Wednesday, February 04, 2009

Changes in Consumer Habits


How do you decide whether to pay a pro or do it yourself?

Recession Spurs Do-It-Yourselfers

Use it up -- wear it out -- make it do!

It's the credo that your parents or grandparents lived by. Posters from the World War II era screamed it at careless consumers and those without money to spend.

Now, as more Americans have been swept into what some have dubbed the nation's "Great Recession" -- and many more worry that it is only a matter of time -- this mantra of frugality is again becoming a way of life. For tasks such as home maintenance, sewing and gardening, people across the nation increasingly are taking cost-saving measures into their own hands.

"We are getting the real do-it-yourselfers now," said Debbie Hernandez, who has headed Home Depot's do-it-yourself clinics in Glendale, Ariz., for 13 years. "I hear a lot of people saying that at one time, maybe last year or the year before, they would have hired it out. But now they want to do it themselves because times are tougher, and the information is there for the taking."

Home Depot offers clinics in painting, tiling, toilets and cabinet glazing. Over the last year, store locations around the country have reported larger classes, especially in do-it-herself home repair, said Tia Robinson, a spokeswoman for Home Depot.

"Everything is tight," said Brian Arnett, whose ill-timed purchase of a condo in Reston, Va., left him strapped for cash. "I'm doing stuff to save money that I never thought of before."

For the 25-year-old computer technician, who is paying off about $50,000 in student loans, that includes opening the blinds instead of turning on the lights, shortening showers, cutting coupons and, on a recent morning, attending a do-it-yourself plumbing class at a high school.

"I feel like I'm such a dork now," Arnett said. "I know that if I cut out $5 worth of coupons every Sunday, I've more than paid for the [newspaper]."

Classes expanding
Continuing and adult education programs across the country are enrolling more students in their home, auto and bike repair courses.

Arnett's weekend plumbing class in Fairfax, Va., had to be expanded to accommodate increased interest.

"To take this class is only $75. To have a plumber just walk through your door is at least $90," said Jackie Hertz, 61, who got up early on a Saturday morning to learn some of the finer points of home plumbing.

In St. Paul, Minn., at least one continuing education program had to add another bicycle repair section after fuel prices surged last summer. And the Baldwin Park adult and community education program in Los Angeles has seen a 24 percent increase in enrollment in its sewing classes this year, prompting it to tack on about four more afternoon sessions.

"That class was actually started because our students wanted to make clothes for their family," senior director John Kerr said. "It was really an economics thing."

Of course, in the world of do-it-yourself projects and repairs, cost savings aren't guaranteed.

Patrick Colmer, a plumber in the Washington, D.C., area, recently had a customer who tried to repair the gasket between his toilet and the floor and ended up splitting the toilet bowl in half.

"My main advice would be that if you are not absolutely certain about what you are doing, call a professional," he said.

Some people are following his advice. At a time of plummeting car sales, motor vehicle repairs are on the rise, according to recent figures from the U.S. Commerce Department.

"Bad times are always good for us," said Robert Green, shop manager for Fairfax Auto Parts in Virginia, who added that he has been working longer hours to keep up with the increased business. "People start fixing their cars instead of replacing them."

In the last three months, Green has seen a roughly 15 percent increase in sales, which has amounted to a six-year high for the period.

Retailers latch on
The penny-pinching trend has not gone unnoticed by major retailers, which have watched sales plummet.

Whole Foods Market Inc. is now offering customers "value tours" to show shoppers how they can save money. Wal-Mart Stores Inc. has hired a family financial expert to offer its customers free money-saving advice and shopping tips. Kroger Co. offers its shoppers customized coupons.

"What we are seeing now is marketers really starting to shift what they are communicating," said Gary Bamossy, a professor of marketing at Georgetown University. "They are expressing the value of their product in dollars saved rather than some other emotional value like it being an elite brand."

(Source: Los Angeles Times, 01/26/09)

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