It’s coming. People are starting to use the “R” word more often.
Are you ready for it?
A Recession— defined as two consecutive quarters of reduced Gross Domestic Product— occurs even before we know we are in one. The majority of economists believe it is inevitable, especially given what the Fed is doing with interest rates.*
So, let’s talk about selling through a Recession. In particular, where do you start? And when?
Well, just like you are in a Recession before it is official, you should start your sales strategy early, too. And the starting point is through Defense.
Companies do two things in a Recession: They lay people off and they watch every dollar. You might find yourself being put out to bid with accounts that historically have never even asked the price of things.
Be prepared to be surprised.
Look ahead to orders that are coming up. Check your profit margin. The last thing you want to do is to get caught with your hand in the cookie jar (taking advantage of a no-ask opportunity).
You might also think about coming up with a less expensive alternative. Addressing the cost issue ahead of time is a great way to avoid hearing, “We found a better price,” especially from your most loyal customers.
With news this past week that last month’s inflation numbers hit a 40 year high and another .75% interest hike coming soon, there is little doubt we are headed down.
You will need to change your sales strategy and your message in the months ahead. But for now, circle the wagons around your existing accounts and go on defense.
Need more ideas? Look to The Sales Vault for more information on selling in a Recession. Visit SalesVault.pro or call Bill Farquharson at 781-934-7036.
*To learn more about how the Fed uses interest rates to battle Recession, listen to the October 6 podcast of The Daily.