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Frugality And Free Ice Water

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By Karla Ramaekers
Published: July 14, 2009, 10:07 PM
Updated: July 14, 2009, 6:37 PM

Anyone who's driven across South Dakota on Interstate 90 knows the signs are hard to miss, and by the time you make it to Wall, you just might be craving some of that free ice water.

Founded nearly 80 years ago during the Depression, Wall Drug has survived the worst of economic times. They're using old business tactics to ride out this recession.

Judging by the line of hungry customers waiting to order lunch or by the packed parking spots that surround the historic building, you wouldn't know there was a recession going on at Wall Drug Store. The tourist trap has attracted visitors from around the world, even during the worst of times.

"We've always tried to adjust to current economic climate," Chairman Rick Hustead said.

Rick Hustead is a third generation heir to the family business. His grandparents, Dorothy and Ted Hustead, had nothing to stand on when they moved to Wall with Ted's father, Bill, in 1931. Back then, customers were hard to come by.

"The three Husteads lived in the back 20 feet of the store behind a curtain and they were just barely making it," Hustead said.

That frugality, and the lure of free ice water, helped the business survive nearly 80 years. While travel is down this summer throughout most of the country, traffic at the store was up 6 percent in June from last year.

"We estimate that on a busy day in the summer between 15,000 and 20,000 visitors stop at the Drug Store," Hustead said.

Many out of curiosity. In South Dakota alone, there are more than 180 Wall Drug road-side signs. It's an advertising tactic that's hard to miss, and Hustead says, impossible to eliminate.

"The signs are our bread and butter. They are why we're in business.  They're why we stay in business, so our Wall Drug signs are very important to us," Hustead said.

And customers are proof they work.

"As you're driving across 300 miles of nothing, you keep seeing signs for Wall Drug. You can't just read one of them.  You have to keep reading them over and over again, I'm sure that's a big deal," John Maycut said.

They worked twice as well on John Maycut of Cleveland. After visiting a decade ago with his children, he's back again. While times are tough, he says you can't tell by the looks of things.

"It looks like it did when I was here ten years ago. Same amount of people, a lot of children, a lot of families," Maycut said.

Hustead says while it may sound counterproductive, the key to staying successful in these tough economic times is giving things away for free; both in the form of free ice water and the experience that tourists can't find anywhere else.

"We don't want to disappoint them! We want them to have a nice time when they're at Wall Drug," Hustead said.

And keep them coming back even when the economy takes a dip. Hustead estimates about 50 percent of the business they see at Wall Drug are repeat customers.




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