Downturn not so hard for some

Not every business is singing the blues in this tough economy. Those offering lower-priced alternatives, must-have goods and services or an angle to stand out from the competition are still finding opportunities with spendthrift consumers.

Take Solano Cycle. Owner Elayne Haines said scooter sales have nearly doubled over last year as her customer base has grown beyond students to commuters concerned about gas prices.

"Your guy in the suit is in the scooter going back and forth to work. Mothers are buying it to go to grocery stores, putting a luggage box on the back or saddlebags," she said.

Customers tell her they wait to use their SUVs or trucks for their families or on weekends.

"They're buying the more expensive scooter. In three or four months they have the price of the big scooter totally paid for just in what they save in gas," Haines said.

Scooters get between 65 to 125 miles per gallon depending on their size and Solano will be getting a hybrid in June that gets 180 mpg, Haines said.

She said she recently watched a news show predicting that gas would hit $5 by the end of the year.

"It's great news for the scooter sales, but it's kind of scary, because financially it's not good for America," Haines said.

The Motorcycle Industry Council reported that U.S. scooter sales were up 24 percent in the first quarter of 2008, according to The Associated Press.

Bicycle shops are also reporting strong sales this year and more people bringing in old bikes for repairs, the AP reported.

Green businesses in general are doing well, especially those offering alternate energy sources, as consumers are increasingly concerned about sustainability and costs, according to Tim Ledvina, small business development manager at the Gainesville Area Chamber of Commerce.

That includes auto dealers offering smaller cars and used cars as people trade in larger cars, he said.

Ledvina offered a run-down of other "recession-proof" businesses that tend to do well because of, or in spite of, an economic downturn:

Online businesses. "People are not driving as much, so they're going to the Internet."

Small businesses. "Big businesses are making drastic cuts. Small businesses are more flexible. They can take the pulse and respond to economic conditions faster than big businesses."

Business-to-business businesses. "They're doing well because they're not dealing with the public as much."

Restaurants and groceries. "People are still going to eat. The upper end is going to take a beating, but the lower end will do well."

Attorneys, "particularly those that specialize in bankruptcy and people having trouble with money."

Entertainment. "People rent movies and go to movies. At Disney and those places the numbers are up because people want to feel good when times are bad."

Home repair businesses. "Instead of buying houses, they're fixing up their homes."

Accounting. "Taxes are something else you have to do. You've got to die and pay taxes."

Funeral homes. See above.

Home health care. "Especially now with baby boomers getting older, anything that has to do with health care is doing really well."

Beer. "People are not buying liquors and wines, but they still want to drink."

Debt collection. "Everyone is having problems right now, so anyone in business making money on people who are slow and owe people is making money."

Discount stores are picking up higher-end consumers, a fact Gene Gessler, store manager of the new Wal-Mart Supercenter in east Gainesville, credited for Wal-Mart's $10 stock increase in the last couple months.

He said a supercenter offers customers the ability to shop for food and other needs in one place. "What's so good about this is the one-stop shopping, considering the price of gas."

Goodwill Industries of North Florida opened a second Gainesville thrift store this month at the old Gainesville Mall on NW 13th Street and a donation center in Newberry in February. Karen Phillips, vice president of marketing and public relations, said more demand and more sales prompted the opening.

"We're finding that as people have to spend more on gas and food, we are a viable alternative to stretching a dollar when looking for clothes for your family and household items," she said.

Although the demand for health care is only going up, Rick Staab of InterMed said doctors and hospitals are still trying to cut back because of rising costs. Alachua-based InterMed includes five medical device sales and service companies, of which he is president of three.

Staab said he sees the cost cutting as an opportunity.

"We sell used and new equipment, so normally when someone is looking to save money and cut back on expenditures, we can offer a lower-priced alternative," Staab said.

He said InterMed can also pick up new business by holding steady on service charges while the competition raises prices to make up gas costs.

"InterMed has grown and continues to grow," Staab said.

The restaurant industry reports that customers are trading down, to the benefit of fast food restaurants.

Steve Carroll, operator of Chik-fil-A at The Oaks Mall, said sales "may be up a little bit." In a university town, every year part of his customer base graduates and moves away and he has to start over.

"I've just been grateful to have what I've got, especially in these times," he said.

Mark Golden opened a Two Men and a Truck franchise in September 2007 and said his moving business has steadily grown in all but two months through word of mouth referrals despite a down real estate market. He has 13 employees and will be getting a fourth truck in a couple weeks in time for the summer moving season.

"A lot of our business has already come from, 'I've been hearing good things about you guys,' " he said of referrals.

Manager Joe Messervy said the local franchise's growth is probably a little slower than it would be in a normal housing market, but people are still moving into houses and apartments.

"There's a lot of people who are moving out of their houses for them to be vacant to help them show a little better and moving into apartments short-term," he said.

The entire company was able to grow last year, Golden said, attributing the growth to a competitive edge.

"I think it's because our philosophy is we're a customer service company that just happens to be in moving," he said.

Anthony Clark can be reached at 352-374-5094 or anthony.clark@gvillesun.com.