Jul 21, 2008 9:09 pm US/Eastern
New Yorkers Cutting Back On Unnecessary Treats
NEW YORK (CBS) ―
The big economic squeeze is starting to take a toll on some of life's simple little pleasures - from manicures to lattes customers are cutting back, which is taking a toll on local businesses.
With a souring economy, consumers tell CBS 2 these sweet little treats are the first things to go.
"I buy them (lattes) a lot less than I used to," one New Yorker said. "I am definitely not eating out as much," added another.
This leaves many local, small business owners struggling in a big way.
"Why are we in this predicament? Well the economy isn't good right now," said Business Week Magazine's Lauren Young.
New York dermatologist Dr. Debra Jaliman said her clients are cutting back on everything from facials to fillers, coming in only every 4 months instead of every 4 weeks.
"I have to pay everybody's health insurance, life insurance, my overhead is huge so all those little facials add up," she said.
At many of Manhattan's nail salons, most of the chairs were empty during the normally busy lunch time and that's because salon directors are saying customers are watching every single dollar coming out of their wallet.
"Usually customers would come in in the golden days and spend anywhere from $65-90 per visit once a week," said Robert Cleary.
Instead of dropping up to $100 a visit, customers are still keeping up appearances - they're just not spending as much to do so.
"Now we notice them coming in and spending anywhere from $15 to $25 once a month," said Cleary.
Six-hundred Starbucks locations will shut as consumers cut back on their $4 cups, an inevitable reaction according to Young.
"This was coined about 10 years ago and it's called the latte effect - people who spend on the little things don't realize it can add up over time," she said.
But there are plenty of simple ways to save if you can't bring yourself to completely cut life's little luxuries.
Young suggests bringing your lunch to work could save up to $200 a week. Check out DVD's from the library instead of renting all the time, and join a carpool instead of driving to work alone everyday.
Experts say while the "latte effect" hurts businesses, it can help you financially if you save or invest that $3 spent on coffee every day instead.
(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)
WCBSTV.com's Most Popular Pages
