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The Honolulu Advertiser
Posted on: Sunday, December 21, 2008

WHILE SOME COMPANIES STRUGGLE IN HARD TIMES, OTHERS ARE ABLE TO THRIVE
Turning economic GLOOM into a business BOOM

By Curtis Lum
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Third-generation shoemaker Bob LoPresti works in his store, Joe Pacific Shoe Repair. Despite the slumping economy, there are some businesses, like LoPresti's, that are doing well.

Photos by REBECCA BREYER | The Honolulu Advertiser

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Hawaii news photo - The Honolulu Advertiser

Shoemaker Bob LoPresti logs 70-hour work weeks to keep up with the demand for his services. With the economy in a downturn, more people are opting to fix items rather than buy new ones.

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Bob LoPresti is a third-generation shoemaker and he's heard the stories of people in dire financial straits from his grandfather, who was a cobbler in New York during the Depression.

Long lines at soup kitchens, unemployment offices, and people begging for food and money were common sights across the country. Things haven't reached that point yet, despite an economy that appears to be in a free-fall, but LoPresti said he can see some similarities between then and now.

For one thing, the owner of Joe Pacific Shoe Repair said, people today are also trying to find ways to save money as they worry about rising costs and shrinking paychecks. As a result, consumers are holding on to items longer, opting to fix or restore them, rather than toss them out or purchase new ones.

Because of this, some businesses such as LoPresti's are thriving at a time when other companies are laying people off or going out of business.

"When times get bad, I get business," said LoPresti, 64. "My grandfather made a lot of money during the Depression when people were starving because they were fixing (shoes). So this is really a recession-free business."

But LoPresti isn't gloating because he knows many people are struggling. But he also knows that it's a business fact of life that someone will always profit off the hardship of others.

That's the case with Sharla Taufetee, co-owner of American Lenders of Honolulu, a repossession company. Taufetee's business has flourished as people default on payments and lenders seek the help of repo firms to reclaim the property.

"We're busy," Taufetee said. "There's an increase, definitely."

Taufetee said there is a lull in repossessions this month, and it appears that creditors are in the holiday spirit and giving people a reprieve. But Taufetee knows that business will pick up in January as it usually does.

ABLE TO RELATE

In addition to automobiles, companies like Taufetee's repossess boats, motorcycles and other vehicles. She said she recently has seen an increase in repossessions of construction equipment from contractors and company vehicles from small businesses.

Being a small-business owner herself, Taufetee said she can relate to the plight of the business owners.

"I'm thinking, 'Oh, my gosh. Everybody is trying to survive in Hawai'i,' " she said. "I totally put myself in their shoes because when everybody was buying all of the homes, we didn't have any business because everybody was doing well but us. So I can totally understand where they're coming from."

Many people are trying to avoid the clutches of the "repo men" and "repo women" by not investing in a new vehicle and keeping an older model instead.

Bob Cahn, owner of Car Doc Mobile Repair Inc., said he is getting more work from residents who tell him they delayed fixing their car because they planned to get a new one. But with money being so tight, they've opted to stick with their vehicle.

"I've been doing less jobs, but a higher percentage of larger-type work, things that people have been putting off, like the bigger maintenance, timing belts, air conditioning, various types of jobs that they have postponed because I'm sure they weren't sure of what they were doing, whether to keep the car or get a new one," Cahn said. "I've had a number of people say those types of things: 'We're going to keep it, so we might as well fix it up a bit.' "

Cahn drives from job to job, making house calls in the East Honolulu area. He's been in business for 19 years and experienced a similar increase in work in the mid-1990s when Hawai'i was mired in another economic downturn.

The Car Doc said he averages five jobs a day and puts in between eight and 10 hours daily. With very little overhead, Cahn said he can keep his prices at or below a typical garage mechanic.

"I do try and pass some of the savings on to my customers," he said.

WORKING LONG HOURS

Long hours seem to be the norm for many small-business owners these days. Shoemaker LoPresti also logs 70-hour work weeks to keep up with the demand for his services.

Tucked away in an alley between Queen and Merchant streets, Joe Pacific Shoe Repair still manages to draw customers who need a leather product repaired. During heavy rains like the ones last week, LoPresti said business also picks up as shoe owners find out the hard way that they have holes in the soles.

Sandra Nicholl drove all the way in from Kahalu'u one day last week to pick up a handbag that she had LoPresti repair. Nicholl said she and her husband also bring their shoes in for him to restore.

"It's one of my favorites," she said of her bag. "It needed to be patched, and I didn't want to just throw it out."

Nicholl said she favors restoring old shoes and bags, rather than getting rid of them.

"There's something to be said about reusing and restoring," she said. "I read where people are doing this because it takes a while to break in new shoes and it costs less to repair. So why not repair it? It's well worth the money."

Although some businesses are profiting, not everyone is happy with the increase in business caused by the uncertainty of the economy.

At Employee Assistance of the Pacific, mental-health experts have seen an uptick in the number of people coming in for help. EAP provides counseling to 100 companies statewide, as well as to individuals.

FEELING THE PRESSURE

Carey Brown, EAP general partner, said the economy is having an overall negative impact on many people.

"What we see is that it's a generalized underlying stressor," Brown said. "People feel that pressure and then that can affect relationships or their own world or self view, how anxious they're feeling."

She said people have budget concerns because spouses are losing their jobs, and problems are compounded by the anxiety related to the holiday season. Brown added that many companies have invited EAP counselors to their businesses to address the concerns of their employees.

But Brown said that just because EAP is seeing more clients doesn't mean the company is making more money. EAP gets a flat rate per employee, so when a company cuts its workforce, EAP gets a lower fee.

"That's just the way it is, and that's OK, too," Brown said. "It's like any service that's needed in times of distress."

Repo woman Taufetee understands why people seek the services of firms such as EAP because she sees the pain on people's faces nearly every day. But she said she tries not to think about that when she's taking away someone's property.

"We see a lot of single women with kids and sometimes it's really sad, but we can't let our feelings get involved with it because we're just doing our jobs and we're trying to make money, too," Taufetee said.

"A lot of people are really struggling, and I see it all, people crying. It's really sad because you can tell they're at their wits end."

Reach Curtis Lum at culum@honoluluadvertiser.com.