Mom and pop shops feeling the crunch

“We’ve been through recessions before, and I think this is the one that has hurt small businesses the most here in Barstow.”

Fred Baca, Barstow Office Supply owner

BARSTOW • As consumers concerned about the economy cut back on spending, some of the smallest of small businesses in Barstow are seeing their goods and services slashed from customers’ budgets.

Sammy Ha, who runs the Panda Palace restaurant with his wife, son, and daughter, said business has slowed down so much in the past couple of months that he had to lay off two or three employees, leaving the family members to work 14-hour days, seven days a week. The hardships started with the soaring gas prices over the summer. The current credit crisis compounded the issues.

“Right now I’m not making any profit,” Ha said. “All the supplies go up, and the price will be the same.”

Brenda Dilbeck, owner of the Tattle Tails Grooming by Brenda dog grooming shop, said business dropped off in the second month of the summer and is now barely paying the bills. Dilbeck said she still loves what she does but is wondering if she can weather the recession.

“I’ve already been wondering if I should either sell the business or just let it go and start looking for another type of employment,” she said.

Other businesses may not be on the verge of going under, but they have noticed the effects of the economy. Idle Spurs Steak House has seen a drop-off since the beginning of September, said co-owner Donna Ray. Juliette Tison of Barstow Flower & Bridal Boutique noted that regular customers who used to order $50 worth of flowers are now ordering $35, and customers with in-store accounts are becoming tardier in making their payments. That, in turn, puts the store farther behind on its bills.

Barstow Office Supply owner Fred Baca said that his regular customers have remained loyal but are cutting back, waiting longer to replace worn-out office furniture. Still, Baca said that he expects to see Barstow weather the recession and return to growth as it has in the past.

 In a few cases, the poor economy may have an unexpected silver lining. Roberta Walker, owner of the Silver Screen Video store on Armory Road, said that her business has taken an upswing in the past couple of months, as people cut back on going out to the theater and on services like NetFlix, a movie home-delivery service that requires monthly payments.

“People are not using their credit cards any more, because they have to pay their bills with it or they’ve maxed it out,” she said.

One of the most-publicized effects of the credit crisis has been the fact that small businesses have less access to financing through loans and credit. None of the businesses that spoke to the Desert Dispatch had applied for a loan in recent months, however.

Walker said she just applied and was approved for a line of credit for the business, to use for inventory and unexpected expenses.

Although new businesses might have a hard time getting credit in the current economy, Walker said she likely benefited from the fact that credit card companies are anxious not to lose their established customers.

Contact the writer:
(760) 256-4123 or asewell@desertdispatch.com