Atlanta Snippets

As you may know I like to write down little snippets of conversation that seem to have some impact – these are a few I picked up at the recent Atlanta show:
“It’s a new world and you just need to find your place in it.”
– a well known licensing agent
“We’ve got the salespeople, the art staff and even the owner busy writing orders with customers.”
– gift company sales mgr on how busy the show is
“Dogs? – I’ve got a kennel full of them.”
– successful artist in a discussion about failed ideas or projects (dogs)
“Used to be you checked your pride at the door – now you have to check your hurt feelings there too.”
            – in the same discussion
“We’re not doing anything new unless we can convince mgmt that it will sell well – so basically we’re not doing anything new.”
– art director at a gift company
“The problem with being right all the time is that it leaves everyone else with no room to be anything but wrong.”
– in a discussion about competitor dynamics
Unfortunately (actually… fortunately) we were quite busy much of the time and I missed a number of snippet-worthy comments – because if I don’t get them down right away …poof… they are gone from memory – but the general feel of the show was quite positive. Of course every once in a while we would get someone lamenting how bad things were but, unlike the past couple years, that was the exception not the rule. We have seen the momentum continuing in these early days after the show with follow-up requests to the designs we sent and additional designs needed – a really good thing. Seems like the ball is rolling, here’s to hoping it keeps up for a while!   

License that?!

Great post for art licensors today on Seth Godin’s blog called “When was the last time you bought a tie?” Don’t read Seth? If you want to be in this (or any) biz you should, he has clarity of vision about all things business that is hard to match. Here is one quote from the post:

“The challenge, then, is to develop products that match what the market is looking for, and more important, to overtly and aggressively seek out the people in that situation and ignore the rest.”

Sound familiar? If not, read back through this blog…
If you want to make a living in art licensing you need to give your clients what they want, not just what you like to do. I can’t tell you how many times we get wildly abstract art, or inappropriate fine art, or just plain weird designs submitted to us that bear little or no resemblance to what has been selling product on the market. And usually when we suggest that is the case they want to argue with us about it. I love wild and wooly creativity, however take my word for it – like it or not you won’t be creating a new style category anytime soon in this business, and particularly not in this economy. Study what’s out there. The next big thing is likely to look a lot like the last big thing, because that is what sells in the market – and what sells in the market is where your focus should be.

Now the real work begins!

Just returned from several exhausting days in Atlanta where we exhibited at the Atlanta Gift Market. The License and Design section is a relatively new show within the AmericasMart, this was the third year, and it is definitely getting its legs. We have actually had good shows all three years, and we are already working with the Mart to fine tune the dates and plans for next year – I have no doubt 2012 will be bigger and better yet.

I was discussing the show with one of the other exhibitor/agents and we were lamenting the fact that you really don’t know how successful a show is for about 6 months or so after it is over. There is always excitement in the air on the floor and it affects everyone – including the attendees – so the art looks better, the collections are fresher and the people better looking…well, OK maybe not that…

Then you pack up, go home and start the process of sending out the designs and doing the follow-up. This is the real meat and potatoes of any show and best done immediately, and you can expect follow-up to continue for months afterward. What we were discussing was how weird it is that after a really heads-up, exciting show you send out their requests, and then all that new found rapport and sparkling conversation you had with that customer typically goes dead for a few weeks. There are always exceptions of course, but it’s quite disconcerting – as she said, you wonder if you just sent all that material into a black hole or something. Gone. No response. This is why I am always amused by exhibitors (including us) who are crowing about the great deal they just made, or the huge number of fantastic meetings they had, or how they have already paid for the show with a coming contract.

Really? Hmmm, let’s talk more about that in June…

New Show – New Art

There has been a bit of discourse lately in some of the groups about which trade show is better than the other, and I would have to weigh in thus: any show will be good if you have something fresh and new to display, and any show will be disappointing if you look pretty much the same as all the other people on the show floor.

There is a good little article by John Mariotti on the concept of innovation and stepping outside the box on the Amex Open Forum; you can read it here. New ideas require new ways of looking at the market, not an easy thing to do because we are not built that way, but necessary to make your mark. One of my favorite quotes from a manufacturer was said to us at a Surtex show a few years back – we were discussing what they had been seeing out there on the show floor, and the response was along the lines of “nothing really exciting”…unfortunately often the case…and then she said “I am so tired of artists asking me what I am looking for, because I don’t know what I am looking for. I want them to show me what’s next.”

Think about it. If a licensor wants a snowman, do they really need to go through the time and expense of going to a show to find one? Of course not – ask a few dozen artists and they can have all the snowmen in China (literally). Shows are about showcasing, pun intended, the newest ideas and most innovative art that you can create. Just doing another set of floral tabletop mock-ups or Christmas gift bags isn’t going to stop them in the aisles – instead give ‘em something new and exciting (you know, something to make the other artists think “I wish I had thought of that”). We occasionally hold back some of our best new ideas so we can debut them at an upcoming show, ensuring that we have fresh new art for the floor – because the first question is always “what’s new?” and you really do need to have a memorable answer.

Set aside the templates and start doodling. I’ll see you in Atlanta!

Happy Holidays!

I want to wish all of you a wonderful Holiday, and hope you are able to cut through the clutter and take some time to enjoy what is truly important this time of year. Yes, it can a little more difficult to appreciate the season when you work on designing for it all 12 months, but we still enjoy all the festivities that come with “Real Christmas” as we call it. Both Ronnie and my families are spread about all points of the compass (Minnesota, Florida, Washington, North Carolina, Oregon, California) so we are not able to assemble them very often but they are always in our thoughts at Christmas – I hope you get to feel the warmth and joy of the season however you celebrate it and we offer you our Best Wishes for the coming year.

Which direction are you looking?

Warren Buffet talks about how investors, particularly fund managers, make their decisions on how to go forward while looking in the rear view mirror to see how things were. It’s the same kind of thinking that we are all guilty of – in so many areas of our lives – but it is definitely a hindrance in the world of art and licensing where much has changed over the last few years (or months…).

Say you wanted to illustrate children’s books – typically you would develop a portfolio or possibly a “dummy” book, get it in front of some literary agents and if you were lucky some editors, hopefully get hooked up with an author or publisher and be on your way. Not so much anymore – in this time of transition you have content streaming into the market through self publishing, blogs, videos, portfolio websites and even spam mail. While the future of paper books is in limbo the digital applications are multiplying every day – along with the questions about how are they distributed, paid for, copy protected and more. Are you looking forward to see how you can work in that world, or backward at the old practice?

Say you wanted a giftware collection for that cute set of characters you created, so you made up a few portfolio pages with mocked up figurines and maybe some other products, brought them to the (pick one) trade show where you hope to meet a manufacturer who would tell you what they will do with them. Not so much anymore – their question to you will likely be “What can/should we do with these?”, and they will want to know the story behind the collection, and how will this connect with their customers? Figurines and collectibles are a weak market now, so you will have to show them more functional products…were you looking forward and saw that coming, or will you be caught by surprise?

Say you bought yourself some coaching, a set of product templates, organized all your designs in the portfolio just like they said you should, and then noticed that your portfolio looks pretty much the same as the hundreds and hundreds of portfolios in the show, and no one is really paying much attention. But hey – those booths with an innovative new twist on product, unique designs, and perhaps an engaging story to tell are busy all day long…can you see what happened? Can you see why doing what everyone has always done may not work anymore?

We are in a business that changes constantly – trends, colors, type of product, clients, retailers – some are constant and some are shifting sand. The result is that we are always playing “catch-up” in art licensing, which is not necessarily a bad thing as long as you realize that IS the name of the game, adjust your attitude accordingly and keep looking down the road for what’s next.

Tap Dancing for Retail

Everybody wants to land that big product line with multiple SKUs, but it becomes increasingly difficult as the decision making process for licensees grows to be ever more complex and drawn out. We find ourselves in discussions with our licensees about things like NOS, MOQ, QPB, EDD, and so on long before the decision has been made to go ahead with a product line – but then that’s the way of the world nowadays.
I know…say what?
This is part of the new language that retail-based decision making is forcing art licensors to learn, or at the very least to understand. Manufacturers are leaning toward piecing together collections slowly rather than making a big splash with large SKU count introductions. They will start with one or two categories – maybe a dozen ornaments and/or a handful of plaques – and will wait to see how that goes before expanding the line to include more products. Caution is the word of the day, and retailers are not buying into multiple categories until they know a property has traction in the market, so we are left with a kind of Catch-22 situation where nobody wants to be left holding the bag, or in this case the pallet of excess stock.
A short primer of a few terms that can make or break your deal:
SKU – stock keeping unit
MOQ – minimum order quantity
QPB – quantity price breaks
NOS – number of stores
UC / UP – unit cost / unit price
EDD – expected delivery date
QA / QC – quality assurance / quality control
FOB – free on board or freight on board (shipping)
JIT – just in time (delivery)
PDS – product delivery schedule (sometimes product design spec)
Why do you care? Let’s say your licensee misses the first JIT date, so NOS reduces 50%. Now they haven’t sold their MOQ, they lose some QPB and the UC goes through the roof – but they can’t raise the UP and the retailer is holding them to the EDD on the PDS. QC goes out the window and now 10% of them are NFG (you figure that one out…) so the retailer clearances them out immediately and then – OMG happened to your brand? 

Waited too long – the followup

Saturday 11 AM – the wet snow brings down the pines across the power lines.
Saturday 8 PM – we finally get the generator set up to operate and can run a cord for lights, frig and radio, but no heat. It’s cold.
Sunday 11AM – got the fancy twist lock plug we needed, the genny is now hard wired into the electric panel and the boiler is running – heat, lights and TV, just like downtown!
Monday 3 PM – the generator blows out. Runs like a top but no longer produces power, a quick disassembly shows nothing obvious, so no more heat, frig, lights or TV… thinking about moving downtown.
Monday 3:30 PM – broken toe results from repeatedly kicking generator. (just kidding). Joking about “how much we enjoy the changing seasons” is no longer funny.

 Monday 8 PM – after the third stop, finally located some lamp oil without citronella – apparently an endangered product and now worth more per ounce than gold.
Tuesday 5:05 AM – power is restored just before the temp in the house dips into the 40’s, and two hours later we can finally emerge from under a six inch thick stack of blankets.
Friday AM – will likely get a speeding ticket flying down I94 to Florida….

Waited too long…

We woke up this morning to a winter wonderland – it really was pretty.

Dogs don’t wait for weather, however,

 so we slogged up the drive through the several inches of wet, heavy snow and marveled at how quiet and beautiful it was.

Then we began to hear the crackling of branches in the woods all around us as that very pretty morning snow started taking them down – wet heavy precipitation is not a friend of towering pines…

Of course not one but TWO came down across the power lines, one is a bit burned and we are currently living off the grid – but not by choice….us and 50,000 other people in the Twin Cities area…

The fire pit out back – won’t be sitting around that anytime soon….

 
Is this not the saddest FL license plate you have ever seen?

Today – we’ll settle for electricity.
Next week – we’re runnin’ to the sunshine!

Alyn

We’re very sad here today as we just lost a dear friend to breast cancer. Alyn Shannon was one of the bright lights, the incredibly talented creative force behind Paper Prince, ColorOriginals, XOXO and all of the card and paper lines that were part of Diversified Graphics. Alyn was so much more than a client – she and her husband Jeff were our neighbors, our walking, dinner and cruising partners, and a shining example of what living a selfless life really means.

Alyn was a woman of deep faith, and after selling their business they took on the cause of Haiti, traveling to the country many times, and forming the charities Buya.org and Healing Haiti to bring some real help to the impoverished people of that country. They are directly responsible for pushing forward projects to provide some of the most basic needs – clean water, meals, decent living conditions and education for these long suffering people. Even in the last months of her life she walked the walk, traveling to Haiti when she was well enough to do so, and working side by side with the people there to distribute water, food, pencils and paper or whatever they could manage to bring in with them.

I think we can best honor her time with us by helping with that which she held so dear – please visit their website at www.HealingHaiti.org, learn about their mission and help if you can. It’s the least we can do to remember someone who did so much.