Boy, there’s a lot of talk about the R word, isn’t there? And I think business owners/leaders are beginning to get a little jittery. That’s what prompted me to remind all of you that there is significant danger in being reactionary and lowering your prices.
Jonathan Munk, over at Manizesto, recently interviewed Beth Goldstein, author of Ultimate Small Business Marketing Toolkit, on this very topic. Her answers are worth your time, if nothing else…to get you thinking.
You might also glean a little insight from reading what Brent Allen’s take is on the topic. Not enough? How about Tony D. Baker’s extensive post on ways to safeguard your business during a recession.
And for those of you who are about to tell me we’re not heading towards a recession…remember, perception is reality. If consumers or business owners believe that’s where we are heading, the reality doesn’t matter all that much.
Great links, Drew. I’ve seen a lot of clients start to pull back into their shells due to the “R” word, but hopefully, with the right marketing and diligence, their campaigns will hold TRUE!
I also heard that you (or someone driving by the office) had a little accitdent at MMG. Hopefully everything is okay and everyone is safe and warm.
Yes, an 18 year old kid was drag racing down Locust Street (our street) and hit a ptch of ice, doing some serious damage to both buildings on our block.
Everyone is okay. I’m hoping the parents of little Mario Andretti will make him earn the money to pay for the damages, but that’s not my call! 🙂
Even in bad times, there are businesses out there looking to promote themselves via advertising, p.r. and other marketing vehicles. I agree — lowering prices isn’t the answer. Looking a bit harder is.
If a company’s cash flow will support it, it’s actually a great time to up the ante and make even more noise.
When the competitors have gone dormant, a company can really own the marketplace. It’s actually cheaper to win the attention of your prospects.
I completely agree with your last comment. A recession can be a valuable opportunity for companies to poke their heads into the game.
It’s just like the stock market.
Most people are out there panicking, the smart people are looking for opportunities.
Drew, sorry to throw a spanner in the works but this ‘recession’ could be quite hard as already a couple of well-known luxury brands (Coach and Richemont) are experiencing a bit of a sting (and normally luxury brands are able to breeze through recessions). On the other hand, maybe this makes not an iota of difference to the argument you make.
And, anyway, maybe some luxury brand buyers will shop downwards if that is the case and so help mid-value brands (but maybe there aren’t enough luxury brand shoppers to make a real difference).
Who knows (this is not an area of marketing I know much about, but just wanted to throw in the point about the luxury brands being a-bit hit, so as to get some reaction / ideas).
‘If a company’s cash flow will support it, it’s actually a great time to up the ante and make even more noise. When the competitors have gone dormant, a company can really own the marketplace. It’s actually cheaper to win the attention of your prospects’ – absolutely.
Actually, it is a lot like the stock market — buy when price is low and there’s plenty of inventory.
It will be interesting, on the other side of this downturn, to see who really capitalized on it.
I think we’re saying the same thing…you’re just taking it a little deeper. You’re right, the luxury brands will be hit with the perception/reality of a recession.
So…the trick is– do they discount their prices? If I can get the $75K Lexus for $60K today — what will I think of Lexus when they re-raise their price back to the original $75?
Not a smart move!
Thanks for the request but I actually do not review products or websites for money. I just talk about the tools that I find of value or think my readers need to know about.