Making Money Ideas During Chaotic Times

Marshall Goldsmith of the Harvard Business Publishing recently discussing the differences in money making during good times versus tough times.

Goldsmith also received input from marketing guru Philip Kotler.  Kotler stated that in a downturn many businesses mechanically cut hiring, advertising and new product development - but without looking at the big picture – the cause of the downturn, competitor’s response, the forecasted length of the downturn.

Goldsmith states that in a downturn some businesses will automatically gain more customers.  They may not make the same profit, but because the public acknowledges that they can get a good value for a low price (such as Wal-Mart or McDonald’s) they’ll get an influx of business regardless.

Some money making ideas from Goldsmith include:

1.    Lower Your Prices - in order to offer a better ratio of value to cost, consider lowering your prices or offering special discounts.

2.    Introduce A Lower Cost Version - although you may have to offer a lesser version of something you already sell, Goldsmith suggests that it’s better that it come from you than a competitor.

3.    Add Some Additional Benefits - free shipping, bonus offers, future discounts and select incentives are just some ideas.

During a period when most businesses are cutting certain services or carrying less merchandise, carefully look at how you can maintain customer satisfaction and product or service sales while still making money.   First responses often need some tweaking to produce the best results.