How to resist the economic downturn?
When the economic climate changes and it becomes more difficult to cope with the tasks set, it is not necessary to close your business and leave the market. Any market situation provides an opportunity to make a profit. Just take these 4 tips into consideration.
The “perfect market” approach — so many economists have dubbed the emergence of online sales. Indeed, with such transactions between buyers and sellers, the market value will always pay off and the price of the goods will be acceptable. With serious economic uncertainty, the seller sees how the price of the goods falls and profits disappear, but the “perfect market” adheres to the old prices, and even begins to raise duties for sellers. But even the “perfect market”, sometimes, tolerates not bright times. How to survive in an economic downturn?
Here are some tips for you to be able to swim even against the current:
1. Be selective in what you sell
When dictated by the market prices fall, it is time to replace expensive goods with a large volume of cheap ones. It is necessary to accept the existing trend and to comply. Most buyers will try to avoid expensive purchases. When you offer a product that meets customer expectations, transactions continue even under difficult market conditions. You will be able to protect the cost of more expensive goods by reducing its quantity in the market.
2. Attractive prices – not necessarily low prices.
Buyers, of course, attracts the lowest possible price. While others prefer to spend more to purchase goods of higher quality. Carefully research the prices of products similar to yours, and set your offer within the market value. Set not the lowest price, do not make a bad bar, as a result you will notice how the price will pay off the profit.
3. Cut costs for more profit.
When “hard times” arrive, smart sellers reduce costs (“non-obligatory” expenses, which may include expensive presentations, intermediate warehouses, etc.). This helps not to lose profits and continue to attract customers. The latter, in their own time, are in constant search for goods for which the price is not inflated. You need to look for ways to reduce the cost of delivery and packaging. At the same time to sell the goods at a bargain price and not to scare away the buyer. It is also necessary to consider the possibility of reducing the number of goods offered. Calculate the percentage of unsold, and seriously think about temporarily removing a couple of items. This will help to focus on selling products that make a profit.
This moment is more psychological than tactical. But oddly enough, the emotional sphere in the relationship of the buyer and the seller sometimes takes leading and defining positions. Give up the thought of “difficult times.” Let your buyers know that you work to save their money (due to low shipping costs, for example). Maintain a positive attitude and attitude even in difficult periods, believe me, buyers will appreciate it in the best way.
Remember that there is always a chance for good sales, even in an economic downturn. While you are promoting cheaper products to the masses, you will be able to market a more expensive product. Always be ready to offer your product, the main thing is to carefully select how and where to do it. Now even a recession can play into your hands.