So, How’s Business? Is the Bad Economy Affecting You?

Have you been busy?

If you’re a business owner that deals with customers and clients on a daily basis there is no doubt that at least once a day someone will ask one of these questions.  If you’re anything like me in my retail store you want to say “It’d be a whole lot better if you’d shop rather than yap about the economy.”  But, of course…we can’t say everything we think.  With trillions of dollars in deficits, unemployement at a high point, and the constant drumbeat of the media and various politicians “talking down” the economy it is no wonder that people wonder how the average business is performing.

I have found that people are using the economy to not make purchases.  I know its obvious right; but think about this for a minute.  The more bad news people here the more unlikely they are to make a purchase.  Look at the insanely simple graph showing the relationship between bad economic news and the customers liklihood to purchase. It is painfully obvious but the more negativity people hear about the economy the more unlikely they are going to spend their money, especially with those of us in the “non-essentials” businesses.  I have found that when someone asks “How’s business?”,  ”Keeping busy?”, or my personal favorite “Where’s Wal-Mart?” they are more than likely not going to be making a purchase.  Now their apparrent care for our well being as business owners, although nice, is really about them creating an excuse for not buying.

As business owners we can reframe the thoughts of the people that ask these questions.  Normally we would say something like “Yes business is down but not too bad” or maybe even poor mouth it a little more and say “My goodness it’s terrible.  I don’t know if we’re going to make it.”  Even if the person feels sorry for you or would like to be compassionate and help they still may not make a purchase because we have affirmed their thought that “nobody else is buying so why should I?”  We can change the entire outlook on the issue by reframing our answer to these questions with positivity and an encouragement to purchase.

In my store for example I was telling people that “Yes, indeed we are slow and just like everyone else we are hurt by the bad economy.”  In the last week or so I decided to try something different and it worked.  People’s general tendency is to follow the crowd and we can help create a positive purchase thought by answering their “How’s business?” question in a way that makes them realize that they should purchase.  Here are some examples that I’ve used with some success:

Customer:  So, How’s business?

Me:  Well it’s been slow but we’ve found that over 90% of the people that come into our store purchase something so we’re doing better than a lot of people.

Why this works:  You’ve told the person that  a great majority of people entering the store at any given time are making a purchase.  This alerts the customer that if they do not make a purchase they are in the minority, someplace most people don’t want to be.  This also reframes the bad information that they’ve heard and seen into a positive light thereby lessening the impact of the bad economic news.

Customer:  So, Have you heard of a lot of people losing their jobs?

Me:  Well I’ve heard of some folks being in unfortunate situations but if you look at it we have 90% employment which is pretty good when you think about it.

Why this works:  The people are so used to hearing the negatives that they sometimes lose perspective on the positives.  Sure 10% unemployment is terrible but 90% employment means that most people are doing okay.  This also shows that by reframing the image of negativity into a “glass is half full” mentality can help reduce the affects of bad economic news and increase the liklihood of someone making a purchase.  One more example.

Customer:  So have you noticed a drop in sales?

Me:  Well it seems like people are taking advantage of some great opportunities.  We’ve noticed people buying more of “x” and “y” because they know that the prices will never be this good again and they don’t want to miss out on a great opportunity.

Why this works:  Again, reframing the issue.  This one creates a timeframe of action for a customer.  By hearing that other people are taking advantage of sales, overstocks, etc. they believe that they may be left out if they don’t act immediately to make a purchase.

Of course the economy is affecting every business and until our “leaders” in Washington realize that in order for small business to create the jobs, wealth, and standard of living to which this country has grown accustomed  they are going to have to get out of the way, lower taxes and leave the market to operate as it should.  Without interference.  But now we know that by reframing people’s perceptions we can increase the liklihood of them making a purchase.  Emphasize the positives, I know it’s hard some days but that is what is going to keep some businesses alive for the recovery that will come.

Filed Under Economy | 1 Comment  | April 23rd, 2010