Small businesses find creative ways to survive
By B.C. Manion
The recession reveals itself in all sorts of ways.
In vacant storefronts.
In subdivisions with roads and streetlights and rows of weed-choked lots where the houses were supposed to go.
In “for sale” signs in front of houses. In “for rent” signs plastered on windows in deserted strip centers.
The effects of the housing bust and double-digit unemployment are undeniable, but businesses are being creative as they ride out the tough economy.
They are cutting operating costs, reducing inventory, retooling their business plan and paying close attention to be sure they offer goods or services that are relevant to today’s customers.
At John’s Butcher Shop, 101 First Ave. S.W. in Lutz, the owners make sure there’s plenty of less expensive cuts in the butcher case.
They want to be sure they can accommodate patrons who are living on tight budgets.
“A lot of people we know — that have been with companies, 20, 30 years, have lost their jobs,” said James Smith, who owns the shop along with Donny Duncan and Mike Lacy.
The trio can empathize. Their business has suffered because of the economy, and they’re doing all that they can to reduce their costs.
When they’re not at the shop, the lights and water heater goes off, and the thermostat on the air conditioner goes up a few degrees.
They’ve also eliminated the long-distance service on their landline. They can use their cellphones if they need to.
They’re also stocking less inventory than they used to, and they’re taking pay cuts — or no pay at all — when they have to.
“We’re just hanging in there,” Smith said.
Judy Riley, who runs “Judy’s Boutique & Consignment” at 38424 Fifth Ave. in downtown Zephyrhills, is using numerous survival tactics.
“I changed my hours,” Riley said. “I used to have what they call summer hours, 11-4, now I’m here 9:30 to 5,” she said. “If people come here at 5, I’m still open. If I’m here, I’m open. If I’m here doing outside work, I’m open.”
Rather than cutting inventory, she added items she hopes will help attract customers.
“We’re trying to get new things in here to get people to come in,” Riley said, noting she’s added greeting cards and expanded her selection of scented candles, belts, jewelry, hats, purses and other accessories to her boutique and consignment shop.
She’s also using creative marketing to get the word out about her shop.
“We started doing fashion shows in the mobile home parks and makeup shows in the mobile home parks,” said Riley, who gets some help from Joe Rocheleau, who plays master of ceremonies at the shows.
Riley loans out the clothing for the fashion shows, which brings the models in at least twice: once to select their outfits and a second time, to return them. Of course, she’s hoping that they’ll find an item or two they can’t resist, and that the shows will entice others from their mobile home parks to shop there, too.
The fashion shows are fun, said Riley, who hopes to offer more of them next year, when the winter residents return.
Rocheleau also helps reduce Riley reduce her expenses by taking on various odd jobs at the shop.
The economy has been tough, Riley said, but she added: “We’re trying everything we can.”
It seems that nearly every business is feeling some effect from the economy, even those who make awards for a living.
“Leagues used to spend $2,000. Now they’re spending $1,000 to $1,500,” said Lonnie Piper, co-owner of A-OK Trophies in Land O’ Lakes.
“They’re downsizing. They’re going to medals or cheaper trophies,” she said.
Piper took over the business that was previously operated by her late parents, Al and Ida Silver.
She said she tries to work with customers to find a solution in their price range, but she isn’t always able to make that happen.
“I’ve pulled the old records,” Piper said. Some customers coming in today want to order the same number or more trophies than they did in the past and they want to pay the same amount or less than they previously paid.
The math just doesn’t work out.
“We actually lost a league. We could not come down to the price he wanted,” Piper said.
The burst of the housing bubble caused some major retooling at Stone Saver, at 300 W. Lutz Lake Fern Road in Lutz.
When the company opened 10 years ago, it worked solely with builders. When the housing market was red hot, it expanded to open a retail operation, dealing directly with customers wanting custom floors and counters.
When the housing market crashed, though, the company had to regroup. It formed relationships with a stable of subcontractors to reinvent itself as a full-service remodeling company, said Sharon Cantrell, who co-owns Stone Saver with her stepfather, Jim Martin.
Customers used to come in wanting a new countertop or floor, she said. Now, they want walls moved.
“A lot of seniors are coming in. They’ve had their house for 25 or 30 years. It’s almost paid for, or is paid for, and they’re ready to finally enjoy it. They like to cook. They like to entertain,” Cantrell said. They want entirely new kitchens, she said.
“I’ve ripped out more pink counters than I can tell you,” Cantrell said.
The low volume of new construction has also forced Stone Saver to reduce its inventory.
When the housing market was booming, the company could order a slab or marble in just about any color and know that it would be able to quickly find a use for it, Cantrell said.
“We were doing models. We were doing design work for builders,” she explained, so finding a use for remnant pieces was never a problem.
That’s no longer the case, she said.
“Now, you’re losing,” Cantrell said. “You have dead stock sitting there.”
Like many companies, the economy forced Stone Saver to scale back its work force. At one point, it had six employees; now, it has three.
In the past, many customers were more concerned about getting precisely what they wanted, regardless of the cost, Cantrell said.
That’s changed.
Customers still have definite desires, but now they want to spend less to achieve them, said Chelsea Russell, the showroom manager.
The company tries to find a way to please the customer, while remaining within budget, Russell said.
“We’ll hold customers’ hands through the whole thing. We’ll go to their house and recommend colors.”
The key to surviving these tough times is to be flexible and customer-focused, Cantrell said.
“It’s really above and beyond customer service,” Cantrell said.
“Most people these days, that we find, are actually working 5-7 days a week, the husband and the wife.
“They have no problem saying, ‘We work until 5. We’ve got dinner. Can you come at 8?’
“So, we’re loading up cars (with samples), going, ‘OK, we’ll be there.’ ”
