Print
E-mail
Comment
Rate
$$$ Economy Watch $$$
How's business?
Click image to enlarge
   |
By Janet Dery and Arlene Fine
Associate Editor and Senior Staff Reporter
In the CJN’s ongoing series, we look at how local business owners are faring in the recession. You’ll meet some who are struggling, some whose ventures are growing despite the economic crisis, and others whose businesses remain stable.
Peter Danford Inc.
The recession, the Internet, big-box stores, and today’s more casual lifestyle have all taken their toll on Peter Danford Inc., a 50-year-old fine-jewelry store located in Shaker Heights.
“It’s extremely challenging,” admits owner Peter Danford.
Sales are off this year from last, he says, and last year’s numbers were down from the year before. “Last Christmas was tough, but the stock market hadn’t crashed. This year, everyone was feeling much less wealthy.”
The high-end jewelry industry is usually hit hard in tough economic times. “In terms of things you must have, we rate near the bottom of the list,” explains Danford.
Danford is in a little better position than many retailers, however. “I’m 72. I don’t have to take a big income out of the store. I can work for the challenge, not the money. My challenge is to keep the store above water.”
The owner hasn’t had to lay off any of his six employees, but he is buying less merchandise than he did in the past. Just like his customers, he is buying more carefully, he says. “Everyone should live within their means.”
Ganley Volkswagen and Subaru, Ganley Frank Nero Lincoln Mercury
Ask Michael Friedman how the car business is going, and he gives either a thumbs up or thumbs down – depending on where he is on the Bedford Auto Mile.
The good news comes from Ganley Volkswagen and Subaru of Bedford, where Friedman is general manager. “Although sales for high-end cars like Mercedes, BMWs and Audis are hurting, our Volkswagen and Subaru new-car sales are up 25%, and our used-car sales are up 40% over this same time last year,” says Friedman.
A proactive marketing campaign has been the key to Friedman’s successful dealership. “As soon as the economy began to slide, I modified my game plan,” he explains. He bumped up his advertising in local and niche papers; put ads in organizational bulletins; sponsored athletic teams; and partnered with a bank to provide easier credit for his customers. “We also brought out a whole new series of promotions to entice customers, such as concierge service, free maintenance, and car washes.”
But, Friedman’s enthusiasm is abruptly checked when he speaks about the Ganley Frank Nero Lincoln Mercury dealership, where he is also general manager. “Despite our best marketing efforts, the reality is that many of our customers don’t have the money they once did for Lincoln Mercurys, Navigators, Town Cars or Mark LTs,” he says. “Our new-car sales are down 20% over last year. We used to sell 60-70 new cars a month, but we are selling less than half that number now, and other Lincoln Mercury dealers are doing even worse. American-made cars are having trouble holding their own in today’s economy.”
eCollect of Ohio Inc.
The economic downturn has not checked Michael Kline’s business. The CPA is the founder of eCollect of Ohio Inc., a Highland Heights company that uses the Automated Clearing House network to electronically redeposit checks that have been returned because of insufficient funds.
“We redeposit the check the moment our electronic collection agency signals that funds, such as a paycheck deposit, are put back into the account,” explains Kline.
The number of checks Kline has processed is up 25% over last year, with a 95% retrieval rate on bounced checks. “Hundreds of millions of bad checks are written each year, but with today’s downward economic spiral, these numbers are growing,” says Kline. “Even though businesses are not charged for this service, some had been hesitant to access our service because they did not want their customers hit by an extra fee. But now all businesses are scrambling to collect every penny.”
Kline’s clients, who by law get 100% of the retrieved money, authorize banks to send bounced checks to eCollect. When the check clears, a $30 fee is charged to the check-writer’s account, and Kline’s profit is a portion of that amount.
Despite his business boom, Kline has not added any employees; instead, he has shifted his staff’s duties and priorities. “More of our employees are processing the checks coming in rather than leaving the office to promote the business,” he explains.
Peter Danford Inc.
The recession, the Internet, big-box stores, and today’s more casual lifestyle have all taken their toll on Peter Danford Inc., a 50-year-old fine-jewelry store located in Shaker Heights.
“It’s extremely challenging,” admits owner Peter Danford.
Sales are off this year from last, he says, and last year’s numbers were down from the year before. “Last Christmas was tough, but the stock market hadn’t crashed. This year, everyone was feeling much less wealthy.”
The high-end jewelry industry is usually hit hard in tough economic times. “In terms of things you must have, we rate near the bottom of the list,” explains Danford.
Danford is in a little better position than many retailers, however. “I’m 72. I don’t have to take a big income out of the store. I can work for the challenge, not the money. My challenge is to keep the store above water.”
The owner hasn’t had to lay off any of his six employees, but he is buying less merchandise than he did in the past. Just like his customers, he is buying more carefully, he says. “Everyone should live within their means.”
Ganley Volkswagen and Subaru, Ganley Frank Nero Lincoln Mercury
Ask Michael Friedman how the car business is going, and he gives either a thumbs up or thumbs down – depending on where he is on the Bedford Auto Mile.
The good news comes from Ganley Volkswagen and Subaru of Bedford, where Friedman is general manager. “Although sales for high-end cars like Mercedes, BMWs and Audis are hurting, our Volkswagen and Subaru new-car sales are up 25%, and our used-car sales are up 40% over this same time last year,” says Friedman.
A proactive marketing campaign has been the key to Friedman’s successful dealership. “As soon as the economy began to slide, I modified my game plan,” he explains. He bumped up his advertising in local and niche papers; put ads in organizational bulletins; sponsored athletic teams; and partnered with a bank to provide easier credit for his customers. “We also brought out a whole new series of promotions to entice customers, such as concierge service, free maintenance, and car washes.”
But, Friedman’s enthusiasm is abruptly checked when he speaks about the Ganley Frank Nero Lincoln Mercury dealership, where he is also general manager. “Despite our best marketing efforts, the reality is that many of our customers don’t have the money they once did for Lincoln Mercurys, Navigators, Town Cars or Mark LTs,” he says. “Our new-car sales are down 20% over last year. We used to sell 60-70 new cars a month, but we are selling less than half that number now, and other Lincoln Mercury dealers are doing even worse. American-made cars are having trouble holding their own in today’s economy.”
eCollect of Ohio Inc.
The economic downturn has not checked Michael Kline’s business. The CPA is the founder of eCollect of Ohio Inc., a Highland Heights company that uses the Automated Clearing House network to electronically redeposit checks that have been returned because of insufficient funds.
“We redeposit the check the moment our electronic collection agency signals that funds, such as a paycheck deposit, are put back into the account,” explains Kline.
The number of checks Kline has processed is up 25% over last year, with a 95% retrieval rate on bounced checks. “Hundreds of millions of bad checks are written each year, but with today’s downward economic spiral, these numbers are growing,” says Kline. “Even though businesses are not charged for this service, some had been hesitant to access our service because they did not want their customers hit by an extra fee. But now all businesses are scrambling to collect every penny.”
Kline’s clients, who by law get 100% of the retrieved money, authorize banks to send bounced checks to eCollect. When the check clears, a $30 fee is charged to the check-writer’s account, and Kline’s profit is a portion of that amount.
Despite his business boom, Kline has not added any employees; instead, he has shifted his staff’s duties and priorities. “More of our employees are processing the checks coming in rather than leaving the office to promote the business,” he explains.
Article Rating
Reader Comments
The following are comments from the readers. In no way do they represent the view of clevelandjewishnews.com.
You must register with a valid email to post comments. Only your Member ID will be posted with the comments. Registration is free.
Registered users sign in here: |
Become a Registered User |
