The global financial crisis doesn’t appear to phase Kelly Garcia, 40, a small business owner in upper Manhattan. The trick to staying afloat, he said, is staying calm.
From the window of his cramped store, Garcia’s Hardware at 109th Street and Columbus Avenue, Garcia can see the fallout from the turbulent economy. Within five blocks there are 13 vacant businesses, all once mom-and-pop stores like Garcia’s.
In a good year, Garcia said the store makes as much as $80,000 in profit. In a bad year, only $40,000 to $50,000 – which must stretch to pay the store’s $3,000 monthly rent, support himself, his parents, his brother, sister and his 4-year-old daughter, Kaia. This year looks bad, said Luis Inoa Garcia, Kelly Garcia’s brother who also works at the store. Customers are fewer and wholesale product prices on items like paint, copper piping, and screws have increased.
In the face of such a weak economy, Kelly Garcia said many of his friends have started to panic. “They cry about it,” he said. But he remains easy-going, with a tunnel vision focused on the day-to-day operation of his business.
Without a safety net
Our character, Kelly Garcia, is a fairly fit 40-year-old man. This is good — because he doesn't have health insurance. He recently hurt his foot placing basketball and thought he broke it. He had it x-rayed and walked out of the hospital with a sprained ankle and a bill for nearly $500. After that, Garcia said he would go to the hospital only if it were absolutely necessary. What would happen if he were really sick or hurt and desperate for medical attention? His hospital bill could be 10 times, or more, higher and he could lose the store.
Kelly’s treasure
Kelly Garcia shares custody of Kaia, his four-year-old daughter. Most days at 3 p.m. curly-haired Kaia comes bounding into the store after spending her day next door at the Head Start Center. Garcia breaks from his usual deadpan into a smile as they enter the store together. Kaia wanders through the store's cramped aisles and runs around outside until Garcia leaves work and takes her to his mother's house. Garcia covers most of Kaia’s expenses. When asked how much of his income is spent on his daughter he replies, “How can you put a price on that?”
—Jamie Oppenheim
“Don’t just think about profits, you gotta maintain and be patient…some things you have no control over,” he said shrugging.
But Garcia’s narrow focus carries risk. He doesn’t have health insurance because he said it is an unnecessary cost. Five years ago, when he sprained his ankle, the $500 bill caught him by surprise. So he tries not to think about the possible cost of a more serious injury or illness. The next time he gets hurt, he said, he will go to the hospital only if he is sure a bone is broken.
If Garcia projects optimism, those depending on him for their livelihood are less sure. They are worried about the store’s future.
Manny Polanco, Kelly Garcia’s long-time friend who often helps out at the store at no charge, said that the store used to get a lot of business from homeowners fixing up bathrooms and kitchens. But now, Polanco said as he sat in the store sipping a beer, people can no longer afford those renovations, and the hardware store is suffering.
Luis Inoa Garcia said that business has been losing thousands of dollars each month. Kelly Garcia has been lowering prices on some items to cope with losses, Inoa Garcia said. Conversely, other items have gotten so costly that Kelly Garcia had to raise prices.
Inoa Garcia said he hopes a Democrat as president will change the direction of the economy, but is skeptical of a dramatic improvement any time soon.
