Little businesses can make a big difference

Malls, franchise restaurants and superstores carrying everything from socks to the washers to wash them in have changed the way the majority of Americans shop and the way independent business owners do business.

To survive, some independent family businesses have had to change the way they do business, according to area independent business owners. They run them like big business while maintaining the service customers want and expect.

Richelle Smith-Brecht, director of human resources for S. J. Smith, a welding supply distributor based in Davenport, said the way they stay competitive with ``billion dollar'' companies is to remain personalized. Sales staff work one on one with customers and follow up.

``Bigger isn't always better,'' Ms. Smith-Brecht said. ``Cheaper isn't always better. We're here . . . if a welder isn't working we need to be there to make sure it will. It's follow-up. People trust us. We're growing but not for growth sake.''

Family owned business, like S. J. Smith started by Ms. Smith-Brecht's grandfather 50 years ago have succeeded because they have grown smart and stood by their products.

The family-owned business understands family. It supports the Little Leagues, fire department, schools and other civic organizations. The decisions to donate are not made at corporate headquarters on the other side of the continent.

Independent companies can be more flexible than large corporations. Specialized billing is an option for some customers and they can provide training.

``Customer service is the key,'' Ms. Smith-Brecht said. ``It's all about the customer.''

Independent family owned businesses agree, customer satisfaction and service is what helps them stay competitive in a business being overrun by chain stores and franchises.

It's a lot of little things that make a huge difference, according to Rustic Inn owner Ken Vroman. The real strawberries in the daiquiri and strawberry margaritas, the homemade salads and dressings and the homemade noodles served with entrees are a few of the things that make a difference at his restaurant that's been in his family over 30 years.

``It's always been about the food,'' Mr. Vroman said. ``We buy top quality groceries and properly prepare them. It may sound oversimplified, but it is that simple. The same thing that people liked when my father opened for business in March 1969 are still popular.''

Keeping things simple and homemade make it possible to keep prices down, Mr. Vroman said. Rustic Inn entrees are $2 to $4 less than chain restaurants.

Although some may look at Hillsdale as out of the way, Mr. Vroman said the contrary is true.

``We're in the middle of nowhere, which puts us in the middle of everything,'' he said. ``Our customers come from everywhere.''

Once, on a church trip in Mexico, someone spotted the Rustic Inn van and yelled, ``Hey I've eaten there.'' The person who yelled was from the Quad-Cities, but it shows how recognizable a name can be.''

Familiarity does not breed contempt. Customers like traditions and like knowing the people they deal with, Mr. Vroman said.

Chances of having the owner of an independent business answer the phone are pretty good, other area business owners said.

Dave Necker, co-owner of Necker's Jewelers that opened over 100 years ago, said that anybody can sell jewelry, appliances or electronics. The difference is seen when a customer starts to ask questions and in quality.

Trust is a major factor in where people decide to buy.

``I always have a lot of questions when I'm buying a product,'' Mr. Necker said. ``Most of my customers do, too. It's our job to have the answers. Who wants to spend thousands of dollars on a product the salesperson knows nothing about?''

Nearly 30 percent of today's consumers prefer to buy from an independent or family owned business if they can get the same deal, according to a survey conducted by a buying group made up of small appliance dealers. They also choose to shop around before they buy.

``Thank goodness they do,'' Mike Zeglin, co-owner of Zeglin's Home TV and Appliances said. ``I don't see a big increase in independent businesses. But, I do think we will survive. We helped build America.''

There's always been competition, Mr. Necker said. The problem is the number of hats business owners and their employees must now wear.

In the ``old days'' a store might have 60 employees. Each would have their own job to do. Today, 23 employees handle a variety of chores in the family's two stores, Mr. Zeglin said. A sales person will have to know how to receive goods as well as accounting procedures and how to place order.

There were more than three dozen independent appliance stores around the Quad-Cities when Mr. Zeglin and his older brother Andy and younger brother Jeff opened their appliance store in Moline in 1975. Today there are just over a dozen stores that sell new appliances only.

Although the jewelry business hasn't seen the same decreases in number of stores, there is a general misunderstanding that all jewelry is the same and so is the price. A 50 to 70 percent sale means the product was likely marked up beyond its true price.

A little difference in quality means a big difference in price, Mr. Necker said. Telling a real diamond from a fake isn't the problem, it's a quality difference.

``We're not perfect,'' Mr. Necker said. ``But that doesn't stop us from trying.''

There may not be a growth in numbers of small businesses opening, but they're holding their own and in some cases expanding. Necker's has tripled the size of their DeWitt, Iowa store adding an area for children to play in and a place for ``disinterested'' shoppers to sit. They're also designing a web page for out-of-state shoppers.

The strength of small businesses future lies in education. Knowing their product and sharing that knowledge with the consumers.

``Anybody can sell electronics or appliances,'' Mr. Zeglin said. ``But you don't know how good the guarantee is until something goes wrong.''

``It's our name on the door,'' Mr. Necker said.