Just like their counterparts in the rest of the state and country, businesses near the University of Wisconsin are grappling with an economy that refuses to cooperate. Some are going belly up, while others are slashing prices or attempting business model changes in hopes of still attracting customers.
Some shops and offices, however, have found themselves in a surprising situation: their businesses are flourishing.
Discount Clothing
Jennifer Rogalin, manager of Ragstock at 329 State St., said she feels incredibly lucky when she compares Ragstock to other stores in the area.
“I talk to a lot of business owners on the street and they say business is horrible,” Rogalin said. “It’s really weird to see all these other stores not doing well at all, and we’re still showing 15 percent increases. We’ve had ups and downs like anyone else, but we have had more ups than anything, which is a big deal.”
Rogalin said Ragstock, which offers recycled and new clothing at affordable prices, has seen monthly increases anywhere between 2 and 15 percent this year, plus the inevitable occasional decrease.
According to Rogalin, Ragstock has not seen much of an increase in sales to students, but instead to older customers who she guesses are attempting to pinch some pennies. She speculates this is because many college-aged consumers still rely on their parents for spending money.
“I’ll see kids come in with these giant bags from Urban Outfitters, and you know they probably spent $100 there. I think it’s going to take a little longer before we notice people aren’t spending $30 on a T-shirt and $100 on jeans,” Rogalin said.?
According to Goodwill Director of Retail Sales Kathy Mannlein, Goodwill’s 651 State St. location has also seen an increase in sales.
“That store opened just a little over a year ago and we continue to see more customers coming in and sales building,” Mannlein said. “I think related to the economy, everyone is always looking to save money, and right now everyone is forced to do that.”
Goodwill, which is a nonprofit organization that benefits individuals living with disabilities, stocks its stores entirely with donated clothing.
While she said she thinks people are holding on to expensive items for longer, Mannlein said she has not seen a decrease in the amount of clothing donated.
According to Mannlein, Goodwill is toying with several changes to boost business, including adopting uniform prices for all brands within a clothing category.
“We have to be competitive,” Mannlein said. “That change was a significant one. Clothing is the bread and butter for Goodwill’s mission.”
Plasma
Twice a week, UW junior Elvis Williams troops down to 319 West Gorham St. to visit the Badger Plasma Center, which a receptionist said has grown increasingly busy over the past year. There, Williams undergoes plasmapheresis to have some of the yellow liquid responsible for suspending his blood cells removed — for a price.
“They just changed it. It used to be that you would get $55 every week,” Williams said. “Now, they changed it so it’s by weight. I’m part of the smallest class since I’m under 150 pounds, so I get $45.”
Because of the financial incentives, plasma centers across the United States are seeing an increase in donors. With more plasma coming in, the centers have more to sell to industries that produce products for research or health care.
Kara Flynn, director of global communications for Plasma Protein Therapeutics Association, said her organization has tracked a steady increase in donations nationally since 2005, with the sharpest increase occurring from 2007-08. While there has been an overall increase, she said the economy is more responsible for steep spikes in certain regions of the country, such as Wisconsin.
Williams said several of his friends are also donors, and each time he visits the Badger Plasma Center, he sees more students waiting to give plasma.
“You just kind of lay back and watch whatever is on the TV. It doesn’t really hurt as much as you might expect,” Williams said. “I would definitely recommend [giving plasma]. Not only are you helping other people in a really easy way, but the extra cash is great.”
Think outside the box
As whispers of recovery begin to circulate and the shouts of economic difficulty continue, businesses in Madison will continue to do their best to come out ahead.
“Sometimes you don’t know if it’s the economy or just you,” Rogalin said. “Managers definitely have to start thinking outside the box. As long as people are wary about spending money, you have to see what the trends are and stay out ahead of it.”
With the help of student shoppers, they just might do so.