THE MUSEUM SHOP CONCEPT Throughout the world, cultural institutions are recognizing that museum shops are a major means of generating revenue, as well as providing a welcome service to visitors. Some of the largest museums have “branch” stores in a number of cities and countries, and sell their products online, as well as internationally through licensing and other agreements. Many museums have found that the shops are, in fact, a way of attracting new visitors to the museum, as well as providing a service to regular museum visitors. Correspondingly, the museum shop community has become increasingly professional, as more and more museums realize the potential of such activity. In the past, the shop tended to be tucked away in a discreet (sometimes dusty) corner of the museum. Today, it is more likely to be at the entrance and/or exit points, high-profile, prominently advertised, and beautifully designed. The goals of providing education to the visitor and revenue to the museum are still, however, the core of the concept. The basic characteristics that are common to all good museum shops, and that distinguish them from ordinary commercial retail outlets, are that: all products offered for sale must have some educational or informative value, and in some way enhance the knowledge and understanding of the museum visitor; curatorial staff have substantial advisory and veto power, insuring that the products in the shop complement (and never compromise) the integrity of the museum’s collections; all profits accruing from the shop are used for the museum. Museum shops thus form a specialized “market within the marketplace.” Although managers and staff of individual museum shops are, naturally, interested in earning the highest possible returns from sales, the special nature of the museum shop tempers this interest with other concerns. The museum shop community is linked by the U.S.-based Museum Store Association, a professional organization that establishes and monitors ethical guidelines, provides information and services, and serves as a network between members. Although it is an American organization, there are increasing numbers of international members. India: The Mehrangarh Museum Shop At Mehrangarh Fort, which is one of India’s most important monuments and a major tourist attraction, we began planning for a museum shop in 1998, and opened our first small sales counter in September 1999. It was an experiment, as there were at that time no museum shops in India; at most, some Government institutions offered a few publications and perhaps some plaster casts of the best-known sculptures. We began with a “shoestring” budget, but managed to meet our expenses from the first year. We have gone from strength to strength in the years since then. Currently we employ a full-time staff of 25, occupy two large floors in the Fort, and return substantial income to the Trust. In 2007, we were also honored by Time magazine in their “Best of Asia” issue. A tour of the websites of some of the large museums will give an idea of the vast range of products now offered by museum stores. Although we use these ideas as a guide and for inspiration, at 1 Mehrangarh, we have worked to interpret the international concept within an Indian context, so that the Museum Shop in the Fort represents the basic goals of the Museum itself. For instance, we utilize local craftspersons and artists as much as possible, and we buy products from a number of NGOs whose work deserves support. International museum shop models are useful, and at Mehrangarh we have benefited greatly from advice from colleagues in other countries. India, however, presents both opportunities and challenges that are very different from those faced elsewhere. At Mehrangarh, we have learned the hard way, by trial and error. We have learned, however, and are happy to share our experience with others who would like to embark on such a venture. Although each country and each institution or site will present its own set of challenges, there are basic concepts that apply to all. We hope our experience will be helpful. * PLANNING AND ORGANIZING A MUSEUM SHOP To organize and establish a successful museum shop, the following areas are those that must be addressed. They are listed in order of priority. PRELIMINARY 1. Administrative Structure Determine that the governing body of your institution is willing and able to establish a museum shop. If your museum is a government institution, check on the regulations that apply, and whether or not you are able to earn and utilize income directly. If your museum is run by a trust or a private body, ask the organization’s lawyer to check on whether it is possible for you to embark on a commercial venture. You may have to establish a separate institutional channel, separate bank account, or other structure. You will need the advice of your institution’s lawyer and accountant from the very beginning. Make sure that your director and trustees understand the purpose and the nature of the project, and that shops – and cultural commerce in general -- have become an accepted part of the international museum world. If they are reluctant, take them on a computer tour of the websites of some international museums. They will see that almost all major museums now not only have shops, but feature them prominently on the museum website. 2. Finances Determine how much money your institution can afford to invest in the museum shop. You do not need a huge investment; in fact, you can start with a fairly small allocation. You will, however, need some seed money. The general rule of thumb in a new business is that it takes three years to start realizing a profit on investment. You may be able to start covering your expenses before then, but at the outset, some funding will be required. 2 If you institution is unable to provide any funds at all, explore alternative sources. Perhaps a local business or individual would be willing to provide a donation or an interest-free loan for this purpose. Alternatively, you might be able to develop a partnership with a local NGO, especially one involved with crafts promotion. 3. Personnel Begin to organize your team. You will need one committed and dependable person who is willing to take on overall responsibility for the venture. Ideally this would be a staff member of the museum. If this is not possible, try to find a local volunteer. Museum shop managers in the U.S. are salaried professionals (or, in the case of smaller museums, volunteers) who have the same commitment and esprit as their curatorial colleagues. This is important, since everyone involved must understand that the purpose of the shop is to generate profits for the museum, not for any individual. If you are not able to allocate a regular staff member to the shop project, you will have to look outside the museum. The person who will manage the shop should have the following qualifications: An understanding and appreciation of the museum and its collections; A commitment to the development of the museum; Some exposure, whether formal or informal, to the retail world; An ability to communicate well with the public. Be creative in searching for staff for your museum shop. Normal employment channels are not always the most useful. Wives of people posted in nearby hotels, military bases, etc. may be interested in helping to develop such a project, and can bring great insight, sophistication, experience and skills to the task. 4. Space and Fixtures Find a space that can be used for the shop. Ideally, it should near the point at which visitors exit the museum or site. You will need, at minimum, a few display cases or shelving units, and a cashier/wrap desk. You will need at least one attractive sign or board, announcing that this is the museum shop. SET-UP 1. Operational systems Once the decision to begin the shop has been finalized, and the above four areas addressed, you are ready to begin actual set-up. You will need to: Decide on the name for the shop. Standard procedure is to call the shop THE (museum name) MUSEUM SHOP, or some variation thereof. Some American museums have begun 3 giving their shops trendy names (“The Big Idea,” for instance), but in general it is better to use the museum’s name, and to keep it simple. Set up accounting system and books (on computerized system if possible); Open bank account (usually a separate account will be needed); Determine exact funds available, and obtain access to them; Purchase, rent, or construct basic shop fixtures (shelving, display, desk, sales counter); Purchase shop equipment, depending on budget. At minimum, you will need a cash box, an inventory book, sales books, and whatever bookkeeping supplies your accountant requires. If at all possible, and at the earliest possible stage, plan to add a computer, with Internet access. It is invaluable in at least two areas: o Professional resources available through the Internet (professional linkages as well as product sourcing); o Keeping inventory and sales records. If you are able to invest in an accounting software system, your inventory and sales records can be totally computerized and linked to your institution’s accounting system. This may not seem necessary in the early stages, but as soon as sales increase, it makes it possible to expand with great ease. Develop a basic set of packaging materials. At minimum, this should include: o Gift bags and/or paper bags with the museum shop name (and if possible, logo) imprinted; o Labels for product descriptions and prices; o A small brochure or pamphlet explaining that income generated by the shop supports the museum/institution. Discuss with your local banks the possibility of obtaining charge and credit card facilities. 2. Staffing Determine how many sales staff you will need. In a very small shop, the manager can double as salesperson, but if you expect to have any volume beyond the really minimal, sales staff will be needed. Try to identify any members of your current staff who would be most suited to the project. People who are presentable, communicate well, and demonstrate a good sense of organization are the best candidates. Integrity is essential, and it must be made clear from the beginning that commissions are not allowed in any form. 3. Product Sourcing This is one of the most interesting and “fun” parts of the project, but it is also difficult, timeconsuming and expensive. In planning your initial product mix, it is crucial to first examine your visitor profile. Does your museum attract primarily foreign tourists, local art connoisseurs, school children? Are you located in a tourist locale where most of your visitors will be on a one-time visit? Or are you in a town or city, where local residents are repeat visitors? Answers to these questions will help to determine the products that are most appealing. 4 In most cases, these are the most useful items to begin with: Postcards If you only have sufficient funds to produce one product, you should do a set of postcards. Talk to local printers and photographers for the best price quotes. If your museum is housed in a historic or especially interesting building, you should have one or two views of it. If the collections relate to a specific historical figure, or a royal family, or any other specific individual(s), one or two photographs of them can be interesting to visitors. Otherwise, concentrate on producing good images of the most interesting items in your collection. It is a good idea to sell postcards individually, and also packaged in a set (of 4, 6, or 10), for a discounted price. Keep in mind that the initial cost per card will include photography charges and printer’s set-up charges. Subsequent print runs will be more economical. Make it clear to your printer that you will be giving ongoing orders, and that it is in his interest to help with reasonable pricing. Tee-shirts/Caps Tee-shirts and caps are a perennial museum shop favorite. If you can invest a little money in this, try to find a local garment manufacturer who will produce them for you. An image of the museum, an item from your collections, or a logo are the most popular. If you cannot develop your own designs in the beginning, investigate wholesale tee-shirt manufacturers. You can do this on the Internet easily. Bright colors, interesting images and a bit of humor are good selling points. Souvenir Items Inexpensive items such as pens, pencils, and key chains sell well, especially to children, and most cities and large towns have companies that can make such items, embellished with your name and logo. Books Books on the history of your locale and surrounding regions, books relating to the kinds of items found in your collections, guidebooks to local areas, and general books on Indian history, art and culture sell well in museum shops. Books are difficult to deal with as inventory, however, and the markups are relatively small. It is worth exploring the possibility of partnership with a local bookseller; you may be able to make an arrangement for such a person to supply the books for you on consignment. Jewelry Worldwide, jewelry is the single highest-selling item in museum shops. It is also, however, expensive to produce, and must be displayed in a secure environment. If you have jewelry items in your collections, try to find local craftsmen or jewelers who can reproduce copies of them for your shop. It is best to start with small, fairly inexpensive items, to test the waters. Hand-crafted Items If your area has good craft traditions, the museum shop can become a showplace for these items. This is a way of supporting local artisans, as well as enriching your museum shop. Explore the possibilities of having local craftspersons produce replicas of items in your collection. If you have good local contemporary artists, they might also be interested in developing designs and products for you. 5 Collections Reproductions This is a major area of product development for museum shops, but it also involves much time, effort, expense, and trial-and-error. In the beginning stages of shop development, it is better to concentrate on the categories listed above. As you develop experience, confidence, and financial stability, you can begin to venture into collections reproduction. Seasoned museum shop managers all have horror stories of mistakes and wrong decisions in product design and sourcing. There is no secret formula; you will just have to proceed with caution and learn from experience. An item that you personally love may leave your visitors cold, while a product that was added to stock on a whim (or even by accident) may become a bestseller. With time, you will begin to understand your visitors and their taste and preferences, but you will never be able to determine exactly what they will and will not buy. You and your shop manager must remain alert to opportunities, and approach the task with creativity. Membership in the Museum Store Association can be tremendously helpful in this area. Even without MSA membership, though, you can get a great deal of inspiration by checking museum shop sites on the Internet. ______________________________________________________________________________ ONLINE COMMERCE Once your shop is well established, you can explore the possibility of selling on your website. This involves investment of both time and money, however. The first steps that are required: Website design and maintenance. This is best done by a professional firm; although it requires some financial investment. The website has to look professional and offer all the online options consumers now expect. Payment gateway. You will need to enter into a contractual agreement with a payment gateway in your own country; preferably one capable of handling international as well as domestic purchases. Packing and shipping. An agreement will be required with a reputable shipping firm. For international sales, a global company, such as FedEx, is best. Internal maintenance. Although your web design firm can handle technical maintenance, you will need to monitor performance, product offerings and pricing, special offers, etc. from your own staff. A staff member with the required computer skills is essential. Marketing. Once the site is up and running, you will need to start publicizing it. Emails can be sent to everyone on your personal and professional contact lists; and the website should be printed on your carry bags and other packaging. A Facebook presence is extremely helpful, but, again, needs constant maintenance. _______________________________________________________________________________ MUSEUM STORE ASSOCIATION www.museumstoreassociation.org The MSA is the single most helpful resource in establishing and maintaining a professional museum shop. Much useful information can be accessed for free on the MSA website. If your museum can afford a basic membership fee, you will have access to a wide array of materials and information. ________________________________________________________________________________ 6