When inspirational gifts leader Peter Dunn says that he understands the challenges facing Christian retailers, he's not just making sympathetic small talk--he's talking from experience.

In addition to the long-standing factory store at his manufacturing headquarters in Dalton, Ohio, Dunn--a former gift market representative on the CBA board--oversees two successful outlets in Gatlinburg, Tenn., and others in Branson, Mo., and Walnut Creek, Ohio.

The years his Dalton woodcrafts company have been in the retail business have made him a better supplier, he believes, from knowing consumer tastes and trends better to developing creative display solutions for other stores and passing on what he has learned.

"Until you have walked in their shoes and become a retailer and found out how challenging it is, it's difficult to really identify," Dunn said. "We test products at retail. We find out what products to take to the market, and with those we have introduced and started selling, we find out that there are things that need to be done to enhance them."

Being hands-on in stores has also led the company to adjust its price point, with most items now available for less than $29.95. "Five years ago we would never have thought about that," Dunn said. "But as we began to run stores, we started recognizing the challenges that all the stores that we sell to were facing."

That awareness, along with improved manufacturing efficiencies, led the company to introduce a new pricing structure earlier this year. Independents can now secure up to 65% gross margin on qualifying orders.

"It's our economic stimulus plan," Dunn said. "We want to do what we can to empower them to work with the same kind of margins that the chains have worked with for years."

Read the complete Star Store profile in the June issue of Inspirational Gift Trends, a supplement to Christian Retailing magazine.

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