Your customers' shelves are full, no one needs what you have to offer and your best account just folded a week ago. It may not be the time to make any aggressive moves in this business, but it certainly is not the time to close up shop either. Here are a few things that you should know before you decide to or not to throw in the towel:
1. Retail customers have little disposable income at the moment
This does not mean that they have NO disposable income at the moment. And this certainly does not mean that they will not have more in the future. Mom is not going to get nothing for this mother's day, she just might not get as big a gift as last year.
2. Inventory levels are very high, few customers need new product
This does not mean that ALL customers need NO product. Something is still going out their doors or it's all over for them and they walk away and call it a day. Those customers who have been through tough economic times before can still come out on top and when they do, you need to be there for them with what you have to offer.
3. Many customers still owe invoices from earlier this year or 2007
No sense in placing your product in a customer's store who can ill-afford to take on another invoice especially from your company. Even if you are offering generous terms, you can eventually kill your customer with kindness. Keep your finger on the pulse of your steady and best customers, but be sure they can still afford to pay you after the sale is complete. For everyone else with a shady payment past- no dice.
4. Your problem may be your product
All product in this industry is subject to economic tides. The time has never been better to evaluate what you are selling and to whom. It may sound obvious, but if your sales are extremely low now, there is little reason to believe that they will become a windfall when times get better. This is a great time to take stock in what you are selling and how in expand or improve upon your product once customers start looking for new ideas. If your sales are slow but still painfully coming through, join the club, hold on and be mindful more than ever of your expenses.
Not that these are novel or somehow divinely inspired revelations as to why you are or are not in this industry or why you are or are not doing well. Far from it. These are simply some insights as to why revenue may be so difficult to obtain in the foreseeable future. These are just reminders to keep in the fore to plan your next move. In the meantime, Beacon Consultants offers low-cost options to keep potential customers informed of your product lineup. So regardless of the economic cycle and regardless of where you see your business in the next six to twelve months, we are ready to help you get through these times.
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