Hot Products During a Recession
OK, I know that some of you have been waiting for me to say more about which products are hot sellers during a recession. I had anticipated that some of you should desire this kind of information on how to develop your marketing and product buying plans for 2008 and 2009. While I shall refrain from naming exact products that I intend to focus on during this economic downturn I will give you some ideas on where you should focus your attention.
Let us begin by understanding that the recession consumer will often be taking more time in purchase decisions, particularly for major durable goods, and will have a marked tendency toward downsizing or making do with less. They will gravitate toward trusted, well known, brands versus new products from new companies. You must first adjust your business model toward these revised needs by consumers.
As the economy takes a downturn, people will focus on hearth and home. They will want to be comforted rather than stimulated and stressed. Find a product mix that encourages this trend while avoiding things that might add to the stress the consumer feels due to the recessionary economy. Home based entertainment options like videos and games are a good product area. Inexpensive home decor is another potential growth area as are do-it-yourself repair kits.
Give your customers the reassurance of comfortable and even nostalgic brands. This increases their comfort level with your sale proposition. Whatever your product is, sell comfort, not excitement or conspicuous consumption.
Tough economic times such as we are facing encourage consumers to demand a high value from the products that they buy. Find products that emphasize things like durability, reliability, safety and performance while avoiding gimmicks or items with limited utility.
When buying products for resale, search for deals that will allow you to offer temporary price promotions and package deals while remaining profitable. Remember that upfront cost cuts will generate more sales during a recession than tactics like rebates and other after-the-sale offers.
Finding hot products to sell during a recession is mostly common sense. Know what your customers are looking for, security, value and comfort, and provide it to them. It’s as simple as that.