Hart Fraeme Gallery is a fine art gallery and custom frame shop. The company stands out by offering same-day and 11-day custom framing, compared to the industry-standard 21-day lead time. The goal of Hart Fraeme Gallery is to provide the Triopolis metro area with innovative designs and high-quality products at unmatched speeds.
Hart Fraeme Gallery is owned and operated by Hart Fraeme, who has years of experience in the art gallery and custom frame industry. Mr. Fraeme’s expertise and connections have led to the establishment of Hart Fraeme Gallery.
Currently, the company does not have a retail location, but plans are underway to acquire a space in the Uptown Mall by September 2005. This location is ideal due to the lack of nearby frame shops and the demographic alignment with Hart Fraeme Gallery’s target customers.
The primary focus of Hart Fraeme Gallery is custom framing, which is expected to generate 75% of monthly income. The company also offers artwork for sale, but this primarily serves as a way to showcase custom framing options. The business provides a wide range of mouldings, matboards, decorative mat cuts, design styles, and display options.
The demand for artwork and custom framing is strong, with 42% of consumers planning to make a purchase in the upcoming year. Industry analyses project a 4-6% growth in custom framing sales for 2006. Hart Fraeme Gallery is confident in its ability to successfully enter and establish itself in the market.
The company has four major goals: open a retail location, establish consumer awareness through marketing, lead the industry in completion time, and focus on custom framing with an emphasis on leading-edge designs. These goals will be achieved through various strategies, such as leasing a retail space, advertising in local newspapers, creating a website with online shopping capabilities, purchasing framing equipment, and maintaining relationships with materials vendors.
The mission of Hart Fraeme Gallery is to offer innovative designs and impeccable quality at unmatched speeds. The company takes pride in eye-catching frame designs, high-quality craftsmanship, and a commitment to completing projects faster than the industry standard.
Four key factors contribute to the success of Hart Fraeme Gallery: quality craftsmanship, innovation and creativity, fast and professional service, and embracing technology. These factors are crucial in delivering exceptional products and meeting customer expectations.
Company Summary
Hart Fraeme Gallery is a new art gallery and custom frame shop, serving Triopolis. It offers same-day and 11-day framing, in contrast with the industry-standard 21-day framing.
2.1 Company Ownership
Hart Fraeme Gallery is an S-Corporation owned and operated by Hart G. Fraeme. Hart, 27 years old, holds a B.A. in Mathematics and Spanish from the University of St. Thomas in Pleasantville. He has three years’ experience as a senior manager for Metropolitan Art and Frame, overseeing business operations, designing and building frames, ordering artwork and materials, establishing trade relationships, designing advertising materials, and managing human resources, including employee training, review, and recruitment. He also has experience in sales and service industries, including retail and construction environments.
2.2 Start-up Summary
The start-up costs for this company can be broken into five major categories:
- Framing Equipment – Much of the necessary equipment for framing, such as saws, mat cutters, underpinners, choppers, and presses, requires supporting equipment like vacuums, air compressors, and computers. There are also many hand tools that add up to significant expenses. The total cost for the required equipment by a modern frame shop is estimated in the table below.
- Retail Equipment and Fixtures – Expenses such as cash registers, computers, bookkeeping software, desks, filing cabinets, and break room furnishings, as well as other fixtures and furniture, are shown below.
- Inventory – The company must purchase a significant amount of artwork, some of which will be framed and some of which will not. Materials must also be purchased for the artwork that will be framed.
- Working Capital – Working capital will be needed for day-to-day operations, including payroll and various other expenses.
- Other – The business will also require additional cash to cover costs like legal expenses, remodeling, advertising, rent, and creating a website.
Start-up
Requirements
Start-up Expenses
Legal – $1,000
Stationery etc. – $500
Insurance – $1,000
Rent – $4,000
Computer – $4,000
Advertising – $4,000
Remodeling and Signage – $5,000
Total Start-up Expenses – $19,500
Start-up Assets
Cash Required – $15,000
Start-up Inventory – $23,000
Other Current Assets – $3,500
Long-term Assets – $39,000
Total Assets – $80,500
Total Requirements – $100,000
Products and Services
Hart Fraeme Gallery focuses on art and framing. The business designs and builds custom picture frames, as well as sells framed and unframed art from various artists and publishers.
Picture frames involve elements like moulding, matboard, and glass. Custom framing allows customers to select individual elements to create a frame that matches their tastes. There is a wide variety of materials available from manufacturers and distributors.
Artwork comes in different styles, mediums, and surfaces, such as landscape, abstract, portraiture, oil on canvas, and acrylic on Masonite. Print art is created through various methods, including lithograph, giclée, serigraph, and others. Art is available to the trade from individual artists, local and national publishers, and others.
Market Analysis Summary
The art and frame business is challenging and interesting. Framed art commands a significant portion of the wall décor market, with approximately 70% of wall décor items being framed pictures. Other wall décor alternatives include decorative shelving, handicrafts, mirrors, tapestries, and sconces.
Who Buys Art
In 2003, 44% of American households made art purchases. These purchases can be categorized into four types: Unframed Art, Pre-Framed Art, Custom Framing, and Original Artwork.
Key Demographic Information for Unframed Art:
– Consumers aged 35-54 make multiple purchases, while younger buyers aged 18-24 make singular purchases.
– Older consumers, aged 55+, spend 20% less than younger counterparts.
– Buyers in metro urban and suburban areas spend more than those in rural areas.
– College graduates spend an average of $83 per piece, compared to $31 spent by high-school incompletes.
– Buyers in the $50,000+ income bracket spend 20% more on average.
Key Demographic Information for Pre-Framed Art:
– Younger buyers purchase more pre-framed art. 16% of those aged 25-34 bought five or more pieces last year, while only 4% of those 35-54 reported the same level of purchases.
– Men spend more on average than women. 37% of women spend less than $25, compared to 21% of males.
– Urban and suburban areas spend more (30% more) than rural areas.
– Single-person households purchase 30% more pre-framed art than multi-person households.
Key Demographic Information for Custom Framing:
– Higher-income and higher-educated households purchase and spend more on custom framing.
– Buyers with children tend to spend more than those without. 20% of those with children spent $200-$300, while only 12% of those without children spent the same.
Key Demographic Information for Original Artwork:
– Men spend more on average than women, with an average of $320 spent by men compared to $250 spent by women.
– Consumers with higher income levels tend to spend more on original artwork.
What Types of Art Do People Buy
Artwork falls into categories like Abstract, Birds & Waterfowl, Camouflage, Domestic Animals, Fantasy & Humor, Floral, Landscape, Maritime, Military & Aviation, Music & Dance, Portraiture & Romance, Religious, Sports, Still Life, Western, and Wildlife. These categories fluctuate in popularity based on season, décor trends, geography, popularity of specific artists, etc.
The Midwest has shifted away from wildlife art towards more contemporary subjects like portraiture & romance, fantasy & humor, and landscape. Art depicting fine wines and spirits has also become popular, particularly with higher-income customers in the 25-44 age range.
Frame design is important to customers. Today’s consumers, especially those who are more affluent and better educated, value high-quality and unique merchandise. Custom products tailored to the customer’s preferences play a significant role in the purchasing decision.
Advancements in conservation framing have led to collectible artwork that looks new despite outdated frames. As décor styles change, frames are being replaced to reflect current trends.
Market Segmentation
Hart Fraeme Gallery serves three types of customers:
1. Local Consumers – Mostly interested in decorating their home or office, making up the majority of the customer base.
2. Internet Consumers – Worldwide customers who use the internet to make art purchases, mainly buying unframed art.
3. Local Businesses & Organizations – Interested in framed art for large areas or production framing, making larger purchases.
Market Analysis
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