Retailers' survival strategy: Make your own merchandise

Despite a slumping economy, some of the tiniest of businesses thrive by making their own merchandise.

Sierra Snow Soaps owner Michelle Latham of Gardnerville says of the economic pinch: "It can go two ways: People eliminate the luxuries altogether or they keep the little luxuries. People tend to spoil themselves when they don't have any money."

She learned the craft from books, suppliers and online forums. Sales are made online, at craft shows, and at small shops such as the Made in Nevada Store in Reno. Single bars cost $5; she also makes and sells lotions and body butters.

In business since 2000, Latham says, "Business is stable, but I'm selling single bars, not five packs" with more lower-end items taking up the slack.

Meanwhile, Pink Flamingo Creations owner Thelma Hepburn says, "I haven't noticed the economic downturn." Her home-based business in Winnemucca designs and makes jewelry from crystals, jasper and turquoise, mostly Nevada-found by local rock hounds.

She started the home business with her daughter three years ago, and sells online and at craft shows and county fairs.

"We price our jewelry very reasonably $12 to $45 a set so we haven't noticed a drop in sales," she says.

To get a leg up on the competition, she goes online to download couture colors a year in advance in order to coordinate her line with upcoming fashion trends.

Next spring's colors will be ruby tones, reds and blue jewel tones, she says, while fall lines will show bright lemon yellow.

And in Gardnerville, Candles 'n Crafts owners Peggy and Archie Reed keep the shelves full of hand-poured custom candles and soap.

But they have noticed a slowdown in sales since starting the business in 2002. To buck the current economic slump, Peggy Reed says, "We hold our breath a lot and hope it gets better."

Their shop competes with the big box outlets on custom orders. Customers can specify color, scent and shape, such as the one who wanted a blue triple wick with a gingerbread scent. She makes the soap, he the candles; they're self-taught from online sources.

The Reed's eschew the craft show circuit, because candles tend to melt

in the heat.

Instead, says Reed, "We do up to 90 percent of our business as soon as the weather turns cold."-