Hi Folks,
I read an article from a nationally recognized economist who predicts that our recession will be "V-shaped" when discussed in the future. He said that we almost came out of it in August, but that negative news from our friends in the press made people think the worst was yet to come, so people stopped spending. Viola! Things got worse. Thank you news media.
The good news - this economist sees a reversal in the 1st half of 2009.
The January issue of No BS Marketing to the Affluent contained a short blurb titled "The Price of Panic". It was reported that when sales results were finally reported for "Black Friday" the day after Thanksgiving, sales were actually UP 3% over 2007.
Instead of telling us how great this was in the face of a growing recession, job losses, near collapse of the banking industry - the media report "smallest growth in years". Thanks again news media.
Since retailers were slashing prices 50% to 70% rather than their normal 30%, the growth could have been 6%. Think of all the dollars given away! Maybe some of our old household names would not be closing stores today? Maybe more folks would still have jobs?
The lesson taught here by Dan Kennedy is "The independent business owner needs to be very careful not to get caught up in such big, dumb company self-immolation". Amen, Dan!
Market to those in need of "the thing you sell". Do it smart and do it at a profit. Advertising huge "out of the norm" discounts will only cause you to give up money on what you would have sold anyway. It will not bring you new customers for life.
There are many ways to flourish in the new economy. Attend a local GKIC chapter meeting or call me to learn more.
Until next time,
Chuck Trautman
PS - Check out the website for my consulting business: www.goldcrownmarketingadvisors.com
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