Monday, April 22, 2013

What Do You Think?

You may not be aware how many shops really don't like those who sell via eBay.  A brick-and-mortar shop has expenses that an Internet only business does not.  (On the other hand, many brick-and-mortar shops don't have the high costs of a website to set up and maintain, not to mention the daily upkeep, security and financial backend, posting of photographs of new stock, etc.)
http://www.shakespearespeddler.com

Theresa has had a long time Internet presence, as well as a physical shop.  She also has run an eBay store for several years.  Her life has changed and her shop in Mississippi is now open only by appointment and her main store will now be the eBay one.  This has provoked some complaints from a distributor and shops apparently.
http://shakespearespeddler.blogspot.com/2013/04/kerfluffle.html

The business model in the counted thread world from all that I can tell is a chart is designed and sold to a distributor who sells it to a shop who sells it to you.  Each time there is a slight markup to cover the costs and ensure a slight profit to each person in the chain of a sale.  Some chart designers sell directly to the public but not often.  Anyone who is more familiar with this process please correct my mistakes!

The business model in the painted canvas world is similar.  The designer creates a design.  Some designers sell directly to the public (although this is frowned on since it cuts out the shops).  Most either sell directly to a shop or have a representative that does this for them (or both).  Some painted canvas designers have distributors who cover the costs of painting multiple canvases plus take a cut of the profits.  Some designers paint their own canvases or have them done.  Either way, the shop buys the painted canvases at wholesale cost, then sells them to stitchers at retail price (wholesale price plus shop expenses plus a profit so the shop owner can eat) who are also likely to want to buy threads, beads, books and stitching tools which the shop also supplies.

If you were a designer, what sale route would you take?  If you were a shop, would you see Internet sales as a threat?  Personally, I find Internet-only shops very rare but I certainly am not aware of every needlework shop there is.

I hope this is thought-provoking and helps you appreciate shop owners more, whether they are the shop down the street or the Internet store front you buy from that has a shop in another state.

Written by Jane/Chilly Hollow
Blogging at http://chillyhollownp.blogspot.com
and at http://chstitchguides.blogspot.com
@ Copyright 2013 Jane M. Wood. All rights reserved.

8 comments:

Tapestry Fair Needlepoint News said...

Very interesting question, Jane. Being both a designer and shop owner, I prefer to sell only to brick and mortar stores - any canvases I might sell to consumers are through the shop if there is no LNS in their area. I realize that there are certain expenses incurred by internet only stores, but they are not even close to those of a retail store. Needlepoint is a hands-on experience, and would never continue to be popular without all the creative ideas and classes coming from the shops. The internet is a great support system for tutorials, finding elusive materials,& sharing ideas, but just isn't a total replacement for the personal experience of a shop. Hopefully both venues can work well together, rather than being at odds with each other.

The Chilly Hollow Needlepoint Adventure said...

Good point, Peggi. Hopefully both types of stores will work together and support each other. NOTHING is as good as a local shop. There's no substitute.

LIZ said...

I am a counted needlepoint designer who sells from my website. Although I have had inquiries, as far as I know, the only shop that carries my charts is the one in the town where I live. One online shop carried some of my designs, but it has closed. Many stitchers do not have an LNS in their town or even within driving distance. Are they to stop stitching because the only way they can get charts, canvases, materials is online? I think not!
Thanks, Jane, for bringing this issue to our attention.

The Chilly Hollow Needlepoint Adventure said...

Thanks, Liz. I don't know what I'd do without mail order. I generally use my "local" shops but often they don't carry what I need and then I use the Internet shops (most of which have a real storefront as well as an Internet presence).

lewmew said...

Liz I love counted needlepoint - want to point me in the direction of your shop (email me at 1961girl at gmail dot com)

lewmew said...

I'm one of those whose only local sources are Michaels/Joanns/Hobby Lobby. The nearest "full service" store is two hours away. While I love b&m stores, if it weren't for the internet, I probably wouldn't be stitching nearly as much.

The Chilly Hollow Needlepoint Adventure said...

Ditto me, LewMew!

The Chilly Hollow Needlepoint Adventure said...

In case Liz doesn't see this, here is her shop. You'll have to copy/paste it since I can't make URLs live in Comments. She's got a great blog, too (second link) where she sometimes posts new original designs as she works on them.
http://www.lizartneedlepoint.com

http://lizartblog.blogspot.com