Are Our Favorite UPMI Businesses Teetering On The Edge Of Failure?

[anonomoose]

I agree..... as soon as one business closes you always have some hero come and start another one, or buy and think he's going to be the guy to turn it around, so then you still have the same competition that waters down the profit for everyone and then the cycle continues........Very Scary Stuff!!!

FF

Businesses ride the ebb and flow of the economy, and the northern tiers are no different.

But it seems that the high paying jobs that allowed the "trickle down" of money are moving away from the north and south at light speeds.

If you have zero discretionary spending, you won't be buying sleds and spending an extra $300 on gasoline....these things will seriously deplete a family budget and the only reasonable thing to do is to cut costs and stay home.

This also means that if you are a sled maker, boat maker, ATV maker, or any other peripheral product maker, not only do you take a hit from fewer sales, but you have to deal with competition coming from Mexico, Asia, and places where wages are ridicules. So THOSE industries will be facing hardship more and more too.

These are the hard facts. Unless someone comes along to change this process, then the fringe areas like the U.P. or northern Minnie, and Wisconsin will all be facing hard times ahead.

So it isn't just a matter of hunkering down and weathering it out...you have to take a proactive approach. One way is to try and figure out a way to improve your odds with the dwindling tourist business, is as I have mentioned before. For example sleds don't have to use gasoline that has road tax....and if some enterprising individuals would contract with some suppliers to put some tanks around that would short circuit this over taxing of gasoline which is no longer cheap, they might be able to pull a bit more of the group their way. Or work with locals to have sled weekend menus at the eating establishments that cut the price in half one weekend a month thru the winter.

As an owner, you have to assume that business will continue to dwindle and be proactive in doing other things which means more or less taking on one or two other jobs to make ends meet. Many already do that, but if your income depends upon tourism and it isn't there anymore, you have to move your efforts to something else if you want to remain viable.

Eventually, if the price of fuel goes where everyone is saying it will go, then you need to move completely away from tourism, and cater to locals completely. Sleeping places that promote romantic get aways, boat tours, ATV tours, berry picking, color hikes, etc.

One thing is for sure...those who hunker down will close their doors because you can't make money unless you book tourists...exclusively.

It is a new world order....use the web to get out and get news and advertisement to those who don't know you are there, or wouldn't have known about your establishment unless you change the way you "used to do business".

 

[thebluff]

I am not aware of anyplace where things are not bad. I know of a handful of people that are doing well and for them things are good. I dont think things here are worse than other places, just maybe that we were a bit closer to the brink to begin with.

I started a new project last month that puts me out in most of the local businesses. I knew it was bad for us all, I was surprised at just how many said they either will be closing in 2-3 months or that are contemplating it.

 

[Rupp Collector]

We've been noticing this for several years now. With the exception of the Holiday weekends traffic has been very light. Used to be we couldn't find a place to stay, now it's find a place that's open. We rode 240 miles the other day and maybe met 10 sleds. Sad sad sad.

 

[snobinge]

We rode off-trail between Mass and Twin last weekend and the only tracks we crossed were the one's we made ourselves. The bars we stopped in at night were dead. The strange thing was that all of the lodging was full.

 

[ss440]

The US Government needs to start TAX company's double that move their plants out of the country, as for spending money in the UP, Im close to 2,000 in Sledding costs already this year and going for the week on the 31 to spend more.

taxing companies more is never the answer, they just pass it to us

 

[lenny]

up has been depressed for decades and now with a national recession it's that much worse. Everything is for sale in da up, not literally but way to much stuff.

Times are tough, what is the solution, I can only speculate.
Personally, I don't think the solution is to spend money just to spend money. When it come to gas, there is not much comp so you buy when you need to buy. Yea, some may go out of their way to patronize a gas station because they like it better than another place. When it come to lodging, food, bars,,,, that kind of stuff, competition is the key. A friendly attitude, exceptional service. These types of business attitudes will draw people. I'm not going to spend a nickle somewhere if the business attitude is poor. After all, aren't businesses in business to make money. Business get tired, the owners get wore out and their performance is just not there anymore, bill pile up, it's a horrible cycle. People with a passion for excellence will struggle through the rough times of low national spending. The mediocre businesses may fall by the way side. Remember the Harp, the lady there was good at what she did but her attitude was obvious, not sayin that is why they closed because I never heard why but I am sure it had an impact on repeat customers

 

[ubee]

Lenny,Was she a red haired lady ? She was alot of fun after you got to know her !! Liked to act like a crabass to tourists LOL!!

 

[lenny]

Lenny,Was she a red haired lady ? She was alot of fun after you got to know her !! Liked to act like a crabass to tourists LOL!!

I just remember crabby and others in my crew not wanting to go back, kinda looked like Jodie Foster a bit

 

[peppermill]

When times were good it would take about 3 years to sell real estate. We want to retire in about 7 years that is why we put it up for sale now. Maybe by then it will sell. We are just thinking ahead.

 

[polarisrider1]

The US Government needs to start TAX company's double that move their plants out of the country, as for spending money in the UP, Im close to 2,000 in Sledding costs already this year and going for the week on the 31 to spend more.

Your getting off easy, I earmark about$ 8000.00 a year for sledding, not including a sled replacements.

 

[sr22ger]

Going to the factory and running a drill press for $25 an hour is long gone.

Mindless jobs for $25 an hour are gone, and should be.

 

[lenny]

When times were good it would take about 3 years to sell real estate. We want to retire in about 7 years that is why we put it up for sale now. Maybe by then it will sell. We are just thinking ahead.

exactly,,,,my list was not to imply why people are selling but rather just how much is for sale. Seems everything is for sale in da UP

 

[lenny]

I had received a call with someone interested in buying my "old Town Hall" before I even finished it. I guess with a substantial offer it would also be for sale but for now I am giving it a serious go. So there are numerous reasons why people need or want to sell.

 

[Deleted member 10829]

I just remember crabby and others in my crew not wanting to go back, kinda looked like Jodie Foster a bit

We always stopped there before Parkview opened, and we all couldn't believe how crabby she was to customers. I don't miss that place at all!

 

[mjkaliszak]

Your getting off easy, I earmark about$ 8000.00 a year for sledding, not including a sled replacements.

I'm up there also, in fact until this year I had an unlimited budget we called it a " black project " I would never tell the wife what it really cost. Just our WUP trip would cost 7k and there were 4-5 families that came with us. This year there was only 13 of us ( 3 families ). Some families dropped out and all of us headed home early when the new years melt down came on Thursday. We have resorted to riding 50% of our miles down here in SWMI , this is a first in the 10 years we have lived in MI. Normally we would make 3 UP trips, 3 trips in the LP and 7 trips up to Wellston, Caddy, Baldwin. Even when gas was over $4.00 , 2 years ago we managed to ride 3700 miles. Unfortunately.... after years of a bad economy, I'm faced with my company moving to Mexico, kids going to college and heck ... I'm just trying to preserve the man-cave !!!! I wish things were different. The " sucking sound " has turned into ever present humm ! The east side of the state looks like a dead zone, the president is complimenting china a comunist country I may add, he bowed to the arabs in front of the world , TOTAL ANARCHY .... I tell ya !!!! I think " Trump has it right, China is our enemy. We no longer can produce what we consume and almost everyone shops at Wally world ! Then they leave their carts all over the parking lot ( *** ). I ... myself for 1 am trying to support the small local businesses , I'm pretty much soured by " corp america " and it's latest slang " global economy " ! It's time we start taking care of our own.

Think Snow

 

[mikeh906]

I think it also has alot to do with the sport itself. I was the last of our group to still sled, and our family trips ended the season of 07-08. I started going to the UP sledding in 77-78, the big snow year. We had been skiing in Ironwood since the 60's so knew the area well. Our crews, teams, and friends could fill a motel or two, everyone went every weekend possible.We knew sledders from all over the upper midwest and would run into them anywhere there was snow. The only time of the year we would see them. You had to book early for a good room. All the local sled bars in N. WI, and Ironwood ect. were standing room only. Hayward was crazy, Phipps was off the hook. Times change, peaple change. The sport has been changing over the years also. Less peaple now snowmobile, its that simple. That means less money spent in local establishments. Not to forget the local dealer we spent lots of money at. All 3 of the Polaris dealers I went to [twin cities] all said 10 years ago they hate winter because thats when they lose money. I am sure things are not any better now. And to think it will get better or even maintain the current level of active snowmobilers spending goes against what history is showing us. Back when skiing was dying, snowboarding came along, and they even fought against it, only to be saved by it. Not sure what will save snowmobiling? Or the UP.

 

[peppermill]

I had received a call with someone interested in buying my "old Town Hall" before I even finished it. I guess with a substantial offer it would also be for sale but for now I am giving it a serious go. So there are numerous reasons why people need or want to sell.

Exactly Lenny. Even if we didn't have ours for sale and somebody wanted to buy it for the right price we would sell. As it is we are not going to give it away just to get rid of it. You can buy it as a business or you can buy each house seperately for your own living. We would like to sell with in the next 7 years so we can retire. We are not selling the new little house which is Snow Hut #4. We want to have a place to come to and stay. If anyone is interested give us a call 906-886-2940 and we will refer you to our realtor.

 

[snobuilder]

Mindless jobs for $25 an hour are gone, and should be.

Sad to say but those jobs ARE gone, and that is EXACTLY why the economy will die.
With todays prices,... $12.00 per hour is surviving and $25.00 is living.
Generally speaking, 25 can afford a sled and a weekend in the UP,....12 definately cannot!
When I hear someone makes more than me on an equally challenging type of job, I am happy to hear it, and NOT envious because it means that times are good and the ecomony is turning over dollars,....its really quite simple once you boil it down.
The fat cats at the top of the ecomomic food chain can't reap a bountiful harvest (profit) lest they sow the seeds (wages).

 

[Admin]

Boy, after reading this thread, I guess Chicken Little was right!

All kidding aside, I have been one of the fortunate ones to not be impacted by the economic slow down. I have struggled at times in my career, so to some degree I can relate to what many are going through right now.

With that said, I think some of it depends on geography. First off, with the exception of the mining era of the late 1800's and early 1900's, the UP has NEVER had a booming economy. In fact, it has seen more busts than booms and for the most part, I think that the UP economy is about as steady as can be found anywhere in the country. In the past 30-40 years, it has just held steady or had some small up's and downs.

I can also say that for many areas across the UP, tourism is not the main source of income, but rather secondary or even further down the line. There are certainly businesses that depend on tourism and the majority of them posting on this board do, but most of the UP economy is based on something other than tourism dollars.

I have seen the hard times fall on portions of the western UP lately. The shutting down of the mine in White Pine in the 1990's and now the shutting of the mill in Ontonagon had huge impacts on economies that were sustained by those businesses and unfortunately, I believe that the hardest times for these communities have yet to come. Ontonagon was holding out hope that the mill would re-open or be re-tooled for something else, but it has been decided to scrap it. So folks hoping to have a job come along with some sort of resurrection of that facility will be forced to move away as there really is not much else to support them in that area. This will further hurt the economy of that area.

I can say that areas like Houghton/Hancock, Marquette, Escanaba and the Soo all have pretty stable economies and have seen fairly steady growth in the past 20-30 years. I first visited the Keweenaw 20 years ago and this area has probably 3 times as many businesses now as it did then. Much of the economy is supported by MI Tech, but there are also many new small manufacturing and tech businesses that have popped up in the past 20 years as well as the hospitals and schools as major employers.

I am not saying that jobs are plentiful in the area, but if one needed to find one to make ends meet, they could and opportunities exist for persons wanting to strike it out on their own.

Perhaps I am just an optimist by nature, but I feel pretty good about the economy in our area. We do not experience the booms like other areas do, but then the up side is we also do not feel the bust when the boom runs it's course. I guess the bottom line is, I don't think anyone comes to the UP to get financially rich. However, for a hard working person that is willing to trade the all mighty dollar for a good life in a beautiful land, there is opportunity here.

-John

 

[snobuilder]

Just a sobering thought,.....BUT,......


Where is this site without ppl talking snowmobiling and who cares how much snow the Keweenaw has or is forecasted to get if not for snowmobiling?

I guess some might still come here to talk about usetabees and or gripe about the what is,...but that wouldn't last.....we all need a good wage for the economy to survive and thrive,....no matter your intellect or skill level,....we all want to work but not for peanuts,....especially when Big Brother will make things better once you it rock bottom or come close.

On the other hand,....even though its been tough for me and my family personally ,...I will continue to try and enjoy sledding as much as possible this year and might be in the Keweenaw this weekend,....feeling I'd better do it while I still can!.....LOL