Figures released today are expected to show inflation has turned negative for the first time in 50 years. Millions of public sector workers could see pay freezes as a result. But is it possible for small business owners to turn deflation to their advantage?
Swanage, Dorset, UK, March 24, 2009 - We are knee deep in recession and it appears now set for a period of deflation. For many small businesses times are tough and will likely get tougher. But, Dorset based business consultant Henry Baker has long argued that in hard times small businesses should stop selling to the 'masses' and start targeting the people affected least and last - the affluent.
A key buying criteria for affluent purchasers is price and with the right marketing and delivery, small businesses can significantly raise their prices when selling to the affluent - they can 'forget' deflation.
Here are two fascinating new trends among affluent buyers suggest new sales/messages, strategies way removed from deflation:
1. Excess cash to spend - because the affluent are not investing (unable to find anything they feel good about investing in), so there is a "might as well invest in myself/hobby/passion/my trip I've always wanted etc. Because real investing is such a 'no-win' gamble" attitude.
2. Reluctance to engage in conspicuous consumption likely to appear frivolous or insensitive to the 'suffering masses'. Much of affluent buying is normally driven by ego, pride, seeking of admiration or even envy, demonstrating superiority, sophistication and wealth that, in these times, the other side of the coin is a heightened fear of and sensitivity to criticism for being profligate. This opens up opportunities to sell premium priced goods and services to them that have a "good sense factor" attached to them, to make buying "feel" responsible as well as indulgent.
For the small business positioned correctly to sell to the affluent i.e. they deliberately go 'looking' for them, they use marketing that resonates with them and they sell premium priced products and service they will buy. This translates to more cash purchases, and higher spend in areas that feel reasonable, responsible and prudent such as health, preventive care and family. In conclusion, deflation need not affect small business owners who seek out affluent buyers, higher margins and much, much less competition.
Mr.Baker is available for interview, articles and the right speaking engagements and can be contacted on +441929 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 900 small business owners grow their businesses and tens of thousands more via his business growth tips and secrets.
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