Issue #15: Henny Penny

October 8, 2008

Is it finally true? Is the sky falling? As of midnight last night the current US debt was
$10, 192,784,684,122.13. Say it out loud.
Most consumers are paying attention to the world financial markets and US government bailout of Wall Street.
Canada won’t escape the full impact of world events. It can't.
Customers:
Your customers are facing psychological body blows every time they turn on the news, TV, radio, newspaper or surf the net the reality sets in that their investments and long term savings are taking a bullet. A common reaction is to head for shelter with wallets firm in hand.
Business:
The time to prepare your business for the future is right now.
What are you going to do? First, remember this;
Adapt or Die.
There are strategies you can use to protect your business. Here are just a few suggestions;
First communicate to your staff your vision of the future. Doing more with less is a reality. Accountability and productivity is a priority. Your staff will respond positively if you first prepare and guide them.
Marketing & Advertising:
Advertising is usually first in the “cost cutting” cross hairs.
If you are in marketing, it is a time to revaluate commitments and rationalize the expenditures. Consider getting independent advice.
From the media side, join in the rationalization process. But be specific, as every media outlet will claim to be essential.
If your customer’s competition cuts ad budgets, they are likely to follow. There are many examples from the past where companies who maintained well focused marketing strategies through tougher times became market leaders as economic times got stronger.
Strategy:
Some companies will examine their product offerings and realign their inventory to better position their business during tougher times. They may introduce a lower priced product line or special discounts.
Focus on current customers in order to keep them consistant spenders. It is much easier and cost effective to grow current customers.
Use other elements of your inventory or customer service in order to preserve your customer base. Package items i.e.: to “accessorize” the main purchase.
And finally:
Josh Gordon a New York based business consultant says that “…there have been 9 recessions in the past 50 years. The average length of each was about 11 months. But all recessions end.”

Stay in a good Mood,
Brad