Owner’s Meeting March 11th – 13th , 2009

Chuck: recap of board meeting notes.

Update on domestic programs Update on import programs Wilsonville or Dallas Spring meeting location suggestions and fall meeting location suggestions Sharing formats

o Facilitatorso Category discussions

Advertising facilitated by John S.

Billboards

Paul: Billboard is effective for us, we change a couple of times each year we purchase the extended billboard at Christmas that stands taller than the average billboard. When renting the space it is measured by highway traffic our locations gets 36,000 passers by a day the fee is $1100 per month investment. We have received a lot of comments and they are located in an up and coming area of the city. We placed in a higher income, high visibility traffic area. We have a right hand read (the statistics are better for right hand read).

Betty: I have read numerous advertising articles and they all agree that yellow is the first color the eye see’s.

Scott S: WP will share their billboard ideas. We can share the link, all billboards from 2006. We tried the digital it was expensive and we did not see a big change. We have a couple consistent boards.

Scott S: Cost is $2400 a month for 35,000 in traffic.

Paul J: We change ours twice a year but we would like to do more. It costs $1000 to put up and take down so we have limited ourselves. The advantage is that you can store the vinyl billboards and use them again.

Rusty: We tested digital last year and there were 6 advertisers on it and we drove by and could never catch ours up and running.

Emma: Consider billboard sharing we swapped with Ace every 3 months and had a constant presence on that space.

Eric L: What percentage of sales are people spending on their advertising? We are at 4 ½%

Chuck: We are at 3% including print, and anything else that is billable to advertising

Adrian J: We tried billboards for the last couple of years. We had one that had a little girl whispering in Santa’s ear saying we know where you shop “Ben Franklin Crafts” Deanna designed it. We are paying $2000 for the billboard and it is flat against the road and you can read it both directions

Chuck: The best advertising you can do is on the side of your van is what I listened to a few years ago from the office supply industry. It is a traveling billboard.

Blogging/Facebook/Twitter:

Emma: Renee is blogging about a different department every day. And she has a way to get information from staff and signing it for customers to promote. We have coupons on the blog. She has given the information

Jane: We are seeing huge increases and success with the blog specifically in scrapbooking promoting classes. Dana has 43-50 people every month for the crops and seeing new faces every day. They are talking about it on line.

Kim: Do you do separate blogs for paper and fabric and crafting?

Audrey: Our blog has different options that you click the category for each department you want to read about.

Scott: You can set up your categories and everyone can blog. We have a new products blog, Savvy Scoop and just featured an ongoing blog called 14 days of love. We saw a spike because people got attached to the subject. We also create widgets that are a piece of advertising and then the customer can then embed them in their blog and now you are advertising on their blog.

Scott: We did a rewards program that started last week “Passport to Creativity”. I thought we might do 100 per day we did well over that in just a couple of days. We are at 1200 so far. We also use Constant Contact.

www.Widgetbox.com is a site I use to develop widgets.

Greg: Do you have a Facebook page? We just started one. How do you determine what you put on your store page?

Scott: We have one for new products and the other is what is happening classes, new project sheets etc… we are considering combining the two. Our new product blog is more popular than the Savvy scoop blog.

Paul: Are all of your blogs in Widget form?

Scott: Yes you can create a few.

Kim: We started a fan page Facebook page for TM.

Mark: Is anyone using Twitter and if so how are you using it for the store?

Newspaper/Posters/Movie Theaters:

John: Are there other things you are doing?

Kim: We are doing a Poster Printer. If you haven’t seen our poster

Rusty: Our newspaper came to us for a 4page full color ad for a 2mo period for $595 and they threw in another full page for free.

Eric: We are finding we are able to negotiate and they have come down on their prices

Chuck: I do quite a bit of advertising 3x14 and 3x18 still dominate the page and now I only do pages that are full color. Roberts runs in the paper all the time. I paid 20% extra to get the page and location I wanted in the paper. I wanted living page 3 and am consistent. We advertise every day of the week Sunday is usually the fullest day. If I am not in the Sunday it doesn’t get noticed at all. I also take the PDF and post it to the website. The newspaper puts it together for me.

Adrian J: We are in our local movie theater and are on 12 screens and we have a leader that goes in there and we change once a month. We advertise kid’s parties.

Paul: We use newspaper ad’s at Christmas and I guarantee page 3A every year and we publicize a week ahead of time in the store to let customers know.

Audrey: We talked about branding in Dallas with Traci. I noticed I am getting Michael’s ads 3 times a week.

Anthony: I advertise in the paper 40-45 times last year in every other week the biggest thing for me is coupons, I blew it up to 24x36 I have 3 of them. The newspaper came to me last year and said we need to get you on line. I am using the newspapers website to drive them to my ads. Readership is looking at the paper for 4 reasons arrested, born, died and general news

Corinne: I worked for a non-profit prior to Mangelsen’s and we utilized the chamber, HOA, new home welcome and builders in the area to gain new customers

Adrian J: We also advertise on the newspaper’s electronic webpage’s. We were on the weather page but people only look at the weather when it is extreme.

Emma: We determined the value in the shiny paper makes the products look better. Remember to keep your branding out there on everything you do.

Cecil: The bulk of our advertising is ROP bases on newspapers backing off on circulation I wanted to run a full page every week and it was too spendy. We negotiated a half price every other week as long as we did not change the content. It is a great way to stay consistent with our customers. It is a color ad and the rest of the paper is not in color. The grocery stores put their ads in on Tuesday and we insert on Tuesday.

Bags and Community Programs

Eric: We are doing a bag promotion 10% off your entire purchase if using the reusable bags.

Jane: We did a food drive and tied the can donations to a discount e.g. 10% for 1 can, 20% for 2 cans, 30% for 3 or more cans receives a discount. We collected 332 pounds of food to the food bank. They shopped for a cause. Tie yourself into a charity. Don and Dana delivered the food to the food bank and they were busier than the store. The Happy Birthday sale we mail 200-250 postcards for Birthdays with 20% coupon and have an 18% return rate.

Keizer and Bender we did a meet my friends and family coupon. . ***In Antioch packets from Rich and Georgeann.

Heather: For the food bank donate your time and energy and partner during the non holiday times.

Scott: We did the discount of bring the food in and received old food. We did a cash donation for discount. The food shelter can buy at a lot better price than we can.

Andrea: Recycled Eco- bag promotion. We have key people in the store that have been given $5 gift cards to pass out in the community to those people they spot carrying the Grass Valley shopping bag.

Kirk: For the in store advertising instead of clearance term it “Manufacturer inventory reduction sale” the perception is that it is not OLD product but a good value.

John: We have 5 screens in the store and at the registers with a split screen. We also went to bag stuffers 2 years ago and have dropped the others and have not seen a reduction. We do more pictures with the newspaper instead of ad featured prices

Trina: We have reduced our print and are only printing once a month and in store advertising. We are also running bounce backs, cash cards, anything you can give them on the way out to invite them back.

Honors Reward Programs

Rusty: We started club of 50 on Tuesdays and it has turned into our biggest day of the month. We give people over 50 a 20% discount, they sign up and receive a card.

Steve F: Tuesday is senior citizen day in our store 55 and over. We did it because Walmart did it and offered the same thing.

Kim: Do you offer it all the time?

Rusty: First Tueday

Trina: Every Tuesday

Betty: Monday

Craig: We started the “Bag Day” 100% organic bag retail $4.99 and give them 20% off

Last Wednesday of the month. We have trained the checkers to suggest that on the last Wednesday checkers will remind that if they our sales are up 30-35% over last year for these events. We sold 75 additional bags.

Betty: We do a VIP program buy a card for $10 and receive 10% off regular priced items non sale and no antiques. They like the 10% discount.

TV/Radio Advertising

Jeff: Does anyone do TV and radio?

John: We use it some and plan on doing more.

Emma: TV is willing to deal. If you can find good access it does work. The top of the mind awareness works. I spent $4000 in 4Q it was more expensive because of elections. For May, June we want to do a celebration theme. The first week of the month.

Kirk: We do TV in 4Q and keep it generic about our store. Cable and NBC. It works great and we have traded cable time for frame jobs.

Betty: Quincy is 50 years this year and we are celebrating the history of the company.

Pricing PromotionsChuck: Jim Mount suggested we do 2 for pricing. We tried easels 2/$10 is really effective. We are buying our towels from Indo and Dunroven and price regular $2.99 and sale 2/$5. We did fat quarters 5/$10 and doubled the sales.

John: I read that you should sign it with “in store special” vs. sale

Linda: With my consumer hat on it would appeal to the consumer and you think it could change.

Marion: I have my fat quarters 5/$10 but I take it off and put it back on.

Adrian J: We did our 75th B-day sale and we did a Founder’s Day sale and doubled our sales and I was on the floor and talked to people all day and it created excitement. We did it this year too but did not plan it as well but it was still good.

Email Blasts and Sign UpsGreg: Email blasts we ended up allowing guests to sign up for specific categories that appealed to them. When we send it out to people that request specific categories we have 40% open rate. 20% open rate for email blasts. The national average is that .5% of your email blast lists un subscribe to your email if the ads do not appeal to them. We have 10-15 people a day sign up but every time we have an email blast go out we have 30 people drop out. Email general blasts 30 people drop out, if we send by category we have 5 people drop out.

Paul: We offered .40 a head for each person our staff turned in email addresses and we gave them a $20 gift card for every 50 people they signed up. Our drop off was minimal.

Shirley: How are people building their lists?

Jane: We have a pen at the counter and staff invites them to sign up.

Don: We did a sing up raffle for an arrangement for the Jake’s store.

Adrian J: We do a gift drawing. We did a WII give away over Christmas and people really signed up.

Heather: Friends and Family is being treated as an event. I look at those Friends and Family events because you know it will be a good event.

Jane: Not everyone is going out as much so we are using that as an invite to bring them back in.

Neil: What is the average number people are sending out in a month?

Scott, Jane, Rusty once a month

Marketing Campaign for Fall 09

Heather: To speak on advertising. Fall and Christmas marketing that would include ALL that we are talking about today. Not just print but other mechanisms. How to use Facebook and Twitter as a marketing tool also events and blog entries that are candid that work with advertising.

We had a great group committee that got together including the Advertising committee, Import members and other volunteers. If anyone would like to participate we invite you. There will be two meetings in Wilsonville that will help pull together the 2 campaigns. Heather, Kelli and Miranda will all be working on this campaign as well as Traci hired as a marketing contractor. She will be funded by the dues increase approved last year. The core photography will be covered with the $500. It is an “all you can eat buffet” pick what you want and use it how you want.

Wilsonville tied in with the spring import we would like to have a launch party to talk about all of the things that are available for marketing campaign. $500 covers a piece of what will be offered we will also be using vendor revenue. There will be a lot of ways to use it. This will be a full marketing campaign including project sheets, events, photography and

FABRIC and PROJECTS facilitated by Adrian CRicki: Back in 2002 and were doing the block of the month program with the group and we sold 200 kits @$200 each and had the rights to the program for 6 months. This summer I invited guest to bring in projects and we are doing the Harvest Song 2009 program by Jackie Robinson and just changed the fabric.

Emma: We do not reinvent the wheel we just changed the fabric and layout. And it is our Heirloom Blooms with family tree fabric from Benartex.

Ricki: I designed Pursenalities (3rd printing) and Pursenalities Too using placemats and Private Eyes apron pattern. I had one store that sold 400 books the consumer bought (SPC Price is $5.00) both books and

had brought in their purses and displayed them. The voters each put dollars in their favorite purses and raised money for charity. I went out for a signing and had 50 people, for the book signing.

David: The fabric wrapped canvas and ribbon is still a profitable project for us and sells the brads, pins, etc.. We are also stocking canvas in our fabric department AND metal sheets and turning them into a magnet board

12”x12”, 14”x18” and 16”x20” all work well. People are doing head boards and creating panels and we are seeing increases. We do 6 different models each month and sell the samples. We are getting the embellishments from PA. We are putting the 12” metal in the canvas and you can use metal flashing from Home Depot in 4”x6”.

Trina: We put ours in a frame with cork and fabric and canvas. ***In packet

Neil: We do not have a number but we are doing a 10’ program in the fabric department and is a good lead for crafters into general. We have 6 at all times and every month they change into the newest fabric line.

Mike: Is there a demographic? David: It started out as a girl’s room project and now has evolved into any area and a lot of seasonal interest.

Neil: Shannon Fabric animal prints we picked up after the fall meeting and talked about it at Dallas. Mike: How are the dots doing? 323-234-5252 phone number for Shannon Fabrics. ***Negotiated 10% off everyday pricing on going and for orders booked by March 30th receive free shipping. Direct your orders to Arvin at Shannon Fabrics. For advise on colors/prints that sell well contact Emma (POC), Audrey (IF), Jayna (MONROE) and Michelle ™. Orders may be stacked with future ship dates for free shipping.

Neil: I do not have reports for it yet. We are selling a lot of Amy Butler fabric.

Michelle: we have done well with the cuddle fleece from Shannon Fabrics

Melody: In our packet we have a 24x24 project and used the charm pack and wrapped the chipboard tiles in charms and attached to the canvas for a great wall hanging.

Linda/Audrey/Emma: Want to tie into the Shannon Fleece and we have examples using tied blankets with flat cotton and fleece. ***Emma to send Kelli project sheets. Pairing cotton with Minkee reduces the cost. And attracts the customer that is not a quilter. Shannon Fabrics ships in 3 days. You want the cuddle fleece that is 5.

Chuck: I grabbed 10 months of sales from Rexburg and we bought $22,000 line. 30-40-50 stores could potentially be on board. Cost is $6.95-$7.95 yard. $8 for prints per yard.

Marion: is at $19.99 and did several bolts.

Ronell: What is the difference between cuddle fleece and Minkee?

Michelle: Cuddle Fleece is two sided and Minkee is single sided.

Adrian: Proposed that Emma/Linda put together a model stock order for everyone. Put together a group of stores to put together model orders with 10-12 bolts (groupings). Put on the sheet and have actual counts

Cecil: Baum textiles has Cuddle Bumples with the textured dots and they dropped the pricing to $5.00 per yard. Perhaps get a better price and be able to promote.

Keep the minkee on the bottom Use a needle for stretchy fabric Basting spray light Use your walking foot

Linda: Jewelry Hangar projects a board that is fabric covered with hooks and knobs for purses and jewelry. ***in packet Rexburg/Idaho Falls

Corinne: Our craft dept is going like gangbusters we have been promoting fabric 25% off on a line or color of the month or seasonal, floral. We looked at the P&L and we determined that we were

We did an apron contest

Creative Pillow contest and then

Purse Contest will be next we will sell the pattern, promote the fabric and we sell our ribbon by the yard $9000 a month in ribbon. We do need another person at the cutting table. We have all of our ribbon in the fabric department and is cut in there. Our May Arts ribbon sells well in our store however they no longer have reps. Offray/Lion brand. Ric Rac from Cheap trims (lowest price) May Arts. The narrow 1/8-2, 2 ½” we carry all sizes.

***Packet includes apron/tea towel fabric source Moda Home

Linda: We have a pattern for rag quilt apron that we found at a craft fair

Betty: The vintage apron is out of toweling fabric.

Craig: We did a package of fabric 1000 yd commitment from Kaffee Fassett and Amy Butler from Westminster.

Melody: We picked up 6-7 bolt collections from MODA, and there were 6 or 7 different collections. We took all but 1 collection. We are going to treat it as a flat fold program and if we need to clean up we will Fat Quarter it. We will probably put it out at ½ price as a promotion and will still have 3-4 times margin.

Deanna: We have our Saturday Sampler class and are now doing challenges like a neck warmer and eye mask in January. For February Challenge they used Clover Yo Yo makers and they did cards, purses etc.. All of the clubs are talking about it and it is prompting more interest. March was take something old and make it new.

Corinne: Does everyone have the Accu-Cut quilt cutters? We make our own jelly rolls etc…

Anthony: Is anyone selling pre-made aprons? We sell Evergreen aprons that do okay.

Jane: We sell Design Design aprons. Sold well at Christmas it is funky and good birthday gifts for women.

Betty: We sell Park aprons primarily at Christmas

Cecil: Murray Goldenberg fleece $1.85 solid, prints $1.95 we brought samples to compare quality. If you want to see the quality and colors. It is hard to tell the difference in quality. We put it out at $7.97 and $9.97 and we are constantly foot balling it.

Jason: Solids we have not noticed a difference, prints are off a bit but still sold.

Mike: We ordered it based on Cecil’s recommendations. Walmart is at $4.99, Joann’s is at $9.99. we just brought it in for 2 stores.

Fat Quarters: Diane had acrylic templates made so that staff could use the Gypsy Gripper with the rotary cutter and cutting layers of fat quarters more efficiently. We are trying to get stocking crew to help cut Fat Quarters.

This project (panel with lights) kit lighted Christmas Tree . It sells the pattern, trim a tree, lights, o-rings (cost $2.00 sell $10 package) It was a strong program. It costs approx. $100 if they buy all the components to build the project. We pre-cut fabric and sold all components separately. They have Easter, Snowman, Tree, Autumn. We will do the Tree again and will just change the fabric. The information is in our packet. $24,000 in pattern, o-rings and fabric pre-cuts.

Fat Quarters and Bundles we stepped up our program and included patterns that were bundle oriented.

Projects that Sell Product Effectively Implementing in the StoreAdrian: What are you doing when you find a project or program to make sure you execute the idea?

Ronell: We have a small display when you walk in the door with a project of the week. We sign it well and include project sheets with all of the components. Then we switch it out every week if it is really good we leave it out a bit longer. The staff is excited and are trying to find new things. We wing it based on what we have going in the store. Dolly creates projects and we use what has been created during the month

Trina: I was in the Helena store 3wks ago and got excited about the projects and idea. I went back and enlisted the departments to come up with ideas. We are changing it out every Wednesday and have 30 ideas in the bank.

Melody: I am okay seeing an idea and implementing it now my problem is when we buy in January and need to plan for Christmas. I am working on a project planning sheet and implementation schedule ***information in packet.

Bob: Great idea and tool! The key she mentioned is who is she going to give it to for it to be acted on?

Jayna: Darice was the largest group we have ever had there and it was great to have so many people contributing so many wonderful ideas. The projects pulling them together as a group is a great way to capitalize on the opportunity.

Joy: Our merchandising group meets with managers to show them before they do their orders and they can see what our thoughts were. In August we will have the group come together again with packets, pictures and projects trying to convey how and what to do and they receive a power point to show at their stores. That is to present. To implement we have managers send pictures that prove they have done the projects and have implemented. Now there is peer pressure to get things done.

Jayna: This year we are going to take our top 10-$15 dollar producers and give the creative people assignments and run with it to generate the dollars set as the goal. There will be a bonus for those that achieve those goals. Accountability, we have a supervisor that will make sure that those goals are achieved.

David M: find someone to champion and take ownership.

Jane McP: That is my role at our store and where our morale was a little low when I am out doing the projects they are excited and involved and want to show me what they are doing, it is contagious.

SCRAPBOOKING facilitated by Scott S

Corinne: We have 120’ of scrapbooking. We carry a lot of lines, the women that scrapbook are unique. School #1 selling, Stamping Station will be doing our school spirit vinyl for us. Collected Memories will create a custom scrapbook just for you. Altered is in and bigger than ever. Marie Osmond’s parents were married for years and years and every year the her mom would receive a piece of jewelry every year she did a quilt block and included the jewelry into the block.

Kim: How are you getting a new scrapbooker?

Corinne: Offer 1 on 1 scrapbooking class. This week have 9 people signed up. Crop every Wednesday, free of charge, 4:30 – 9 pm. Now started 2nd Friday of every month, have crop from noon to midnight.

Jane: Blog, Friday crop 5 to 11 pm, Sat crop 40 people 9 am to 9 pm at night, paper parties, don’t make money, 6 days projects in three hours, 2 pages, 2 cards, and 2 other projects., kids classes after the paper party, started small $5, now that word of mouth has spread, it has expanded to $10, age has to be 6 or older, parents have to stay

Scott: Paper cross over, brings new customers

Ronell: Cross Merchandising. How do you draw in the younger customer?

Adrian: How about doing books with your daughter?

Linda: Treasury of Memories the club still wants the book. I don’t think either one will go away.

Emma: I think there truly is a market of females 45-70 that have boxes of photos that may not want to do the cutesy stuff but would like to do ancestry and just want to know how to get them into an album. If you can get them turned on to just getting them in the book it is a good start.

Emma: I just made a note to go back to step 1,2 and 3 getting them into the basics.

John: All of the dimensional stuff and raised feel is what gives life to the page.

Scott: A person can knock out a mini book in just a little while.

Joy: People are looking for card making supplies and favors. All of them have blogs and they are showing mini gifts that they have made for people. If you want some really good ideas go to www.dandyliondesigns.com for a lot of her projects on her blog she creates her own boxes. Great ideas. She will take a clear pencil sharpener and turned it into a snow globe. Everyone loves her stuff. Simple ideas that all of you can do.

Audrey: I think that is the key scrapbooking has become so involved and so detailed that it has now gone to paper crafting which is less intimidating.

Jayna: One thing I am noticing is that paper is still driving the business and embellishments are good but I think we are chasing the newest and greatest and sometimes miss out on the basics. 8% in paper stickers and embellishments.

Jane: We were getting away from the basics and now we have a concentration to get back to the basics.

Bob: There was a company at CHA (Cameo Style) that was talked about at our meeting. People seemed excited about it. There was a concern that the investment was an obstacle. I would imagine that there are many of you that have produced digital scrapbooks on line as gifts. This company may address that

David: I saw it at CHA it is an 8’ Boutique in a Box. We brought it down from approx $18,000 down to $11,924.00. You get the boutique including color copier/printer and computer and an example of all of the finished projects, model of everything. The test was having non computer people at the show build a book in just a few minutes.

Craig: This is a program that doesn’t even have to be a sole book making system it could be a card making photo card, invitations etc…. If you demo it in your store they will replace the demo materials. There is a software agreement for upgrades and a maintenance program for the copier. The software upgrade contract is @ $300.

David: They ship it, you set it up and connect and it will work. Cards are pre-scored you just attach the photos. They recommend you work on it in your back room and bring it out finished to create a mystique.

Bob: You could put it in your frame shop or a customer serviced department. It just makes a lot of sense. They have annual calendars.

Heather: We are at the point that we do not feel like we can get any lower on the intro rate however we may be get an additional $500 in product.

Bob: I recommend that we put a small team together to go visit a few of their existing retailers locations. If they do not tell us who their retailers are we will dump it. I think we need to learn how to make it work and see it in action.

Jayna: We have the copy center in our store we are happy to provide the numbers. We were worried about the customer service it would require to maintain it.

Interest: Anchorage, Helena, Redmond and Grass Valley

Betty: We have had people come into the store and I asked them why they do not buy our scrapbooking product and they tell me they are buying online.

We picked up It Takes Two FFH and Boy Scout paper and it has sold well.

Elizabeth: Mini Books are still the core of their scrapbooking business. The most popular classes.

Trina: We have moved papers into our hard craft department and merchandise on hard craft models.

Scott S: We put the 6 slot rack on the end cap with the hard craft products. We have endcaps that include a basic craft item and there is paper on every

Melody: The Clear Scraps Alphabet book program was something that people were reluctant to bring in because of the inventory management. We did $6200-$6300 in last 5 months

Scott S: We said no and now yes and manage through Notions.

Darlene: Punch flowers using McGill and Punch Bunch sells a lot of punches. Department head embraced it and has made it work in the store. Sticker King .55 and Best Creations .60 we sell for $1.49 ***info in packet.Smooch by Clear Snap inks we have done super with. Redmond bought two racks and have one in the hard craft department and it is selling better there. Penny Black we buy the wood stamps and the board. ***in the packet

Scott: Does anyone do stamp of the month?

Darlene: We do Printworks

Darlene: K&Co Cut and Paste paper we put it with the Graphic 45 papers. Epoxy stickers and die cut card stock ***in packet

Jayna: Darlene is a wealth of information in the scrapbook and stamp departments. Sometimes she is so quiet and you sometimes do not know who the experts are in the department.

Emma: Best Creations is a good line for us the paper is great too good quality a little high on price but it sells well. The Best Creations glitter paper is really good. ***KELLI to work on program

Paul: Darlene does some crazy things in paper craft she takes 2 ½ times mark up in products. Between 2.25-2.5 mark up. There are some tools that require more aggressive pricing.

Rusty: Dimensions is closing their operation and will move it to the EK location

Joy: CK Media is not paying their designers.

Kim: What are people doing for magazines.

Emma: If you have a copy of our ad that we shared and see the do it yourself decorating it shows how the love is combined with (INSERT PICTURE) also using canvas boards with Ranger Adirondack Wash Ink is another way to take canvas and ink and combine with Vinyl for a great sale.

Audrey: In our packet we have a few examples of a 12x12 knock off of a Ganz $59 retail product that we created and replicated it easily.

John: In our store it was a $100,000 department. I see that Paul brought some of the California Floral glass to show, we bought it and put it in an endcap with vinyl and filler etc… They took all of the cream vinyl and moved it to the glass and sold all 480 glass pieces and bought another 960. We also took the lanterns in 2 months we sold $3000 in glass and additional sales in half rounds and vinyl. It is all about the sample. Easy Money. We tried to get them on import from California Floral last spring and the pricing was better domestically. It is a great item and a great surface. Retail the small jar for $4.99 and sell at $2.50 ***Heather to speak with Tony about pricing from California Floral

Chuck: A large part of our vinyl is still the glass blocks. The secret is having the new stuff. Hayden creates new and we just keep buying it. We close out 10-15% every 30 days.

Trina: Hayden came out with huge amount of new sayings and shapes. Our anticipated growth is there we are still seeing a lot on glass blocks. Elizabeth gave us the butterfly idea, Helena gave us ideas.

Audrey: Vinyl scrolls our best seller so far. And mini vinyl for marbles we put the mini vinyl in a bucket and sell by the piece

Emma: We are finding that the edgier ones are selling well and the humorous take a look at the new vinyl

Anthony: We put everything on our car or truck the company we use is from our rea. The letters are in hot pink to match Main Street Collection and the flags from Evergreen. Haven’t moved a lot yet just started a few months ago.

Craig: We gave away a large wall vinyl “Tattoo’s for my wall”

Paul: We picked up a 120mm gem from IGM and put vinyl on it cost $4.85 and sell for $15 and use vinyl on it. Sold out first week. Style number is in packet.

Greg: We have the ability to own the market, nothing else is out there like it we should be going farther. There is vinyl out there just not displayed and merchandised. You can sell so many other high margin items with it.

Eric: We occasionally have people in the store that are intimidated by it and we send them home with a letter to try and take the intimidation out of the application

Betty: We are not in vinyl big time yet however we put it in our April ad at buy 1 get 1 at 50% off.

Craig: Best applicator is the drop out from framing.

Deanna: In the vinyl department they put a small television in our store with a 6yo girl with application with a stick and we loop it. We did the video with a Flip Photo

Adrian: We take the Flip Photo to shows and take video and take it back to the show

Greg: Be sure you are getting the margin we are going for 3 x margin. The stores that sold at $3.99 sold more than the stores that had it at $2.99. did everyone buy into the hook program?

Chuck: The tileboards, hooks and vinyl could all be considered one department, alternative or non-traditional crafting.

Craig: The clear plastic frames that are flush could be bought from virtually any frame company MCS, Prinz etc…

Chuck: Melody talked yesterday about having MDF boards left over. We think the plaque and hook program is really big especially if you keep the samples fresh. We do buy from Dakota and have it shipped in a flat rate box.

Scott: Our packet of best sellers have a vinyl application. Biggest growth in the last months since we have had vinyl has experienced a 50-100% increase compared to year before. We are just continuing to look for new surfaces. The 12x12 end cap frames remain up all year. Our end caps (5) have vinyl and a component and we have a 12x24 cube of slat wall and vinyl. Around the outside can be different signs. ***look at hurricanes in our packet we did $34,000 in hurricanes and made a 60 gross. 4”x 6” and 8” we have not been in stock because the vendor has not been in stock, the bulk is in fall and Christmas. The 5.5” is in there because it is the only size they had. We are also going to work with a close out house in MN.

Jayna: We got water bottles that Marion talked about them. We vinyl’d them and sold even more. ***Look in our packet

Marion: we bundled mugs and vinyl and sold them for Cost $5.50 and sell at $16.99.

DUMB STUFF THAT SELLSMike: our packet includes check stand items: Alboe totes hung and signed well 2/$10 our smallest store is our lead on that. The bottle wine stoppers small display Medford picked them up and sold $700 in less than 2 months.

Jayna: Boxer Shorts from Vermont tiny display box we brought in for Christmas. We also heard the Socks sells well Mark said socks sell really well for them.

Trina: we sold two orders of the monkeys from Midwest and merchandise in fabrics near MODA fabric. We sell the fabric too.

Mike: the monkey fabric is selling really well for us.

WP, Tacoma, Corvallis are doing a monkey Christmas tree

David F: we sell bagged sand in our store 93 gross. We bag the sand and sell for $3.99 we sell 6 100# bags a month. Cost approximately .30 including the bags.

Jayna: Darice necklace holders we sold 255 of them from Darice. Craft Fair participants buy in multiple sales. Paid .50-.60 and sell for $1.99 Darice #1800-082

Jane: Helios for $4.99 rulers ROMO tote $2.85 leather pouch/purse we sell for $9.99 it is in our packet. In multiple colors

Audrey: $45,000 in 6 months in games we specialize in games that majors do not carry. We ordered Wackie Six, Settler’s of Catan and Ticket to Ride, Scum, Killer bunnies

Mike W: Chuck said that family and adult games do the best.

DESIGN MASTER PRESENTATION

Brad: Showed Glass Block ideas and signage and images available.

John: we did the drop ship program last year and we bought 144 cans of frost spray and sold out in less than two weeks. There is tonnage in the frost. Single sku truly looking at a lot bigger program. We sprayed the windows of the store and people wanted it.

Brad: if you are not on the list in the store locator of our website let us know and we will make sure we get you on.

FLORACRAFT by Bill and Rose

Challenge Project Brick Kit buy the program, build out a display build the display and send a picture and win a pizza and pop party for store and staff

We are building an online design center to show the consumer how to use the product. Will you send an extra box to make the models? YES we will send a sample box out to each store. $17.99- $19.99 retail cost special to SPC for $7.19 regularly $8.00

This is the first book the next will be wedding and special events coming in January 2010 likely. We also include Design Master in the book.

FRAMING facilitated by Neil

Who has packaged framing in the department?

Rob: we have it poster metal and a wood package.

Trina: we have a metal and wood molding program too.

Kirk: we do not have a package program however we do sell the product at the Larsen Juhl price sheet price to Michael’s. Michael’s in turn sends people to us. We do that with all of the frame shops in town

Eric: is your best program for advertising the discounted product in the store or coupon?

Mark D: we are experimenting with whatever will bring them in.

Jane: are you trying what Michael’s is doing 25% off 100.00 50% off $200.00

Mark D: I think people do not realize how much custom can be.

Neil: we sign it with pricing right with the packages. We have a wood and metal.

David: We have a product near our poster rack for frame corners retail $7.99 mount poster on foam core and slip the corners on the foam and it can be hung instantly.

Anthony: Sbar’s will do custom mat’s for you.

Craig: Does anyone have a poster company worth a darn? ***Eric L to send his poster source

Craig: Gemline is willing to work with us on moldings to maintain margin and have a value price. Is there interest in a mirror program from Gemline, they will stock the mirror and do set sizes. We just need to find out what a commitment or interest level would be.

John S: We sold 460 frames in 90 days LFA 33 brown is outselling black and white. On one end cap. ***In our packet using cork, calendars If you do not have it in your program you should take just one end cap and put your program together.

Emma: We asked Hayden to do the family word in brown and she did and it is selling,.

Chuck: The family frame program is a big item still for us

Linda: It sold twice as many in Idaho Falls than Rexburg and packaged them together and tied with a kel toy ribbon bow and it added value.

David F: Advice from a ….retail $3.99 we sold $6600 in cards 16 sku’s. We mount on scrapbook paper and insert in frame. And now personalizing with photos it took it up even higher. At Christmas time we did advice from a snowman and sold stickles too.

Jayna: I was in the Redmond store and was so excited and it is amazing how much quicker they sold. Like advice from a wolf and added a Boy Scout photo with it. Cost $1.50, buy dozen receive one free. $6600 in just cards sold last year.

Bob: People are saying that the posters and prints are not selling. I saw in a competitor store posters that were in their frame models. Why promote what you are not selling? Is anyone displaying those frames by style rather than by size? Frame reps have been telling me that they are selling them by style not size.

Kirk: Anchorage tried it and it did not work for us. Shadow boxes, mirrors, eco friendly are all displayed by style everything else is by size.

Craig: Is anyone doing Eco-Friendly frames?

Mary: We are doing Daniels and the thing that sells it is the Conservation glass especially the sticker that draws attention to the Eco.

Anthony: Is there a place you can buy photos for use? www.istockphoto.com

Heather: We could place an LFA 12x12 frame and have it asst or separate and have it in June. Cost $2.54 40’ $2.41 cost 730 cases in a 20’ CFO going out today

Neil: What a difference a mat makes? Signage with example (using nice double mat) sells the mats

Melody: $4300 in last 7 weeks. We have moved the Conversation cards and they are still selling

Mike: I have noticed that people in our stores are down selling in the frame shop. I have not done follow up but you might want to check in with your departments and see if they are doing this.

Neil: The model we made with the canvas insert is from Structural Industries ****GET REPORT FROM NEIL OF BEST SELLERS

Steve F: We have 4 full time framers and they came up with a contest of their own with staff that sells the highest ticket frame job wins a starbucks coffee. Peer Challenge

Trina: I have tried that too and we have one that really likes to sell and it has upped everyone’s ability and actions

Melody: One incentive our frame shop did was to do a Bingo card double mat sale, museum glass, etc.. once they got BINGO they won a $50 gift card ****ASK MELODY for BINGO CARD

Kim: In our packet we have message board kits that were kitted up dry erase calendar, frame and marker. The ladies wrapped it in cellophane and put a bow on the top and sold for $25.00 Cerritos sold 100 packages @ $25.00 . We are moving to a 12x12 open back frame, 12x12 tin, 12x12 foam core and 12x12 calendar next. So that the cork could be flipped to calendar etc…

Heather: If you want to add items to MCS just let me know we can get it sampled and offer it easily. I just need the item number from you. I am going to add the 8x8 on the next round. I will see if I can add the 8x8 black frame to the fall order.

John: Our end cap on the frame is $25,000 consistently for 2 years.

Bob: Did anyone see Don Mechanic’s unfinished frames? The designs were great and perhaps we could select 12 or so sku’s and have a distributor pick them up and sell to us.

Jayna: Will send disc to Heather for review.

IMPORT PRODUCTS facilitated by Greg

Half Gem Rounds new color announcementTile programHebei marblesLaurence Frame MJ Limited

Eric: We display MJ all year long. With greenery and some floral. Mark D: should we develop the swags for them

Ronell: Could you look for the lighted twigs? I picked them up in Dallas and was nervous because of the price. But people have really enjoyed the item and will be using it for weddings. $11.10 cost for small 96 lights retails for $39.99

Cecil: We brought them in too from Dallas we ordered several and have had them a week and sold 7 of 12 of the twig.

Eric: Glass Blocks I would like to see a single light corded for the glass block. Single light corded with switch.

Bob: I think it would be good to have it explained how to submit product recommendations to the team.

Greg: Send an email to the team and Heather and explain why you want it give us an idea of how you would like it any background information that would help us to find/source and 2samples one for the office as quality control and one to send over to the vendor. Tall Mouse a couple of years ago sent over an entire packet with vendor info, what they were going to do, price points a guide for us and website or magazine articles.

Heather: Dave M brought art supplies to us from Ningbo.

Kim: How about the super satchel from Art Bin

Chuck: We like to do more and more with the frames from Hongyuan. There is no end to what you can do with those.

***Sticker glue a problem on the wood block

Greg: The glass blocks, John S found that the glass blocks do not scan. If you come across that and can let us know it would really help us to try to solve the problem.

Melody: You can unpack Hongyuan and it looks great and then after a few days/weeks the joints pop apart.

Chuck: We did glass blocks by the case at $39.99 and sold a lot more.

Greg: We did that too after Chuck told us about that and have had success too

Rob: We have also done that with the trunk sets and sold a lot. SCH 12 and SCH 27

Jeff: We really liked the home décor wall art that was offered, the price points were good but a higher ticket. There used to be groups of stores that would go to Allstate and tell them that we want a poinsettia that we could sell for $5.00. Now we could go to $7 we just need a good poinsettia bush. ***Look for a lower priced poinsettia bush

Greg: How is everyone doing in glass? We noticed a drop in sales

Audrey: Our apothecaries are still doing well. We need to show them what to do but they sell when you show them.

Greg: We had some success with having price point items with a project. Your Choice sells for us.

Ronell: We change out the end caps frequently and we always have glassware, rocks and some other import items trunk and fillers and put them all on the end cap. We changed them every week during Christmas. We kept it exciting. The end caps are staying up for a couple of weeks because we have less traffic now.

Greg: What about Garden stuff?

Emma: We ordered shepherd hooks from Gerson and they sold okay for us. I would love to be able to order them through SPC ****Source for Spring

Greg: What about the garden pieces bicycles, arches, gazebos?

Marion: Good w/Tricycle and I have sold 1 large bike.

Trina: How about garden spheres. If we could get a good price I could sell them

Adrian: I would like to see something similar in size to bike but a wagon

Betty: Amscan I ordered a bunch of the angel stuff from that company and we do well with it. Resin garden angels. If you could find anything with angels. We sell them for funerals, memorials, garden Angel with arms that hold flowers OR birdbath.

Greg: We are getting a break on moq’s because of the economy this year. Except for floral from GBA

Jeff: The larger metal pieces gazebo something that is unique. We sold out of the 6 we bought

What is the timeframe to have the information? Heather: as you think of them and hopefully before we go so that we can plan for it and begin looking for it with our vendors.

Greg: How about lights?

Marion: People buy them in the summer time in multiples

Eric: We make more during the year than at Christmas when we have to break pricing to match.

Craig: I remember when we got the inexpensive arches is it time for those to come back?

Greg: Not yet we still have a ton.

Jim: Could we do Halloween fabric by the bolt? Spiderweb. We ordered 2400 sets of Flicker Flames and sold out, merchandised with the fabric

Bob: I don’t think there is a price perception out there as much as quality. Upgrade some parts of our light program. Look for more sources, I don’t think Sienna has upgraded in several years. Novelty lights that are higher end. We had calls for a nice lighted tree topper, angel tree toppers if we could find it.

Heather: Could you look around in magazines or catalogs and send us information on what you are talking about.

Marion: Even when I don’t do a display with the Flicker Lights I still sell them

Bob: I get calls for craft bright’s that have the lifetime guarantee. The perceived value is not the same because the box looks the same. We could buy the same lights and upgrade the presentation. We are still waiting for our first return from when we sold the lifetime guarantee on light sets.

Adrian J: Can we go back to the craft bright box? It says craft bright and says for the craft industry.

Bob: Another program we could look in to are timers, electric cords accessories for holiday lighting. Decent quality relatively decent price

Heather: We may be able to work with Ace Global Sourcing for development of this line

Melody: What about battery operated tea lights?

Greg: When we looked at it it was cheaper domestically.

Adrian C: The nylon snowman lighted did really well (Sienna). What about the blow up nylon giant figures.

Greg: It is one of those things that Lowes and Home Depot go on lower margins on like 17%.

YARN by Mike W

New SPC Offering 200gr skein of basic yarn new offering take a look at it cost $2.60. similar to homespun but not as bumpy

My Friends we went back and looked at the color selection and were able to design animal project kits the idea would be able to be able to link back to the SPC site for project sheet ideas. Our colors would be better than

We went back and adjusted our numbers on Blush after talking to Michelle at TM. We have tightened up the offering but plan on introducing it as a basic line with the Homespun –like line.

Also look at the Tingle color cards here.

We also have PDQ’s on the holiday line of yarn. Michelle included the SPC yarn stats

Import CFO’s

D&F Glass we now have the square ornaments and the 6” disc both are new.

Barnwood frames, we found them at California Floral and the cost is exceptional on this line.

Jet Max cubes, we have to make 500 case minimums per sku so we still want to make it happen but that is as low as they will go. They have high minimums and typically only play with the big stores and we were big enough and they allowed it.

ZKM small block, John ordered an entire container it would be best if you could order by the pallet if you want blocks from him for freight reasons. We are getting the mold and the cut will be clean.

Emma: are there sku’s that you would consider deleting that we could shift inventory to those that we should keep? ***Heather will provide the report of best sellers and post to everyone

Neil: How did Intco go?

Heather: It went the order is placed and we are working on face papers. We should be done with confirmations by the end of the month.

Mike: There is a huge resurgence in people doing vegetable gardens. Maybe we should think about getting into those types of things. It is growing. It is a trend.

Jane: What about Rain Barrels? In our city we have artists that do paintings on the rain barrels and they are all over the city.

Heather: I went to a color seminar and they predict that Eco friendly living will be a new way of life not a trend.

Rob: What about Loew Cornell and the canning jars?

Kim: We bought 5 pallets and went through 4 1/2. Loew Cornell says that you should get your order in by April to guarantee delivery. Quart wide mouth sell by the case do a poster and sell them. 5 pallets = free shipping

Jane: Cookies and Cake in a jar could be huge this year. *** Quart Wide Mouth Lead free

Kim: When we were at Darice we talked about purchasing a container of 34” candy canes. We want to do a container and will break out and sell to the membership if you want them. Cost .43 landed to Anaheim, if you want them (72 pcs to a case) we will be doing posters too. You pay the freight from Anaheim. Darice price .60-.65. We will sell them 10/$10. 1 is $1.99 10 = $10.00

NAE Nick

Wall Décor, some in Fred Meyer, regional chains one in Joann’s If you send Nick your orders and would like for him to review and tell you if they are in a chain near you so that you can choose to buy or cancel he will.

Closerouts receive no additional discounts they are priced at a net /net

NEW ConceptsTabletop Domestic screen print frames with windows for baby, juvenile, family. Very price aggressive and only offering small sizes.

PROJECT IDEA MAGNETIC MODULES!!!! Words on magnets, shadow box frame with dot magnets using acrylic magnetic backed frames. We will close off two sides of the acrylic frame to hold the picture in whether it is horizontal or vertical.

BEADING facilitated by RonellTwo things I want to say about IGM I had my first experience and I encourage you to go and take someone that knows beads. They are doing a couple of things to make it easier for us first the new warehouse and they will be incorporating scanners into their operation

Jane: We were really impressed with Friendly Plastic when we saw it at CHA. We like the Amate but the Envirotex will be wasted if you cannot use the entire mix. Judikins has a Sun Gel that is ideal for the tray pendants. ***Our packet has samples. People are excited about this line. Notions picked up the line. We thought the Judikins Fluxe for kids projects would be good.

Ronell: We brought in friendly plastic again and are excited about it.

Scott S: Friendly Plastic has a blog that is really good especially incorporating

Bottle Caps from DC&C in a bulk bag, and wine/beer distributors.

Joy: Remember if you leave friendly plastic in the car it will re-melt.

Steve B: Watch faces we started doing classes using watch faces (we buy from Helby cost $3.47) **info in packet. We included a project sheet in our packet

Audrey: We are having huge success with watch faces too we sold 9 last week. We have done $1000 in watch faces in a 1’ spot. ***E-watch wholesale has a huge varietyThe add on sales are big.

Ronell: The SLC airport gift shop is selling a lot of the large watches. Available in boutiques.

Chuck: Linda bought them at a craft fair and that is how we ended up in it

Steve B: We also found a button ring. We found it in a boutique for $8 and decided it would be a great project. We are selling them for $8 a piece we think the interest will be in classes

Kim: Darice has rings that have a flat surface ring ideal for buttons.

Ronell: Is anyone doing anything with Nunn or Amate? A few stores are

Steve B: www.beadandbutton.com for ideas

Ronell: We picked up the Fresh collection from Plaid and we picked it up it appeals to the young beaders. Michael’s does have it. Sold through 1/3 of it in a week.

Dave F: Donut from IGM .50 and Silk Cord from DaBeads $2-$2.50. Tie a knot and bead remainder of tail.

Magazine from Ingram Periodicals retail $14.99 and we are selling out of them. Our department takes projects out of the book and shows them with the magazines and we sell 36 quarterly at $14.99

Mike W: It has been one of our better sellers they are always on trend.

Jane and Rusty have a video and a bead concept

We do a kit of the month every month price range $10-$20 we sold over 100 kits in the first month and we still have sales you can definitely sell 20-25 and the exceptional ones sell 100+. We do different

ideas every month one month a bracelet one month a necklace. We include the instructions and the product. We do really well with bulk beads on a table buying by the scoop.

Jane: Our videos are on You Tube. We did a greeting card one over Christmas. For our home page we were a little more conservative. We have the video set up with the kits and most people stand there and look at the video and then buy the kit. WE did have a lady that is a loyal customer and she bought the kit and sat and did it while she was at the store. It is a work in progress. It is another teaching tool. We have had a problem filling classes and now they can take their own time and watch the video and make the project. Some classes we can fill and others we can’t .

Neil: Simply Swank has become outstanding in our store last year we did $30,000 in retail on the kits and accessories. We had 147 take the basic class last year and most buy the big kit. The average sale is $68.00. They have worked on the out of stock issue. We sell the kit better than the open stock. WE bought a 20” screen and have it above the department.

Steve B: We run a looping video. We are always out of stock on those kits.

John: We said no to the line 4-5 times and brought it in and it is incredible.

Paul: LenPing hand painted stuff ***The info is in the packet. We found them Glass beads cost $1.75 we sell them at $5. The cloisonné we sell for $6.00

IGM we picked up a new line of Mother of Pearl shell beads. The shapes, colors and finishes are amazing cost .85-$1.35 we sold 150 in 30 days. Retail $5.00 for all of them. They are supposed to completely in their new warehouse by next week.

Mike: Is anyone seeing any trends in beading? Swarovski, gemstone, glass.

Ronell: More gemstones than glass

Paul: Fire polished is strong for us everyday

Bob: Fire polish $1 or 5/$5 works well for us

Audrey: Swarovski is still strong for us.

Chuck: Audrey went through and sub departmentalized bead dept. I was astounded at findings. Findings are where our dollars are we have the largest offering

Dave F: We are getting dollars in classes and trunk shows. All of the bead vendors are willing to do trunk shows now. We did one $350 trunk show but our sales increase 50%-100% for the day of event.

Bob: Activity programs for bead department . We are driving our department into the bead store ideal. We have a minimal selection of Blue Moon. We do a fair amount of business from packaged beads we do not emphasize it and we never put it on sale. We emphasize the upgraded product.

Kim: We just did a consumer show and we are comparable to bead show prices and we were told that we should let people know that.

Audrey: I was talking to Gail from R&M Chain Maille and Chain Maille with crystals are the two most popular titles.

Mike: Our top performing findings vendor are still Blue Moon and Cousins. We sku’d down to the best sellers and it still out performs

DUMB STUFF THAT SELLS

Trina: Pashmina scarves = $10,000 a year

Battik Scarves = $11.99 retail merchandise on quilt rack cost $5.00

Neil: We picked up the scarves after the owner’s meeting and did $8000 in Oct-Dec

I found someone at Cash and Carry that if we get a bulk up order Redmond will go back for a better price.

Jane: Larry found someone in Atlanta that is based out of NY that you can get them for $3.00 and sell $12.99. The name of the company is Ollections Inc. in New York, pashmina for $3.00(if you buy over 24 pieces). telephone 212-685-1960, talk to Eddie.. New Peace scarves for $5.00 and pashmina print for $6.00 also 20 X 60 long chiffon scarves in white and cream that she is using the Ranger inks on to tye dye.  The sample she showed me was dynamite.

Darice Top Items from each store. ***Get a list from Darice

Mark D: Coupon Holder cost .68 retail $1.99 upc#652695996030 Darice they sell over and over

Kim: Fisher Scientific .45 each Adhesive Syringe adhesive glue pen ***in packet no upc’s Does Dave G have a better source? One bin in Cerritos sold 668 pieces. We dump them in a bin box on the aisle

Steve F: Center Court take off of Italian charms. Locket necklace. 10 days $550.00 sold 83 charms 23 lockets. ***In packet

Joy: We looked and liked it too. We bought it and it ends up being a $50 sale. We put a few in the locket to show them.

Ronell: You do not even need the charms.

Joy: I tried the ¾” punch and punched paper

Jane: We have had it since last July. We retail at $4.99 more potential they do bracelets too. We also have the Ganz knock off.

Craig: Living Pets ***in packet

We have also included a “Green” line of products. WE also have a line of fairies that we are doing well with. We also carry the fabric.

Mike: We are doing the wall panels too.

Audrey: Hebei larger flat marbles.

Dave M: I found a sign company at the Las Vegas Halloween show the Glo Write sign board by I.C.E. I did ask if we could receive the show specials buy 9 pieces and get the wholesale price. LED Technology.

Emma: Beanie Babies and Webkinz are selling. We got the Ty baby Key chains and we sold $_____ the pink fluffy ones are selling the best. Spongebob is in top 8.

Neil: We carry the Makins tool kit cost $6.75 close out and we sell it everyday.

Melody: We are doing a craft journal that www.figmentstudio.com shows, we buy a journal for .68 and teach how to put air dry clay on them with designs. This tool kit would be great.

Don: 3rd time mentioning. Elf On a Shelf last December we sold 143 out of 144 at $29.95.

Dave M: We showed in 2 different places in the store

TAKEAWAYSAdrian: Lighted Branches

John S: Lyn Roberts plates and dishes there is a special SPC discount we sold 1000 of the smaller plate and 1000 of the mug. We will do a container for our store and will support it with our passport to creativity rewards program. 3x the look of last year. We sold out last year. It is amazing. You have the catalogs there is special pricing,. Same pricing as a VDI member.

Jayna: This year we had difficulty finding something that looked substantial at Transpac for the price we wanted to pay. This year we will probably use the larger cookie plate. We changed from discount coupon to free product with $40 purchase for our holiday promotion. We did better. This year they have agreed to give SPC the VDI pricing. You buy in case quantities. Price on a quantity item. Some are boxed most are not. They are identified in the catalog. DUE April 2nd.

Group Takeaways

Shannon FabricsHebei Half Rounds

Dave M: I believe in the popcorn machine, if you give them free popcorn they stay longer in the store to shop. Have fun and the second bag is twice as free” We popped over 6000# last year

Kirk: During the bead presentation I do not sell beads but Bob said something that

Here is what I am going to do , he set the goal and will put the energy and resources into making it happen”. Whatever the product, program is to make sure you have the commitment to it.

Adrian : There will be a POS meeting before the Tacoma meeting, I like the Kendall book, story about the frog in the hole.

Jim B: Make it a point in the next day to listen to Lawrence Summers. He is now Obama’s advisor. The presentation was very interesting inflation driven recession vs. a inventory driven recession. Explained the challenges that face the two.

I spoke with Jim Scatena at FloraCraft and they had a vendor summit that assessed Michael’s. The departure of Brian Cornell from Michael’s has been a 6mo project. Too strategic and his approach was high turn low margin and was incompatible with what Michael’s needed to do. John Menzer is coming in because he is known as a finance turn around guy.

Emma: Thank you for your vote of confidence. I am ready to work for SPC.

Adrian: We would like to thank our team.

Mike W: Darice is interested in joining our group. I am still processing it. I think we need to throw it out in this forum but I am not sure if everyone knows. Benefits are more things on import with them they could develop for us. Concerns are that they supply to chains. Let’s talk about it. I think it is a huge opportunity people partner up all the time with folks in the industry.

22 stores

Jim B: I think it is a unique opportunity that is still a family owned business

Chuck: I lean that way

John S: I can address a little of this, I go to Darice every year and knew the dad and now sons and family. The relationship has been really good for my store. When they approached me they pulled me aside and I met with Mike, Dave and Scott and right away I said there will be really big concerns here and you are good at knocking things off. Dave said why would we try to do something that would hurt you. Do we sign some special agreement? They have done many favors for me. I look to them to be family run business and I trust them. We need to hear from everyone,

Adrian C: I know some had concerns about folding a distributor into our organization how will it effect Sbar’s. .

Jim B: There is a relationship with Sbar’s and Darice

Rusty: The import program does compete against them would they want all our stuff.

Mike: my concern would be that we want to have things exclusive to us.

Bob: This probably needs discussion that could take 2-3 days /weeks. There is tremendous opportunity for good things to happen but we need to ask a lot of questions. One of the reasons that they want to join is that their stores are not operating very well. They are operating at $100 per sf. per store. The opportunities of how to function as a retail store they can gain from us but it needs to be a win/win.

Linda: They brought us together at 4pm. It blew them away. They were going to tell/share with us but it did not happen we sold them on their stuff. Chuck and Bob said stores were neat and very full but no models and very boring.

Greg: My concern would be what is their involvement with us? What would the Catan family involvement be in our organization

Mike: I think there should be a committee of people that are put together to address this.

Adrian: What about the confidentiality that we have with other vendors and them.

John S: Dave was going to fire his buyer because we can buy product for less than they can.

Bob: We need to ask our group the questions “what do we want?” There are a lot of ramifications and we need to ask our own group. And expanded committee of owners.

Jane McP: Is there a limit to the number of stores a member can have?

John: There is not a limit each member receives one vote.

Andrea: I suggest a conference call whoever wouldlike to join in and participate can.

Craig: What would be their fee structure?

Heather: It would be based on total store volume and would be based on band width.

Emma: This hit me as a surprise. I think it is genius. Catan was honored for the humanitarian things they do in their communities. They are quality people and it truly is a family.

Mike: Key thing ask a lot of questions. And to make sure it matches up with what we are about. It may not be for them.

John: Heather will post it in the bulletin and host a conference call. Let’s take our time and do it right so it doesn’t turn out ugly.

Dave G: We have a group of 1100 members and merged with a group of over 1000 stores. 1+1 in this case is 3 for us as both strengths came together and made it a win/win/win.

Heather: The $30-$40 million is $2400 in dues. We go up to $50 million at this point.

Bob: I feel we get a lot better results when we sit across from one another not on a conference call. I don’t think we should do this on a call.

Heather: I think you start with a call and find the questions and then build the team to then get together.

Andrea: I think the call first is the best way to begin that way everyone has a voice and can voice it.

Adrian: I think a questionnaire that says what are you concerns and then we have the concerns laid out first.

Greg: If it doesn’t work you kick them out and as far as confidentiality everyone knows everyone anyway. It is a small world. I think we are sometimes that last to know. I think it is more about how we all fit together. Execution and opportunities.

Kim: I think it takes a while to figure things out.

Chuck: VP Mark D, Treasurer John, Secretary Emma, CGO Chuck

What goes on in this meeting is still the best thing we do. Thanks!