2015 Survey of the American Indian Arts Business - page 11

Cost of Business and Actions Taken
Over 59% of respondents have felt the costs of business increase over the previous 12
months, which is down somewhat from the 2014 market survey results
Costs Have Increased
The major contributors to the increase business costs are
inventory costs – 49%
travel and expenses – 37%
materials and supplies – 35%
marketing – 33%
The economic pressures have forced respondents to take a number of actions to offset the
expense increases, including:
Reducing travel – 36%
Price reduction – 31%
Reduce stock on hand – 27%
Reduce Operating Costs – 24%
Change product offerings – 24%
Marketing the Business
Overall, 53% of reporting businesses invest less 5%, or less of their annual sales into
marketing and advertising. Nearly 25% however, invest over 5% of their annual sales
into marketing and advertising, with 4% reporting marketing and advertising expenses to
exceed 15% of annual sales.
The three most important tools that respondents consider the most effective in gaining
new customers are:
Public Relations
Events and Shows
On-line marketing is an important part of marketing the American Indian Art business.
The three leading tools used in the business include:
E-mail marketing
On-line tools frequently are handled in-house (48%), although many businesses will go
outside for help on some things.
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