One of our most unique neighborhood businesses has embarked on a similarly unique journey to finance a new store in New York City – they’re asking their customers and supporters to fund it.
We got an email last week from the four ladies of Paul’s Hat Works, who operate a 100+ year old hat shop on Geary that is working to “bring the hat back” into fashion. They’ve been the subject of documentaries, feature some of the most interesting store windows in the neighborhood, and have been known to pop up on local TV every now and then.
In 2011, the shop expanded their business slightly by opening up a mini-store in The Hound (140 Sutter) in downtown San Francisco. Every Tuesday, one of the ladies that runs Paul’s Hat Works is stationed there to support the hat section of the shop.
But expanding to downtown San Francisco just isn’t enough. If you really want to “bring back the hat”, then expanding to the fashion capital of NYC is a must.
To make that happen, the team at Paul’s has embarked on a $25,000 fundraising effort, asking their friends, customers and supporters to help them reach their goal. They’ve got a special website up to take donations and track their progress. So far 11 donors have pitched in $720.
Donors do get something for their generosity. Depending on how much you donate, you could walk away with a mug, a t-shirt, a new handmade hat, a champagne tour of their Geary Street business, and if you’re a big spender, a night on the town with the four ladies of Paul’s.
When we first got the news of their endeavor, we were a little unsure of the soundness of the tactic of a for-profit business trying to raise funds for their own expansion. It’s definitely something you don’t see very often.
“Yes, it is very unorthodox, but that seems to be our middle name for some reason,” said Olivia, one of the owner’s of Paul’s Hat Works. “The reason we have to do it this way is because it would be probably 5-7 years before we could afford to think of doing it ourselves and we really need a big boost in order to keep up the energy to continue here.”
So, if you also believe it’s time for the hat to come back into style and you want to help a neighborhood business spread its wings, head over to the Paul’s Hat Works NY fundraising page to donate.
Sarah B.
Abbie Dwelle (left), Wendy Hawkins and Olivia Griffin of Paul’s Hat Works. Photo: Stephen Lam / The Chronicle
Wait…so we’re supposed to pay so they can expand to another city because they don’t have the energy to continue here? No.
Love the idea of smart women making stylish custom hats with the same tools that were used almost 100 years ago. BUT…I believe in voting for their success by purchasing their hats, not by “donating” it to them. They are a business, not a girl scout troop. Sorry if that is harsh! I think it would be great for you all to expand to NYC. But save your money and EARN your way there. What makes you think you will succeed there if you can’t save the gas money now in SF?
I love that they’re trying to make a go of it here in our neighborhood, and I’d love it even more if I could afford one of their hats. But the cheap (straw) ones are $250, and the non-straw fedoras, etc., are $600 — good prices for custom-made items, but not in my budget. I wish they carried less-expensive lines, even if they aren’t custom-made; then I would buy from them (I tried for a Christmas gift, but my budget was WAY below their prices).
Sheesh! Everything these days is “give me money.” Hell, give ME money!
@ C-Wow, I had no idea they were so expensive. I just recently purchased three Goorin Brothers hats from a sample sale at the warehouse for about $50 total! And they are nice hats, regularly priced around $30-100 each. I can’t imagine paying $250 for a hat. Good to know.
$600 for a hat? Are they nuts? I know that the fashion industry marks up their products by 600-800% so it makes sense but I would never pay $600 for a hat. Also, their funding methodology is quite suspect. Do I get an equity stake in the company if I donate say $1000 to their $25,000? I should be in for something but it doesn’t seem like they’re doing that. If they are really serious about this then they need to get investors and offer equity shares in their company rather than just a “donation”.
It seems to me that they need to sell some more $600 hats to make this happen or it shouldn’t happen at all. One last comment, most businesses don’t expand until they have some sort of critical mass where there is a need for expansion. Do they really need to expand to NYC? I know it’s the fashion capital of America but until they have the critical mass (and investor cash) needed to expand I think it’s a fools errand to do this.
I’m guessing they will not be sticking around our neighborhood after they open in NY. They are much better suited to Manhattan anyway. People in NY city have a lot more money to spend on hats than Richmond district residents. As we all know, we can barely get our residents to pay REGULAR prices for things let a long premium prices. 🙂
Don’t get me wrong – I like hats and I like Paul’s. Their hats are beautiful and very high quality. They are expensive but you are also getting a lot more for your money than a $50 Goorin Brother’s hat. These are custom made, custom fitted, vintage hats – they’re pretty amazing. But yeah, super expensive.
But why would I donate money to a business that will most likely use the money to leave my neighborhood?
And also – why donate at all? Why are they not offering equity?
And can’t they get a small business loan?
Thank you Kayvaan. My thoughts exactly on the equity and small business loan ideas. And you’re right, I’m sure they’ll move the whole thing to NY eventually. I’m sure there a few of the ladies running the store wanted to move to NY so why not have us dolts pay for their adventure?
Howdy Folks. Lots of thought provoking comments so far. I want to take the time to explain a few things. First of all, we will never fully move our operation to New York City. We will always have our storefront in the Richmond District on this block because it’s been here for the last 93 years. Manufacturing will always be done in our home in San Francisco. We do hope to someday down the line open a store abroad in Europe, you gotta dream big and take risks to make the impossible possible.
Secondly, as far as our price points are concerned, when we took over the shop in 2009 the lowest price point you could pay for a hat was $500. Now we have spread that out and offer straw hats for as low as $200. We are not Goorin Brothers. Our target market is different than theirs. Our aim is to design and make a product that can be worn daily for the rest of your life and passed on to the next generation. Something that can be fixed instead of thrown away. Knowing our price points for 100% beaver fur felt custom fedoras are high, we expanded to offer a refurbished line of felt hats for $150-$200 in 2010. We also clean and block hats for incredibly reasonable prices, not inflating prices even though we are the only ones that do it in the state, and one of few places that do it in the world.
Finally, we are doing well here, but we need to take a risk so we can make a reasonable amount of money in order to keep up with the demand for hats. Thus far we have done this project without any “free” money. Oh how we wish we could fund our own way in this project, but we are humbly asking for help. If you do not like our store, us, or our product, if you think we are not a good addition to the neighborhood, or wouldn’t be a good addition to New York City, than by all means do not donate to us. But please, next time you pass judgement, take the time to do your research, take the time to ask us questions, and don’t demonize people who believe in what we are doing, in preserving a craft, and a store full of history, and who happily and heartily will do what they can to support us, as we do with our community and friends in turn.
~ Paul
Olivia, thank you for answering many questions we have. The question I still have is why aren’t you offering some sort of equity share for investing in your business? Obviously under a certain amount wouldn’t be beneficial for you guys to keep track of but if someone donated say $1000 to the cause then I would presume that they are entitled to some sort of benefit for investing in your business. At least make up for what they invested within a year or so, no?
Paul,
Like your name by the way, we don’t expect anyone to donate above the $1000 mark first of all. Also, the perk for donating $1000 is a custom made beaver felt hat, the value of which can be anywhere between $650-$900 depending on what is designed and decided upon. The perk is the incentive to donate as well as the fact that we will be creating an installation of appreciation and thanks for everyone who has contributed or helped out to get us over to NY. The concept of setting up an equity share for investment is definitely a good idea, one that we thought about but rejected at this time, but will surely be considered again for future expansion.
My question is did they check with an accountant before holding their hats out for a “donation?” I’m sorry but I’m pretty sure Uncle Sam would want his share in the “donations” since they are not a non-profit. This is way different than a school candy sale or selling lemonade from your sidewalk. I am pretty sure there are tax ramifications (something that can balloon into an insurmountable financial liability) by going via the donation route as opposed to a small business loan with a bank or credit union.
I know for sure that I cannot itemize that donation into my income tax so I will forgo the request.
I’ve been patronizing Paul’s Hat Works since the late 70’s shortly after the last owner Michael Harris bought it. I could not afford the hats Michael made and coveted them for years. I took in the many solid Borsalinos, Stetsons and Dobbs I found in thrift stores and garage sales back then (yes, you could find such things at one time) and had them cleaned and blocked.
I was excited and truly happy when I heard the store was saved from the fate of extinction that so many San Francisco traditions have met over the years. After meeting and getting to know the new owners, and bringing in old hats for cleaning, and particularly after procuring a new fabulously beautiful beaver fedora, I can honestly say that a miracle has occurred on Geary at 26th. Anyone who thinks the “Paul’s” will be leaving the Richmond at any time, really does not know them. They are Richmond ladies.
Counter-intuitive as the following point would be to anyone in retail, having four owners is a great advantage and a smart business move for the Paul’s. For those of you who don’t now or have never owned a retail business, having four owners virtually insures penury unless there is expansion into more than one location. So, opening new locations while keeping the “Mother Ship” as it were, is the ticket.
As the lovely Olivia pointed out, anyone contributing to their NY fund will benefit with some type of cool swag: from a mug up to a valuable custom made hat. They are offering a night on the town with the 4 Paul’s as well. This prize is, in my estimation, priceless.
So many marvelous hand-made trade businesses have disappeared over the decades leaving our town, our country and the world at large a poorer place. The dedication, love and intelligence these women put into their product, their business and the Richmond community is priceless. Stop in some time even if you cannot afford a new hat and simply breath in the atmosphere of a genuine, ninety year old hand craft shop. The four Paul’s LOVE hats: this love is infectious. It is the very best America offers in the world of community based commerce. I support them in their move to expand to New York while knowing that Paul’s will always be rooted in the Richmond. And I’m saving my quarters for another fine hat.