Randy Eller

Concerning our economy, I think everyone knew in the fall and early days of the year we were headed for serious trouble. Now, as a new administration and many new brains try to figure out what to do, there appears to be a bit of a calm while everyone waits to see what's coming next. Regardless of what happens, some people will believe in the plan and some won't. The backside of our storm will simply be the time it takes for things to improve.

So, what do we do as all this sorts out?

I'm seeing lots of cost-cutting in all sectors. That is smart, but don't overdo it. I can tell you honestly that I'm seeing some companies go too far and they are hurting their brand.

Don't cut costs so much that you harm customer service. Customers will remember companies who continued to take good care of them even in troubled times.

Whatever money you do spend, spend it wisely. I see many vendors giving discounts to retailers to gain business. By doing so, you — and the retailer that accepts it — are implying that the only problem right now in business is a pricing issue.

The biggest problem in our industry is a lack of traffic in the stores. Consider helping to fund a retailer's store event instead of price cuts. Cheaper pricing will not help our retailers if the traffic is not there.

Maintain your brand. Again, regardless of what type of business you are, do not totally stop your advertising and marketing. Branding and “staying in the face” of your current customers and potential customers is critical when there are fewer dollars to go around.

Keep your product offerings fresh. We all know this industry thrives on new products at every level. Cut back on new product development now and your business will begin to suffer, not because of the economy, but because of the self fulfilling prophecy you created. Focus on giving discounted pricing to your consumers on slow moving products you already have instead of asking vendors for additional discounts on fresh new items.

Use this downturn to court new customers. This is an excellent time, while things are slow, to identify and go after potential new customers. If you're a retailer, find a way to identify all new people moving into your area, and send them a card or possibly even a small housewarming gift.

If you're a vendor, now is the time to go after that new channel of distribution that you never had the time to before, or take the opportunity to enter foreign markets. If you are a mart, know that vendors are looking for you to prove in a new and meaningful way the value of the rents you charge. The vendors need to feel value 365 days a year, not just during 15 to 20 days of shows.

Bottom line … When times are good and business is great, lots of sins get overlooked and businesses become complacent. When times are tough, there is no better opportunity for you to challenge everything you do and create new opportunities.

Businesses that are in trouble and only focus on surviving usually don't. Don't stop improving your products, your service and your customer's experience. At a time when we all have fewer customers, it's that much more important to impress them and keep them for life.

One last hurricane thought … Any of you who have ever been around in the days after a hurricane has passed, will know what I mean when I say they are usually very beautiful days — clear skies, calm waters, not much headwind. I've always believed this is God's way of letting us know that along with the damage that's been done, there are better days ahead and we will survive and prosper again. Be strong and we'll see you on the other side.