Jump-Start Sales In A Slow Economy

When the economy seems shaky, businesspeople feel shaky. Hysteria sets in, sending managers and CEOs running for cover, making panic moves that cause more problems than they solve. When the people in an organization lose their composure, they can end up losing business, too. To avoid making costly mistakes, you can start by learning how to spot the three most common ones most businesses make in a slowing economy.

1. Don’t let paranoia set in after setbacks. Pretend you’re an undisputed championship boxer getting into the ring. With all those victories and all that fame and adulation, you’re at the top of your game. You step into the ring to face your new opponent, who everyone predicts won’t last one round. Confident you can take whatever this punk dishes out and have him on the ropes in no time, you’re feeling like Mike Tyson. But whoa! If you’re Tyson, your opponent is Buster Douglas. Before you know it, you’ve led with your chin, the punk has led with his right, and you’re down for the count. Is this your sign to quit? No, it’s your sign to stop resting on your laurels. Instead, you must take stock and create a plan that’ll turn things around for you and your organization. So stay focused; don’t let fear grip you because of setbacks. Fear causes even the smartest people to become irrational and indecisive, keeping them from being proactive. It’s up to you to conquer your fears and your foes.
2. Don’t let fear force you to surrender to price-squeezers. When anxiety rules an organization, it’s tempting to start accepting the smaller crumbs of business that you wouldn’t even consider before. You lower your prices, figuring it’s just temporary. Trouble is, customers can smell fear. As Dr. Phil McGraw says, you teach people how to treat you. If they realize they can walk all over you, they’ll happily do so. After all, a slow economy affects them, too, and if you’re willing to provide your valuable services at a deep discount, that’s all right with them. Some customers, when they sense fear, take advantage of it. When they do, you begin a downward spiral. Like the drunk who’s quit drinking but gets one more taste of alcohol, it’s easy to fall prey to temptation.
3. Don’t resist change — embrace it! In 1987, the giants who owned more than 90% of the coffee market believed that coffee, like gasoline, was a commodity. While the coffee giants slept, taking their customers’ loyalty for granted, the people behind a little coffee shop called Starbucks pulled an all-nighter. They found that customers were willing to spend three times as much money for an exceptional cup of coffee, not just any old jolt of joe. Starbucks is now an institution known for selling quality coffee at a premium price, with plenty of imitators and wannabes.

But don’t let success blind you to changes in your market, either; the results can leave you alone in the dark. Since the early 1980s, the Los Angeles Police Department had sworn by their iconic Maglites, also popular among military personnel. Manufacturer Mag Instrument had dominated the market with their high-quality ten-inch aluminum flashlights, which could double as clubs when police officers were in danger.

Looking to enter the 21st century with a brighter, smaller flashlight, the L.A.P.D. began looking at LED flashlights, which were lighter in every way. Only then did Mag Instrument concede that they needed an LED flashlight of their own. The Mag team approached the development of their LED flashlight with their famed painstaking perfectionism, wanting to take their time to carefully develop a high-quality LED flashlight that would live up to the company’s great reputation. However, with competitors’ new LED flashlights popping up like mushrooms, many of Mag’s clients proved fickle – including the L.A.P.D., which now purchases its LED flashlights from one of Mag’s rivals.

Mag spent so much time and energy sticking with their tried-and-true formula, they ignored the smaller players nibbling at their feet. Thinking, “We’re known for our flashlights, so we don’t have to worry,” they didn’t listen closely enough to their customers. But their rivals listened, sending their own businesses soaring.