Finding New Products and Services Means Finding Success

In a stagnant economy, many small businesses find themselves dealing with an inevitable drop in demand for their product. Some people are willing to give up on their dream when faced with these circumstances, but others merely find new and more relevant product lines to entice the customer. Car dealership owner group Shelly Investments was in exactly this situation just one year ago.

With few customers in a financial situation where buying a new car was possible, the business was stagnating. There is no way of predicting the economy, but all signs pointed to a long term downturn for the auto sales industry. The investment group knew that their business would soon be in jeopardy, so they called in the heavy artillery.

In this case, the heavy artillery was a panel of business consultants from nearby Pepperdine University. After examining the company’s situation, the consultants recommended that the drop in auto sales be compensated for by a new emphasis in a smaller venture that the company owned: a small car and appliance repair shop.

Under the consultant’s guidance, Shelly began to put more marketing effort into its repair services, by creating new signage and using their other businesses to recommend repair work to customers. The result is that the company has seen their auto sales fall through the floor as predicted, but the net income for the company has remained stable. Catering to a niche market can mean remaining viable in any economy.

In a poor economy, customers are still buying; they are simply buying less and buying differently. While many may be reluctant to spend money on new goods, this means they must repair their older ones. Discovering a way to cater to this behavior, as Shelly Investments did, can place you in a lucrative niche with little competition. Moreover, it positions your company as a company expert if and when the customer does decide to purchase a new product.

Much of this behavior may last beyond the current recession. Just a few decades ago, people were much more likely to repair a broken item than to replace it. In the last twenty years, Americans have become a throw-away society, much to the peril of the planet and our pocketbooks. It is entirely possible that this recession may encourage Americans to focus on maintaining and refurbishing existing goods even after the economy rebounds, which means that adapting this market can be more of a long term choice than a short term adaptation.

The moral of this story is not just to adapt your offerings to fit changes in your community, but to think proactively rather than just reacting to changes. More important, don’t be afraid to hire consultants if you don’t know how to proceed. Often, marketing and business consultants have been through similar times and know what it takes to find success. In this case, marketing consultants were more than worth their fees because they helped a business stay viable in a market where so many others have failed.