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HAYLEY B | How can we survive the recession when our business sells un needed luxury products? |
any answers appreciated
Our product costs £500 |
 |
 
michael g
 |
That's the risk entrepreneurs take.Some like Bill Gates succeed others struggle others fail.
You at least have taken the risk.
Take a night job ?
Lower prices to attract more customers ?
Expand product line to compliment current line ? |
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endorphin_boy415
 |
Luxury products appeal to consumers with higher discretionary incomes. These same consumers are often less affected by down swings in the economy. That's why some people can still afford to drive Humvee's, even though the cost of gas is well over $5 a gallon (here in the Colonies).
Where you are more likely to see a downturn in sales is among consumers with more average or modest incomes. The shopper who may have saved their pennies to buy your product, may now view the product as something completely unnecessary, and will instead invest his or her money on non-discretionary products such as food or gasoline.
As long as Luxury products are correctly targeted to the right buyers, they will continue to sell. |
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wisdominknowledge
 |
many consumers of high-end goods are less affected by recession-they have money! Identify your best prospects and make sure you reach them through appropriate channels of advertisement. Work at maintaining your current customer base and generating increased repeat sales if that is applicable to your business. Good luck. |
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Summer B
|
I would say that you could capitalize on the whole Pain/Pleasure factor that basically drives every human decision. If you can show your consumers that your product, although seemingly unnecessary, helps avoid pain and increases pleasure, then you are bound to be successful in your market. The top ad firms use this like its a religion. Just a thought. |
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anna
|
Sell something else that people really need and they will buy it. It's called "reconversion" or "redirection." |
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Tycoon
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This can be done in 2 ways.
1) Either identify the niche segment where recession would not have dire impacts and target those segments.
2) Create value to these products. Luxury products needs to be tagged to the value the customers must perceive.
Ex values like status, enhancing the beauty of the home, enhancing personal beauty or something like that.
If these have not be done, then re branding is essential if your target market is dwindling. |
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chad b
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People buying luxury items do not feel a recession the way that others do. Locate affluent people and target them specifically. Your message won't be wasted on people who can't afford them. For example, Bentley and Rolex still advertise their products in the Robb Report even during a recession. The people who read the Robb Report don't care about a recession, they are wealthy and they make more money in a recession as everyone else is worried about the same economic conditions they are capitalizing on. |
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Bob the Boat
|
We are not in a recession.
Anyway as with all business, if you are trying to sell crud a cruddy prices, what can you expect ! |
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