GOOD TIMING, HARD WORK, AND A LOAN
Part of the Surviving and Thriving series
By MARIE VASARI •
Herald Staff Writer
Updated: 03/30/2009 08:52:27 AM PDT
If spring is a time for blooming, Homescapes, Carmel is definitely in season.
The home accents store, run by brothers Thompson and Beau Lange, is branching out with a home and garden shop in Carmel.
Homescapes Home & Garden is expected to open May 15 in what is currently Succulent Gardens at The Barnyard Shopping Village.
At a time when so many small businesses are struggling to keep their doors open, the Lange brothers are bucking the trend, thanks in part to an influx of federal bank bailout money.
If it weren't for the small business loan they received from First National Bank in Carmel — one of the banks which received Troubled Asset Relief Program money — they'd be just another local business hanging on through a tough economy.
Homescapes, Carmel's story contains elements of serendipity and hard work, chance timing and strategic planning.
It also contains an awareness that even in good times, exposure matters. In tough times, it's crucial.
And the past year has been anything but easy, Thompson Lange admits.
"Last year, was quite a year for so many reasons, and it was getting tougher and tougher," Lange said. "But we believe in Carmel and we're sticking it out."
Two wildfires in Monterey County last year put a damper on tourism, which was already feeling the recession, Lange said. On top of that, proposed renovations to the building in which Homescapes, Carmel leases its showroom space meant orange netting on the roof and a blocked parking lot for much of the summer.
Customers thought the business was being demolished and stayed away, said Lange.
And the declining economy has meant consumers have been holding back on spending on nonessentials for months.
While Homescapes, Carmel carries an eclectic mix of furniture and accessories — everything from custom opium beds and carved stone Buddhas to orchids and lighting — Lange freely admits that few, if any, of the products his store carries are essential.
"They're aspirational products," he said. "You don't need it; you're not buying bananas to put on your corn flakes."
Limited ordering
Between that consumer hesitancy and a credit crunch affecting many small businesses, Lange said he'd done limited ordering for spring inventory — just enough to keep the store fresh.
So to be expanding during a recession is where the luck comes in.
Attending a recent Carmel Chamber of Commerce awards dinner, Lange and his brother met Lynn Booth-Scanlon, a loan officer from First National Bank. At the same time, they were having conversations with Robin Stockwell, longtime owner of Succulent Gardens, who was looking to get out of retail and back to his first love, running a nursery.
The $60,000 loan Homescapes, Carmel received in February from First National Bank not only saved the business and the jobs of its five employees, said Lange, it allowed them to sign a lease two weeks later with The Barnyard for a new garden store.
That new venture will expand upon Stockwell's concept to include garden and patio furniture and accessories. But the trademark succulents will continue to be sold there, supplied by Stockwell's Growing Grounds Nursery in Castroville.
Others will benefit
And other local businesses will benefit as well. The new Homescapes Home & Garden will carry patio furniture and fountains from Rodney Hunter Furniture in Monterey, pottery from Bob Goode's Little Baja in Moss Landing, orchids from Matsui in Watsonville and products from Bonny Doon Farm in Santa Cruz County, as well as items from local artisans and flower bulbs from Salinas growers. Succulent Gardens' two employees have been offered jobs with the new store.
So while the federal TARP money being given to banks has drawn criticism on some fronts, Lange said those critics don't see the bigger picture.
"The TARP money didn't just go to a bank," he said. "It will literally be spread throughout the community for products, supporting local businesses and their employees."
That, he said, is what the stimulus money was intended for.
More than timing and luck has gone into Homescapes' success.
Thompson Lange, past board chairman of the Carmel Chamber of Commerce, is keenly aware of the value of marketing and community involvement.
Carmel Chamber CEO Monta Potter said it's no accident that Homescapes, Carmel gets its name in the news.
Hard worker
"He works hard at it," she said. "He had very popular TV ads in the past, he has a savvy Web site and is an active blogger, and he throws great parties for his customers and neighbors. He especially knows the value of being involved in the community, as a chamber board member and board chair, and he's involved in lots of other ways."
On Wednesday, the business was profiled on National Public Radio, and on Thursday morning, Lange was contacted by "CBS Evening News."
He's been invited to write a guest column for Home Accents Today's April edition and to provide photos of the new store to several trade publications.
Lange majored in theater at the University of California-Los Angeles, but said he has always had an interest in marketing and advertising and recognizes the value of a good story. But he knows that newsworthiness is key — promoting one's business isn't enough to make the news. He's been asked to lead seminars and take part in panel discussions at gift shows and conferences across the country on media relations and business growth.
No home store
Lange said he has been approached by The Barnyard's management about leasing the former Thunderbird Bookstore's space for a design-based home store. But the timing isn't right.
"In this economy, opening a garden shop makes sense as people are staying close to home and shying away from big purchases," he said. "The garden products and plant and orchid sales at our downtown shop have stayed steady even in this unfortunate economy."
"People want to still live nicely," said Beau Lange. "There might be a lot less luxury items, such as big-screen TVs (selling), but people would still love to have a beautiful orchid plant for their dining room table or a beautiful accessory."
Last year, Homescapes, Carmel found a strong niche and source of extra revenue in home staging — decorating houses to make them more saleable — as a result of the stagnant real estate market, he said.
There are no plans to close Homescapes, Carmel, which has a 10-year history in its current location on Dolores Street in downtown Carmel.
"It's more important to me that my business makes a difference in the community," said Lange. "Maybe not just with my product — it's only stuff, after all — but rather by donating, participating, hosting fundraisers, having open houses."
Lange believes that giving back will pay off, in more ways than one.
"We all live in communities and rely on our neighbors," he said. "It's up to all of us to make our towns special, or at least celebrate our good fortune in living where we've chosen to live and do business."
