The Recession is Good
People are losing their jobs, the housing market is in the toilet and no one can get any kind of loan.
Let me explain my way of thinking.Reasons recession is good for the individualThe reason a recession is good is that it forces people out of complacency. When times are good, we go through our daily routine, sell the way we have always sold, marketed the way we have always marketed, bought the way we have always bought, etc… So we tend be liberal with our money, and throw it around a bit. The recession has made us all think more about where our salaries go.Reasons recession is good for companies
Companies are now forced to really concentrate on what their product/service offers. There are many “me too” products out there that satisfy a need but are of lower quality and have no real value. Companies that exploit this are going under and when they do they are removing their crap from the market. Once the economy gets going again, demand for all products will go up, consumer spending will rise and there will be fewer retailers out there to provide the supply to the consumer. These stronger companies will benefit immensely from all the second rate businesses that have been taking market share. Jobs will return, sales will increase and we will have weeded out all the weaker firms. I guess it is like a Darwinian business theory.
The other reason a recession is good for companies is because they will now be forced to innovate to improve their offerings. For example, I went to a gas station the other day and as soon as I pulled up, an attendant came walking out of the store directly to me. I was wondering what he was doing until I realized that this particular gas station was now full service!! With no increase in the price of gas.
I vaguely remember this as a kid and haven’t seen something like this in quite a while. I thought it was a terrific idea. A truly value-added service that can really differentiate this chain of gas stations from all the others. Now this isn’t the invention of the iPod or the Wright brothers and the first flight, but I believe this will make this chain stand head and shoulders above the crowd.
The recession is forcing companies to think about their offerings, products, services and in some cases, their entire business models. No complacency means better products for us, the consumers. Long live the recession!! (not really, but you get my point)
adam-oleary
Adam is a graduate of Colorado State University (bachelor’s degree in marketing), and he has experience on both the client and agency side of the marketing world. These experiences led him to come up with a unique, more efficient business model, which he’s incorporated into Encite Marketing. Adam sets the strategic direction for all Encite projects, developing integrated marketing campaigns that bring results. He takes a consultative approach with clients, educating them about how the process works, and keeping them in the loop about end goals, steps, and tasks.
4 comments
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Joe
April 22, 2009You actually like full service stations? You should go live in NJ, every gas station there has been full service for as long as I can remember. I don’t like them. I feel very awkward sitting in my car while someone else puts in gas. I actually go out of my way to get gas from places with self-service (almost ran out of gas leaving NJ and getting into PA once).
But I guess if people like it, it’s certainly a good way to attract customers.
Anonymous
April 22, 2009I felt a little awkward because I like doing things for myself. However, never underestimate the power of convenience. It is convenient for people not to get out of their cars especially in cold weather!!! I think it makes them stand out and I think people will eat it up!
John Whitcomb
April 25, 2009I disagree that “recession is a good thing.” It is a terrible problem for our world today.
We need to quit pumping gas alltogether – self service or other! And, we need to live more sustainably – using less – wasting less of everything.
The hardship brought on our world is causing fear. Fear causes selfishness, and I submit lowers the overall morality of society.
“Most people (says author and ethisist Gus Lee)know the diffenence between right and wrong and choose to do what is right – unless they are put at risk.”
Unfortunately the combination of a global recession and and environmental crisis has put many people and organizations at risk.
I agree that good will come. After 9/11 I said that “an equal and opposite reaction to terrorism would actually pull the people on our globe together.” I beleive that has been happening.
In times of difficulty – leaders step-up to the plate and bring people together on a path forward – and I know this is your intent sharing the optimistic statement that the “Recession is a good thing.”
I respect you for that leadership but submit that it may be more accurate to say instead that “good things will come from the recession.”
John
Patrick Boylan
April 27, 2009Hey Adam, I actually found this through the cross posting you made probably on the Mise Ireland or IABN of LinkedIn.
This is a hard thing to say to people, but it is hard truth. From the unemployed to the companies struggling we are, as a society, redirecting assets that were not well employed (think about all those brains buying housing, painting and flipping them. Of course I exagerate, but with a purpose) to find something more productive. I want to see the banks begin lending again, and want to be employed again. But I do not want to waste another eight hours doing what I was previously employed to do.
Good post.