Guess which business is a money tree in this struggling economy?
The Dollar Tree. Their profits were up 20% last quarter. And their largest growing demographic is income earners of $100,000+.
People are changing their spending habits. They’re looking for bargains. They’re saving.
All of their shopping decisions are being looked at through a new lens.
And that includes your offer. So here’s what you can take away from this…
1) Test your prices. Both higher and lower, but make sure you test your prices. The prices that worked 3-4 years ago could be a thing of the past for years to come.
2) Make sure to hire a copywriter that knows how to paint your product as a no-brainer purchase in a recession. It takes more than it used to – and your biggest competitor isn’t another product, it’s buying nothing at all.
Back in the day (2008ish) when I was spinning pizzas at Papa Murphy’s they were KILLING it during the recession.
Because they were perfectly positioned to be the “bargain” pizza joint. Because everything was take and bake they could (and did) undercut the competition of price a few bucks for every size/pizza combination. They also offer GIANT (Family Size) pizzas for reasonably cheap.
Also because everything was take and bake Papa Murphy’s could accept food stamps as payment. Which meant when the recession kicked people out of their jobs and into government assistance, Papa Murphy’s was in the perfect position to gobble up market share.
And they did.
Also Frank Kern recently put out a webinar about how to do well in the recession (which is so brilliantly meta when you really think about it.)
Well… That’s if for now.
-Andy
Thanks Andy, that’s a great example of a change in spending habits.
And Papa Murphy’s is a great bargain too! We always use a coupon to get a family size and eat it over 2-3 meals. Great deal.
hey andy
Can I please ask you what type of turnover did that papa murphys actually do.
I lost my job and it seems a cheap franchise
Thanks
Yeah, people are changing their spending habits.