Slow economy pinches many in SF

September 27, 2008 7:21:37 PM PDT
While the government wrangles over $700 billion of your tax money, a lot of you have your eye on this crisis - as well as your bottom line.Even with the sour notes coming out of Wall Street these days, a music store in San Francisco's Richmond District, is staying upbeat.

"It's surprising to us even," said "Budi," music store owner.

Though he may soon be changing his tune:

"The cost is going up, but the selling price is still at the same or even going down," said "Budi"

The shop is only starting to feel the effects of the tanking economy as customers start tightening their belts. And now more and more people are unemployed. A lot of people are waiting to see what will happen from the bailout plan in Congress.

The owner of 'Heroes Club,' is not expecting it to save the day.

"It won't make much of a change. With what we buy, the items, it has to be more conservative," said Robin Kwok, collectible's store owner.

Jon Fisher is a professor at the University of San Francisco and he said the best tactic is to reach out to your customers.

"Lowering prices can attract people, but your bread and butter customers are looking to you now, and in the future. And whether it is software or services to better serve them - I think that is the best way to weather this particular storm," said Fisher.

And he has some advice for us consumers as well on running our life as a business.

"What's happening now, what do we believe is going to happen in the next couple of quarters, and whether we need six months of expenses set aside, whether it is raw diversification, whether it is this evening, making sure that everyone of us can read simple balance sheets," said Fisher.

Fisher said that as consumers we are going to start to notice the devaluation of our dollar and small businesses will start to notice that they are having trouble accessing capital; but when that worst case scenario is going to hit - no one quite knows.


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