leverage the “Look mom, I’m on TV” phenomenon by posting photos and videos of your customers on social media sites. People love to see themselves and will tell others! • Sharing is caring. How can you make an emotional connection with your subscribers? • It’s not what you know, it’s who you know. Not sure where to start? Check your institution and your community for help with content. —Spark Session: Top 10 Things You Need to Know About Social Media

THINK LIKE AN INVESTMENT BROKER n this information-packed session by Paul Erickson of RMSA, attendees may have been surprised to learn that they aren’t buyers for their store. According to Erickson, they’re actually investment brokers who need to make wise investments about their inventory turnover in order to generate revenue growth. Erickson reminded attendees that markdowns are an expense—you just don’t have to write a check for them. Having a markdown budget is important; however, cost has nothing to do with the markdown amount. “Time and speed is everything in retail,” states Erickson. “If you can sell a product before you have to pay for it, well that’s cash flow heaven.” —Inventory Is Your Retail Heart, Is it Healthy?

GOING MOBILE

IT’S LIKE THROWING A PARTY! ccording to Jason McDonald of JM Internet Group, the goal of social media is to take a one-time connection and turn it into a long-term relationship. You can increase your “electronic word of mouth” by planning your social media as you would a party. Take a look at other people’s “parties” and decide, “Why do I want to stay at this party? What will make people interact with my party?” Feeling overwhelmed by your social media program? “Social media is not free when it comes to time,” reminds McDonald. He suggests starting with one platform (Facebook, LinkedIn, Twitter, etc.) that makes sense for you and do it well. Then, when you feel comfortable, move on to the next one. —Practical Social Media Workshop: From Your Store to Social and Back

id you know that 45 percent of all consumers use smartphones for in-store product research and browsing? And that 33.9 percent of U.S. consumers purchased from a mobile phone in 2012? James Citron of Mogreet asked attendees this question: “Your customers are mobile, why aren’t you?” When starting a mobile campaign, you must be valuable. In return for your customer’s opt-in or app download, you must deliver value in return. Mobile coupons have a five-to-10 times higher redemption rate than email or paper coupons, but you must make them valuable to your customer in order for them to act on them. Citron advises you to be your customer. “Mobile needs to be deeply integrated everywhere for long-term success,” he says. This includes store shoppers, your employees and your most loyal customers. “Extend your customer service and loyalty programs to your mobile marketing plan,” suggests Citron. Only 10 percent of consumers open their emails (and, on average 6–12 hours after they receive them). Consider a mobile marketing plan to get your message out there quickly and effectively. —The Future of Retail (Surprise, It’s Mobile)

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LESSONS LEARNED L

SUPERPOWERS NOT REQUIRED, JUST ONE GREAT IDEA ook! Out on the street! It’s a book mobile! It’s a cupcake truck! No, wait…it’s…The Library Store on Wheels! In one of the most intriguing sessions at the conference, Sarah Lancaster of the Library Foundation of Los Angeles described the steps they took (and lessons learned) to turn their innovative idea of a mobile store truck into a reality. They transformed a 21-foot-long step van (which had been an L.A. County Utility vehicle in a previous life) into a delightful shopping experience, stocked with fun and fabulous merchandise, and designed to reflect the personality of The Library Store… including a set of original library card catalog drawers to hold smaller merchandise! “You can expect to pay between $3,000 and $15,000 for a suitable truck and spend $5,000 to $30,000 to get the truck revamped and outfitted,” Lancaster reveals, “but the Store on Wheels will pay for itself within a year, and we only need to bring in $5,000 per month to make a small profit.” Why should you consider taking your store “on the road?” • Mobile retail is a relatively new concept, so it’s very exciting to most people. • The mobile store struck is a rolling billboard, advertising whatever you choose to put on it. • Having a mobile retail truck gets you out into the community and creates buzz. —Store on Wheels: An Introduction to “Mobile” Retail

WHAT CONSUMERS REALLY WANT onsumer psychologist Kit Yarrow provided lots of applicable information about the ways in which today’s customers think, act and shop has completely changed. “Stress causes people to shop differently, and people are stressed today,” says Yarrow. “They are emotionally overloaded, their confidence is low and they are increasingly self-reliant and enabled by technology.” Yarrow also offered several strategies to capitalize on these shifts: • See and involve your customers; talk with them, not just to them. • Time is essential; don’t make your customers wait for anything. • Be as real as possible; be human, humble and authentic. —The Secret Psychology of Consumers

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ENHANCE THE CUSTOMER’S BUYING EXPERIENCE ark Wiggins of the CIA Museum/ Employee Activity Association asked his audience to participate in two exercises. First, he had them list five characteristics about their customers. Next, Wiggins had attendees list the five reasons customers come into their stores. The purpose? Wiggins emphasized that store managers should not only be an expert about their business and their products, but they should also be able to think like their customers and understand why their customers buy. In addition, Wiggins asked everyone in the audience to go back to their stores and “do an ‘eye-valuation’ of your store to see your museum store from your customer’s point of view. The more critical you are, the better.” —Create a Customer Service Strategic Plan

FOREVER YOUNG ocusing on Gen Y, those born between 1980 and 2000, Kit Yarrow explained how this generation is empowered and how they are used to being seen and heard. “Regarding confidence, Gen Y comes by it naturally,” she explains. “The upside of this confidence is that they are optimistic, open and fearless, and like to try new things. The downside for retailers is that they have very high expectations. Their gratitude is diminished because they simply expect to have the things they want.” Yarrow went on to explain, “They do fear being ordinary. They want to be a star and considered special; thus the importance of style to Gen Y. They want things that set them apart from others in this very visual generation.” —Gen Y Decoded: Insights and Tactics for Marketers ISTOCKPHOTO.COM/©CHRIS GRAMLY

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LESSONS LEARNED KIDS THESE DAYS n this 30-minute session on the expo floor, Pamela Pease of Paintbox Press gave some quick tips on how to use design as a catalyst for engagement of your youngest customers. “21st century museums celebrate a participatory culture,” states Pease. “Incorporate this idea by making your museum shop a destination for younger audiences.” How do you accomplish this? Pease makes a few suggestions: ISTOCKPHOTO.COM/©PEPIFOTO • Shelf-talkers—invite teenagers to share their “teen picks” of their favorite products in your store. • Visual responses—dedicate a small space in your store for young visitors to post visual responses to things that inspired them about their museum experience. • Design contest—let youngsters create posters, cards or other design elements that you post in your store. They will encourage their family and friends to go see their design on display. — Expo Learning Theater: Engaging Young Audiences Through Design

8 TRUTHS ABOUT MARKDOWNS n addition to defining open-to-buy (OTB) and describing several OTB myths and realities, Paul Erickson of RMSA provided eight truths about markdowns: 1. Have a markdown budget and never be under. 2. Always explain to your customer why the items are marked down. 3. Overbuying is the number one cause of excessive markdowns. 4. Your first markdown is the cheapest. 5. The price you paid has nothing to do with markdown price. 6. Learn from every markdown. 7. Always keep your markdown items at the back of the store. 8. Nurture your customers who do not shop you on price alone. —Spark Session: Top 10 Things You Need to Know About Open-to-Buy

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BOOK LOVERS UNITE! ike many of their fellow cultural commerce professionals, it was clear that the panelists on this session that focused on retail-publishing alliances truly love books. And for good reason. Citing statistics previously gathered in a survey for “The Voice(s) of the Museum Store,” a session at the National Museum Publishing Seminar held in June 2012, the panel shared several statistics, including this important fact: Books—both trade and museum catalogs—accounted for an average of 26 percent of all sales at the responding museum stores, with nearly two-thirds citing book sales between 15 percent and 45 percent of their total museum store sales. Undoubtedly, books are important educational and revenue-generating categories of a museum store’s assortment. —Partnering With Publishers for Profits

ARE YOUR CUSTOMERS DOGS OR CATS? ccording to James Kane, our keynote speaker, all of your customer relationships fall into one of four levels. Can you figure out which of these is the cat and which the dog? (Answers below.) 1. Antagonistic—I hate you! When you have an antagonistic relationship, you don’t just dislike that person, product or service, you tell everyone just how much. 2. Transactional—I don’t owe you anything and you don’t owe me anything. Transactional relationships are viewed as equal exchanges with no further obligations. Neither side feels indebted to the other. 3. Predisposed—I like you, but… When someone is in a predisposed relationship they are basically content and satisfied. But rest assured, when something or someone better does comes along, or when they need to choose between you and some other alternative, they definitely will leave you or let you go. 4. Loyal—I love you! A loyal relationship is one that is nearly unbreakable. One that is never measured on price or ability. We are loyal to those who make our lives better and easier. Did you guess correctly? Dogs are loyal. Cats are satisfied (predisposed). But remember, satisfaction does not equal loyalty. Given the choice between cat-and-dog customers, you should always strive for the loyal canine. —Closing Keynote Session—The Loyalty Switch: How to Make Anyone Loyal to You and Your Store

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THE WORLD IS YOUR OYSTER: FIND THE PEARLS here are several reasons why Laura Murphy of The Preservation Society of Newport County loves to source products internationally, and traveling to discover new markets is just one of them. Murphy believes that buying merchandise outside of the United States can drive your bottom line if sales are flat and can help build your product mix for add-on sales. In addition, she often has discovered the same product with better pricing. Murphy encourages store managers to take a risk and give it a try. “Take the time to do the research and develop a business plan, but if you’re still unsure, sample the waters by partnering with another institution and do some coop buying together,” advises Murphy. —Expo Learning Theater: Top 10 Things You Need to Know About International Buying

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IDEA GALLERY

themed displays Manassas MuseuM store Manassas, Va. wadsworth atheneuM MuseuM of art Hartford, Conn.

Leepa-rattner MuseuM of art tarpon springs, Fla. Luther burbank hoMe & gardens santa rosa, Calif. 40

MuseuM store | suMMer 2013

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2012 MSA 2013 AnnuAl RepoRt A messAge from the outgoing boArd of directors

our MSA Board of Directors is very engaged in the association’s important work. We have spent a lot of our time together looking forward— and the incoming board is using this same progressive approach to all aspects of their efforts for MSA. But with an annual report it’s a good idea to take time to reflect on what has made us successful over the years, and especially over the last year. We talked a great deal when we were all together in Los Angeles at the MSA Conference about the successful foundation currently in place upon which we will build as we look to the future. We talked about the diversity of our members and the broad range of experience and skills they bring to the world of nonprofit retailing. The good news is that we have created an active community where those experienced are more than willing to share with those still scrambling up the learning curve. We see evidence of this all the time on ShopTalk, at chapter meetings and at the annual conference. That is a foundational element on which we will build as we look to the future. With our recently appointed Affiliate Advisor to the board, we were able to have lengthy conversations about the value of the vendor community for the long-term sustainability of MSA, as well as the intelligence they bring about cutting-edge product ideas and retailing practices. That is a foundational element on which we will build as we look to the future.

The unique perspective that we bring with our mission-driven, nonprofit, retailing-for-a-cause approach was a topic that we recognized brings lots of challenges and lots of opportunities. Making sure MSA continues to shine its efforts on this unique retailing philosophy, and knowing that we are the only organization that does so, is a foundational element on which we will build as we look to the future. We recognized the leadership that we’ve had in the past that has kept MSA moving forward in the face of severe economic challenges and technological changes. And we celebrated the fact that the future will be very different, with a younger generation and new leadership in critical places throughout the organization. The board has its sights set on a bold vision of increased openness and collaboration throughout the association. It’s a vision that will focus on the big picture with strategic rather than the operational thinking. That is a foundational element on which we will build as we look to the future. Steve Jobs said it better than we can: “You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something—your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.”

Note: this annual report covers activities from May 2012−April 2013 beginning with the 57th MSA Retail Conference & expo in New orleans, La. Financial statements and membership numbers reflect the calendar year Jan. 1–Dec. 31, 2012. the Museum Store Association exists to advance the success of cultural commerce and support retail venues in cultural institutions. Museum stores provide a high impact point of contact with cultural institution patrons. In addition, museum stores provide an important revenue stream for their institutions. Founded in 1955, MSA is a nonprofit, international association governed by a board of directors. A staff of eight full-time employees operates from the MSA headquarters in Denver, Colo.

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SCHOLARSHIPS AND AWARDS 2012 greenberg scholarship recipients Donations helped the following members to attend the 57th MSA Retail Conference & Expo in New Orleans, La.: • Suki Christy, The Dawes Arboretum, Newark, Ohio • Amanda Gillen, Squam Lakes Natural Science Center, Holderness, N.H. • Nancy Hagerman, Schiele Museum of Natural History and Planetarium, Gastonia, N.C. • Maryann Keane, Orlando Museum of Art, Orlando, Fla. • Bridgitte Rodguez, Dumbarton House − The National Society of the Colonial Dames of America, Washington, D.C.

• Carrie Santell, USS Hornet Museum, Alameda, Calif. • Brooke Slone, Frazier International History Museum, Louisville, Ky. • Kell Smith, Oregon Historical Society, Portland, Ore.

2012 service Award David Howell, owner and president of David Howell & Company was honored with the 2012 MSA Service Award, given as a special recognition for outstanding service or contribution to the association by a vendor, member or non-member. In business more than 25 years, David has been an enthusiastic supporter of MSA and its member institutions, using his artistic and creative background to create salable products that are manufactured exclusively in America for museum stores.

DONORS AND CONTRIBUTORS The following generous sponsors and in-kind donors helped to support events and activities at the 57th MSA Retail Conference & Expo: