Submitted by Melissa Wildstein on | 0 Comments
I’m not sure if you’ve heard, but we’re in a recession right now. Shocker, right?!? Yet, despite the housing bubble burst, the rising unemployment rate, the decline in consumer confidence, some companies are still making money – and not just staying afloat, but some companies are actually posting their highest earnings levels in the last decade – and no I’m not just talking about alcohol sales! Here are some quick tips on how to make money in a recession.
According to a recent article in the NY Times, Estée Lauder announced that this past year was it’s best in ten years and L’Oreal has boosted profits 12% from last year. The sale of pre-made cocktail mixers are up 24% from last year, body scrubs up 21%, cosmetics 22% and nail polish up 10%.
The reasoning behind all of this isn’t rocket science. When people go shopping and there’s not much in the wallet, but they still want a little luxury, they’re going to pick up a new body scrub or a lipstick. As people look to make professional services like manicures and highlights last a little longer (or even forgo them altogether), they’re going to purchase a new bottle of hair color or splurge on a higher-priced polish to help them keep their look ‘fresh’.
So, how can you make that work for you? Think about your product offering in terms of your customers – the new recessionista. Instead of talking about how great your new pre-made appletini mix is, talk about how now customers can make a night in feel like a night out. Or how the right accessories can totally refresh an ‘old’ outfit. Recognize that your customers may not have as much money to spend, but they’re still the same people. They still have the same needs and desires, they still want to look and feel as good as they did four or five years ago. Tap into that mindset, figure out what products and services you have to match, rethink your message a little and get out there and make some money. Click here for more.
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