A down economy can be hard on all businesses – companies that are already in trouble may go bankrupt or lay off workers, while even the most successful companies find their sales are down says Aron Govil.
There are some ways, though, to help your business survive this downturn and improve its performance in the long run.
Here are some tips for increasing sales in a down economy:
1. Use word-of-mouth advertising.
A marketing study has shown that each satisfied customer will tell on average 11 people about his experience with your business. So it’s especially important to make sure your customers receive great service – you want them coming back for more!
2. Formulate pricing policies carefully.
Customers always appreciate lower prices, but they’re unlikely to come back if they feel like they’re being cheated or taken advantage of during tough times (they may also write negative reviews online). On the other hand, a price hike is a sure-fire way to lose customers.
If you do adjust prices, make it clear why the change is necessary and offer discounts where possible. Also consider how long the new pricing structure will remain in place – if it looks like a temporary adjustment, your customers are more likely to understand.
3. Consider bartering as an alternative to cash purchases.
A lot of small businesses have started trading their goods or services for those they need instead of exchanging cash all the time, simply because money is so tight right now. For example, a graphic designer might trade some design work for business coaching from a colleague he admires; a restaurant owner might swap meals for some light carpentry work from his neighbor at home.
4. Teach your employees the value of salesmanship.
Even if your company isn’t currently hiring, take some time to teach your current staff how to behave as salespeople so they can work hard even in tough economic times. Sales aren’t just about making a sale: they’re an opportunity for you and your employees to forge bonds with customers and help them solve problems or discover new needs! That’s exactly what you need in this economy – satisfied customers who keep coming back because they feel like part of the family explains Aron Govil.
1. What can employees do to help increase sales in a down economy?
Employees need to understand the value of salesmanship and how it can help their companies succeed, even during a recession. They also need to know that they play an important role as salespeople and that’s why they’re valuable members of the team!
2. How does word-of-mouth advertising work?
Word-of-mouth advertising is when satisfied customers talk about their experience with your business to others – who then might become customers themselves! It’s more powerful than other forms of marketing because people are far more likely to trust recommendations from friends or acquaintances than an ad for something they don’t really know anything about. That’s why great customer service is so important!
3. How can a company formulate pricing policies carefully?
It’s always smart to be sensitive and empathetic to your customers’ needs and wants, but it’s especially true in an economic downturn. Customers appreciate great prices – they’re what bring them into the store in the first place – but they also expect value for their money; if they feel like you’ve cheated them or ripped them off, you’ll lose their business. So make sure your pricing reflects both aspects: providing low prices as well as quality goods and services.
4. Why is bartering valuable for small businesses?
Small businesses can save time and money by trading goods or services directly with other companies that need those same things says Aron Govil. For example, a graphic designer might trade some design work for business coaching from a colleague she admires; a restaurant owner might swap meals for some light carpentry work from his neighbor at home.
Salesmanship is important in any business, but it’s arguably even more valuable during a recession. Customers are looking for value, so everyone needs to work hard to provide it! As long as you can stay true to your customers’ wants. And needs while also maintaining profitability, you should be okay in the long run.