"OK is the new good."
That's how Dave Lanphear, president of Vancouver-based Pacific Boatland, Motorsports, and Marine, sums up how businesses like his that provide "nonessential" goods and services are doing these days.
"New boat sales are 30 to 40 percent off," Lanphear said.
But, he said, good clean used boats aren't off as much and the service side of his business is doing well because "more people are fixing what they have and buying things that need fixing."
Jason Rodgers, co-owner and vice president of Vancouver's Harley-Davidson dealership, Columbia Motorcycle, reports much the same experience. Across the 16 Harley dealerships in this district (which includes much of Oregon and Washington, and Alaska), first-quarter sales are down about 30 percent.
"We had a hard winter," Rodgers said, "but in the last three weeks there has been a huge influx in bike sales."
He sees a lot more trade-ins than before the economy stalled, and that many bike owners are holding off on upgrades and trying to learn how to fix their motorcycles themselves.
Susanne Hoff, sales associate at Runyon's Jewelers in Camas, also said the last month has seen a steady increase in sales after a very slow first three months of the year. Hoff said that gift items and engagement rings are popular right now but that customers are buying less expensive items.
"We have talked about carrying less expensive lines to cater to that market," she said.
Similarly, Hollie Olson, owner and operator of Vancouver-based Celebrity Spa Services, said business is picking up this month, but that luxury services still are slow. But maintenance services, such as waxing and eyelash dyes, are keeping up well.
Attitude Adjustment
Several business owners said the recent uptick in sales may be linked to people receiving their tax returns, and to the fact that the sun is finally shining after a long gray winter. But some see more depth to the change.
Hoff said that when the economy first began to slide, she noted a certain "bitterness" in clients. Now, there is more of a sense of camaraderie, of "we're all going through the same thing."
Rodgers said his customers show a defiant resignation to the economic downturn, captured well by one of Harley's national advertising slogans at the moment: "Screw it, let's ride."
And while customers could consider a motorcycle, boat, spa treatment or new necklace "nonessential," Lanphear said "essential" is a relative term.
"If (customers) are passionate about something, they'll find a way to play," Lanphear said.
Controlling Expenses, Getting Creative
One way businesses are making the most of incoming revenue is by cutting expenses.
Pam Easter, co-owner of La Center-based Rosemarie Photography, said customers don't care about receiving their photos in fancy envelopes, so she now uses more economical envelopes. A focus on reducing expenditures grew revenue 25 percent in the first quarter.
Advertising budgets are down, so businesses are looking for other methods of promotion.
Olson said she cross-promotes with related businesses, such as massage therapists.
"I pass out their business cards and they pass out mine," she said.
Easter prints her website URL at the bottom of all her wallet-sized pictures, while Rodgers is taking advantage of social networking websites, such as Facebook and MySpace.
Promotions are a popular way to attract new customers and keep existing ones coming back. And community involvement garners attention for businesses.
"Our clients get excited about the projects," said Donna Bleth, co-owner of Sole Purpose nail salon in Vancouver. "Get out there and support your community."
And one of the cheapest forms of advertising, Easter said, is focusing on customer service.
"Smile a lot – that's what people want to see," she said.
"Make your customers' day, and they'll remember you."
