Just as “a rising tide lifts all boats,” the extended period of economic growth over the past decade has given almost all businesses a free ride toward profitability. Now, however, the tide is ebbing and many companies are struggling to remain afloat.
Unfortunately, with customers and cash pouring in so easily for so long, many business owners have forgotten how to be competitive. After all, there was plenty of business to go around – let’s all share in the good times!
Well THAT party is over. It is time now to sharpen your competitive edge and ramp up your marketing in order to capture your share of the business that is out there. Let me correct that last statement: You need to capture your share plus a healthy chunk of your competition’s share in order to survive. And that means getting lean and mean and going on the attack.
What is the first thing weak competitors do when times get tough? They cut their prices. That is the first step on the road to insolvency. Recent reports confirm that retailers and automobile manufacturers who rushed to offer steep discounts earlier this year in order to attract shoppers are now paying an even steeper price in lost profits. Plus they have now conditioned customers to expect a sale, and reinforced their behavior by rewarding customers for waiting to make a purchase. Wrong, wrong, wrong.
The right way to approach the market is by differentiating your company, its products and services. When you convince customers that what you offer is different and better than anything else, you can rise above “commodity pricing” and stand a better chance of maintaining your profit margins.
But differentiation takes an investment in marketing. You must tell customers – both old and new – how good you are and how smart it is to do business with your company. Pull no punches, and don’t worry about hurting the feelings of your competitors. Keep hammering home the benefits of choosing your company in order to attract the attention – and money – of a wider range of customers.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Friday, February 6, 2009
Friday, January 23, 2009
The Recovery Begins Right Here
If you are following the ups and downs of the stock market in order to gauge the condition of the economy, you may be looking in the wrong place. Let me tell you why.
I recently asked a client, "How's business?" "Good," was his tentative reply. But then he amended it to, "surprisingly good." It seems January has been a productive month for his company. And, while he admitted the orders were not flying in like a few years ago, he was pleased with the way things were going. Maybe even a little optimistic.
Thus, the recovery begins. Not on Wall Street, but on Main Street. If you are hoping that the infusion of billions of dollars of our money into the financial system will eventually trickle down to help you out of the doldrums, don't hold your breath. Look where the first $350 billion went - nobody knows. (Although my guess is that most of it is now in private accounts in the Cayman Islands.)
No, the strength of the U.S. economy is not centered in the money shops of New York. It is in the small machine shops, local retail stores, local banks, farms and business offices just down the street from where you are. WE will be the engine that drives the recovery, not the socialization of America.
The client also shared the fact that much of his current business is coming from repeat customers. That is always nice, but never an accident. Such support and loyalty is the result of treating customers fairly and staying in touch with them.
I have always said that the most important marketing you can do is not to prospects, but to existing customers who already know and understand you. But they can easily forget about you unless you make the effort to keep the channels of communication open.
I recently asked a client, "How's business?" "Good," was his tentative reply. But then he amended it to, "surprisingly good." It seems January has been a productive month for his company. And, while he admitted the orders were not flying in like a few years ago, he was pleased with the way things were going. Maybe even a little optimistic.
Thus, the recovery begins. Not on Wall Street, but on Main Street. If you are hoping that the infusion of billions of dollars of our money into the financial system will eventually trickle down to help you out of the doldrums, don't hold your breath. Look where the first $350 billion went - nobody knows. (Although my guess is that most of it is now in private accounts in the Cayman Islands.)
No, the strength of the U.S. economy is not centered in the money shops of New York. It is in the small machine shops, local retail stores, local banks, farms and business offices just down the street from where you are. WE will be the engine that drives the recovery, not the socialization of America.
The client also shared the fact that much of his current business is coming from repeat customers. That is always nice, but never an accident. Such support and loyalty is the result of treating customers fairly and staying in touch with them.
I have always said that the most important marketing you can do is not to prospects, but to existing customers who already know and understand you. But they can easily forget about you unless you make the effort to keep the channels of communication open.
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