John Hurd’s latest ‘e-Wealth Daily’ article is titled “How to Make More When Customers Spend Less”. [‘e-Wealth Daily’ Article]


John Hurd’s latest ‘e-Wealth Daily’ article:

How to Make More When Customers Spend Less

A national poll is reporting that people are spending less each month and don’t plan to start spending more in the near future.

News like this may strike fear into the hearts of a few entrepreneurs. When the average consumer starts to pinch pennies, some businesses are going to suffer. However, for those with a little business savvy, or guidance from someone who has it, there may not be too much to worry about.

You see, although consumers may be lowering the amount they intend to spend, they are still going to be out there buying items they need, and some they absolutely want to have.

It all depends on what these items are and exactly how the individuals have decided to cut their own personal spending. Some people may cut out their morning coffee and donut to save a few bucks, while others may opt for the 40-inch HDTV instead of the mammoth 50-inch model and save themselves a few hundred dollars.

When it comes to your own business pursuits, take stock of how your customers are cutting back and weigh the possible consequences this may result in.

What you want to evaluate is the perceived value of your products or service to determine how much your customers may cut back in spending with you.

If you are targeting a specific niche that has few options, it is possible that their spending may not change. This is because a niche product has a high perceived value, since it is difficult to substitute for a less expensive or completely alternative option.

On the flip side, if you are offering something where there is a lot of competition and a multitude of alternatives, you may want to consider focusing your effort on giving your customers very good reasons to continue doing business with you.

Whether it is by having a special sale or making a unique offer, it’s better to take a small cut from your sales over losing them completely.

One final point for today: just because people are saying they intend to spend less money, it doesn’t mean this is what is going to happen. Needs can change, and other influences could see that spending goes up. The important thing to remember is that you want to be as aware of potential changes as you can be. When you’re aware, you’re also able to prepare. So have an action plan you can use anytime you see a change, such as this one, coming your way.

e-Wealth Daily

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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