Is there any good news out there? The Press has been pounding us for months now about the impending recession, the collapse of the real estate market, a stock market that is playing a game of yo yo everyday and the price of oil that continues to rise. Oh and the dollar continues to shrink in value.

 

The converse of this bad news is that the drop in the real estate market has opened the door for first time homeowners. In Missouri for example, in 2007 the state provided over 300 million dollars to help over 3,000 first time homeowners. When there is a bull market and inflated real estate values, the savings rate drops. As the market has begun to adjust and real estate values have fallen, the savings rate in the U. S. has actually started to increase from .04% of disposable income last year to .08% this year and that number is expected to rise. The drop in the dollar improves our ability to export our goods and services and tourism from outside the United States increases and they are happy shoppers. Higher oil prices are responsible for an increase in the sale of fuel- efficient cars, and that translates into an improvement in global warming and investments in new technologies.

 

The point is that that there are 2 sides to every issue and more importantly, if we believe the pessimism we read then we might as well put a fork in our business and call it a day.

 

Maybe the aspirational customer, the ones who reached beyond their station in life to buy luxury items has diminished, but there are new customers out there and good core customers that can be developed. Generate a list of clients that purchased over a specific amount for 2007 and compare to the same criteria for 2006. Who spent more, who spent less? This is a great way to begin 2008. Get to know the customers who really support your business. Now. develop a strategy and tactics for each one. Think about how they can help you grow your business in 2008.

 

Think outside the box. In retail that means think outside the 4 walls. That does not mean your business is going to be saved by e commerce. That is a topic for another article. However, it does mean that there is a lot more business out there if you move out of your comfort zone.

 

What events do you have planned for 2008? What are you doing to energize your staff? What are you doing to excite your customers and keep them involved? Do you have Game days? Fun days? In store seminars? How does your referral program work? Do you measure your marketing against the traffic it drives into your doors?

 

Remember the excitement you felt when you first conceived of having your own store? Remember all the reasons you wanted to be in business? Write those down in bullet points and see if you are measuring up to those early expectations. Renew your vows with yourself.

 

The New Year can be as great as you want to make it. However, if you read the papers and believe the doomsday pundits you will start to create your own retail demise. There are buyers and sellers. If you buy into the bad news then you lose control and allow outside influences to impact your thinking and that in turn will negatively effect your results. If you are a seller then sell yourself, your staff, your community and your customers on the opportunities that still surround you. As in Acres of Diamonds, the real gems are in your own backyard. Go dig `em out!

 

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By Marc Weiss