A tale of two businesses preparing for 2009

Retail probably isn't the industry you'd choose to be in these days, but that's pretty much where Lisle-based Footprint Retail Services, lives. And although he acknowledges that "2009 looks very cloudy," Mark Gilbert, vice president of business development, sees some bright spots for Footprint next year.

The auto repair business looks a tad better; owners are keeping their cars longer and spending money to keep them running.

"We're the busiest we've been in five years," says Bob Fouts, who with his brother Russ co-owns Wheaton's Carlton Auto Repair, Inc.

Nonetheless, "I'm scared to death," Fouts says. "I'm confident to the first of the year, but I just don't know after that."

With five employees including the Fouts brothers, Carlton Auto Repair is a typical small business. Footprint, which provides point-of-purchase displays and fixtures for large retailers that include Starbucks and Dollar General stores, has 75 corporate employees - and a much different marketplace than Carlton Auto.

What the businesses have in common is an unspoken but nonetheless obvious expectation to stand up to the new year.

"We're typically strong September-October as retailers prepare for the holiday season," says Gilbert. "But this year was extremely slow."

As for '09, Gilbert adds, "Retailers won't commit until they see holiday results. The projects we have in the works have been simplified and scaled back - sort of from a Cadillac to a Yugo."

Gilbert, however, knows where to focus.

"As a third party resource, we can prosper because retailers will cut their internal staff; but they'll still need new programs," he says.

With less staff, he says, chains are more likely to turn to Footprint for in-store merchandising support.

"We have to reach out and be creative about ways we can help them," Gilbert says. "We have to think out-of-the-box and do more business development - more face-to-face (with prospects) by our sales staff."

At Carlton Auto Repair, where much of the work this time of year is about antifreeze and batteries, Fouts says that "Many customers tell us 'I don't see myself buying (a new) vehicle for another two years. What do we have to do to make sure this car is safe - and that it works?'"

That type of customer thinking bodes well and ultimately meshes nicely with the business' carefully cultivated reputation for quality work.

"We're not the cheapest place," Fouts says. "But we do try to make sure the car is fixed right the first time."

Except for 500 fliers printed up when the brothers bought the business in 1990, "We've never advertised," Fouts says. "And we're not going to change that going ahead."

Carlton Auto relies instead on referrals. "We don't really want people who are shopping for bargains," Fouts says. "We want the ones who ask their friends and neighbors where they take their cars for repair."

Questions, comments to Jim Kendall, JKendall@121MarketingResources.com.

© 2008 121 Marketing Resources, Inc.