Managers who want their small businesses to thrive keep track of economic trends. Now that the economy is strong, customers have more discretionary income to spend at retail stores. It is important to capitalize on the strong economic times by selling the products people are most interested in when the economy is doing well.
What Products Sell More in a Healthy Economy?When the economy begins to grow, people tend to spend more money on both small and large purchases. Some consumers get wage increases that allow them to spend on large purchases like refrigerators and couches. Since loan rates improve with the economy, consumers can also invest in more expensive houses and cars. Convenience store consumers will pay more money for high-priced versions of their favorite items. In other words, they will trade up for high-quality items. A boosted economy raises consumer confidence and encourages them to invest in the more expensive option. Expect brand name items to sell better than Knockoff Brands, and expect more customers to add impulse items onto their orders. For example, a customer that usually buys a sandwich and drinks a cup of tap water with it, may now decide to buy a bottled water and a bag of chips with his sandwich. Make sure to ask your customers if they’d like a drink or snack with their order. While customers tend to buy more while their is a strong economy, they still love to save money with coupons! Try putting your more expensive, brand name items on sale at opportune moments. Programs like the POS+ loyalty feature and its linked BR Club encourage customers to buy from the stores that use their promotions.
Why Do People Spend More After Economic Growth?When people have higher earnings, they can afford to pay for expensive items without taking out loans and dipping into savings. With an increased quality of life, consumers can focus on treating themselves to nice things. Loan prices go down when the economy thrives, and people of all income levels get a better chance at a good deal.
How Can I Use This Knowledge for My Small Business?As a small business owner, you may wonder what all this information means for you. You need resourceful solutions to take advantage of these purchasing trends. Try using the following strategies in your business plan:
- Offer promotions that your consumers care about: When you meet customers’ demands for relevant offers, your business sees more success. Use a POS like POS+ to track sales and create promotions based on the items that sell best.
- Focus on customer service: Customers visit your store to get the experience only small businesses can offer. You provide a sense of community that online shops and car dealers don’t. Giving your customers good service encourages them to call you their favorite brick-and-mortar store.
- Invest in your business: Thanks to lower loan rates, now may be the time to invest. Research the changes in business loan prices in the past few years to see if you can get a good deal in your area. NRS also offers quick and easy business loans.