Cut price? That just cuts your profits and quickens the trip to downsizing. Stand firm on your price. Perception is reality. If you don't believe in your product and service, why should they believe in you. Explain your price...what's it made of? Share book or market values of your product with your customer. Talk about re-sale value. Educate them, don't try to just sell them. Sell the experience...I said sell the experience...that's what people are looking for in this yucky economy.

They'll tell you low price. Cheap. Bottom-Feeder. But from research at Advertising Age Magazine, they really mean TRUST. Who can I trust? Where can I spend less money so that I don't get BURNED? What has just happened in Congress...bailing out companies because they can't manage their books...has Americans DISTRUSTING everything and everyone. Face that head on with your customers.

Navigating a Rough Economy Tip #97

Talk to more people. Ok. That can mean more balls in the air with a longer sales cycle and more work for the salesman. Still, we're all in a relationship business. They'll tell you it's all about price. But it's a proven fact. In rough times, consumers and businesses are seeking those who they can TRUST and have LONGEVITY. There's your differentiating factor.

Erwin Marine's Steven Swann and Reid Cox just attended Huntsville's Big Spring Jam XVI Music Festival with LIFE ON THE WATER Magazine. We set up a booth preaching the gospel of the river and boating and fun on the water every weekend. We talked to a lot of people...some buyers, some not. But one thing is clear, we went to the people.

Navigating a Rough Economy Tip #1

ADVERTISE. Before you hit the 'X' in the top right corner, listen to me. Whether it's LIFE ON THE WATER Magazine or the park bench on Music Row, maintaining an invitation to prospective customers to buy from you has never been more critical than RIGHT NOW.Market share is earned in a downturn. Advertising is cut back. Companies go out of business. It's terrible to say, but that means opportunity for others. Your share of voice can be larger with less money...because there's less people talking about your business. So when you establish a 20% share of voice in your industry, region or neighborhood, when the economy improves...and it will improve...your 20% share of voice becomes that much larger with more prospective customers.

Consistent, strong, positive, upbeat, passionate messaging is the key. It says to the world, 'We're here and we're not going anywhere. We love what we do and no one does it better than we do.'

Set a budget for advertising based on sales projections. Usually, advertising should be anywhere from 3% to 12% of your total sales, depending on your overhead...and comfort level. But in a rough economy, do your best to project what you feel your sales will be annually. Know that you must re-visit ad dollar budgets more regularly...if you have a good quarter, bump up your advertising. If it's flat or down, maintain where you are.

Look at the atmosphere of where you're advertising. Is it conducive to selling your product? Or does it create a negative atmosphere for what you're trying to accomplish? If you chose TV News...and you're selling waterfront homes...and your :30 ad follows the latest bad mortgage bailout, you should have taken the money you paid for that ad and flushed it down the toilet.
Your ad's effectiveness just got cancelled by the news story.

Don't forget existing customers. Budget something to communicate with them on a regular basis. Direct mail, phone calls, events, newsletters...and always ask for referrals. Start a bonus program for customers that send referrals that turn into sales. $50 bucks, dinner for 2 at a restaurant, free oil changes, or even gift certificates work wonders.