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Some Southwest Florida businesses thriving despite slacking economy
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New to You Consignment store
Some businesses are doing fairly well during these economic hard times such as the New to You Consignment shop in Naples.
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Business may not be booming in Naples, but it’s not a total bust either.
Although Naples business owners are reluctant to say business is good, some say it isn’t as bad as they thought it would be; in some cases, it’s even better than last year.
For all the for-lease signs in the city’s retail spaces, there are enterprises – from resale shops to mechanics – that are coming out ahead despite economic turbulence.
Naples business Source One Credit Repair is — perhaps predictably — seeing an increase in clients, so much so that three people have been hired since this spring.
That’s a big step up for a business that until then employed two people, but necessary for the fee-based service to keep up with demand.
Source One manager Samantha Canty said that three years ago, the company would get 30 to 50 clients a year.
Now, 75 to 100 people enter the doors of the Naples office every month looking to restore their credit.
She estimates that 60 percent of clients come in with foreclosure issues. The rest are looking to fix credit card problems.
“But usually these go hand-in-hand. When your house is going, credit cards are the last thing they are thinking about, so they let it get bad,” Canty said.
Shopping isn’t a priority for people in financial distress, but selling belongings that are no longer needed or wanted can be a quick cash solution.
Junior Torres, branch manager for the Bonita Springs and Naples offices of online sales facilitator iSold It, a national chain, said business has been better than usual.
For a fee, iSold It provides a way for people to make money by selling items online.
“I don’t want to say it’s just the economy, because we’ve been advertising a lot, too. But summers are the slowest season for everyone, and with that said, the last month or so, the traffic has been unbelievable,” Torres said from the Bonita Springs location.
The No. 1 reason customers share with Torres for bringing in items to sell online isn’t foreclosure, however. It’s divorce.
But linking an economic downturn to heightened divorce rates is largely speculative. While some couples split over financial issues, others postpone separating to save money on rent and attorneys’ fees. Consignment shops are another resale resource, and one local owner reports a mix of ups and downs during the past six months.
“People are really looking for places to bring their things. They like the concept of ‘I have them, I can’t use them, I go up or down in size, and I can get a little money for it,’ ” said Gerry Nichols, owner of New to You, a consignment boutique in Naples that deals in second-hand furniture and women’s apparel.
Clothing sales are on par with previous years, she said, but furniture flies out the door now.
“There are good values in the real estate market, so a number of people are saying that they are purchasing a second home — usually a condo — and that’s primarily the market we serve,” Nichols said.
But there’s no hauling the out-of-tune, never-used guitar, the worn-once designer wedding dress, and the untouched golf clubs the grandchildren bought you to resale shops without a car.
So Naples auto shops are getting a boost from clients looking to maximize their vehicles’ fuel efficiency.
Chet Singh, owner of Chet’s Courtesy Auto in Naples, reports that while car owners are putting off non-critical repairs, more are coming into the maintenance and repair shop for little procedures that can make a difference at the pump, like replacing air filters and keeping tire pressure up.
He notes about a 5 percent increase in business since last year, largely derived from those small tuneups.
“I don’t want to say (the shop) is recession-proof, but we’re staying busy,” Singh said.
Chet’s, known for the bevy of vintage cars parked in front of the gas station along the west side of U.S. 41, also relies on the owners of those cars for revenue.
“Those are the type of people still fixing their vehicles,” Singh said.
To stimulate sales at the pump, he also is exploring offering lower gas prices if customers pay cash, but hasn’t done so yet.
In response to the wallet-draining trips to gas up, one Naples businessman has an influx of customers who want to trade in four wheels for two.
Al Goenner, manager of Western Bike, left the real estate appraisal industry “when the market tanked” and got in on the family business of bike service, rental and repair.
“This summer it’s slowed, but not as bad as previous years. A lot of people are coming in to fix bikes that have been sitting for six or eight years,” he said.
The flurry of foreclosures in Southwest Florida prods some residents to pack up and move out; fortunately for companies in the moving business, even in bad times, people need to haul their belongings.
Peluso Movers owner Adam Johnson said business is staying steady.
The company got off to a slow start early in the year, picked up in the spring and early summer as schools let out, and tapered off again in July.
But the big change in the past year has been which direction the moving vans take.
As an agent for United Van Lines, the company keeps tabs on statewide numbers, and Johnson reports that for every customer moving to Florida, three head out of state.
“Florida used to be an inbound state. … Now we see half a page (of trucks) coming in every day, and three pages of them going out,” Johnson said.
He also notes that last year people moving from Naples headed to Tennessee, Georgia and the Carolinas; customers this year are destined for their hometowns — in the Northeast, New York, Massachusetts, Texas and Arizona.
The majority of Neapolitans are sticking around through the tumult, but many find themselves frantic for work — either in the form of a second job, or to replace a lost one.
As job seekers turn to temp agencies, and businesses outsource staffing services to trim human resources departments, staffing companies are scrambling to cover their bases.
Tary Kettle, president of hospitality and club staffing firm MasterLink, said that despite the economic crunch, the company has had 8 percent revenue growth in the past 12 months.
One reason is that businesses, by outsourcing staffing, can eliminate the cost of back office and human resources support; paying a service to do this can be more cost-effective than handling HR processes independently.
“It’s totally reversed from two-and-a-half, three years ago when there weren’t enough people in the work force to fill,” Kettle said.
Gary Grant, Naples branch manager for staffing agency Select Staffing, also has noted an increase in business as companies lay off employees and encourage them to register with the firm.
The goal is to find the laid-off workers temporary work until the company can hire them again.
“We’re seeing about five times as many job seekers (a month) as a year ago,” estimates Grant, which is an average of 20 calls a day.
“Almost every conversation starts: ‘I was just laid off’…” he adds, noting that the majority of job seekers are looking for clerical, construction and light industrial work.
When Michael Hilton, one of the owners of Naples-based William C. Huff Moving and Storage Co., felt an economic downturn coming on two years ago, he rethought his business’s target market.
Hilton downsized from a staff of 15 to 10 and aggressively networked and marketed services to higher-income clients, hoping to ride out the economic storm with a more secure customer portfolio.
The move worked, and has kept the business in the black despite a slowdown in home sales.
Much of its business now relies on clients moving from multimillion-dollar homes to lower-priced multimillion-dollar homes, as well as moving items into storage while clients are remodeling.
“In the past six months, the dollar average per move is way up — about a 25 percent increase on the average cost per move. So although the volume of moves is down, we’re getting a higher profit margin on each move. We’re holding our own,” Hilton said.
His five trucks and 10 staff members will be working overtime through July to keep up with demand.
But the nature of the industry is that people only book about a month in advance, so Hilton is unsure what August holds for revenues.
Like every business, he cannot foresee just where the market will take them.
“Companies are going to get weeded out,” Hilton said of the economic slump.
“The strong will survive. If the marketing is appropriate and they are doing good business, they are going to be around.”
Comments
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economics 101- you cannot do business with people who do not have any money; plain and simple!
#1 Posted by sancho on July 14, 2008 at 12:41 a.m. (Suggest removal)
Sunshinelover: you are totally wrong. It isn't illegal immigration. The immigrants are not stupid, in fact they are very smart. They know what a job and/or position is worth and do not work for cheap labor like everyone believes.
For construction work they get about $15 an hour. That is what the job is worth. Dishwashers in the local restaurants get around $10 an hour. Also, that is what the job is worth. We do not deserve more than that just because we are americans. It isn't about who "WE" are, it is about "WHAT THE JOB YOU ARE DOING IS WORTH". In retail stores, the average cashier gets around $10 an hour. Servers in Restaurants get in Florida, $3.77 an hour, plus tips, but the paycheck is usually $0 because the taxes are taken out, and the taxes eat the paycheck. They depend 100% on tips, and the normal tip for regular/normal service is 18% to 20%. If the service is better than normal to exceptional the tip should be 25% to 30% or more. but a tip should never ever be less than 18% unless the service was bad and then there should be a complaint to the manager and no tip should be given.
The moral of the story: We are not worth more money just because we are americans and born in america! Everyone should be paid for what the job is worth, not what one believes they are worth. I have hired many white americans in restuarants to work as cooks and dishwashers. They last about 3 to 5 days. They tell me the job is too hard and they need more than $10.00 an hour! well sorry, but being a dishwasher is not worth more than $10 an hour, and a cook no more than $13. There are plenty of jobs out there for everyone, no who you are. No one is taking any jobs away from anyone. If your not working, it is because you are lazy and just don't want to work! plain and simple! get a job at mcdonalds, burger king, wherever. A job is a job, and $9 an hour is better than $0 an hour!
#2 Posted by catchme69 on July 14, 2008 at 8:34 a.m. (Suggest removal)
You are so right #4! A friend owned a shop and had to pay a bunch of prima donnas $15 an hour and they were basically worthless the minute he walked out the door. On top of that they gave away stock to friends!!
#3 Posted by oilcansam on July 14, 2008 at 9:24 a.m. (Suggest removal)
Catchme69, I also wholeheartedly agree with you. Why do some people have the expectation that they should be paid more than others to do the same job? Because I'm white I should be paid $12 an hour to wash dishes and then do a crappy job only to quit a week later. Uh uh, I don't think so. Some people are really too proud of themselves and believe that their work is worth alot more than what the economy can handle. Hey if you can't make ends meet get a second job and stop whining already. If you're a good worker, your boss will recognize it and give you a raise if you deserve it. People need to quit placing blame on others and recognize that the reason they're not getting paid more is because they may not be as good or as dedicated worker as the next guy. Plain and simple, college degrees have nothing to do with being a hard worker.
#4 Posted by levelheaded on July 14, 2008 at 9:54 a.m. (Suggest removal)
the people I know who have left naples did so because of the homeowners/business owners hurricane insurance mess or the dramatically down real estate/construction/restaurant markets...
We (our Washington "leaders" trot off to Vietnam, Iraq for profitering wars, and do little for American citizens in Katrina. Crooks screw up the mortage business, again thanks to Washington.
Florida and the hurricane states all need a regional hurricane disaster program like national flood insurance. Private insurance in no answer at all. All this abuse of the little guy is leading to severe problems that will eventually lead to a real revolution, and it won't be at the ballot box, as the ballot box only represents, in the final analysis, the financially elite and powerful. All history shows power has to be taken from the "royalty", they never give it up willingly.
#5 Posted by prometheus on July 14, 2008 at 11:10 a.m. (Suggest removal)
Naples used to be a boom town in the "season" and a ghost town in the summer. Everyone seems sooooooo shocked that this summer is even worse than this season. I remember when merchants actually saved for the summer because they knew the summer was going to be rough. If you can't remember what Naples was like 30 years ago, ask someone who does.
#6 Posted by nhsmom on July 14, 2008 at 11:34 a.m. (Suggest removal)
MikeinNaples: What happened to you is exactly what I said, if you recieve bad service then you should not leave a tip! I work in the restaurant industry. I agree with you 100%.
When a server takes your drink order, they are supposed to deliver non-alcoholic drinks within 3 minutes. 5 to 8 minutes for alcohol. When your food order is taken, depeneding on what you ordered, i.e..cold sandwich verse N.Y. strip, it should take between 12 and 18 minutes to arrive at your table. If the restaurant was really busy it may take a little longer. but her getting your order wrong is bad.
if the restaurant offers bread at every table, it should be served right after the order is taken. If they offer free refills on soda, they should be brought to you when your glass is half empty without you asking for one, or without the server asking if you want more. It should be brought to you automatically.
after you recieve your food, the server should ask you how everything tastes within 2 minutes or 2 bites. when delivering steak, they should ask you to cut into it upon presenting it to you, to make sure it is cooked to your desire, so if it isn't it can be fixed.
So, for this server, no she did not deserve a tip. but the servers that do give you normal/good service deserve 18 to 20%. I work as a server, and believe me, and there are many people that come out to eat and give well over 20% tip to their server. I just had the other night a single man, his bill was $9.00 he left me a $10.00 tip.. It isn't always about the percentage. it is how I treated the guest. I have been serving for 17 years now, and I know how to take care of the guest.
Also, it isn't the person that deserves a wage of $20.00 hour and only gets $15.00. The job is probably only worth $15, but because the person is american he probably believes he deserves $20. that is the problem with america today. We believe that we are worth more.
People aren't going to move where rent is lower, because that area, town, city, state no longer is around. Anywhere in Florida the average apartment for rent is around $1000. a month., go north, and the prices go up. Even Georgia, N.C. S.C. and Tennessee, the rents are rising. People just have to start being more active instead of lazy and work 2 jobs.
#7 Posted by catchme69 on July 14, 2008 at 2:19 p.m. (Suggest removal)
Ms. Macchi, you really need to check your info out before commenting. The Isoldit Franchise is almost completely closed down, and the few remaining stores are closing one by one. The concept DOES NOT WORK, even for your fellow florida source. His gross sales for the last three months is pitifull and will not pay the bills. This is typical of all the ebay drop off stores. Only two franchisors are left trying to sell these franchises, and both are in a losing battle. Read www.AmITheOnlyOne.org, or Franchise Pick, or Blu Mau Mau, regarding the horrors of this business. There is NO ONE making a consistant profit that can PROVE it in this failing business. A simple google search will show you the nightmares.
#8 Posted by AITOO on July 14, 2008 at 3:39 p.m. (Suggest removal)
Our animal trapping business is doing just fine. People still have critters that they don't want living in their premises.
The only change I've noticed is almost everybody - even with some of the really big businesses - is they've become Bill-Me-Later customers, which used to be only an occasional thing (maybe one out of ten customers asked to pay later).
And while we've gotten a couple of coyote jobs in the past few months, there are a LOT MORE people calling about coyote removal that keep "passing the buck" - responsibility for payment keeps moving back and forth. "Oh, we want it done, but THE ASSOCIATION will pay". The association will say, "Oh, we have to discuss it with the homeowner". Those communities unlike those who became our customers, well, unfortunately will have to keep their coyotes until they figure out what they want to do. Thankfully people with rodent or bee trouble don't play that game as much. But they still want to defer payment, sometimes a few weeks AFTER the job is completed, which we're not used to, but we're weathering it along with the economy.
The new shops at Wilson Plaza in Golden Gate Estates, now, THEY are thriving already. People outside Golden Gate Estates don't even know it exists, which is fine by us. The gym is hopping with activity, the supermarket is packed full, the hardware store has people coming and doing, the dollar store is doing great. Even with the economy as it is, there are things that people need to get or do or have done and are willing to pay for it. My website at http://free.naplesplus.us has had people asking me for jobs (its a one man website folks, believe it or not), the jobs page gets 150 hits a day ALONE (it's my most popular page this past two months), and people call my trapping business asking for work a few times a week, willing to do anything from data entry, to driving, to secretarial, to accounting, to heavy lifting.
I wish I could help these people. I feel so bad -- if I knew how to start up an employment agency, I'd do it in a heartbeat. I'd love to be able to play matchmater between employee and job opportunity. Ah well. But the economy will recover eventually.
Kenneth Udut
#9 Posted by simplify3 on July 22, 2008 at 7:33 p.m. (Suggest removal)
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