Economic Downturn Survival Tips

The U.S. economy is having a tough time: Spending is down, jobs are being lost, and necessity costs are on the rise. As a business leader, how can you successfully navigate your company through the storm? Steve McKee, president of McKee Wallwork Cleveland Advertising, has some answers. Surprisingly, some of McKee’s suggestions go against one’s typical gut instinct when faced with bleak sales (No discounts on services?), but he makes great points while explaining his theories.

For example, when it comes to his no-discount mantra, he argues that slashing prices is only devaluing your product or services. If you lower your services’ value, why should others not do the same? “It’s easy to rationalize discounting during a downturn, for your company’s sake (‘it helps to drive business’) as well as for the sake of your customers (‘they’re struggling and need the help’),” he writes. “But whether times are good or bad, discounting your price discounts your product in the eyes of your customers.” He suggests that if there is an unavoidable need to make your services more affordable, carefully and consciously lower the prices, rather than advertising a full-blown discount.

McKee offers more valuable insight (including his take on business marketing budgets) in his article “Five Don’ts for Marketing in Tough Times” appearing on BusinessWeek.