2015 Survey of the American Indian Arts Business - page 11

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
2015
2014
Costs Have Increased
60%
67%
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
Radio
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:
Website
FaceBook
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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