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Tough times? These businesses adapt to survive and thrive(Bakersfield Californian, The Via Acquire Media NewsEdge) Feb. 28--It sounds like an ordinary sales call -- but with one big difference designed to meet the challenges of the slow economy. Two people from Bakersfield-based produce company Sun World International LLC paid a visit last week to a buyer for one of the company's major customers. The buyer was "ecstatic" to be asked what Sun World could do for him, chief administrator officer David Hostetter said. Why the fuss? The visitors were Sun World's top brass -- the CEO and the chief marketing officer. "He just doesn't see that," Hostetter said. Despite all the recent headlines, layoffs and cutbacks are not the only tactic local businesses are using to survive tough times. Many are changing the way they do business, keeping a closer eye on operations and, in some cases, launching new lines of business. While some of the approaches are innovative, others are notable not because they are new or different, but because they suggest a determination to get through difficult conditions without unduly sacrificing jobs. "Necessity is the mother of invention, right?" asked Ken Carter, broker at Bakersfield real estate agency Watson-Touchstone ERA. "So really, I think most advances happen through times of want. ... You have to be smarter, you have to be quicker." At Watson-Touchstone, formed in 2007 through a merger of two agencies, computer technology has allowed the company to endure a drop in sales that has forced painful staffing cuts. By using a new phone system and gearing more of its efforts toward online marketing, Carter said the agency may have put itself in a position to pull through the slowdown. "Everybody has to adjust," he said. "You either adjust or you're out." GROWING MARKETS The DreamMaker Bath & Kitchen store on District Boulevard is adjusting by entering the "aging-in-place" market serving baby boomers who prefer living at home to moving into an assisted living facility. Owner Patty Gray said that, while the store continues to do well in its home remodeling business, staff are hoping that the new line of barrier-free showers and other products for senior citizens will grow over time. "We recognize that, in this type of economy, you have to find your niche where there's a need as opposed to just a want," she said. Bakersfield's convention and visitors bureau has responded to changing times by expanding its sales efforts to government and business associations, a segment the bureau has largely ignored in years past. Bureau manager Don Cohen said the shift reflects two of the city's relative strengths: inexpensive room rates and a central location within the state. Although it's still too early to judge the results, Cohen said the approach begun last year could help the city's hotel and tourism industry retain business and jobs. MEETING DEMAND Similarly, the news staff at KERO-TV 23 hopes to address demand for local news by putting more resources into areas it has given somewhat less attention in the past: Kern's outlying areas. In October the station hired six reporters who have spread out and now live and report in different parts of the county. Vice President and general manager Steve McEvoy said the strategy was undertaken in response to research on viewer preferences. "What's important to somebody who lives in Tehachapi," he said, "is probably different from somebody who lives in southwest Bakersfield." CREATIVE SOLUTION Small businesses are making creative changes as well. Two adjacent businesses on H Street -- home interiors store Charisma and gift shop Pay It Forward -- found they were unable to pay for separate salespeople. So last year they made use of a hallway connecting the two stores, and now have a single person staffing both locations. "We just decided that it just made sense," Pay It Forward owner Kim Fannon said, adding that she minds the stores while Charisma's owners work, and they take care of things while she is busy with other things. BACK TO BASICS Other business strategies put in place locally emphasize a return to basics, such as keeping a tight watch on inventory and customer needs. At Jim Burke Ford, recent changes are "nothing really romantic," President Dan Hay said. Instead, they're more about renegotiating computer contracts and cutting back on inventories. The dealership has reduced its stock of used cars by 50 percent in the past two years, and cut its lineup of new cars by 40 percent, he said. "Those are the things you've got to do," Hay said. "This ain't rocket science." The same kind of traditional management techniques apply at Bill Ray Tile. Owner Bill Ray said the company has avoided layoffs by providing a strong, up-to-date product line available at reasonable prices. "We're trying to keep up with all the newest colors," he said, "because you can't sit there and wait till business gets better to purchase anything." Henleys Photo recently devoted more energy to a strategy that has worked well since 1977: photography classes. Owner Tom Burch said he plans to offer 10 or 11 classes this year, up from five or six in years past. He said the classes not only increase customer interest in photography, but they provide a platform to show off the store's product line. "You have not only a captive audience," he said, "but you marry them to you." NOT GLAMOROUS Russo's Books is sticking to basics, too. But owner Michael Russo said the company is doing so with renewed enthusiasm after having to close two stores in the last year. In addition to paying much closer attention to what titles customers are most interested in, Russo said the store is conducting a customer survey to determine "what they perceive our strengths to be." "It's not glamorous or sexy," he said, "but it's probably what's needed at this point in time." To see more of The Bakersfield Californian, or to subscribe to the newspaper, go to http://www.bakersfield.com. Copyright (c) 2009, The Bakersfield Californian Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |