There was a time when coffee was coffee. Ice cream was ice cream. A phone was a phone. Even a pair of shoes was just well, a pair of shoes. Anyone looking to prosper during recession should pay close attention to this trend.
Swanage, Dorset, UK, December 30, 2008 -All across the country businesses are fighting for survival, fighting to attract customers, fighting to keep afloat. Many will fall by the wayside and succumb to recession. "In order to survive business owners must 'go where the money is'", says Henry Baker Dorset based marketing expert. "That means deliberately looking to attract affluent customers, the people effected least and last by recession. However, doing so requires some changes." "There was a time when coffee was coffee. Ice cream was ice cream. A phone was a phone. Even a pair of shoes was just well, a pair of shoes. Today, a cup of coffee comes with more options than a Mercedes®. Would you care to add... vanilla or caramel syrup? A double shot? Foam? Cinnamon sprinkles? Thus, the £2.50 price for the 25p cup of coffee. But even that is only half the story. Ordinary products morphing into complex arrays of choices, options, add-ons, brands, and luxury brands is one way prices can be inflated and margins even more." "The profit margin on the double shot far exceeds the profit margin of the coffee itself. The designer name bag selling for £3,000 does not cost 200 times more than the similar-appearing bag sold in Primark®for £15." "This is the path to profit and - to greater acceptance by affluent consumers." "But, even that is only half the story. Starbucks®does not define itself as a coffee shop. The company describes itself as being the 'third-place of business' - home, office, Starbucks in between. It's not just about the coffee. It's a place for feelings, status and maybe most of all experience. If you walked up to someone about to buy a bag of ground coffee at the supermarket (at about £2) and tried to sell them just a cup for £2.50, they would tell you it was too expensive. But, if you are at the coffeehouse, you are going to pay for the experience." "Any business owner looking to prosper in recession should make New Year resolutions to separate price from what they sell, deliberately look for affluent customers and serve them with an 'experience'", concludes Henry.
Mr.Baker is available for interview, articles and the right speaking engagements and can be contacted on 01929 427744.
Mr. Baker has over 10 years of sales and marketing experience with some of the World's leading corporate sales organizations, as an entrepreneur, business owner, real estate investor and internationally respected trainer and educator. He has directly helped over 800 small business owners grow their businesses and tens of thousands more via his business growth tips and secrets.