An Internet business built on passion and place
Rachel Smith came home from Hollywood in 2002 to help her mother, Judith, during a busy July Fourth weekend at the Giving Tree Gallery and Sculpture Garden in East Sandwich. She never left.
As a result, this quaint and slightly eclectic seasonal gift store has transformed itself into an international e-commerce business that transcends hours of the day and earns nine times more revenue online than from customers visiting the Route 6A shop.
While the gallery’s doors are shut from January to May, three employees work by computer to receive and fulfill thousands of orders year-round – while Rachel often flies back to California to work with their Web designer to improve the site’s attractiveness and utility.
The mother-daughter team acknowledges that their Internet business – which boasts more than 60 jewelry artists and sculptors from across the country – could be located anywhere in the world in this new broadband age. Their commitment to Cape Cod, however, is embedded in a deep personal love of the place and a growing awareness that its name has international cache as a brand.
From arts patron to e-commerce leader
Judith Smith’s “paradise” arose from her love for sculpture. She started out in 1988 as a recent divorcee with a neglected piece of property. She intensively developed the land and its buildings. At the gallery’s opening, the work of only one artist was initially displayed – Barre Pinske, who was also Judith’s partner in creating the gardens. When Pinske left to open his own gallery, Judith was left without any artists, but local Cape artists like Alfie Glover and Steven Swain soon stepped in to fill the gallery and gardens.
Her four-acre property, facing expansive marshes, includes walking trails with a suspended bridge surrounded by reeds. At the front is a small, two-story gallery and a second building that serves as home.
The gallery’s merchandising mix changes constantly. Accessories and jewelry formerly co-existed on the gallery floor; but today, the entire entry level consists of jewelry displayed in cases. “We had to pare down the scale of our merchandise,” said Judith. “Every shelf has to have an optimum return.”
At the same time, the Smiths realized that no matter how attentive they are to the store itself, they could not survive with waning tourism on the Cape. “I can’t rely on cars driving down [Route] 6A to generate business,” said Judith.
With that reality so clear, Rachel has designed a Web strategy that includes sites for both jewelry and sculpture (www.givingtreejewelry.com and www.givingtreescuplture.com). Meanwhile, the mother-daughter team has reduced physical overhead wherever possible – including having Judith be the only salesperson at the gallery from September through Christmas.
“Judith has always been naïve in a fearless way,” said her daughter, who refers to her mother by first name. “Ironically, what she was making and selling 15 years ago now is in vogue from New York City to Japan. She did not make money then, but she was making a statement and pushing the envelope.”
Yet an envelope can stretch only so far without a healthy income stream and robust business plan. Both elements have come into clearer focus over the last year, the Smiths acknowledge.
“In many ways, our business is almost entirely new in the last 12 months,” said Rachel, who had been director Oliver Stone’s personal assistant before she decided to move to the Cape.
It’s never seemed awkward living and working with her mother, nor has she regretted abandoning the glitz of Hollywood for the serenity of Cape Cod, she explained. “I have never felt like I was working for my mother. The Web has been a separate business that I could really build.
“Hollywood happened by chance. I definitely became immersed in that world, but it inevitably became too busy for me. I liked the experience, but the Cape is perfect for me.”
Rachel can balance the Cape’s quiet with the excitement of frequent trips back to Los Angeles and to New York City, where she and Judith attend industry shows and galleries to discover and acquire jewelry and art.
At a time when so many Cape retailers are struggling with ever-increasing operating costs and changing customer patterns, especially among tourists, the Giving Tree experience is instructive – if not inspirational.
Uppermost was Rachel’s insistence that the gallery not remain open year-round. Customer traffic was too sparse to justify costs – from staffing to heat. Equally important was recognition of the Internet’s possibilities.
“Rachel really used her experience in Hollywood,” explained Judith. “She understood how to design an effective e-commerce site, and she had confidence that customers would trust technology to spend their money online.
“I really wanted to make changes and went along with Rachel. I wanted her to feel a part of the business. We were not making much money with the gallery alone, and almost immediately, the Web site kept progressing. We had to redesign our buildings to accommodate a warehouse for the inventory and to establish a fulfillment house with shipping and packaging,” said Judith.
Their partnership is working because it combines Judith’s artistic passion with Rachel’s technological and business sense. Neither could succeed alone. “Without Rachel, I would be the constant patron trying to make the world more beautiful,” laughed Judith.
As their jewelry business expanded exponentially online, the mother-daughter team also began to make other decisions. They dropped home accessories. Not only was there substantial competition on the Cape for these products, but they did not provide significant profit margins compared to jewelry – which can be marked up dramatically between artist to wholesaler to retailer.
Rachel is slightly more humble about her business skills, which are self-taught. She points to a decision last year that has proven as important to their success as the Web – finding a business mentor.
“We posted an ad on Craigslist – the free online classified site – seeking someone to consult and help us keep up with our online growth,” explained Rachel. “Ironically, while the ad circulated worldwide, we received a call from a very successful retired businessman now living in Sandwich.”
While the Smiths decline to specifically identify their consultant, he represents a another huge and growing resource for startups and micro-businesses on the Cape – former corporate executives and entrepreneurs moving here for quality of life, but wishing to stay very active in commerce.
“He has been a true miracle worker,” said Rachel. “We have learned more in three months [with him] than over the entire history of the Giving Tree,” she said. Their consultant, on retainer, has helped the Smiths with everything from budgeting and cutting expenses to establishing profit margins and business processes to accommodate a growing customer base. He even helped compose help-wanted ads as they expanded staff in the last year to three – all of whom support the e-commerce segment of the business.
It’s still about customer service
While the Web has become the Giving Tree’s primary revenue maker, the Smiths remain true to three overarching principles:
• The beauty of the physical gallery and sculpture garden is critical to their branding. Even if visitors don’t purchase at the gallery, they leave with a vibrant experience that could encourage online purchases in the dead of winter.
• Even online, customer service is paramount – especially in a field like jewelry, which is highly competitive. While some of their product line is unique, most can be purchased elsewhere, so creating close relationships with customers is critical.
• They must listen to and empower their own staff. This is not just good human resources, but it helps them stay abreast of consumer tastes. They even take their young Web site manager to shows in New York so she can share her enthusiasm for jewelry that speaks to the under-30 crowd.
Uppermost among those principles is attentiveness to the customer.
“Everybody who orders something from us gets a personal note thanking them,” explained Rachel. “We also keep them informed about what we have in stock and what may be out of stock.
“Jewelry is a very personal and emotional purchase. We try to learn what is behind the purchase. Is it a special gift for someone who is ill? If so, we end our own communication with warmest wishes for healing.”
They also understand that people are more willing to open up by e-mail than if they were visiting the store. “We have many customers who are overweight or disabled. They feel less vulnerable online,” said Rachel. “Sometimes, they send us gifts in response to our kindness.”
While becoming a worldwide presence, the Smiths still consider the Cape their heartbeat – both personally and professionally.
“We’re working hard to migrate our Cape customers to the Internet year-round,” said Rachel. But, more importantly, “people who order like the fact we are on Cape Cod. To many, it evokes lots of good memories to when they visited as children.
“In some cases, relationships online lead to decisions by customers to visit or vacation on the Cape and spend time in the Giving Tree’s sculpture garden, crossing the bridge to the marsh beyond.”
Originally published in the March/April 2007 issue of Cape Business.
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