Ann Arbor is in the midst of preparations for the annual Ann Arbor Art Fairs, an event that local businesses view as a priceless opportunity to market themselves to the roughly 400,000 people that descend upon the city for four days in mid-July.

Through years of trial and error, most downtown businesses have a strong plan in place to reach their target market and establish relationships with visiting fair goers that will go on long after the last artists close their booths on July 18.

Maura Thomson, executive director of Main Street Area Association, which runs the food court on Main Street and rents sidewalk space to vendors, has been involved with the art fair for more than a decade. She spoke with Laura Blodgett, a freelance writer for Ann Arbor Business Review.

Business Review: What are some of the ways businesses downtown take advantage of the fair?

Thomson: Businesses go one of two ways during Art Fair. Some take their current merchandise and deep discount it for the fair. They look at it as a way to sell out inventory to make room for new products for the upcoming holiday season. Then you have the people who really target the art fair audience. Retailers have noticed that price point is really important, so they look for items in the $30 and under range that are affordable to a wide variety of people that will be the "hot" item they will be able to sell in volume.

One retailer in particular will put something out for one day and, if it is not selling, he brings something else out to keep it fresh. Four Directions, which sells jewelry, stones and giftware, really thinks about who shops the fair--especially women.

Acme Mercantile every year does a garage sale clearance in their alley, and this year they also are debuting a new article called Canned Acme. What it is, I don't know, but it is designed to entice people.

How else are businesses targeting fairgoers?

Everyone has their own twist on it. The owner of Schakolad really focuses on bringing value to the artists themselves and offers deals to them as another market to tap. They are a captive market for four days and need to eat and take a break, so why not? Crazy Wisdom uses their sidewalk space to hold a psychic fair with tarot card, palm readings and onsite psychics. Only in Ann Arbor, right?

What type of business has an opportunity to fill a hole at the fair?

Comfortable dining. There's a lot of food at the fair, but if you want to relax and have air conditioning and bathrooms, sit down restaurants have that advantage at outdoor events. And they reach out to advertise.

In the past Conor O'Neill's has had people walking through the fair handing out fans with their menu on it and frequently you will see the huge "Mongo Man" from bd's Mongolian Barbecue walking through the fair.

Is Art Fair bad for downtown business due to traffic shutting down and other difficulties?

It's a balance. Every year you have restaurants and retailers that do really well and others who feel they lose their regular customers because many local people prefer not to get into the mix of people and traffic that week.

It can be a challenge but most businesses look at it as an opportunity and make the most of it.

Are you expecting a good turnout this year?

I know the Michigan Guild has completely filled all of its artists' slots. As far as the crowd goes, we're hopeful. Although the past few years may not have been quite as good as years past, most people are thinking we are riding out the storm and that it will be similar to last year.

This story was reported by freelance writer Laura Blodgett for Ann Arbor Business Review.