August 5
August 5, 2008
Sarah Maria Domangue
August 7, 2008
Seems like everyday a new national or regional chain is opening a store in the Tri-parish area.
Residents laud the new arrivals, declaring, “It’s about time!” Business and civic groups hail it as proof of a strong economy.
What about the local, independent business owners who are in direct competition with them? How do they manage to survive even as national chain stores multiply?
“There’s a place in this economy for small business owners and for big-box national retailers,” said Drake Pothier, president of the Houma-Terrebonne Chamber of Commerce.
The independent owners may have to work a little harder, get creative in advertising and what kinds of products or services to offer, but sustainability is possible.
“If you’re an independent business, you have to know what all your competition is doing and figure out how to do it better,” said Molly Melzer Bolden, co-owner of Bent Pages in Houma.
Customer Service
While chain stores spend millions in marketing their brand, most small business owners are established individuals who have relationships with people in the community. It is the biggest advantage independents have in the marketplace.
“A lot of small business owners have such a great product and service that people find them,” Pothier said. “They keep going back because they get the personal service.”
Lockport native Al Davis is in his second go-round as an independent pharmacist.
From opening his first pharmacy in 1972, he has owned as many as five throughout Lafourche Parish.
In 1998, he sold his pharmacies to Eckerd’s (now owned by CVS), and worked for them for two years. Although the company was good to him and his staff, in 2001 he decided being independent better suited himself and his customers.
“I have an opportunity to get up close and personal with my patients,” Davis said. “They’re my friends. I spend time with them and answer their questions. It makes me feel like an intregal part of the community. That’s what I felt was missing when I worked for Eckerd. They really don’t encourage that as much.”
Despite having a CVS and a Wal-Mart less than a half-mile from Al Davis Pharmacy on LA Highway 1 in Mathews, business is good, he said, thanks in part to his personal service.
Davis honors all of the Wal-Mart and K-Mart prices, including their $4 and $10 generic prices and $9 estrogen supplements.
“I feel like if I can match them on the prices, and in many cases we beat their prices, my ace-in-the-hole is I can relate with my patients and serve them more efficiently,” he said.
When Bolden and co-owner Kay Levine opened Bent Pages in January 1997, they knew they had one year to establish themselves before Books-A-Million, America’s third largest book retailer, came to Houma.
One of their advantages is knowing their customer base so they can do special orders and anticipate what the customers want.
“It’s amazing how many books have a Harry Potter-like following that most people don’t know about,” Bolden said. “Obviously, we don’t have 200 people lining up for them, but there will be 25, 30 people who will buy that book on the first sale date.”
Another advantage she utilizes is the streamlined management structure.
“Whenever there is a problem, anybody who shops here knows they can talk to me and I have the say on it,” said Bolden, who has been in the retail book industry for 21 years. “The inability to make decisions in those large corporations, I think, is a real drawback for their workers.”
Finding A Niche
The national chains have the advantage of size, allowing them to buy products in bulk and offering lower prices to consumers.
To counter that, independent businesses need to find a specialty, a void that the chain stores cannot or will not fill.
“If they can’t compete on prices, the successful ones find another way to compete,” Pothier said. “Small businesses have to be very creative with the products and services they put out there.”
At Bent Pages, that means carrying new and used books in its 5,000-square-foot Barrow Street store to capture both markets.
“If they want of a used copy a popular title, we likely have it,” Bolden said. “If we don’t have it used, then I can offer it to you at 30 percent off. You’re getting a big enough savings where it’s worth it.”
She added, “If they’ve read books and have them piled up in their house, they come in and trade them in.”
Bent Pages also has a coffee shop with an expansive menu of homemade soups, salads, sandwiches and desserts. One of the most popular items is an egg and olive salad sandwich.
“I grew up eating it in the summers, and the first summer we were open, I made it and the customers started wanting it,” Bolden said.
For John Foret, owner of The Goal Post Drive Inn restaurant in Raceland, preparing everything fresh to order separates him from his competitors.
Despite having a McDonald’s, Burger King, Subway, and Popeye’s within two miles of his Louisiana Highway 1 location, business stays busy.
“There’s no drive-through, no walk-in. You just order your food and go,” Foret said. “We try to offer some things that’s on a regular fast food menu. We make our own chili. We have a very good Chili Frito business.”
Foret, who inherited the business from his father Norbert in 1980, also uses as many local vendors as possible, which helps keep transportation costs down.
“I shop around for the best products at the best price,” he said. “A lot of times that is local producers.”
Love the Business
At the end of the day, having a business means making money.
Whether someone is in it for a paycheck or has a passion for the business sets a tone for customers’ willingness to stay with that merchant.
“It gives me a sense of accomplishment and a gratifying feeling to serve my patients,” said Davis. “I want them to know that every time they come in. The chains recognize that’s an important thing, but in practical terms, it’s very hard for them to implement.”
Every time Bolden stops to hug and visit with a customer is time not being productive. But that is not the most important thing for her. It is letting them know she cares.
A similar bond is developed between bibliophiles and the books they cherish.
“People who buy books have this personal relationship with what their reading and the authors,” Bolden said. “When I pull out a book to recommend to somebody and my arm is covered in chill bumps, I tell them, ‘Don’t even ask me what it’s about. Just take the book. It’s that good.'”
