Is the Economy Crashing Down?
April 1, 2008.
I have been keeping an eye on my industry, watching some stores, websites and companies closing since the beginning of the year. I have just been taking note and paying close attention to what was happening in my little neck of the woods. I have not freaked out yet.....until last week, when I heard some disturbing news and it has made really think about the state of the economy - MY economy. In case you missed the story, Babystyle filed for chapter 11 early last week, okay this really it shocked me. Oh and did you hear that Lillian Vernon is restructuring their dept also? I really don't like to hear anyone going out of business, even if it is not a company I work with directly.
And, I am trying not to freak out, BUT (yes I am yelling).....this year when we sent out our newsletter to our channels about our shipping changes (read raised our price), our new products.....we lost a couple physical stores, a coveted spot in a bedding catalog and a number of websites. Again, I tried to keep calm but I hate it when that happens!
What I find interesting is that when I got my trade magazines (via email that is) no one mentioned anything bad had happened. Oh and don't forget the January shows, and in case you wondered the shows were all AMAZING. I mean really? I wonder how fab-u-lous the shows were, I am doubting that everyone is flush with cash, but that is just me.
Anyhoo, I had to actually search for the story about Babystyle after a friend told me about it. Personally this hits me hard, a company in our industry that on the outside seemed to be growing in leaps and bounds. It is hard when a big guys goes down, I personally start to wonder if they can't figure it out then how can little ol' me succeed in this economy?
The possibility of a pitty party is highly likely.....having been a teenager in the last Recession I remember what it was like. No, we were not dirt-poor but it is that fear hanging over your head and having to pay for everything and being a whopping 17 years old - not fun. But I digress, and I have decided to stick my chin out, wait chin up stomach out? What-eva I am gonna forge ahead...
Focus on the Business
So, trying to keep the 'cranky pants' in the hamper I decided to look at where we were being smart with our finances. Looking at the big picture works for us most the time - right now I am looking at the little stuff of my biz, and trying very hard not to totally freak out over sales for each month.....hold on I am hyperventilating, must get bag.......okay I am much better now.
These are some strategies we are trying, some are really working, and some are just a shot in the dark:
Grow the Good & Ignore the Bad
Our Birth Certificates continue to be best-sellers, certain themes obviously trump others, but all in
all these products totally kicks ass. Not to brag, 'cause the product was not even my idea - another "shout out" to my mother, because it was all her, she actually had a dream and wala' they were born. Anyway, the product itself continues to be a top seller, so we added about 10 new designs, 9 new designs this year and I am sure come July (that would be when I release Christmas products) I will have some more new ones. If you have a product that is selling well in "these times" listen to your gut and expand the line - I mean now is not the time to love the ugly step-child product and put your head in the sand. If it sells - sell it!
Ways to Expand
Again, we have found our products may do well on other mediums, and are experimenting with this. We are going to try out a new outlet for sales and we are expanding to licensing. If my art can make me more money right now - woo hoo, let's go. We are exploring new sales channels, we are looking into other mediums, we are finding ways to leverage good relationships - make them grow.
I am lucky to work with some large companies, companies with deeper pockets than mine. Our goals and our upcoming projects include hopefully some promotion, some exclusive designs and some advertising with larger companies
Give Away the Farm
Another way to get your word out, to expand and do free advertising - give away products. I currently am giving gift baskets away to two organizations. I have two pending gift baskets for two other organizations that I may choose to donate to. I don't say yes to everyone, I do return favors and I do understand the helping is important. Even if times are tight for us, I can only imagine how hard it is for non-profit organizations. It feels good to help too - it really does.
Make Cut Backs
We have had to cut back on some of our regular perks, let me re-phrase that, we "chose" to cut-back before we had to. I don't mean anything crazy like toilet paper or Diet Coke and water - but the cleaning service we used is taking a break. Looking at the bottom line, trying to project the future sales and being frugal - not a fun job, but a necessary thing to do. Of course this means that it is back to me cleaning toilets and dusting, but that is what I signed up for. Not a bad thing, makes me appreciate the office, and there is something to be said for getting down and dirty.
Discounts & Sales
We started to look at our inventory and see what products were not selling well. We will probably put one on sale to soften the blow. It will be a concerted effort to move the product now, just get some money in our pockets. I follow margins pretty closely and I obsess over how much we make on each product. It has taken me a long time though to realize even if I love it, but no one is buying it - it is a dud, my poor little ugly step-child of product line.
What Can Be Done For Free?
One way I try to grow my brand, especially without spending a ton of money. Can you put stickers on your packages? Can you start a blog? Should you add a gift card to all packages thanking your customer for choosing you over your competitors? Why not add a special discount code.....or start selling gift certificates for direct sales that is. Now, I am not suggesting you try and steal customers from your channels, or get sneaky and snake a sale direct that would go to a channel. I would never suggest that - I have scruples. However, you can make the sale as attractive as possible right now.
We look at what areas can be exp
anded, you know "give a little bit". If you don't offer gift-wrap, maybe now you should start. Do you have a "cheaper" version of your product - release it now. Have you sent out any press releases lately? Should you do some sales calls....do them now, make what you sell sound better, give a bit more. I personally would rather stay afloat, and tighten my belt then put my head in the sand.
This Too Shall Pass
I read an article a few months ago about what to do with the state of the economy today. I read many schmaltzy ideas.....I mean holistic ideas, using the Universe ( I swear I did) and how tried and trued marketing would work. The best advice I thought was that you had to keep the customer coming to you, no matter for how small a purchase. Make sure they kept coming, because the economy will turn around and if you don't try to keep them, they will NEVER come back.





























