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What do People Buy In A Recession?

Written by: Peter O'Donoghue

Article Overview: Studies have identified five key areas where people buy in a recession. You can use this knowledge in your business.

What do People Buy In A Recession?

Selling In a Recession

What do people and businesses buy in a recession?

Would it help you out a little if you could leverage just a little insight into what has worked in the past and what will work in the next few months and years?

Well read on because you are about to find out.

Professor Jack Carr of the University of Toronto specializes in studying what sells in contracting economies. Based on detailed research into historical contractions of the US economy, Professor Carr has identified 5 proven recession busting categories of products or services

• Low - price category offerings
• Health and well being
• Communications
• Business Consulting
• Outsourcing

If your first thought is that these don't apply to you then work harder! Apply some lateral thinking and workout how you can make the underlying reasons for this work for you. Lets have a look why at one as an example:

Low Price Category Offerings:

People are still buying and consuming albeit they are seeking out less expensive versions of their traditional purchases. You only have to look at the rise of Aldi and the discount food retailers to see the effect of this.

"But this won't work in my business" - Of course it will! Don't think of lowering your prices instead:

1. De-bundle any combined products or services you have. Let people buy the lower valued elements on their own. You know that once they have tried it and are confident in you they will come back for more.

2. Introduce a higher priced product or service. This enables you to compare the higher priced product or service to your standard service. This enable you to position your standard service as a lower priced but value laden category offering.

3. Tell people. Most people will not come to the conclusion that buying your product or service is a good, frugal, investment for the long term, if you do not tell them. It is your job to tell them and educate them - not theirs to work it out!

Give some of these sales strategies a go before you ever contemplate dropping your prices.

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Article Tags: aldi, br 3, combined products, contractions, detailed research, discount food, first thought, food retailers, insight, lateral thinking, li business, li li, nbsp, offerings, price category, professor carr, professor jack, recession, university of toronto, workout



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