Increasing Sales In A Slow Economy
What’s the key to increasing sales in a slow economy?
It’s the opposite of what most businesses are doing today.
On December 17, 2008 ABC World News Tonight presented a fascinating piece entitled “Dissecting Deflation.” Robert Krulwich, the author, explained why lowering prices in a slowing economy exacerbates the problem. To view this piece, simply click on this link:
http://abcnews.go.com/Video/playerIndex?id=6484348
(Note: The opening to this piece is an ad for a Barbara Walters’ interview with Patrick Swayze)
Mr. Krulwich’s entertaining animated clip does a phenomenal job of explaining why lowering prices, not only slows sales, but increases unemployment. It’s counter-intuitive, but if you want to help the economy in 2009 hold your prices. It’s the opposite of what most businesses are doing today.
When you lower your prices, you not only add uncertainty to an already uncertain market, you send a message that you’re desperate. Conversely, if you hold or raise your prices when everyone else is lowering theirs, you communicate an air of confidence in yourself, your offerings and the future. That confidence is going to make your offerings very attractive in these challenging times.
Let’s blow the doors off 2009. Make it a much better year than the naysayers envision. Hold your prices.
May your 2009 be filled with good health for you and your family, the confidence and creativity to outperform economic predictions, the compassion to help others succeed and the joy of family and friends. Happy New Year!
If you have tips for dealing with a slow economy or if there are topics you’d like me to address, please post a comment or email me at dale@furtwengler.com.
