Brainerd Small Businesses: Saving Money to Make Money

by Sheila Helmberger


While the rest of us are looking for ways to keep more money in our pockets, business owners are wishing we'd spend a little more. The penny pinching we do individually requires them to do some of their own. Some, like hotels, coffee shops and other services that we've decided we can do without are finding ways, besides laying off employees, to stay in business.


Nanci Hallam is the manager of the Super 8 In Brainerd, "Well," she said when asked, "Yes, we've been a little quiet. But we really haven't had to make a lot of changes. This time of the year is the quiet time anyway so our staff kind of dwindles down. I haven't had to do any layoffs or cut backs - I'm grateful that we haven't, I know there are a lot of businesses that have had to."

She said being careful of expenses is one way they've been able to save, "The only thing is we're really watching our costs. We're doing a lot of price comparisons for food and supplies. We've always watched the prices we pay for things but we're doing a little more of that now. Businesses just kind of get back to basics, when things get tight I think."

One area she won't cut back on, however, is promoting the business. "I think personally, cutting back in that area when things are difficult is the worst thing you can do. Now is the time when you need people to know about you. We don't have a huge marketing budget anyway, so the biggest thing is I go out and market more myself and spend time getting out in the community. Our franchise has come out with some new promotions and they're doing some things online -advance booking discounts and such, that should all help too."

Hallam said she is looking forward to a positive change shortly, "I'm very optimistic with summer coming," she said.

Lorie Brown, owner of Coco Moon in Brainerd, said her business will be hit with a double whammy this summer. The sinking economy has already taken a bite out of her business and now a downtown renovation taking up the early part of a good summer will take another.

"Yes, we have seen the numbers decline for sure - I have one lady who, every single day she was in for her coffee drink, and now she comes in maybe two days a week." One way she's tried to keep her customer's business is by not increasing prices.

"We start downtown construction on Monday, though, so we won't have streets or sidewalks or anything for a little while. They said they will make our business accessible to our customers - put planks down for people to walk on and things, but it will still be an inconvenience for customers."

Another way she keeps customers who she laughingly refers to as 'legal junkies' coming in for there is by doing a lot of things for promotion. She said she offers coupons when she can and she sells accompaniments to go with her beverages, "We have scones, muffins, and a pastry cooler. I still have regulars that come in."

She hopes to benefit in the next few weeks from joint promotions with other downtown businesses planned during the renovation phase. "We are having a women's walkabout on May 7," she explained. A walkabout last year drew 170 participants with businesses offering samples and other specials for those who stopped in. "There will be a drawing with a chance to win $138 in downtown bucks this summer- during the 138th anniversary of our downtown."

Still, if people cut out their morning coffee stops for even a short time, she worries they won't come back when things get better, "It doesn't take someone very long to get out of a routine," she laments, "It takes a short amount of time to break a routine and they say about three weeks to fall into a new one," she said.
Brown said she, too, has not had to lay off any employees, which she's very pleased about. "It takes two people per shift to run it," she says of the business, "I have picked up a few more hours myself, though," she said.

For the past few years she has closed on Sundays between Christmas and May, which saves a little money. Soon, the sidewalk tables will be set up for summer, which her customers enjoy and have already been asking for.

Laurie Owen is the owner of Custom Maid, Inc. in Brainerd. She said her business is starting to come around after a winter slowdown. "I always slow down that time of year," she said, citing the loss of cabin cleaning business as the reason. She said her calendar is starting to fill up for the remainder of April and the month of May. "A lot of the places we do are higher end cabins and retreats - the lucky ones that get to go south for the winter and now they're all coming back."

While she said her staff always fluctuates this time of year she did have to do lay-offs which isn't usually the case. She's also enforced a wage freeze and has asked her employees to take a small wage reduction - something many companies are doing with a promise to bump pay back up when things get better. "When times come back around," said Owen, "they know if they did that for me then I will do something for them."

Owen said this year she offered gift certificates during the holidays to generate business. And she said she recently posted an ad for more help, something many companies aren't able to do, with an eye to the future and the upswing in business.

Sometimes just reinventing yourself is the best idea of all. Mary Whitehorn is a manager at Movie Gallery in Brainerd. Other affordable options for video rental customers, like the new Redboxes and especially Net Flix, the movie subscription service, have meant some big changes for her company.

"We still did pretty well," she said, "but we have introduced new programs, changed our rates and remodeled the store a little bit." A new subscription service offered by Movie Gallery called Power Play offers, depending on the level of your membership, discount rates on all rentals and purchases from the store.

Video game customers are catered to in a new way at the store with their selections taking up a big portion of its aisles. "Wii games are very popular," said Whitehorn, "People come in all the time looking for the new games." They also offer pre-orders on upcoming new releases for both movies and games for their customers, "Then you are guaranteed to get them," she said.

One area of business that seems to be benefiting from the bad economy is fast food restaurants. "We're up in huge numbers," said Marcy Barrett of Taco John's in Brainerd. "The worse the economy is the better fast food is. Customers leave the Applebee's and Grizzly's and they eat fast food - and not because we've gotten better all of sudden, we're always good, but because we are a more affordable option. We haven't had to do a single thing," said a happy Barrett about changes made for a customer slow-down.

Hopefully soon all business owners will have such news to report.