Notes from Jeff York

Small business marketing thoughts from a marketing small business owner

Posts Tagged ‘new cycle

Does it have value?

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smartcarChristmas is right around the corner and the economy is still struggling. For all the reasons that we’re all now well aware of, banks and certain manufacturing sectors are on the brink of collapse. With continual bad news bombarding us throughout the 24/7 news cycle, you would think that everyone has cut up their credit cards and stashed all their money into their mattresses.

Yet, dig through doom and gloom stories and read the fine print. People are still spending money. What’s changed is the amount and the rational behind each purchase. What’s the driving force?

Value.

People aren’t spending money on new cars. People are spending money to keep their current cars on the road. People aren’t spending money on new houses. People are spending money on fixing up their current home and making it their castle. People aren’t spending money on vacations. People are spending money on high definition TVs and surround sound systems.

Why? People see value in these types of purchases. Keeping your current car on the road is cheaper in the long run than simply buying a new car when facing a big repair bill. Fixing up your home today makes your home more livable today and more valuable tomorrow. Vacations are nights out on the town are great, but night’s in with a nice TV and a sound system that rivals the theater is cheaper in the long run (really, how much is microwave popcorn?).

But you’re a business owner. How do you take advantage of this shift in thinking?

Simple. How do you project value of your goods and services to the customer? If you’re thinking about packing in your marketing efforts because of the economy causes you to believe that you can’t make money, then you’re examining your marketing efforts from the wrong angle. Talking about how your goods/services are cheaper doesn’t mean value. Today’s consumer is happy to spend more today for something that will perfectly suit their needs and last a long time.

Here’s an example. When gas broke the $4/gallon mark, you might have thought that owning a Smart Car dealership would be like printing money. Here’s a street legal car that drove forever between fill-ups. Once the initial wow-factor wore off, people took a good look at the car. It is an impractical two-seater with just enough room for the driver and his lunch. Consequently, it’s been months since I’ve seen one on the road. No value.

Focus on the value you offer your customers. Play up what’s in it for them. And keep marketing. The pie is smaller. If you want the same amount of income, you have a take a bigger slice of the smaller pie. That means taking from your competition. How do you do that? Smart Marketing.