Businesses fight tough economy
April 6, 2009
By J.B. Wogan
Danielle Nyondo, a hair stylist at Salon Rebecca, laughs with Redmond resident Shay Hower during a hair cut. Photo by J.B. Wogan
Mike Bean, owner of Abby Carpet and Interiors, described the sort of situation all employers want to avoid.
Since opening his store in October 2007, his staff has shrunk from eight full-time employees to two, with one more part-time worker, he said.
One of the employees he had to let go was a single mother with two children.
“It’s horrible. I hate it,” Bean said. “Those are people that you care about.”
Abby Carpet and Interiors, located in the Sammamish Highlands Shopping Center, provides home remodel supplies and design work.
Bean said it’s an ideal time for consumers to remodel, with the price of products and labor significantly lower than usual. But less people seem to be remodeling their homes this year, he said.
“We’re going to stick it out, but it certainly hasn’t been easy,” Bean said.
Newspaper headlines painted a grim economic picture at the end of March: King County and Washington state contemplated budget cuts and U.S. jobless claims were up.
But how does all of that affect Sammamish?
In terms of local businesses, it depends on who you ask, according to Deb Sogge, executive director of the Sammamish Chamber of Commerce.
Chamber members from some industries, such as house cleaning or remodeling services, have reported decreasing revenues, Sogge said.
But salons and fast food restaurants appear to be staying afloat or even making a small profit amid the barrage of doom-and-gloom forecasts, she added.
Some business owners who have noticed a dip in revenues for the first three months of 2009 are hesitant to chalk it up to the recession.
Pat Evans and Steffonie Baxter, a mother-daughter duo who run Maid Brigade, a maid service in Sammamish, said business is down roughly 20 percent from last year.
Even between January and March, they’re seeing less demand for their service.
Their business, which has been on the plateau since 1993, employs 10 people total, including themselves.
“I used to find I had more work than I had people,” Evans recalled, adding that she hoped the lull in demand was related to school vacations and tax season, typical factors in her business cycle.
It’s difficult to parse out the regular business problems from the possible trickle down effects of the recession, according to Tim Koch, owner of Ace Hardware in the Sammamish Highlands Shopping Center.
Sales at his store are down roughly 5 percent from last year, Koch said.
“The question is, is it because of the economy or is it because of the weather? I think the big part of that is the weather,” he said, explaining that lawn and garden supplies didn’t sell like they usually do in March.
For example, Koch had stocked his store with a moss-killing product, which hardly sold in March.
Koch attributed the lack of sales to rain, which discouraged potential customers from working on their lawns on the weekends.
Koch said he hopes Sammamish residents emphasize shopping locally this year.
“This is a time when Americans should be looking to their small business owners. It’s kind of sink or swim. We’re not like the big guys, like the auto-makers,” Koch said. “It’s very crucial. Small businesses are fragile. If things get out of balance, it can go sideways.”
But not all business owners are feeling the pinch, as Sogge emphasized.
Nancy Schim, who took over Salon Rebecca in the Saffron Shopping Center in July 2008, is actually preparing a grand re-opening this summer, including a name change.
Schim said the salon business has proven to be pretty recession-proof.
“With hair, you’re representing yourself at work,” Schim said, adding that appearance can be even more important for people undergoing job interviews.
Salon Rebecca has experienced some slow down. Schim said customers are waiting longer between visits and using more coupons.
Still, Schim is optimistic about the salon’s future, especially after the name change.
“I totally believe we’ll be even busier,” she said.
Tim Marble, general manager of the Taco Time on 228th Avenue, said his sales have actually increased from 2008.
“A lot of people think that they’re buying down. I agree,” Marble said.
Marble has 18 people on staff, though he tries to keep the number of employees as lean as possible.
The cost of supplies, such as dairy, beef, chicken and paper, can cut into his profit margin, even if sales are increasing, Marble said.
Marble added that the restaurant business is fickle and he has to be prepared for outside factors to deal him some financial blows.
“Last year, I was affected by new restaurants coming in. Lots of different things affect this business. Unfortunately, a lot of them are out of our control,” he said.
Reporter J.B. Wogan can be reached at 392-6434, ext. 247, or jbwogan@isspress.com. To comment on this story, visit www.SammamishReview.com.
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