Barbara Farfan wrote an inspirational article for About.com Guide in which she discusses how winning companies in the U.S Retail Industry can survive in a recession. She suggests, first of all, that one of the best indicators that signal a recession is probably peoples’ attitudes. If consumers think that there is a recession, they will start demonstrating behaviors that actually cause things to recess. Economic data and expert opinions seem to matter little when consumers develop the fear of economic hardship.
The challenge for retail companies is to cause a change in the conclusions of the general public which will change their purchasing behaviors. In the past, instead of shrinking their visibility to coincide with the perceived shrinking economy, winning companies made bold moves to capture attention, capture market share, and capture brand dominance that they could build on. Examples cited include the following:
- Chrysler’s introduction of rebates
- Ivory Soap’s creation of soap operas
- Taco Bell’s creation of the "59-79-99" value menu
- Kellogg’s sponsoring of the Admiral Richard E. Byrd South Pole Expedition
- Banks’ introduction of interest-bearing checking accounts
- Supermarkets’ acceptance of credit cards
Many of these ideas not only helped the companies survive past recessions, but lived beyond the recessionary period. Getting bold, getting resourceful, and getting noticed appear to be key factors that helped winning companies survive and prosper.
What steps are you taking to prosper? Do you have the right POS Software to help your business? Are you taking advantage of the software functions that will help you grow your business?
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