Friday, March 14, 2008

How to explain the influx of new businesses? The shiny new ads? Especially the plethora of new restaurants?

Froth. Pure and simple. Someone forgot to turn off the spigot and the brew kept flowing and flowing, and it's running over the sides, and all over the tabletop.
Hell, the mug was huge....already way bigger than dainty little Bend, Oregon could have ever imbibed.

It happens with every bubble; just as people should be taking a second look before leaping, they're coming out of blind spots where you didn't even know they were hiding. By the time they see that it's too crowded, they're already in mid-air, and they can't stop. So they tell themselves, they're different, they've got a new idea, a better idea. They'll show little old Bend how to do it.

Whenever a business says, they're doing it for Bend, to show us how the better half does it....watch out. There's a big fall coming. Bendites don't respond real well to that message. We think we're pretty darned sophisticated, already. And where we're not sophisticated --- we don't want to be! That's why we live in Bend!


Business has been slow, but I've stayed ahead of it. Every time I've made a cut back, I've thought to myself that it might be just a bit too early, or just a bit too much. And each time, it's been pretty much right on. So I have to keep following that instinct; this week, for instance, has been extraordinarily slow. At a pace I thought my store would never feel again; I thought I had increased the level of stock and that the level of downtown would keep this from ever happening again. So, it's only one week, but the fact that it could happen for one week is a warning to me that it could happen for a longer period of time.

Ironically, our cash-flow is actually better than it's been for years. I've stopped taking aggressive stances toward inventory, and it's worked out pretty well. It isn't so much that I've cut back, but that I've cut back on the increase. So we're doing fine.

But I still find it somewhat depressing. What's interesting to me, is that whenever I've had a downturn in business before and felt down about it, I always thought it was because of the stresses of bill paying, of keeping my head above water. But now I'm having a downturn I saw coming, made the appropriate steps, and doing just as well in profits as before....and it's still disheartening to me. I guess it's not just about the money.

As I said, I could still give back a third of the gross sales from where we are now, without it hitting by break-even point. But that doesn't mean I want it to happen.

Also somewhat humbling is that Linda's store has rebounded from December and January, into very strong Feb. and March's; back to double digit increases. For which I'm grateful, darn her.

13 comments:

Duncan McGeary said...

I've decided I'm going to post just one message a day. All followup thoughts will be in the comments section, even if they are about a completely different subject.

It's a little embarrassing to have so many posts.

Duncan McGeary said...

I'm always surprised when a business comes to town with the message: little old Bend needs us, you don't have anything like what we got, you poor benighted peasants.

I'm trying to figure out how they think that arrogant message is going to go over.

Like me opening a branch in Prineville.

Yes, I've decided to give all you cowboys some pop-culture. Aren't you just so lucky I've deigned to grace your little hick town. You may kiss my ring.

Quimby said...

Dunc, I wouldn't worry too much about multiple posts. You're prolific, yes, but the quality is there and you're a joy to read. Keep it up!

Regarding new-comers showing us how it's done, its probably a natural tendency of rural gentrifiers (is that a word?) to show the hicks big city amenity living.

Wait a minute, why did they come here then, to get away from it or merely to massage their own egos and hopefully become a big fish in a little pond?

Duncan McGeary said...

The other things that happens once the bubble has popped besides the froth, is that the knowledge gap just seems to widen.

Just as you get that rock-solid knowledge inside that something is going to happen, you'll continually hear the opposite from almost everyone else.

The first couple of times that happened, I let that moderate my instinct to run for cover. After all, everyone else couldn't all be wrong, and just me be right. They must know something I don't know.

The last few times it's happened, I've actually felt sorry for these people. You know that Beanies Babies are over, the pogs have run their course, that Pokemon has had it's day, ...and the vast majority of people you talk to haven't even begun to believe that it's slowing down.

What you gonna do? Grab them and shake them and yell "IT'S OVER!"

Duncan McGeary said...

It's actually kind of sad. They look at you with a mixture of surprise, and disappointment, and anger.

"You poor, poor negative spirited person," they say.

And again, you want to shake them.

All your positive vibes won't keep the money flowing in, and your business out of the red.

All my negative vibes spurred me to bulwark and strengthen my store.

If you had a pain in your chest, would you say, "Oh, if I just ignore it, it will go away."

Go ahead, ignore it. While I'm being treated at the ER, you'll be on your kitchen floor twitching.

Pain and fear are an evolutionary response to danger. Feel good messages are a con man's way of getting you to buy his book, house, and or line of bullshit.

Duncan McGeary said...

Come on people, keep up with me. Heh.

Duncan McGeary said...

I know I have a couple of contradictory notions going on here.

On one hand, I truly believe that psychology is important, indeed that a shift to the negative will pop whatever's left of the bubble.

Certainly, the stock market seems to be completely driven by it: in fact, they seem like a bunch of nervous minnows, shifting en masse, fear and hunger. Or...simply pavlovian twits. I've given up trying to figure out the stock market.

The housing market is also obviously affected by sentiment.

And yet, right now money is flowing one direction or another, based on fundamental factors like price and credit and inventory....and all the 'positive' vibes in the world aren't going to budge that flow.

I suppose it's alot like the body's response to disease. Are people aware that most of the latest studies really haven't been able to find much correlation between a person's attitude toward disease and the course of the disease. Norman Cousins can laugh all he wants, but the disease is a physical breakdown.

And yet, I'm much, much more likely to believe that my attitude toward sickness can change the course of that sickness than I am to believe that all the positive vibes in the world are going to keep the housing market propped up.

Ignorance and foolishness...maybe, fueled by positive vibes....but that will break down eventually to the onslaught of financials.

Anonymous said...

"Business has been slow..."

Duncan, maybe you should come out with a campaign like:

INVENTORY BLOWOUT - EVERYTHING MUST GO!!!

- or -

BEST MARKET IN 20 YEARS! There's never been a better time to buy the ___(comic book?)____ you've been waiting for!

... or maybe you like to maintain a discreet, non-desperate image?

Duncan McGeary said...

The "non-desperate" image would be best....

Duncan McGeary said...

Another card analogy.

I keep hearing people say that the 'high end' is still good. The truly rich.

What that reminds me of is the thought that "old" cards -- by which they mean really old, high quality cards, from Mickey Mantle back, will keep their value.

SO WHAT! There aren't enough of those floating around to keep more than a few national dealers afloat.
Even the relatively recent good cards aren't being bought if the vast majority of cards don't sell.

The money that flows through the hobby comes from all elements, supplies, price guides, singles, packs, boxes, sets, old cards, new cards, rookie cards, etc. etc. Everytime you take the lower cost elements out, you take money out.

Like having an ice cream shop without chocolate or vanilla.

It's the opposite of most people's impression. The high cost cards don't pay for the low cost cards, a large volume of lower cost cards pay for the high cost cards.

Bend, as a whole, needs low and middle and high cost houses to function.

News Junkie said...

"Whenever a business says, they're doing it for Bend, to show us how the better half does it....watch out. There's a big fall coming."

The Loft's Chris Jones said,
“I’m trying to improve the city and hope that opening the restaurant will make Bend a better place.”

Does that mean The Loft is doomed to become The Basement?

Duncan McGeary said...

Does he mean that the Deep and Merenda and such are greasy spoons?

Anonymous said...

Does that mean The Loft is doomed to become The Basement?

Does he mean that the Deep and Merenda and such are greasy spoons?

*

I can eat any where in town. I shop at the little mex shop next to your wifes book store, and make the best mexican in town.

All the food in Bend sucks, learn to cook folks, soon when TJ opens, We'll not even have to drive to the valley.

Bend dining is an oxymoron, we already lost our two best places, Marz sold out a few years ago, and Super Burrito is gone, and Hans is gone. Now we're only stuck with tourist shit where they only go once.

I can NOT believe that Toomeys has lasted a generation, what a fucking dive. At least Guiseppes had enough sense to re-invent themselves into bankruptcy.

Merenda was good its first month, the new Typhoon was good its first week.

Bend sucks when it comes to eating out. Very expensive McDonalds is what it it, Staccato, the Deep, ... Now today the Only good place in town is Rigobertos, & Pizza Mondo.

Dunc, I'll say this once, the folks up at Highlands @ BT are lonely like Blesdoe, Inc. That's why they create these clubs, to meet other like minded people, trouble is they're not here. They think they can create an elite hang-out, we already have that at the Carerra Club, and its vacant 29 of 30 days a month.

Bend is a good place for old farts to die, and for geezers to consume their food with a straw, anybody else has picked the wrong town.

Marz sold out because they couldn't compete, with the stupid money. Hans sold-out ( shut-down ) because after 20+ years they didn't want to compete with the stupid money.

Soon there will only be stupid places ran by stupid people with first-generation short-term wealth. When that's gone, all of Bend will be Chuck-E-Cheese. That's when marketing this shit-hole is going to be very interesting.