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A sewing-machine business may not sound exciting. But revenue at the Stitching Post, a growing chain of stores based in Dayton, Ohio, would energize almost any­one. The reason: owner-operator Joe Fulmer’s action plan for grow­ing the company.

Fulmer has transformed the busi­ness since buying it from his father in 1986. Sixteen years ago, the com­pany brought in $200,000 in reve­nue, employed three people and op­erated out of a 2,000-square-foot store. Today, Fulmer runs 10 stores, in Dayton, Columbus and beyond, with a staff of 115 and annual sales of almost $12 million.

What turned things around? Fulm­er decided to do more than merely sell sewing machines. He turned the business into a gathering place where customers can learn and make new friends.

Sound corny? It might — if it weren’t so successful.

Fulmer sells Husqvarna Viking ma­chines as well as fabric bolts and ac­cessories. But he offers more, includ­ing 70 classes that can turn ordinary stitchers into full-tilt designers.

He’s transformed his business by targeting a new market. Operations like Fulmer’s used to cater to women who made their own clothes to save money. As the cul­ture became more affluent and women joined the work force, sew­ing shops started closing their doors. Those that survived had lim­ited markets.

Fulmer succeeded by targeting af­fluent women who find sewing a creative outlet. The key? Making them regular customers who up­grade to more expensive machines. That’s where the classes come in. Fulmer offers an irresistible deal: Buy a sewing machine and he’ throw in a free course on how to use it. Customers can also opt for paid classes that range from basic sewing to advanced tailoring.

The kicker? The more customers learn, the sooner they outgrow their existing machines and upgrade to higher-end equipment.

Fulmer offers an added incentive to “buy up.” If customers purchase machine and upgrade within a year he applies the cost of the existing machine toward the new one. If they buy a new machine within 90 days of having their old one repaired, he applies the repair cost to the purchase.

Machine attachments are a lucrative side market: One model come with $18,000 worth of options.

To help transform his stores into gathering places where customer come to visit, exchange advice —and, most important, buy— Fulmer holds eight to 10 coffee klatches a month. The accent isn’t on sewing per se, but on camaraderie. The re­sult? The steady ring of cash regis­ters punctuates conversation.

To further boost business, he’s in­creased his marketing budget by 20% a year. The bulk of his advertis­ing is in newspapers.

His strategy includes a partner­ship with Jo-Ann Fabrics & Crafts, Fulmer said in a recent interview. Nine of his outlets are satellites inside Jo-Ann stores. Jo-Ann gets an 8% sales commission on every­thing Fulmer sells, and Fulmer gets additional customers without the cost of stand-alone sites.

Chain wide revenue has shot up al­most 50% since 1999, and Fulmer has become the largest Husqvarna Viking dealer in the world, selling more than 8,000 machines last year alone.

Cord Cooper