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Sew Many Places TRAVEL SHOP~QUILT SHOP by Jim West, Sew Many Places
Right after September 11, many people were afraid to travel and get on an airplane. It took a good year before they felt confident and safe again. And because strict security measures had been put in place, people were soon flying the friendly skies once again. Gasoline prices have dramatically risen in the past couple years, which means the cost of tickets for airlines, tour buses, cruises and any other means of transportation using fuel have all increased in price. And then there’s the Internet, which offers more than ever, the opportunity for savvy travelers to go online and make their own travel arrangements, instead of using the services of their local travel agent. With large corporations stomping on the small mom and pop agencies and forcing them out of business, it’s a wonder any agencies are still thriving in your hometown. So how did I manage to keep it all going strong and not close my business? I think one of the main reasons is because I was constantly looking at the travel industry as a whole and anticipating where I thought the trends might go. Case in point, airline ticket commissions. Over 10 years ago, when I first opened my travel agency, airlines were paying 12 percent commission for every airline ticket that was sold. Soon after I opened my doors, the airlines lowered that commission two percent and after eight months, lowered it another four percent. Right away, I had to make some decisions on what I needed to do to keep the cash flow coming into our office, because we were counting on our corporate business to pay 40 percent of our bills. I said to myself, if the airlines lowered our commission twice, it isn’t going to be long before they eliminate commissions altogether. So I began to change my focus for the agency and start selling more cruises, which was my specialty anyway. We advertised me as a “cruise expert” because I had sailed on over 750 cruises, worked onboard cruise ships for 10 years as a professional cruise director, had written a cruise book that was published and distributed nationwide, and had experience that very few travel agents could claim. It was my “niche,” and we found ourselves doing extremely well by focusing on this. A couple years past, and sure enough, the airline commissions were gone. Now travel agencies who had all their eggs in the “printing airline tickets” basket, were scrambling to find a way to keep their doors open. And guess what they did? They began to focus on selling cruises. Cruise lines were paying good commissions and there didn’t seem to be a problem with eliminating travel agents or changing the commission, because the cruise lines rely on 90 percent of their business from travel agencies. So that seemed like the best place to go. Once again, there was a change in the industry, and I realized I had to start doing something else no one was doing. I needed a new direction again. I took time with my accountant and looked at where we were making the most money in our sales. It was obvious; it was in our group business. As soon as I discovered this, I told my employees we were going to focus 75 percent of our office on group business and the rest would be with individual bookings. And it was the right decision. We had pulled out ahead of the travel agency crowds and found ourselves with another “niche market” to focus on. Well wouldn’t you know it, after just two years, the cruise market was becoming saturated as well, and everyone was trying to underbid their competitor. It was amazing, people would actually book a cruise with a total stranger instead of their travel agent who they had for 10 years because the cruise price was $5 lower. It had become very cut throat, and the big guys such as Priceline, Travelocity, Expedia and Orbitz were buying up all the cruise space with the cruise lines because they could afford the group deposits, and smaller agencies didn’t have a chance to compete. I looked at the industry again as a whole and decided it was time for another change in our office. I kept asking myself this one question -- why would people call Spring Valley, IL, and make their travel plans? What could I offer to them that others weren’t or if they were, how could our product and service be better? And then the breakthrough idea happened. I stopped thinking locally and started thinking nationally and even internationally. I realized the doctors, attorneys, and other professionals who made the most money and were the most successful were the specialists. And that’s just what I knew I had to do: specialize in something, find a niche. Thus, the birth of Sew Many Places. So why do I mention this to all of you in the quilt industry? Simply because, a business is a business, no matter what kind it is. You basically borrow money, open your store, hire employees, market and advertise your services and pray everyday that someone is happy about what you have to offer and will pay money for what you have. If you own a quilt shop or any kind of business for that matter, you know what I am talking about. When you first open, the fear, anxiety, excitement, enthusiasm and energy are all there. As time goes on, you feel like some days you are soaring high near the mountain tops, and then something happens and you are just inches from crash landing on the ground. You pray everyday and ask God to help you. Your requests, your thanks, your desperate plea to help you pay the bills that month are all offered up. And after working your typical 14-hour days, seven days a week, for five years, something happens one day to your absolute amazement. You say to yourself, “Hey, I can take a day off!” All that hard work was finally paying off. If you own a quilt shop or manage a business, why not consider the following? The Internet can provide all kinds of opportunities, why not create a quilt shop online? If you don’t have a Web designer, then get one. You can market your merchandise internationally. Are you looking at what the new trends are in the quilt industry and making changes to go after that business before others do? Sewing and quilting is something that is a growing trend on college campuses. Are you doing anything to market this group? Look at this industry and think outside the box. The average age of quilters is not getting older, but getting younger. Baby boomers are the new generation of quilters; are you addressing this? Travel Shop-Quilt Shop; its all a business. And as you journey in the business world, embrace it all. You just might find you’ve embraced. Jim West is the founder of Sew Many Places and is one of the most sought after travel experts in North America. He has sailed on over 885 cruises during his career as a professional cruise director. Jim has traveled to 76 countries around the world, explored all seven continents, is the author of four best-selling travel books, including The Essential Little Cruise Book and Chicken Soup for the Traveler’s Soul. You may contact Jim at Jim@SewManyPlaces.com or call him 1-877-887-1188. Reprinted from Quilting Now magazine, August 2007 |