High prices are digging into people’s budgets — How local residents, businesses are dealing with tough economy

Michael Christopher first points at his Toyota RAV 4 sport utility vehicle, and then swivels his body around and faces the gas pump. The price for regular unleaded — $3.61 a gallon at his normal Kenmore fill-up spot last week — causes him to cringe. “I’m in the process of negotiating a Prius for that reason (soaring gas prices) ... a Prius has great gas mileage. I used to have one, I’ve got a Toyota RAV 4 for work,” said the Kenmore resident. As the fuel pours into his vehicle, Christopher notes that he usually spends about $170-$180 per month on gas to reach the office of his Seattle-based home-decor business and perform deliveries, as well. He added that with a Prius, he’ll cut the cost down to about $120 per month.

Michael Christopher first points at his Toyota RAV 4 sport utility vehicle, and then swivels his body around and faces the gas pump. The price for regular unleaded — $3.61 a gallon at his normal Kenmore fill-up spot last week — causes him to cringe.

“I’m in the process of negotiating a Prius for that reason (soaring gas prices) … a Prius has great gas mileage. I used to have one, I’ve got a Toyota RAV 4 for work,” said the Kenmore resident.

As the fuel pours into his vehicle, Christopher notes that he usually spends about $170-$180 per month on gas to reach the office of his Seattle-based home-decor business and perform deliveries, as well. He added that with a Prius, he’ll cut the cost down to about $120 per month.

“I’m working on selling my business in Seattle and moving it to Bothell because of gas prices,” Christopher said with a positive shake of the head. “And then I can ride my bike to work and use the Prius for deliveries.”

According to fueleconomy.gov, political events in the Middle East and North Africa, the source of about one third of world oil production, has led to an acceleration of crude oil and gas-price increases.

Over in Bothell at a Thrasher’s Corner gas station, employees Scott and Patsy (last names withheld) said that business is rolling along at a steady pace, but customers are still vocal about prices cutting into their budgets.

“Nobody’s happy about it, there’s nothing we can do about it. We take their complaints, (and say) ‘Sorry, that’s all we can do,’” said Patsy, noting that customers are passionate in all their debates, not just about gas prices.

Added Scott: “Our customers are happy with our store and our people and everything, but just like everybody else, they hate the fact that the gas prices are going up because there is no reason for it, but that’s all political … I stay away from the political stuff because that doesn’t do any good.”

He noted with a smirk that some customers have actually protested, and asked others not to buy gas. “But they gotta buy gas tomorrow … gotta get to work somehow,” he said.

ECONOMY TAKES A BITE

Todd Ramsey, owner of Ostroms Drug and Gift in Kenmore, chips in, saying that it’s not just gas prices that are on people’s minds — but the sluggish economy, as well.

“You go to the grocery store … and they’re saying it isn’t inflation, but everything’s up,” he said. “It seems to be taking a bite into people’s budgets, but bread, bananas, broccoli and milk is stuff you gotta buy.”

Ramsey said that his family — which includes two high-schoolers — is thinking wisely about every purchase it makes these days. The Ramseys just had a new roof installed on their home, which was expensive; and, just like other folks, they ponder whether to fly or drive on vacation, and need to decide if two pairs of shoes for growing children are necessary or maybe one pair for each kid will suffice for now.

“You drink a $4 Starbucks a day — that’s $1,000 a year,” Ramsey added about where people’s money goes. (He’s not a latte drinker, but the Pacific Northwest is known for its unlimited supply of espresso stores and stands.)

Ostroms customers are treated to “dollar stretchers” deals to keep their wallets a little fuller. Ramsey said that because “people are looking for a value a little more stronger than they traditionally have,” he’s worked with suppliers to help keep his store’s prices down. For example, there’s a line of shopping bags that Ostroms would sell regularly for $11.95, but currently offers for $6.99. To accomplish this deal, Ramsey now buys the bags from his supplier for $5.50 each instead of the usual price of $8.

According to various economy-related Web sites, reasons the economy has taken a hit over the last few years has ranged from the United States dollar’s value going down, companies downsizing or moving jobs overseas, government spending money in times of war, people not being able to afford their homes or overusing credit cards.

Those sites also say the economy is improving.

FAMILY, CUSTOMER SUPPORT

For the Hillcrest Bakery in downtown Bothell, one of its owners Barbara Holm said the shop is thriving these days, but did hit a snag over the last few years.

“We had a little bit of a lull, probably a half a year where we were having a rough time. But being a family, you just have to cut corners and work together and you just do it,” Holm said. “Just keeping positive vibes going, just knowing that things are gonna get better — they can’t get any worse — taking it week by week, and saying, ‘OK, this bill we can pay now, let’s do it.’ You just hope that nothing breaks down major, because that’s always huge. You just hear about so many places just having such a rough time.”

A bonus for the Main Street sweet spot is that Holm’s mother, Leida, owns the building and rents it to her children — including baker brothers Pete Jr. and Bob — for a reasonable fee, Holm said. (Leida and husband Peter Kaskes started the business, and now the children are main owners.)

Like Ramsey over at Ostroms, Holm’s customers keep returning and indulging in the bakery’s “comfort food.”

“I feel we’re really blessed. We really find that people are just going, ‘You know what? What the heck, we’re gonna go ahead and splurge and we’re gonna have a fresh goodie or pastry or order a cake because, you know what? it’s not gonna break the bank,’” said Holm, noting that winning King 5 Evening Magazine’s Best of Western Washington award in 2009 provided a boost in bringing in new customers — and keeping them on board.

Local thrift stores play a major role in helping some people survive the tough economy, too, as evidenced from the customers that regularly visit places like Helping Hands in north Bothell and St. Vincent de Paul in Kenmore.

Helping Hands manager Michelle Drews said people are constantly donating items that subsequently find their way into the homes of those looking for good deals or to beat the economy.

“I’ve seen more people being smarter and wiser about being thrifty in all different generations, from men to teens to young families that dress their kids,” Drews said. “They’re trying to stretch their buck. I believe that if anything’s priced right, they’re gonna buy it, and we try to keep our prices down.”

TIME MANAGEMENT: LESS FUEL

Over at the Northshore Senior Center last week, Jeanette Kuehl, 84, said that she rarely drives except for her jaunts from her Kenmore home to the Bothell senior spot several times a week. Gas and food prices aren’t a problem for Kuehl, but she noted that fueling up her vehicle and buying fruits and vegetables at the same Kenmore Safeway save time and an extra trip up the road.

Same goes for Christa Mohr, who lives in Duvall, but spends a significant amount of time in the Northshore area. She used to live here and has plenty of friends and housekeeping clients in the area.

“When I come to town, I try to come as early as I can, and do as many cleaning accounts and the variety of things that I do,” Mohr said. “I do any errands I have to do, and see my friends — I make it a long day and come less often, but I would do that anyway. I think that’s a good way anyway, just time-wise, as well as (with the economy).

“I raised and supported my kids on my own,” Mohr added. “I had to scrimp and save a lot, so I’ve gone through this.”