For every East Village business that’s opening or closing, dozens are quietly making it. Here’s one of them: Pink Olive.
Grace Kang spent her early career as a buyer for fashion retailers like Barneys, Bloomingdale’s, and Saks. “People thought I would open a fashion clothing store,” she said, “but I am into doing the unexpected.” Five years ago, she opened Pink Olive, a gift shop stocked with charming treasures at 439 East Ninth Street, between First Avenue and Avenue A. It did so well that she opened a second location in Park Slope. She told us how she’s managed to make it.
Why did you choose the East Village?
The East Village has always felt like home to me. It’s my favorite neighborhood because it is low-key and full of unexpected finds. That’s what Pink Olive is all about, too: character with hidden gems. The East Village has the kind of vibe I wanted for my store.
Hidden-gem type retail seems to be the kind of business that is surviving these days.
I’m a Cancer and my home is my haven. People come to New York and want to start a new life here. I want Pink Olive to be their second home, the way Starbucks can be people’s second home. I want people to replicate my store in the home.
How many designers are you working with?
On average I work with 50 designers. I mostly find my designers at trade shows, stationary shows, gift shows. Being in New York has made it a lot easier for this to happen for me. I don’t have to travel to shows, although I want to start traveling to some shows in Europe now.
Why do you think you’ve been able to survive five years and counting, plus opening up a second store in Park Slope, Brooklyn?
People aren’t spending as much, but they’re still spending and they spend on things that inspire them. We give a lot of one-on-one and we do special orders. We reward our customers with different programs, with great events for customers and for the community. Also, our window has been driving a lot of customers in. We continue to grow double digits and I think it is largely due to our strong merchandising assortment and display. People literally stop to look at the windows and come into the shop to experience what we are about. Even in January 2012 (which, January is usually one of the worst months of the year) we sold 78 percent more products than the previous year.
How has your rent changed over the last five years?
I was able to negotiate down 20 percent after two and a half years. This was a very unique arrangement. Before we had the negotiation it was a favorable lease with a five-year and option to renew. Now with some increase, we’re back at the original rent which is very doable. Having a landlord that really supports the business and wants me to make it helps so much.
Being a good negotiator is a great skill to have as a business owner.
Whether it’s utilities or overhead, I go back after a few years and negotiate. You don’t get what you don’t ask for. The worst you can get is a no. I challenge the system to come up with another number, from Verizon to my wireless phone bills. Once a year or once every other year [I try] to negotiate my bills. I also was able to switch my shop insurance which has helped me save thousands of dollars. I am always thinking of creative ways to save money and either switch companies or cut better deals if I don’t switch. Besides my rent, the biggest cost is the business with vendors. One way I alleviate that overhead is by doing consignment deals with my designers.
What your plan for the future?
I love being a hidden gem, but I definitely want more people to know about the shop. I’d love to open up a third location one day. I have an idea for a concept store, but it would require a bigger space and its something a few years down the road.
What advice do you have for small business owners?
Store owners tend to get bogged down with the day-to-day. They don’t pull themselves out to really think about their business in a bigger way. It’s almost always to the detriment of running a business. When I pulled myself out and hired a store manager and other talented people, I was able to go outside of the store and see it. I was able to meet people again. You have to be in that mindset to grow.
