COLLECTORS EDITIONS: CHANGING OF THE GUARD continued
Business Philosophy
The thrust of the company, through its Fine Art program, is to hold firm to the principal of offering its dealers a program of hand-signed graphics supported by originals. “We are distancing ourselves from the home décor market,” Mr. Young observes. “There are so many artists and only so many walls, therefore we are concentrating our efforts on being more ‘special’ and doing justice to our artists and our galleries,” adds Mr. Dickson. Artists it exclusively represents are: Andrew, Avtandil, Brian Davis, Peter and Harrison Ellenshaw, Michael and Inessa Garmash; Tim Rogerson, Sabzi, Schim Schimmel, Eugene Segal, Irene Sheri, and Svetlana Valueva. A coup for the company is that Rogerson has been selected as an official artist for the Winter Olympics 2006.

"Domestically, I think as long as we continue to provide unique, high quality co-operative prints with the artists, our market will gain strength," says Mr. Young. "I believe doing low editions and giving attention to detail is the way to go for the product-and customer service will be king. The easier we make it for galleries to do business with us the better."

To enhance its position, the company has evolved into a “one-stop-shop,” almost a turn key operation, for galleries by offering most genres of art, supported by marketing materials and advertising programs. Janet Smith was appointed Director of Gallery Services in September, and a new position of customer service representative has been established.

Collectors recently invested in producing a stylish 30-page brochure in a limited edition of 175, featuring all of its fine art programs for galleries to use as a sales tool—and it plans more of them. On the marketing front, it encourages galleries to participate in co-op ads in such consumer magazines as Western Interiors & Design, California Homes, and Florida Design. A co-op ad in House & Garden and also in Ritz Carlton Magazine, the latter with a circulation of 880,000, in December and more co-op advertising is planned during 2006.


"Harbor View" by Eugene Segal, a giclée in an edition of 95, a 30 x 20 image, embellished with a palette knife retailing for $795. SOLD OUT within weeks of its fall 2005 release.
“We are looking to grow productively with good galleries in which we invest time, effort, and money,” says Mr. Young. “You have to have the galleries doing well. It is all about partnership. We are trying to listen to the ‘positive and negative’ and get behind each gallery individually.”

It is also about trying to be different. For instance, when the Garmashes did a show at The Art Shop in Greensboro, NC, and LaMantia Gallery, Northport, NY, they arrived three days prior to the opening night of each show to do plein air painting in the area so the galleries could offer local scenes—giving them a great promotional opportunity for the event. Collectors is considering publishing exclusive print editions for such galleries.

A gallery can sell anything they want to sell, believes Mr. Young. Good galleries can get their collectors involved in an artist,” he adds. “A gallery can sell if they believe in the art—and we can sell to galleries if we believe in our product. That is the best scenario, when we all support each other. It is the approach that is key.”

The Partnership
Both in their early forties, Mr. Young and Mr. Dickson compliment well each other’s skills. “Michael handles the front end of the business and I do the back end,” says Mr. Dickson, referring to his role as masterprinter of Eclipse Workshop.

Mr. Young, who joined Collectors Editions early in 2004 as General Manager and later CEO, was formerly director of Disney Art Classics at the Walt Disney Company. Two years earlier, Collectors Editions had begun publishing Disney Fine Art, and the connection was made. Mr. Dickson came to Collectors Editions in 1998 when the company acquired Eclipse Workshop. In fact, Mr. Dickson was making the prints that Mr. Young was selling for the Walt Disney Company!

The synergy of the two is harnessed in their goals for Collectors—to offer the finest prints to their gallery customers with exemplary service. “This is not corporate America, but we have to provide service as if we were Nordstrom. We have to stand behind our staff and our art,” says Mr. Young. Mr. Dickson concurs, saying, “As the market gets more difficult and competitive, you have to do that.”


"Poetic Journey" by Sabzi, is a hand-embellished giclée on canvas, edition of 95, a 60 x 36 image, retailing for $1,750. Available now.
Corporate Structure
The company, with 44 employees, operates out of a 30,000-square-foot facility housing administrative offices, warehousing, and the print atelier. Collectors Editions’ business comprises:

• Fine Art program for the U.S. market. Active account base is 150 galleries of which the 35 or so highest performers are known as Platinum Galleries.

• The Disney Fine Art program of prints sold into Disney theme park galleries, on Disney cruise ships, and in Japan, as well as in domestic galleries.

• Eclipse Workshop printing for outside accounts, as well as for Collectors.

Domestic business generates 70% of revenues while international, predominantly Japan, remains important, accounting for 30% of revenues.

Of the Disney Fine Art program, he says it has grown, but not so much in fine art galleries as in other venues, such as Disney Land, Disney World, and internationally. Steve Wetzel, formerly director of the program, has relocated from California to Allen, TX, as sales manager, responsible for infusing Disney Fine Art into gallery accounts.

In Japan, Collectors Editions has three key distributors for various portfolios of its business.

Market Insights
As the market has tightened, Mr. Dickson sees it going higher-end, with demand for prints that are closer to an original—a collaboration between artist and printmaker. “It is about being faithful to the artist, giving integrity to the print—not just cookie-cutter printing. The danger that the industry is falling into, as I see it, is that there is a certain sameness with prints.” This, he believes, is a disservice to the artist, the buyer, and the industry itself. “As technology gets better, you have to work harder,” he observes. “But it is difficult, because you look at the economics and it is expensive to treat each piece in the edition individually. You have to be careful that it doesn’t take two hours to make each print.”

Eclipse Workshop prints giclées, serigraphs, and mixed media prints. It operates three serigraphy presses and four large-format and seven medium-format digital printers. About 70% of its production is for Collectors Editions, 30% for outside clients.

Research and Development is extensive. To make prints economically viable, it is necessary to not exceed a certain length of time in the making of each one. Sometimes, the company will launch an artist’s print program prior to profitability being achieved—to establish a market. An artist such as Segal, who works with a palette knife, represents such a challenge.

Artists
Many of Collectors’ stable of 11 published artists in its Fine Art program are from the former Soviet Union. Andrew, who lives in St. Petersburg, is the most recent addition. His first releases are being launched this month. Segal is from the Ukraine while Sheri and the Garmash husband-and-wife team are also from St. Petersburg, as is Pavlov. Avtandil is from Georgia and Valueva from Moscow.

Some of Collectors’ artists, namely father and son Peter and Harrison Ellenshaw, as well as Rogerson, also create Disney Fine Art. Those with the company from earlier days are Schimmel, whose work is primarily sold into Japan, where it has been popular for close to two decades, and Sabzi.

Recently, Mr. Young and Mr. Dickson visited the studios of their artists working in St. Petersburg. The purpose was to better understand how they work—their creative process—and to make a documentary video for galleries in the U.S. to help consultants better sell their artwork. A further reason for the visit was for Mr. Dickson to understand how each artist creates their originals in order for him to better reproduce them as prints. “I want to make the print in a similar way to that in which the artist made the original so that the reproduction process mimics the process the artist goes through,” he says.

“I think it is important in digital printing to have a concept in mind.” For instance, Segal begins his paintings with a painterly, textured base and, later, adds highlights. Mr. Dickson makes prints for this artist in a similar fashion.

These artists make frequent trips to the U.S. to embellish and sign their prints, as well as to collaborate with Tim on the making of their graphics. While in the U.S. they also attend gallery shows of their work.

Mr. Young is proud of the fact that Collectors Editions frequently ship prints to its artists in their home countries around the world for color proofing and signing. “It is no easy feat to send prints to Segal in the Ukraine,” he notes. “But we believe our artists must be fully a part of the process.”

To help galleries understand the making of these prints and thereby sell through, Collectors Editions invites dealers to participate in presentations either at its headquarters in Canoga Park or in the gallery prior to a show being held.

“You always think galleries know how to sell giclées,” says Mr. Young. “But we had a group of Japanese here last month and it was most valuable from a business point of view when they met with Tim and he showed them what we do. That translates into sales training for the sales staff in Japan—and they can communicate what they learn of the printing process to the customer.”

More recently, a group of galleries attended a reception for Sheri at the company headquarters. They were taken on a tour of the facility, and given an overview in the print studio of how her prints are made.

Similarly, the culture of the company has softened, become more open, as is more typical of business in general today. On Fridays, there’s a staff barbecue lunch organized on a rotating basis by the various departments. Everyone gathers, and a mini townhall is held for questions and overview. Individual achievements are acknowledged.

“It is important,” says Mr. Young, “that everyone in the company, from the separator to the archiver, knows where the company is going and how we intend to get there.”

To reach Collectors Editions, telephone (800) 736-0001 or visit the company’s website located at: www.collectorseditions.com.