Bradenton Herald

Local businesses repairing and maintaining businesses profit from economic downturn by helping consumers spend less
April 27 , 2009
by Grace Gagliano

BRADENTON - David Potter can hardly keep up with the business that's coming through his doors.

What's his secret?

Owning a business that repairs worn and torn goods.

At Potter's Shoe Service, customers are bringing in shoes, belts and handbags at double the rate they did nearly two years ago.

"People are saving their money," Potter says. "They're fixing stuff they would normally throw away."
As a result, Potter's business is in good shape.

"My business has probably doubled in the last 15 months," Potter said. "It's just a sign of the times."
Frugal consumers in this economy don't dare to waste what can be salvaged. Many are fixing and repairing rather than buying new, giving businesses like cobblers, seamstresses and appliance repair shops more work.

Kathleen Heinicke, owner of Kreations By Kathleen on 18th Street West in Bradenton, is seeing more customers come into her alteration shop to restyle and resize their clothes.

Rather than donating clothes that are outdated or no longer fit, consumers are looking to make them wearable again.

"They're cleaning their closets out," Heincke said. "I had a gentlemen come in with several expensive suits. All they needed was for the waist to be let out in the pants and he had six new suits."

Women are bringing in long dresses and skirts as well as suit jackets to be hemmed to shorter lengths. "It's like they get a whole new wardrobe," Heinicke said. Alterations on pants start at $14, while skirts and dress hems start at $16. "I've got a slight gain going on," Heinicke said. "I know I'm working more hours a day right now."

Southwind Shoe Repair in Bradenton also is seeing more demand.

"A few years ago, they weren't repairing shoes at all, they were buying everything new," said Alexander Cubillos, owner. "Now it's different."

Randy Lipson, a board member of the Shoe Service Industry Association, estimates cobblers nationwide have seen a 10-40 percent increase in business. Media attention has also helped recharge cobbling.

"I think the biggest reason for the increase is consumer awareness," Lipson said. "There's a reminder that industries like shoe repair, alterations, appliance repair make sense."

Steve Cooper, co-owner and vice president of operations for Batteries Plus, believes the current trend to replace and maintain is helping his business grow by double digits.

The almost $6 million company, founded in Bradenton with five stores that sell battery replacements for everything from cordless tools and lap tops to toys and watches, is even expanding with two new franchises expected to be open by 2010 in Largo and East Manatee.

"People are putting batteries into items instead of doing an upgrade," Cooper said. "We've been a little recession proof because people are not going to part with $200 right now but maybe $40 or $50."

Using batteries means consumers can usually get another two or three years of use on a product, he said.

Cooper, along with co-owner and brother-in-law Matt Steigenga, who is vice president of commercial sales, is expecting the rest of 2009 to be as good as the first quarter which they described as "strong."

However, the demand isn't there yet for everyone in the fix-it up industry.

Cautious consumers are having the opposite effect on some automobile repair shops and furniture restoration companies.

"Business is horrible to be quite honest," said Danny Anderson, owner of Anderson's Auto Repair in Bradenton. "I've lost about two-thirds of my business. That's a lot of money."

Anderson said more customers are putting off repairs, turning down recommendations or not coming in at all for services.

About a year ago, Anderson's Auto Repair had seven employees. Now, Anderson runs the shop himself due to the lack of business.

"I don't know what May's going to bring," Anderson said. "Most people don't have the money to fix cars. The phone really hasn't been ringing."

Jerry's Auto Repair & Towing sees good weeks and bad weeks, says owner Jerry Lescalleet.
"Money's tight," Lescalleet said. "More people are getting their car fixed now because they can't afford to buy new. But they're mostly just getting minor stuff done. The rest people say ‘Oh, I'll wait' "
Sales in the automotive aftermarket saw a 5.7 percent decline in 2008 over 2007, according to NPD Group, a research firm that tracks several industries.

David Portalatin, director of automotive industry analysis for NPD Group, said the automotive repair industry is being challenged because consumers are still in "cost-cutting mode."

However, Portalatin projects automotive repair will eventually benefit from declining new car sales.

"Keeping cars longer is something that we're going to see emerge over the next couple of years," Portalatin said. "It's not something that creates an immediate boom at once. But as vehicles age, consumers are going to be motivated to make those vehicles last as long as they can."

At Furniture Repair Southern, owner Doug Rogers says the economy caused a sharp decline in his business. Rogers used to average $5,000-$6,000 a month on orders to refinish, repair or restyle used furniture. Now, Rogers says he's averaging $2,000 a month.

"Nobody wants to spend any money," Rogers said.